Australian Government General Government Sector Monthly Financial Statements November 2013

Senator the Hon Mathias Cormann
Minister for Finance

11/2013
10 January 2014

Australian Government General Government Sector Monthly Financial Statements
November 2013

KEY POINTS

  • The underlying cash balance for the 2013-14 financial year to 30 November 2013 was a deficit of $22,981 million.
  • The fiscal balance for the 2013-14 financial year to 30 November 2013 was a deficit of $16,703 million.
AGGREGATES
ACTUAL
2013-2014
November
$m

ACTUAL
2013-2014
YTD November
$m

BUDGET
PROFILE
2013-2014
YTD November
$m
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Revenue 27,710 148,969 154,988 387,749
Expenses 30,826 165,053 169,037 398,301
Net operating balance  -3,116 -16,085 -14,049 -10,552
Net capital investment  469 619 701 2,945
Fiscal balance  -3,585 -16,703 -14,750 -13,497
Receipts(a) 25,169 141,906 145,986 375,993
Payments(b) 29,783 163,932 164,773 391,198
Net Future Fund earnings -109 955 1,305 2,838
Underlying cash balance(c) -4,506 -22,981 -20,093 -18,043
Headline cash balance  -5,044 -24,527 -22,642 -25,278
Total assets   386,234   376,601
Total liabilities   596,737   550,059
Net worth(d)   -210,503   -173,458
Net debt(e)   168,970   178,104

*As published in the 2013-14 Budget. 
(a) Cash receipts for operating activities and sales of non-financial assets.
(b) Cash payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases.
(c) Excludes net Future Fund earnings. Consistent with the 2013-14 Budget, the net adjustment for the Future Fund is shown separately.
(d) Net worth is calculated as total assets minus total liabilities.
(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.

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.

Comparators for the November 2013 Monthly Financial Statements are based on the 2013-14 Budget published in May 2013. The 2013-14 Mid-Year Economic and Fiscal Outlook profiles will be available from the December 2013 Monthly Financial Statements onwards.

 

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 30 November 2013 was a deficit of $22,981 million, compared to the Budget profile deficit of $20,093 million. The difference of $2,888 million relates to lower than expected cash receipts partially offset by lower than expected cash payments.

Fiscal Balance

The fiscal balance for the year to 30 November 2013 was a deficit of $16,703 million, compared to the Budget profile deficit of $14,750 million. The difference of $1,953 million relates to lower than expected revenue, partially offset by lower than expected expenses.

  • Revenues
    Total revenue was $6,020 million lower than the Budget profile primarily due to lower than expected taxation revenue. This reflects lower wages growth, company profitability and resource rent taxes.
  • Expenses
    Total expenses were $3,984 million lower than the Budget profile primarily due to lower than expected grants, subsidies and personal benefits. This is in part consistent with reduced expenditure during the election caretaker period and subsequent timing differences, particularly for grants and subsidies.

Assets and Liabilities

The net worth of the Australian Government general government sector is a negative net asset position of $210,503 million as at 30 November 2013. The net debt of the Australian Government general government sector is $168,970 million as at 30 November 2013.



Senator the Hon Mathias Cormann
Minister for Finance
10 January 2014

Jenet Connell
Acting Secretary to the Department of Finance
10 January 2014

Contact: Senator the Hon Mathias Cormann's Office:
Department of Finance:
Karen Wu - (02) 6277 7400
Amelia Huang - (02) 6215 2222

Australian Government General Government Sector – OPERATING STATEMENT

 
ACTUAL
2013-2014
November
$m

ACTUAL
2013-2014
YTD November
$m

BUDGET
PROFILE
2013-2014
YTD November
$m
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Revenue        
Taxation revenue 25,612 139,746 146,123 366,664
Sales of goods and services 790 3,751 3,498 8,577
Interest income 316 1,349 1,830 4,313
Dividend income 197 978 1,206 2,426
Other 795 3,145 2,331 5,768
Total revenue 27,710 148,969 154,988 387,749
Expenses        
Gross operating expenses        
Wages and salaries(a) 1,570 8,065 8,321 19,772
Superannuation 511 2,340 1,706 4,039
Depreciation and amortisation 577 2,637 2,415 5,813
Supply of goods and services 5,986 31,098 31,864 75,918
Other operating expenses(a) 448 2,305 2,324 5,467
Total gross operating expenses 9,093 46,444 46,630 111,009
Superannuation interest expense 684 3,418 3,526 8,462
Interest expenses 1,140 5,659 5,696 14,008
Current transfers        
Current grants 8,799 45,809 48,155 118,137
Subsidy expenses 1,311 7,105 7,735 14,944
Personal benefits 8,927 52,551 53,113 121,699
Total current transfers 19,036 105,465 109,003 254,780
Capital transfers        
Mutually agreed write-downs 217 1,046 974 2,137
Other capital grants 655 3,022 3,208 7,905
Total capital transfers 872 4,067 4,182 10,042
Total expenses 30,826 165,053 169,037 398,301
Net operating balance -3,116 -16,085 -14,049 -10,552
Other economic flows
- included in operating result(b)
       
