Australian Government General Government Sector Monthly Financial Statements July and August 2015

Senator the Hon Mathias Cormann
Minister for Finance

MC 51/15
Friday, 16 October 2015

Australian Government General Government Sector Monthly Financial Statements
July and August 2015

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Key Points 

  • The underlying cash balance for the 2015-16 financial year to 31 August 2015 was a deficit of $13,534 million.
  • The fiscal balance for the 2015-16 financial year to 31 August 2015 was a deficit of $11,643 million.
AGGREGATES

ACTUAL
 2015-2016
July
$m


ACTUAL
2015-2016
August
$m


ACTUAL
2015-2016
YTD August
$m

Budget Profile
2015-2016
YTD August
$m

BUDGET ESTIMATE*
2015-2016
Full Year
$m
Revenue  33,545 27,569 61,113 63,336 405,350
Expenses 39,313 34,181 73,495 73,559 434,469
Net operating balance  -5,768 -6,613 -12,381 -10,223 -29,118
Net capital investment  -501 -237 -739 62 3,854
Fiscal balance  -5,267 -6,376 -11,643 -10,286 -32,972
Receipts(a) 33,805 26,554 60,359 61,740 397,980
Payments(b) 41,239 32,147 73,387 74,112 429,836
Net Future Fund earnings 260 247 507 777 3,258
Underlying cash balance(c) -7,694 -5,840 -13,534 -13,149 -35,115
Headline cash balance  -8,852 -5,996 -14,848 -14,401 -44,764
Total assets 440,918   439,720   454,695
Total liabilities 750,676   760,274   716,135
Net worth(d) -309,758   -320,554   -261,440
Net debt(e) 249,029   256,256   285,802

*As published in the 2015-16 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 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 August 2015 was a deficit of $13,534 million, compared to the 2015-16 Budget profile deficit of $13,149 million. The difference of $385 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 31 August 2015 was a deficit of $11,643 million, compared to the Budget profile deficit of $10,286 million. The difference of $1,357 million is largely due to lower than expected revenues.

  • Revenues
    Total revenue was $2,223 million lower than the Budget profile, primarily due to lower than expected taxation and dividend revenue.
  • Expenses
    Total expenses were $64 million lower than the Budget profile, primarily due to lower than expected wages and salaries expenses and other capital grant expenses, partially offset by higher than expected personal benefit expenses.

Assets and Liabilities

As at 31 August 2015:

  • Net worth is negative $320,554 million;
  • Net debt is $256,256 million; and
  • Net financial liabilities are $480,320 million.

 

Senator the Hon Mathias Cormann
Minister for Finance

16 October 2015
Jane Halton
Secretary of the
Department of Finance
16 October 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
2015-2016
 July
$m

ACTUAL
2015-2016
August
$m

ACTUAL
2015-2016
YTD August
$m
Budget
Profile
2015-2016
YTD August
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Revenue            
Taxation revenue 1, 2 31,791 25,877 57,668 58,766 380,074
Sales of goods and services   917 757 1,674 1,545 9,542
Interest income   294 273 567 834 4,083
Dividend income   139 305 443 1,120 3,143
Other   404 356 760 1,070 8,508
Total revenue   33,545 27,569 61,113 63,336 405,350
Expenses            
Gross operating expenses            
Wages and salaries(a)   1,597 1,530 3,128 3,432 19,801
Superannuation   470 519 989 792 4,760
Depreciation and amortisation   603 650 1,253 1,190 7,182
Supply of goods and services   6,837 7,034 13,871 14,118 85,046
Other operating expenses(a)   558 488 1,046 953 5,510
Total gross operating expenses   10,065 10,221 20,286 20,485 122,298
Superannuation interest expense   771 771 1,541 1,645 9,869
Interest expenses   1,349 1,354 2,703 2,743 17,270
Current transfers            
Current grants   11,872 8,869 20,741 20,816 128,415
Subsidy expenses   1,013 1,010 2,022 2,038 12,654
Personal benefits   13,491 11,220 24,711 24,028 133,123
Total current transfers   26,376 21,098 47,474 46,882 274,191
Capital transfers            
Mutually agreed write-downs   171 167 338 347 2,199
Other capital grants   583 570 1,153 1,457 8,641
Total capital transfers   753 738 1,491 1,804 10,840
Total expenses 3 39,313 34,181 73,495 73,559 434,469
Net operating balance   -5,768 -6,613 -12,381 -10,223 -29,118
Other economic flows             
 - included in operating result(b)            
Net write-downs of assets (including bad and doubtful debts)   -395 -589 -984 -1,910 -8,638
Assets recognised for the first time   1 53 54 56 335
Liabilities recognised for the first time   0 0 0 0 0
Actuarial revaluations   0 0 0 0 0
Net foreign exchange gains   -1,055 -1,155 -2,211 46 46
Net swap interest received   -63 -169 -232 0 0
Market valuation of debt   -4,607 -1,900 -6,507 640 3,625
Other gains/(losses)   3,809 -178 3,630 1,701 5,604
Total other economic flows             
 - included in operating result   -2,311 -3,939 -6,250 533 972
Operating result   -8,079 -10,552 -18,631 -9,691 -28,147
Non-owner movements in equity(b)            
Revaluation of equity investments(c)   13 0 12 643 -2,221
Actuarial revaluations   0 0 0 12 105
Other economic revaluations(d)   659 -244 415 -187 135
Total other economic flows - included in equity   671 -244 427 469 -1,981
Comprehensive result - Total change in net worth   -7,408 -10,796 -18,204 -9,222 -30,128
Net operating balance   -5,768 -6,613 -12,381 -10,223 -29,118
Net acquisition of non-financial assets            
Purchases of non-financial assets   367 408 775 1,309 11,408
less Sales of non-financial assets   123 -14 109 91 491
less Depreciation   603 650 1,253 1,190 7,182
plus Change in inventories   -169 -21 -189 42 352
plus Other movements in non-financial assets   26 11 37 -8 -234
Total net acquisition of non-financial assets   -501 -237 -739 62 3,854
Fiscal balance (Net lending/borrowing)(e)   -5,267 -6,376 -11,643 -10,286 -32,972

