Australian Government General Government Sector Monthly Financial Statements December 2014

Senator the Hon Mathias Cormann
Minister for Finance

MC 1/15
Friday, 30 January 2015

Australian Government General Government Sector Monthly Financial Statements
December 2014

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Key Points

  • The underlying cash balance for the 2014-15 financial year to 31 December 2014 was a deficit of $31,366 million.
  • The fiscal balance for the 2014-15 financial year to 31 December 2014 was a deficit of $29,713 million.
AGGREGATES

ACTUAL
2014-2015
December
$m


ACTUAL
2014-2015
YTD December
$m

MYEFO
PROFILE
2014-2015
YTD December
$m

MYEFO
ESTIMATE*
2014-2015
Full Year
$m
Revenue  28,594 179,547 180,532 385,876
Expenses 36,661 208,211 208,246 422,898
Net operating balance  -8,067 -28,664 -27,714 -37,022
Net capital investment  375 1,049 1,234 2,784
Fiscal balance  -8,442 -29,713 -28,948 -39,806
Receipts(a) 29,904 178,870 178,189 379,483
Payments(b) 35,834 207,797 207,132 416,526
Net Future Fund earnings 654 2,439 2,325 3,319
Underlying cash balance(c) -6,585 -31,366 -31,268 -40,362
Headline cash balance  -6,652 -27,328 -28,627 -43,863
Total assets   406,402   422,234
Total liabilities   700,227   651,715
Net worth(d)   -293,825   -229,481
Net debt(e)   239,160   244,836

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (MYEFO).
(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 Budget documents, 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.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 31 December 2014 was a deficit of $31,366 million, compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $31,268 million. The difference of $98 million relates to higher than expected cash payments excluding net Future Fund earnings.

Fiscal Balance

The fiscal balance for the year to 31 December 2014 was a deficit of $29,713 million, compared to the MYEFO profile deficit of $28,948 million. The difference of $765 million is largely due to lower than expected revenue.

  • Revenues
    Total revenue was $985 million lower than the MYEFO profile, primarily due to lower than expected taxation revenue and interest income.
  • Expenses
    Total expenses were $35 million lower than the MYEFO profile, due to lower than expected personal benefits and subsidy expenses and interest expense, partially offset by higher superannuation and other operating expenses.

Assets and Liabilities

As at 31 December 2014:

  • Net worth is negative $293,825 million;
  • Net debt is $239,160 million; and
  • Net financial liabilities are $443,037 million. 

 

Senator the Hon Mathias Cormann
Minister for Finance

30 January 2015
Jane Halton
Secretary
Department of Finance
30 January 2015
 
 
 
Contact: Senator the Hon Mathias Cormann's Office:
              Department of Finance
Karen Wu     (02) 6277 7400
Amelia Gard (02) 6215 2222

Australian Government general government sector operating statement

 Note
ACTUAL
2014-2015
December
$m

ACTUAL
2014-2015
YTD December
$m
MYEFO
PROFILE
2014-2015
YTD December
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Revenue          
Taxation revenue 1, 2 26,830 167,662 168,332 361,959
Sales of goods and services   720 4,431 4,344 9,190
Interest income   310 1,733 2,173 3,987
Dividend income   278 2,311 2,377 3,396
Other   457 3,411 3,306 7,344
Total revenue   28,594 179,547 180,532 385,876
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,481 9,271 9,373 19,221
Superannuation   479 2,919 2,546 6,777
Depreciation and amortisation   591 3,324 3,365 6,787
Supply of goods and services   6,420 39,238 39,130 80,809
Other operating expenses(a)   408 2,838 2,679 5,472
Total gross operating expenses   9,378 57,590 57,093 119,067
Superannuation interest expense   747 4,481 4,562 8,989
Interest expenses   1,619 7,886 8,039 16,387
Current transfers          
Current grants   9,979 58,735 58,747 124,201
Subsidy expenses   1,070 6,217 6,384 12,200
Personal benefits   13,110 68,515 68,639 131,506
Total current transfers   24,159 133,467 133,770 267,907
Capital transfers          
Mutually agreed write-downs   187 1,156 1,139 2,564
Other capital grants   570 3,632 3,643 7,984
Total capital transfers   757 4,788 4,782 10,548
Total expenses 3 36,661 208,211 208,246 422,898
Net operating balance   -8,067 -28,664 -27,714 -37,022
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -220 -3,000 -2,196 -6,154
Assets recognised for the first time   8 172 157 321
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   -612 -2,037 27 28
Net swap interest received   -195 -427 -170 -170
Market valuation of debt   -5,420 -13,440 -6,596 -5,344
Other gains/(losses)   2,227 13,634 9,375 13,446
Total other economic flows           
 - included in operating result   -4,211 -5,098 598 2,127
Operating result   -12,278 -33,762 -27,116 -34,894
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   0 -13 0 -2,140
Actuarial revaluations   0 0 0 206
Other economic revaluations(d)   202 -4,004 -3,440 -3,243
Total other economic flows - included in equity   202 -4,017 -3,440 -5,177
Comprehensive result - Total change in net worth   -12,076 -37,779 -30,556 -40,071
Net operating balance   -8,067 -28,664 -27,714 -37,022
Net acquisition of non-financial assets          
Purchases of non-financial assets   874 4,229 4,656 11,222
less Sales of non-financial assets   -36 229 267 2,317
less Depreciation   591 3,324 3,365 6,787
plus Change in inventories   31 213 106 471
plus Other movements in non-financial assets   25 160 104 195
Total net acquisition of non-financial assets   375 1,049 1,234 2,784
Fiscal balance (Net lending/borrowing)(e)   -8,442 -29,713 -28,948 -39,806

