Australian Government General Government Sector Monthly Financial Statements February 2016

Senator the Hon Mathias Cormann
Minister for Finance
Deputy Leader of the Government in the Senate

MC 16/16
Thursday, 24 March 2016

Australian Government General Government Sector Monthly Financial Statements
February 2016

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Key Points 

  • The underlying cash balance for the 2015-16 financial year to 29 February 2016 was a deficit of $38,719 million.
  • The fiscal balance for the 2015-16 financial year to 29 February 2016 was a deficit of $35,292 million.
AGGREGATES
ACTUAL
2015-2016
February
$m

ACTUAL
2015-2016
YTD February
$m
MYEFO Profile
2015-2016
YTD February
$m
MYEFO
ESTIMATE*
2015-2016
Full Year
$m
Revenue  39,662 248,964 250,187 400,953
Expenses 33,315 283,021 285,852 432,234
Net operating balance  6,347 -34,057 -35,665 -31,281
Net capital investment  113 1,235 1,054 4,484
Fiscal balance  6,234 -35,292 -36,719 -35,765
Receipts(a) 37,312 242,313 244,703 394,891
less Payments(b) 30,670 279,036 281,312 428,335
less Net Future Fund earnings 68 1,996 2,853 3,955
Underlying cash balance(c) 6,574 -38,719 -39,462 -37,399
Headline cash balance  5,522 -44,809 -47,444 -48,171
Total assets   440,323   475,317
Total liabilities   792,746   730,100
Net worth(d)   -352,423   -254,783
Net debt(e)   287,920   278,761

*As published in the 2015-16 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 29 February 2016 was a deficit of $38,719 million, compared to the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $39,462 million. The difference of $743 million primarily relates to lower than expected cash payments and net future fund earnings, partially offset by lower than expected cash receipts.

Fiscal Balance

The fiscal balance for the year to 29 February 2016 was a deficit of $35,292 million, compared to the MYEFO profile deficit of $36,719 million. The difference of $1,427 million primarily relates to lower than expected expenses, partially offset by lower than expected revenue.

  • Revenues
    Total revenue was $1,223 million lower than the MYEFO profile, primarily due to lower than expected taxation revenue and dividend income.
  • Expenses
    Total expenses were $2,831 million lower than the MYEFO profile, primarily due to lower than expected supply of goods and services, wages and salaries and grants expenses.

Assets and Liabilities

As at 29 February 2016:

  • Net worth is negative $352,423 million;
  • Net debt is $287,920 million; and
  • Net financial liabilities are $516,561 million.

 

