Australian Government Monthly Financial Statements April 2012

Senator the Hon Penny Wong
Minister for Finance and Deregulation

06/2012
29 June 2012

KEY POINTS

  • The underlying cash balance for the 2011-12 financial year to 30 April 2012 was a deficit of $27,745 million.
  • The fiscal balance for the 2011-12 financial year to 30 April 2012 was a deficit of $20,554 million.
AGGREGATES
ACTUAL
2011-2012
April
$m

ACTUAL
2011-2012
YTD April
$m
Revised Budget
Profile
2011-2012
YTD April
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Revenue  42,291 284,136 284,088 336,418
Expenses 28,738 303,160 303,465 373,671
Net operating balance  13,553 -19,024 -19,377 -37,253
Net capital investment  270 1,530 1,545 4,749
Fiscal balance  13,283 -20,554 -20,923 -42,002
Underlying Cash Receipts 38,877 272,028 272,055 326,936
Underlying Cash Payments 28,258 299,773 299,694 371,337
Underlying cash balance(a) 10,619 -27,745 -27,639 -44,402
Headline cash balance  9,503 -31,232 -30,945 -48,406
Total assets 336,205 325,811
Total liabilities 468,290 467,580
Net worth(b)   -132,085   -141,769
Net debt(c)   128,741   142,493

*As published in the 2012-13 Budget.
(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 April 2012 was a deficit of $27,745 million, compared to the Revised Budget profile of the underlying cash balance deficit of $27,639 million.

Fiscal Balance

The fiscal balance for the year to 30 April 2012 was a deficit of $20,554 million. The Revised Budget profile of the fiscal balance for 2011-12 is a deficit of $20,923 million. The difference of $369 million primarily relates to lower than anticipated grants expenditure and supply of goods and services expenditure.

FINANCIAL OUTCOMES

Assets and Liabilities

The net worth of the General Government sector is a negative net asset position of $132,085 million at 30 April 2012.


Senator Penny Wong
Minister for Finance and Deregulation
29 June 2012

David Tune
Secretary to the Department of Finance and Deregulation
29 June 2012

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


Australian Government General Government Sector – INCOME STATEMENT

 
ACTUAL
2011-2012
April
$m

ACTUAL
2011-2012
YTD April
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Revenue  
Taxation revenue 40,656 267,617 316,454
Sales of goods and services 702 6,788 8,256
Interest income 373 3,694 4,703
Dividend income 97 1,390 1,669
Other 463 4,646 5,336
Total revenue 42,291 284,136 336,418
Expenses  
Gross operating expenses  
Wages and salaries(a) 1,508 15,026 18,814
Superannuation 379 3,672 4,316
Depreciation and amortisation 541 5,001 6,003
Supply of goods and services 5,330 57,536 69,984
Other operating expenses(a) 444 4,231 5,750
Total gross operating expenses 8,202 85,466 104,867
Superannuation interest expense 613 6,125 7,358
Interest expenses 1,071 10,895 13,009
Current transfers  
Current grants 8,123 88,299 110,686
Subsidy expenses 706 7,997 10,121
Personal benefits 8,880 92,300 112,450
Total current transfers 17,708 188,596 233,258
Capital transfers  
Mutually agreed write-downs 238 1,691 2,139
Other capital grants 907 10,387 13,040
Total capital transfers 1,145 12,078 15,179
Total expenses 28,738 303,160 373,671
Net operating balance 13,553 -19,024 -37,253
Other economic flows  
Gain/loss on equity and on sale of assets(b) -209 233 -308
Net write-downs of assets(including bad and doubtful debts) -390 -3,490 -4,822
Assets recognised for the first time 60 340 507
Actuarial revaluations 0 0 -6,087
Net foreign exchange gains 361 100 70
Net swap interest received 15 82 67
Market valuation of debt -4,016 -14,243 -15,396
Other economic revaluations(c)  -461 -698 399
Total other economic flows -4,640 -17,675 -25,571
Comprehensive result - Total change in net worth 8,913 -36,699 -62,823
Net operating balance 13,553 -19,024 -37,253
Net acquisition of non-financial assets  
Purchases of non-financial assets 634 6,276 10,304
less Sales of non-financial assets 29 197 589
less Depreciation 541 5,001 6,003
plus Change in inventories 204 376 604
plus Other movements in non-financial assets 1 75 433
Total net acquisition of non-financial assets 270 1,530 4,749
Fiscal balance (Net lending/borrowing)(d) 13,283 -20,554 -42,002