*As published in the 2015-16 Budget.
(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 July 2015
$m

ACTUAL
as at
31 August 2015
$m
BUDGET ESTIMATE*
as at
30 June 2016
$m
Assets      
Financial assets      
Cash and deposits 3,214 2,966 3,435
Advances paid 47,142 47,362 52,901
Investments, loans and placements 137,681 138,969 137,947
Other receivables 48,196 48,777 45,980
Equity investments      
Investments in other public sector entities 41,364 41,598 45,471
Equity accounted investments 204 204 326
Investments - shares 44,892 41,676 46,537
Total financial assets 322,694 321,552 332,597
Non-financial assets      
Land 9,986 9,979 9,144
Buildings 25,598 25,594 26,927
Plant, equipment and infrastructure  56,034 56,032 59,766
Inventories 8,217 8,162 8,211
Intangibles 6,546 6,540 6,547
Investment property 201 202 195
Biological assets 45 43 36
Heritage and cultural assets 11,323 11,320 10,852
Assets held for sale 69 79 72
Other non-financial assets 205 216 348
Total non-financial assets 118,224 118,168 122,098
Total assets 440,918 439,720 454,695
Liabilities      
Interest bearing liabilities      
Deposits held 219 219 211
Government securities 423,623 432,068 464,298
Loans 11,565 11,608 14,148
Other borrowing 1,660 1,658 1,428
Total interest bearing liabilities 437,067 445,553 480,084
Provisions and payables      
Superannuation liability(a) 248,840 249,549 173,921
Other employee liabilities  16,521 16,667 16,105
Suppliers payable 5,343 5,012 4,914
Personal benefits provisions and payable 12,050 12,414 12,826
Subsidies provisions and payable 4,752 4,607 4,854
Grants provisions and payable 10,608 10,485 8,472
Other provisions and payables 15,495 15,987 14,959
Total provisions and payables 313,609 314,721 236,051
Total liabilities 750,676 760,274 716,135
Net worth(b) -309,758 -320,554 -261,440
Net financial worth(c) -427,982 -438,722 -383,538
Net financial liabilities(d)  469,346 480,320 429,009
Net debt(e) 249,029 256,256 285,802

*As published in the 2015-16 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
2015-2016
 July
$m

ACTUAL
2015-2016
August
$m

ACTUAL
2015-2016
YTD August
$m
Budget
Profile
2015-2016
YTD August
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Cash receipts from operating activities          
Taxes received 31,612 24,830 56,441 56,259 370,140
Receipts from sales of goods and services 767 803 1,570 1,571 9,475
Interest receipts 302 197 499 718 3,334
Dividends and income tax equivalents 227 230 457 2,523 4,623
Other receipts 775 554 1,329 466 8,549
Total operating receipts 33,682 26,613 60,296 61,536 396,121
Cash payments for operating activities          
Payments for employees -2,660 -2,022 -4,682 -4,995 -27,891
Payments for goods and services -6,973 -6,574 -13,547 -13,837 -85,076
Grants and subsidies paid -13,694 -11,266 -24,960 -25,880 -150,792
Interest paid -1,117 -633 -1,750 -2,074 -14,953
Personal benefit payments -14,528 -10,932 -25,460 -25,321 -134,744
Other payments  -767 -676 -1,443 -681 -5,218
Total operating payments -39,740 -32,102 -71,842 -72,789 -418,674
Net cash flows from operating activities -6,058 -5,488 -11,547 -11,253 -22,553
Cash flows from investments in
    non-financial assets
         