Senator the Hon Mathias Cormann
Minister for Finance

Jane Halton
Secretary
Department of Finance

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

Australian Government general government sector operating statement

 Note
ACTUAL
2015-2016
February
$m

ACTUAL
2015-2016
YTD February
$m
MYEFO Profile
2015-2016
YTD February
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Revenue          
Taxation revenue 1, 2 38,099 235,797 236,638 375,923
Sales of goods and services   620 5,037 5,057 7,956
Interest income   256 2,268 2,344 4,519
Dividend income   171 1,740 1,984 3,841
Other   516 4,122 4,163 8,714
Total revenue   39,662 248,964 250,187 400,953
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,545 12,203 12,970 20,072
Superannuation   514 4,065 3,894 5,930
Depreciation and amortisation   520 4,555 4,654 7,129
Supply of goods and services   6,571 53,570 54,768 82,423
Other operating expenses(a)   481 3,812 3,619 5,439
Total gross operating expenses   9,630 78,205 79,905 120,992
Superannuation interest expense   769 6,156 6,154 9,231
Interest expenses   1,357 10,986 11,125 17,260
Current transfers          
Current grants   9,359 83,842 84,403 127,737
Subsidy expenses   1,071 8,320 8,533 12,944
Personal benefits   10,043 88,685 88,899 133,402
Total current transfers   20,473 180,847 181,836 274,084
Capital transfers          
Mutually agreed write-downs   163 1,186 1,265 1,887
Other capital grants   923 5,642 5,567 8,780
Total capital transfers   1,086 6,828 6,832 10,667
Total expenses 3 33,315 283,021 285,852 432,234
Net operating balance   6,347 -34,057 -35,665 -31,281
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -2,965 -10,509 -4,575 -8,037
Assets recognised for the first time   27 223 278 322
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   231 -1,086 -520 -518
Net swap interest received   5 -437 -410 -410
Market valuation of debt   -4,373 -9,633 -51 832
Other gains/(losses)   1,708 6,447 4,309 5,195
Total other economic flows           
 - included in operating result   -5,367 -14,994 -970 -2,616
Operating result   980 -49,051 -36,635 -33,897
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   0 3 -599 846
Actuarial revaluations   0 0 0 -2,926
Other economic revaluations(d)   6 -1,025 -530 1
Total other economic flows - included in equity   5 -1,022 -1,128 -2,079
Comprehensive result - Total change in net worth   985 -50,074 -37,763 -35,976
Net operating balance   6,347 -34,057 -35,665 -31,281
Net acquisition of non-financial assets          
Purchases of non-financial assets   672 5,916 5,853 11,661
less Sales of non-financial assets   14 302 341 528
less Depreciation   520 4,555 4,654 7,129
plus Change in inventories   -32 53 138 421
plus Other movements in non-financial assets   6 122 57 59
Total net acquisition of non-financial assets   113 1,235 1,054 4,484
Fiscal balance (Net lending/borrowing)(e)   6,234 -35,292 -36,719 -35,765

*As published in the 2015-16 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
29 February 2016
$m
MYEFO ESTIMATE*
as at
30 June 2016
$m
Assets    
Financial assets    
Cash and deposits 5,577 3,872
Advances paid 49,400 53,218
Investments, loans and placements 133,374 154,537
Other receivables 49,128 46,594
Equity investments    
Investments in other public sector entities 44,698 49,087
Equity accounted investments 304 315
Investments - shares 38,402 44,939
Total financial assets 320,884 352,560
Non-financial assets    
Land 9,918 9,780
Buildings 25,460 26,198
Plant, equipment and infrastructure  57,309 59,667
Inventories 8,209 8,351
Intangibles 6,625 6,835
Investment property 203 187
Biological assets 42 44
Heritage and cultural assets 11,267 11,344
Assets held for sale 87 87
Other non-financial assets 320 265
Total non-financial assets 119,440 122,757
Total assets 440,323 475,317
Liabilities    
Interest bearing liabilities    
Deposits held 216 218
Government securities 462,859 472,416
Loans 11,521 16,191
Other borrowing 1,674 1,562
Total interest bearing liabilities 476,270 490,387
Provisions and payables    
Superannuation liability(a) 253,400 173,958
Other employee liabilities  16,621 17,059
Suppliers payable 5,202 5,972
Personal benefits provisions and payable 11,816 13,304
Subsidies provisions and payable 4,874 5,035
Grants provisions and payable 10,430 9,397
Other provisions and payables 14,133 14,990
Total provisions and payables 316,476 239,714
Total liabilities 792,746 730,100
Net worth(b) -352,423 -254,783
Net financial worth(c) -471,863 -377,540
Net financial liabilities(d)  516,561 426,627
Net debt(e) 287,920 278,761