Net write-downs of assets (including bad and doubtful debts) -721 -2,545 -3,664 -7,488
Assets recognised for the first time 47 260 233 559
Net foreign exchange gains -1,182 -350 73 73
Net swap interest received 70 -338 0 0
Market valuation of debt 2,290 5,254 1,270 2,924
Other gains/(losses) 2,684 5,862 1,676 3,655
Total other economic flows - included in operating result 3,187 8,143 -14,461 -278
Operating result 70 -7,942 -14,461 -10,830
Non-owner movements in equity(b)        
Revaluation of equity investments(c) -50 0 0 -2,223
Actuarial revaluations 0 0 0 140
Other economic revaluations(d) 16 89 67 567
Total other economic flows - included in equity -35 89 67 -1,517
Comprehensive result - Total change in net worth 36 -7,853 -14,394 -12,347
Net operating balance -3,116 -16,085 -14,049 -10,552
Net acquisition of non-financial assets        
Purchases of non-financial assets 1,045 3,445 2,976 8,755
less Sales of non-financial assets 50 145 117 346
less Depreciation 577 2,637 2,415 5,813
plus Change in inventories 24 -95 117 270
plus Other movements in non-financial assets 28 51 140 78
Total net acquisition of non-financial assets 469 619 701 2,945
Fiscal balance (Net lending/borrowing)(e) -3,585 -16,703 -14,750 -13,497

*As published in the 2013-14 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) The presentation of other economic flows has changed to align more closely with AASB 1049.
(c) Reflects changes in the market valuation of investments and any revaluations at the point of disposal or sale.
(d) Largely reflects other revaluation of assets and liabilities.
(e) The term fiscal balance is not used by the ABS.

 

Australian Government General Government Sector - BALANCE SHEET

 
ACTUAL
as at
30 November 2013
$m
BUDGET
ESTIMATE*
as at
30 June 2014
$m
Assets    
Financial assets    
Cash and deposits 3,777 2,679
Advances paid 36,225 41,017
Investments, loans and placements 124,891 112,965
Other receivables(a) 48,085 46,756
Equity investments    
Investments in other public sector entities 26,333 26,208
Equity accounted investments 297 331
Investments - shares 36,276 34,026
Total financial assets 275,885 263,982
Non-financial assets    
Land 8,911 8,719
Buildings 24,063 24,454
Plant, equipment and infrastructure  52,896 54,888
Inventories 7,624 7,206
Intangibles 5,651 5,712
Investment property 206 182
Biological assets 31 37
Heritage and cultural assets 10,548 10,465
Assets held for sale 85 83
Other non-financial assets(a) 334 873
Total non-financial assets 110,349 112,619
Total assets 386,234 376,601
Liabilities    
Interest bearing liabilities    
Deposits held 232 192
Government securities 322,773 321,252
Loans 9,383 11,851
Other borrowing 1,476 1,470
Total interest bearing liabilities 333,864 334,765
Provisions and payables    
Superannuation liability(b) 195,967 148,710
Other employee liabilities  14,663 14,829
Suppliers payable 4,638 4,259
Personal benefits provisions and payable 13,020 13,952
Subsidies provisions and payable 5,577 3,475
Grants provisions and payable 14,248 15,892
Other provisions and payables 14,759 14,178
Total provisions and payables 262,873 215,294
Total liabilities 596,737 550,059
Net worth(c) -210,503 -173,458
Net financial worth(d) -320,852 -286,077
Net financial liabilities(e)  347,185 312,285
Net debt(f) 168,970 178,104

*As published in the 2013-14 Budget.
(a) As a result of the 2013-14 Budget there has been a reclassification between other non-financial assets and other receivables.
(b) 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.
(c) Net worth is calculated as total assets minus total liabilities.
(d) Net financial worth equals total financial assets minus total liabilities.
(e) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(f) 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
2013-2014
November
$m
ACTUAL
2013-2014
YTD November
$m