*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 April 2012
$m
REVISED BUDGET
ESTIMATE*
as at
30 June 2012
$m
Assets  
Financial assets  
Cash and deposits 4,754 2,470
Advances paid 28,655 29,711
Investments, loans and placements 102,659 99,962
Other receivables 42,343 36,031
Equity investments  
Investments in other public sector entities 22,341 20,602
Equity accounted investments 310 317
Investments - shares 28,254 27,190
Total financial assets 229,316 216,282
Non-financial assets  
Land 8,505 8,609
Buildings 22,425 22,947
Plant, equipment and infrastructure  50,727 52,363
Inventories 7,101 7,069
Intangibles 5,043 5,347
Investment property 590 314
Biological assets 97 36
Heritage and cultural assets 9,598 9,567
Assets held for sale 183 146
Other non-financial assets 2,618 3,131
Total non-financial assets 106,889 109,528
Total assets 336,205 325,811
Liabilities  
Interest bearing liabilities  
Deposits held 222 209
Government securities 255,087 265,844
Loans 8,772 7,764
Other borrowing 728 818
Total interest bearing liabilities 264,809 274,635
Provisions and payables  
Superannuation liability(a) 149,352 138,515
Other employee liabilities  11,172 12,623
Suppliers payable 3,949 4,607
Personal benefits provisions and payable 12,855 12,436
Subsidies provisions and payable 2,289 2,318
Grants provisions and payable 11,639 10,938
Other provisions and payables 12,224 11,508
Total provisions and payables 203,481 192,944
Total liabilities 468,290 467,580
Net worth(b) -132,085 -141,769
Net financial worth(c) -238,974 -251,297
Net financial liabilities(d)  261,315 271,899
Net debt(e) 128,741 142,493

*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
2011-2012
April
$m
ACTUAL
2011-2012
YTD April
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Cash receipts from operating activities      
Taxes received 37,681 257,966 309,653
Receipts from sales of goods and services 595 6,608 8,040
Interest receipts 320 2,993 4,343
Dividends and income tax equivalents -6 1,653 2,222
Other receipts 321 4,371 5,129
Total operating receipts 38,911 273,591 329,386
Cash payments for operating activities  
Payments for employees -1,936 -20,867 -25,505
Payments for goods and services -4,979 -59,421 -70,020
Grants and subsidies paid -10,044 -107,511 -136,299
Interest paid -1,761 -8,517 -10,846
Personal benefit payments -8,475 -92,488 -112,588
Other payments  -420 -3,947 -5,078
Total operating payments -27,614 -292,753 -360,336
Net cash flows from operating activities 11,297 -19,162 -30,950
Cash flows from investments in non-financial assets  
Sales of non-financial assets 29 197 589
Purchases of non-financial assets -639 -7,008 -10,882
Net cash flows from investments in
  non-financial assets
-609 -6,812 -10,293
Net cash flows from investments in
   financial assets for policy purposes
-1,179 -5,247 -7,044
Cash flows from investments in
   financial assets for liquidity purposes
 
Increase in investments 2,514 -4,138 1,035
Net cash flows from investments in
   financial assets for liquidity purposes
2,514 -4,138 1,035
Cash flows from financing activities  
Borrowing (net) -9,332 38,307 48,141
Other financing (net) -140 -671 -896
Net cash flows from financing activities -9,473 37,636 47,245
Net increase/(decrease) in cash held 2,550 2,277 -7
Net cash flows from operating activities
 and investments in non-financial assets
   (Surplus(+)/deficit(-))
10,687 -25,974 -41,243
Finance leases and similar arrangements(b) -5 -12 -119
GFS cash surplus(+)/deficit(-) 10,682 -25,985 -41,362
less Future Fund earnings 63 1,760 3,040
Equals underlying cash balance (c) 10,619 -27,745 -44,402
 plus net cash flows from investments in
  financial assets for policy purposes
-1,179 -5,247 -7,044
plus Future fund earnings 63 1,760 3,040
Equals headline cash balance 9,503 -31,232 -48,406

*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
2011-2012
April
$m
ACTUAL
2011-2012
YTD April
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Expenses by function      
General public services 2,529 17,299 21,944
Defence 809 17,016 21,656
Public order and safety 550 3,251 4,072
Education  2,162 25,197 29,259
Health  4,852 48,763 61,168
Social security and welfare  9,267 103,751 126,879
Housing and community amenities 1,625 4,833 6,238
Recreation and culture 426 2,617 3,705
Fuel and energy 506 4,980 6,633
Agriculture, forestry and fishing 174 2,117 3,255
Mining, manufacturing and construction 133 1,846 2,114
Transport and communication 935 5,457 9,178
Other economic affairs 842 7,862 9,758
Other purposes  
Public debt interest 957 9,553 11,510
Nominal superannuation interest 613 6,125 7,358
General purpose inter-government transactions 2,360 40,591 49,555
Natural disaster relief  0 1,903 815
Contingency reserve 0 0 -1,426
Total expenses 28,738 303,160 373,671

*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
2011-2012
April
$m
ACTUAL
2011-2012
YTD April
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Individuals and other withholding taxes      
Gross income tax withholding  11,670 118,735 143,220
Gross other individuals 5,333 26,424 33,610
Less refunds 919 23,251 25,600
Total individuals and other withholding taxation 16,084 121,908 151,230
Company tax  13,477 60,427 67,950
Superannuation funds 1,273 7,493 7,390
Resource rent tax  313 1,577 1,840
Fringe benefits tax 826 3,362 3,540
Total income taxation revenue 31,973 194,767 231,950

*As published in the 2012-13 BUDGET.

Note 2: Indirect Tax

ACTUAL
2011-2012
April
$m
ACTUAL
2011-2012
YTD April
$m
REVISED BUDGET
ESTIMATE*
2011-2012
FULL YEAR
$m
Goods and services tax 5,283 41,907 47,790
Wine equalisation tax 80 611 730
Luxury car tax 53 375 440
Excise duty 2,388 21,765 25,860
Customs duty 613 5,882 6,940
Other indirect tax 266 2,311 2,744
Total indirect taxation revenue 8,683 72,850 84,504

*As published in the 2012-13 BUDGET.

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].