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

ACTUAL
2015-2016
YTD February
$m
MYEFO Profile
2015-2016
YTD February
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Cash receipts from operating activities        
Taxes received 35,985 228,022 229,652 368,230
Receipts from sales of goods and services 662 4,651 4,729 7,870
Interest receipts 128 1,756 1,893 3,874
Dividends and income tax equivalents 102 3,346 3,466 4,516
Other receipts 425 4,338 4,466 8,505
Total operating receipts 37,302 242,114 244,206 392,995
Cash payments for operating activities        
Payments for employees -2,075 -17,694 -18,095 -28,130
Payments for goods and services -6,218 -53,438 -54,802 -82,104
Grants and subsidies paid -11,220 -98,480 -98,132 -150,706
Interest paid -631 -9,075 -9,106 -15,040
Personal benefit payments -9,533 -91,085 -91,479 -135,228
Other payments  -413 -3,786 -3,721 -5,313
Total operating payments -30,090 -273,558 -275,336 -416,521
Net cash flows from operating activities 7,212 -31,444 -31,130 -23,526
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 10 199 497 1,896
Purchases of non-financial assets -579 -5,419 -5,975 -11,812
Net cash flows from investments in non-financial assets -569 -5,220 -5,478 -9,917
Net cash flows from investments in financial assets for policy purposes -1,120 -8,086 -10,835 -14,727
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments -5,197 5,215 -6,334 -13,132
Net cash flows from investments in
financial assets for liquidity purposes
-5,197 5,215 -6,334 -13,132
Cash flows from financing activities        
Borrowing (net) 2,428 43,733 56,205 64,552
Other financing (net) -120 -1,775 -1,752 -2,535
Net cash flows from financing activities 2,308 41,958 54,453 62,017
Net increase/(decrease) in cash held 2,633 2,421 675 716
Net cash flows from operating activities and investments in non-financial assets
(Surplus(+)/deficit(-))
6,643 -36,665 -36,608 -33,443
Finance leases and similar arrangements(b) -1 -58 -1 -2
GFS cash surplus(+)/deficit(-) 6,642 -36,723 -36,609 -33,444
less Net Future Fund earnings 68 1,996 2,853 3,955
Equals underlying cash balance(c) 6,574 -38,719 -39,462 -37,399
plus Net cash flows from investments in financial assets for policy purposes -1,120 -8,086 -10,835 -14,727
plus Net Future Fund earnings 68 1,996 2,853 3,955
Equals headline cash balance 5,522 -44,809 -47,444 -48,171

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

ACTUAL
2015-2016
YTD February
$m
MYEFO Profile
2015-2016
YTD February
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  16,126 115,592 116,363 176,550
Gross other individuals 4,242 23,793 23,429 44,310
less Refunds 1,119 23,189 22,879 27,500
Total individuals and other withholding taxation 19,249 116,196 116,914 193,360
Fringe benefits tax 211 3,143 3,142 4,610
Company tax 5,847 40,848 41,590 67,996
Superannuation funds 543 5,224 5,938 7,780
Resource rent taxes 0 558 760 960
Total income taxation revenue 25,850 165,969 168,344 274,706

*As published in the 2015-16 MYEFO.

 

Note 2: Indirect Tax

 
ACTUAL
2015-2016
February
$m

ACTUAL
2015-2016
YTD February
$m
MYEFO Profile
2015-2016
YTD February
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Goods and services tax 8,497 41,367 40,734 59,790
Wine equalisation tax 86 610 579 850
Luxury car tax 47 393 371 520
Excise duty 1,960 14,532 14,474 21,393
Customs duty 1,246 9,133 8,466 12,910
Other indirect tax 412 3,792 3,669 5,754
Total indirect taxation revenue 12,248 69,827 68,294 101,217

*As published in the 2015-16 MYEFO.

 

Note 3: Total expenses by function

 
ACTUAL
2015-2016
February
$m
ACTUAL
2015-2016
YTD February
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Expenses by function      
General public services 1,848 13,872 22,639
Defence 2,085 17,437 26,559
Public order and safety 342 3,202 4,958
Education  1,812 24,208 32,478
Health  5,552 44,063 68,686
Social security and welfare  11,360 102,186 152,782
Housing and community amenities 325 2,858 5,434
Recreation and culture 370 2,219 3,440
Fuel and energy 559 4,391 6,773
Agriculture, Forestry and Fishing 173 1,273 3,119
Mining, manufacturing and construction 295 2,144 3,619
Transport and communication 682 3,565 8,882
Other economic affairs 729 5,910 10,131
Other purposes      
Public debt interest 1,275 10,184 15,680
Nominal superannuation interest 769 6,156 9,231
General purpose inter-government transactions 5,138 39,353 59,239
Natural disaster relief 0 0 40
Contingency reserve 0 0 -1,456
Total expenses 33,315 283,021 432,234

*As published in the 2015-16 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 Special Data Dissemination Standards

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 (SDDS). 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://aofm.gov.au/cgs-quarterly/quarterley-data-december-2015/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-dataexternal link icon.

Last updated: 24 March 2016