BUDGET
PROFILE
2013-2014
YTD November
$m
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Cash receipts from operating activities        
Taxes received 23,829 131,857 136,530 354,854
Receipts from sales of goods and services 769 3,697 3,650 8,639
Interest receipts 296 1,205 1,720 4,074
Dividends and income tax equivalents -114 1,323 1,218 2,526
Other receipts 338 3,678 2,691 5,496
Total operating receipts 25,118 141,761 145,810 375,589
Cash payments for operating activities        
Payments for employees -1,949 -11,273 -11,310 -26,909
Payments for goods and services -5,134 -31,083 -32,514 -76,293
Grants and subsidies paid -10,624 -55,751 -57,095 -139,740
Interest paid -595 -4,929 -4,868 -11,909
Personal benefit payments -10,230 -54,733 -53,777 -122,319
Other payments  -191 -2,528 -2,098 -5,271
Total operating payments -28,723 -160,297 -161,663 -382,442
Net cash flows from operating activities -3,605 -18,536 -15,853 -6,853
Cash flows from investments in non-financial assets        
Sales of non-financial assets 50 145 176 405
Purchases of non-financial assets -1,059 -3,557 -2,939 -8,288
Net cash flows from investments in non-financial assets -1,009 -3,413 -2,762 -7,883
Net cash flows from investments in financial assets for policy purposes -429 -2,501 -3,855 -10,073
Cash flows from investments in financial assets for liquidity purposes        
Increase in investments -8,853 -15,603 -377 -4,919
Net cash flows from investments in financial assets for liquidity purposes -8,853 -15,603 -377 -4,919
Cash flows from financing activities        
Borrowing (net) 14,009 42,493 22,865 31,996
Other financing (net) -67 -770 -808 -2,059
Net cash flows from financing activities 13,943 41,723 22,056 29,937
Net increase/(decrease) in cash held 47 1,670 -791 209
Net cash flows from operating activities and investments in non-financial assets(Surplus(+)/deficit(-)) -4,614 -21,948 -18,615 -14,736
Finance leases and similar arrangements(b) -1 -78 -172 -469
GFS cash surplus(+)/deficit(-) -4,615 -22,026 -18,788 -15,205
less Net Future Fund earnings -109 955 1,305 2,838
Equals underlying cash balance (c) -4,506 -22,981 -20,093 -18,043
plus Net cash flows from investments in
  financial assets for policy purposes
-429 -2,501 -3,855 -10,073
plus Net Future Fund earnings -109 955 1,305 2,838
Equals headline cash balance -5,044 -24,527 -22,642 -25,278

*As published in the 2013-14 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
2013-2014
November
$m
ACTUAL
2013-2014
YTD November
$m
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Expenses by function      
General public services 1,581 9,394 23,023
Defence 1,884 8,933 22,045
Public order and safety 271 1,732 4,272
Education  1,288 12,149 29,742
Health  5,369 26,597 64,636
Social security and welfare  10,232 59,071 138,145
Housing and community amenities 1,355 4,794 8,775
Recreation and culture 39 1,109 3,696
Fuel and energy 723 3,173 7,586
Agriculture, forestry and fishing 171 895 2,654
Mining, manufacturing and construction 36 683 2,431
Transport and communication 347 1,137 6,453
Other economic affairs 864 4,611 11,283
Other purposes      
Public debt interest 1,082 5,204 12,456
Nominal superannuation interest 684 3,418 8,462
General purpose inter-government transactions 4,901 22,155 52,397
Natural disaster relief 0 0 147
Contingency reserve 0 0 98
Total expenses 30,826 165,053 398,301

* As published in the 2013-14 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.

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 November.

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 Operating Statement.

 

Note 1: Income Tax

 ACTUAL
2013-2014
November
$m
ACTUAL
2013-2014
YTD November
$m

BUDGET
PROFILE
2013-2014
YTD November
$m
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  13,155 66,008 68,579 164,660
Gross other individuals 2,363 14,745 14,859 37,490
Less refunds 2,271 19,428 19,120 26,800
Total individuals and other withholding taxation 13,248 61,325 64,317 175,350
Company tax  2,242 28,662 29,757 73,969
Superannuation funds 676 3,313 4,483 8,480
Petroleum resource rent taxes -7 490 1,152 2,520
Minerals resource rent tax -6 254 450 900
Fringe benefits tax 67 1,881 1,969 4,320
Total income taxation revenue 16,220 95,925 102,129 265,539

*As published in the 2013-14 Budget.

 

Note 2: Indirect Tax

 ACTUAL
2013-2014
November
$m
ACTUAL
2013-2014
YTD November
$m

BUDGET
PROFILE
2013-2014
YTD November
$m
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Goods and services tax 5,330 23,739 23,719 53,080
Wine equalisation tax 88 305 280 780
Luxury car tax 32 181 170 400
Excise duty 2,204 10,967 11,084 26,050
Customs duty 797 3,810 3,796 8,830
Carbon pricing mechanism (a) 670 3,330 3,475 8,340
Other indirect tax 270 1,488 1,470 3,646
Total indirect taxation revenue 9,392 43,821 43,994 101,126

*As published in the 2013-14 Budget.
(a) Revenue from the carbon pricing mechanism has been estimated based on expected annual results.

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].

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Last updated: 23 February 2015