Sales of non-financial assets 123 -59 63 204 1,859
Purchases of non-financial assets -1,499 -45 -1,544 -1,323 -11,161
Net cash flows from investments in
    non-financial assets
-1,376 -105 -1,481 -1,119 -9,302
Net cash flows from investments in
   financial assets for policy purposes
-1,418 -403 -1,821 -2,029 -12,908
Cash flows from investments in
   financial assets for liquidity purposes
         
Increase in investments -146 -201 -347 1,626 -3,129
Net cash flows from investments in
   financial assets for liquidity purposes
-146 -201 -347 1,626 -3,129
Cash flows from financing activities          
Borrowing (net) 9,302 6,065 15,366 12,961 50,790
Other financing (net) -349 -116 -465 -457 -2,608
Net cash flows from financing activities 8,952 5,949 14,901 12,504 48,182
Net increase/(decrease) in cash held -46 -248 -294 -271 291
Net cash flows from
  operating activities
  and investments in
    non-financial assets
      (Surplus(+)/deficit(-))
-7,434 -5,593 -13,027 -12,372 -31,855
Finance leases and similar arrangements(b) 0 0 0 0 -2
GFS cash surplus(+)/deficit(-) -7,434 -5,593 -13,027 -12,372 -31,856
less Net Future Fund earnings 260 247 507 777 3,258
Equals underlying cash balance(c) -7,694 -5,840 -13,534 -13,149 -35,115
 plus Net cash flows from investments in
   financial assets for policy purposes
-1,418 -403 -1,821 -2,029 -12,908
plus Net Future Fund earnings 260 247 507 777 3,258
Equals headline cash balance -8,852 -5,996 -14,848 -14,401 -44,764

*As published in the 2015-16 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 Australian Bureau of Statistics.

Note 1: Income Tax

 
ACTUAL
2015-2016
 July
$m

ACTUAL
2015-2016
August
$m

ACTUAL
2015-2016
YTD August
$m
Budget
Profile
2015-2016
YTD August
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Individuals and other withholding taxes          
Gross income tax withholding  14,076 15,273 29,349 29,941 178,460
Gross other individuals 4,464 2,922 7,386 8,253 43,800
less Refunds 5,054 5,486 10,540 10,290 28,000
Total individuals and other withholding taxation 13,486 12,709 26,196 27,904 194,260
Company tax 6,721 4,255 10,976 9,979 69,800
Superannuation funds  1,358 435 1,793 2,127 9,180
Resource rent taxes -5 190 186 401 1,420
Fringe benefits tax 909 60 969 1,061 5,020
Total income taxation revenue 22,469 17,650 40,119 41,472 279,680

*As published in the 2015-16 Budget.

Note 2: Indirect Tax

 
ACTUAL
2015-2016
July
$m

ACTUAL
2015-2016
August
$m

ACTUAL
2015-2016
YTD August
$m
Budget
Profile
2015-2016
YTD August
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Goods and services tax 5,990 4,435 10,425 10,824 60,330
Wine equalisation tax 69 63 132 112 840
Luxury car tax 54 47 101 82 450
Excise duty 1,717 2,085 3,802 4,300 24,920
Customs duty 1,137 1,328 2,465 1,407 9,480
Other indirect tax 354 270 624 569 4,374
Total indirect taxation revenue 9,322 8,227 17,549 17,294 100,394

*As published in the 2015-16 Budget.

Note 3: Total expenses by function

 
ACTUAL
2015-2016
 July
$m

ACTUAL
2015-2016
August
$m

ACTUAL
2015-2016
YTD August
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Expenses by function        
General public services 1,579 1,791 3,370 22,162
Defence 2,322 2,375 4,697 26,348
Public order and safety 451 398 849 4,885
Education  4,813 1,371 6,185 31,854
Health  5,836 5,698 11,534 69,381
Social security and welfare  15,488 12,911 28,399 154,000
Housing and community amenities 234 381 615 5,329
Recreation and culture 264 253 517 3,530
Fuel and energy 560 534 1,094 6,706
Agriculture, Forestry and Fishing 126 144 270 3,063
Mining, manufacturing and construction 250 202 452 3,142
Transport and communication 127 325 452 8,575
Other economic affairs 911 675 1,586 9,792
Other purposes        
Public debt interest 1,233 1,248 2,480 15,561
Nominal superannuation interest 771 771 1,541 9,869
General purpose inter-government transactions 4,349 5,105 9,454 60,038
Natural disaster relief 0 0 0 33
Contingency reserve 0 0 0 201
Total expenses 39,313 34,182 73,495 434,469

*As published in the 2015-16 Budget.

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.

Electronic access to monthly financial statements

The Australian Government general government sector Monthly Financial Statements and the historical series are available in electronic format at:

http://data.gov.au/dataset/australian-government-general-government-sector-monthly-financial-statements-tables-and-data external link icon.

Last updated: 16 October 2015