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (MYEFO).
(a) Consistent with Australian Bureau of Statistics' (ABS) Government Finance Statistics (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 Australian Accounting Standard 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
31 December 2014
$m
MYEFO ESTIMATE*
as at
30 June 2015
$m
Assets    
Financial assets    
Cash and deposits 7,048 3,825
Advances paid 42,134 46,208
Investments, loans and placements 120,023 130,197
Other receivables 46,248 46,024
Equity investments    
Investments in other public sector entities 34,097 35,478
Equity accounted investments 314 327
Investments - shares 41,423 41,724
Total financial assets 291,287 303,784
Non-financial assets    
Land 9,340 9,299
Buildings 25,078 26,125
Plant, equipment and infrastructure  54,587 56,518
Inventories 8,293 8,337
Intangibles 6,130 6,359
Investment property 201 198
Biological assets 31 36
Heritage and cultural assets 10,840 10,842
Assets held for sale 57 133
Other non-financial assets 558 604
Total non-financial assets 115,115 118,450
Total assets 406,402 422,234
Liabilities    
Interest bearing liabilities    
Deposits held 222 211
Government securities 395,718 409,609
Loans 10,759 13,693
Other borrowing 1,666 1,553
Total interest bearing liabilities 408,365 425,066
Provisions and payables    
Superannuation liability(a) 225,687 163,240
Other employee liabilities  15,007 15,977
Suppliers payable 6,799 4,905
Personal benefits provisions and payable 12,162 13,234
Subsidies provisions and payable 4,196 4,397
Grants provisions and payable 13,033 11,671
Other provisions and payables 14,979 13,225
Total provisions and payables 291,862 226,649
Total liabilities 700,227 651,715
Net worth(b) -293,825 -229,481
Net financial worth(c) -408,940 -347,931
Net financial liabilities(d)  443,037 383,409
Net debt(e) 239,160 244,836

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (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
2014-2015
December
$m

ACTUAL
2014-2015
YTD December
$m
MYEFO
PROFILE
2014-2015
YTD December
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Cash receipts from operating activities        
Taxes received 27,913 164,100 163,251 353,594
Receipts from sales of goods and services 740 4,401 4,300 9,114
Interest receipts 240 1,438 1,914 3,469
Dividends and income tax equivalents 528 3,118 3,112 3,831
Other receipts 526 3,764 3,504 7,261
Total operating receipts 29,948 176,821 176,082 377,269
Cash payments for operating activities        
Payments for employees -2,589 -13,476 -13,131 -26,691
Payments for goods and services -7,484 -40,595 -39,772 -80,557
Grants and subsidies paid -10,820 -68,940 -70,182 -146,215
Interest paid -659 -6,952 -6,953 -14,221
Personal benefit payments -13,131 -70,515 -69,857 -132,142
Other payments  -284 -2,848 -2,460 -5,280
Total operating payments -34,967 -203,326 -202,356 -405,106
Net cash flows from operating activities -5,019 -26,505 -26,274 -27,837
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets -44 2,049 2,106 2,215
Purchases of non-financial assets -857 -4,446 -4,775 -11,420
Net cash flows from investments in
    non-financial assets
-900 -2,397 -2,668 -9,205
Net cash flows from investments in
   financial assets for policy purposes
-721 1,599 316 -6,821
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments 6,512 -87 -3,533 -7,736
Net cash flows from investments in
   financial assets for liquidity purposes
6,512 -87 -3,533 -7,736
Cash flows from financing activities        
Borrowing (net) 3,590 31,456 32,653 53,855
Other financing (net) 15 -862 -977 0
Net cash flows from financing activities 3,605 30,594 31,676 51,580
Net increase/(decrease) in cash held 3,476 3,203 -483 -19
Net cash flows from operating activities
  and investments in non-financial assets
    (Surplus(+)/deficit(-))
-5,920 -28,902 -28,942 -37,042
Finance leases and similar arrangements(b) -11 -24 -1 0
GFS cash surplus(+)/deficit(-) -5,931 -28,927 -28,943 -37,042
less Net Future Fund earnings 654 2,439 2,325 3,319
Equals underlying cash balance(c) -6,585 -31,366 -31,268 -40,362
 plus Net cash flows from investments in
   financial assets for policy purposes
-721 1,599 316 -6,821
plus Net Future Fund earnings 654 2,439 2,325 3,319
Equals headline cash balance -6,652 -27,328 -28,627 -43,863

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (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 Australian Bureau of Statistics.

 

Note 1: Income Tax

         
 
ACTUAL
2014-2015
December
$m

ACTUAL
2014-2015
YTD December
$m
MYEFO
PROFILE
2014-2015
YTD December
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  14,730 84,722 84,484 168,430
Gross other individuals 78 15,766 17,124 40,470
less Refunds 1,272 20,484 20,470 27,500
Total individuals and other withholding taxation 13,536 80,004 81,138 181,400
Company tax 5,708 32,238 31,435 70,930
Superannuation funds 485 3,875 4,095 7,130
Resource rent taxes 27 1,125 1,066 1,830
Fringe benefits tax 33 2,107 2,096 4,480
Total income taxation revenue 19,790 119,349 119,830 265,770

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (MYEFO).

 

Note 2: Indirect Tax

 
ACTUAL
2014-2015
December
$m

ACTUAL
2014-2015
YTD December
$m
MYEFO
PROFILE
2014-2015
YTD December
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Goods and services tax 2,995 28,262 28,609 56,820
Wine equalisation tax 73 382 387 810
Luxury car tax 39 260 255 400
Excise duty 2,498 12,289 12,448 25,360
Customs duty 1,099 5,032 4,764 9,060
Other indirect tax 336 2,090 2,039 3,740
Total indirect taxation revenue 7,040 48,313 48,503 96,190

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (MYEFO).

 

Note 3: Total expenses by function

 
ACTUAL
2014-2015
December
$m

ACTUAL
2014-2015
YTD December
$m
MYEFO
ESTIMATE*
2014-2015
Full Year
$m
Expenses by function      
General public services 1,582 10,191 25,749
Defence 2,054 12,287 24,994
Public order and safety 427 2,239 4,539
Education  3,027 15,850 31,200
Health  5,016 32,592 67,052
Social security and welfare  14,745 77,686 149,913
Housing and community amenities 369 2,362 4,984
Recreation and culture 279 1,600 3,601
Fuel and energy 581 3,337 7,125
Agriculture, Forestry and Fishing 242 1,153 2,828
Mining, manufacturing and construction 266 1,348 2,781
Transport and communication 651 1,570 7,292
Other economic affairs 907 5,782 10,544
Other purposes      
Public debt interest 1,217 7,270 14,733
Nominal superannuation interest 747 4,481 8,989
General purpose inter-government transactions 4,550 28,463 57,157
Natural disaster relief 0 0 83
Contingency reserve 0 0 -665
Total expenses 36,661 208,211 422,898

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (MYEFO).

NOTES:

Australian Accounting Standard 1049

The Australian Government Monthly Financial Statements have been prepared on a basis consistent with the Budget as required under section 47 of the Public Governance, Performance and Accountability Act 2013. 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.

Taxation Revenue

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 therefore estimates, in accordance with the best judgement of the Commissioner of Taxation, and subject to revision. The taxation revenue items not affected are: petroleum resource rent tax, excise duty, customs duty, other taxes and individuals refunds.

Style Conventions

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)

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. Australia applies a special flexibility option which allows it to publish late the last and first month of a financial year.

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 link icon. 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 Australian Office of Financial Management website at http://www.aofm.gov.au/content/borrowing/commonwealth.asp?NavID=32 external link icon.

Last updated: 23 February 2015