Australian Government General Government Sector Monthly Financial Statements February 2017

Senator the Hon Mathias Cormann
Minister for Finance

MC 8/17
Friday, 31 March 2017

Australian Government General Government Sector Monthly Financial Statements February 2017

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KEY POINTS

  • The underlying cash balance for the 2016-17 financial year to 28 February 2017 was a deficit of $36,642 million.
  • The fiscal balance for the 2016-17 financial year to 28 February 2017 was a deficit of $36,467 million.

AGGREGATES

ACTUAL
2016-2017
February
$m
ACTUAL
2016-2017
YTD February
$m
MYEFO Profile
2016-2017
YTD February
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Revenue 39,880 261,329 259,287 411,112
Expenses 33,743 296,595 299,758 448,642
Net operating balance 6,137 -35,266 -40,471 -37,530
Net capital investment 13 1,200 1,084 3,953
Fiscal balance 6,124 -36,467 -41,555 -41,482
Receipts(a) 37,886 255,434 254,442 407,350
less Payments(b) 30,372 289,700 292,448 441,063
less Net Future Fund earnings 128 2,376 2,149 2,801
Underlying cash balance(c) 7,387 -36,642 -40,155 -36,514
Headline cash balance 6,235 -43,700 -50,157 -52,505
Total assets   493,092   522,675
Total liabilities   916,959   803,396
Net worth(d)   -423,866   -280,721
Net debt(e)   317,425   317,193

*As published in the 2016-17 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 financial year to 28 February 2017 was a deficit of $36,642 million, which is $3,513 million lower than the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $40,155 million.

  • Receipts
    Total receipts were $992 million higher than the 2016-17 MYEFO profile.
  • Payments
    Total payments were $2,748 million lower than the 2016-17 MYEFO profile.

Fiscal Balance

The fiscal balance for the year to 28 February 2017 was a deficit of $36,467 million, which is $5,088 million lower than the 2016-17 MYEFO profile deficit of $41,555 million. The difference results from higher than expected revenue and lower than expected expenses.

Assets and Liabilities

As at 28 February 2017:

  • Net worth is negative $423,866 million;
  • Net debt is $317,425 million; and
  • Net financial liabilities are $611,283 million.
Senator the Hon Mathias Cormann
Minister for Finance
Rosemary Huxtable PSM
Secretary
Department of Finance
Media Contact  
Karen Wu      0428 350 139

 

Australian Government general government sector operating statement

 NoteACTUAL
2016-2017
February
$m
ACTUAL
2016-2017
YTD February
$m
MYEFO Profile
2016-2017
YTD February
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Revenue          
Taxation revenue 1, 2 37,941 244,214 243,497 386,345
Sales of goods and services   712 5,621 5,556 8,905
Interest income   279 2,384 2,410 3,771
Dividend income   216 2,124 1,838 2,687
Other   731 6,985 5,987 9,404
Total revenue   39,880 261,329 259,287 411,112
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,519 12,601 13,012 20,060
Superannuation   814 6,586 6,567 9,720
Depreciation and amortisation   800 5,359 5,242 7,855
Supply of goods and services   6,927 57,265 57,399 87,762
Other operating expenses(a)   460 3,740 3,838 5,572
Total gross operating expenses   10,520 85,550 86,057 130,969
Superannuation interest expense   633 5,971 5,745 8,446
Interest expenses   1,319 11,201 11,234 17,637
Current transfers          
Current grants   10,104 92,969 92,662 135,615
Subsidy expenses   1,066 8,714 8,715 13,509
Personal benefits   9,640 87,501 88,452 129,749
Total current transfers   20,810 189,183 189,829 278,873
Capital transfers          
Mutually agreed write-downs   70 828 964 1,479
Other capital grants   392 3,861 5,930 11,239
Total capital transfers   461 4,689 6,894 12,718
Total expenses 3 33,743 296,595 299,758 448,642
Net operating balance   6,137 -35,266 -40,471 -37,530
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -348 -6,446 -4,954 -8,178
Assets recognised for the first time   28 208 238 328
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 -8
Net foreign exchange gains   662 1,921 1 -187
Net swap interest received   13 25 45 45
Market valuation of debt   457 21,723 23,593 24,243
Other gains/(losses)   39 1,643 2,592 4,558
Total other economic flows          
- included in operating result   851 19,073 21,514 20,801
Operating result (b)   6,988 -16,193 -18,956 -16,728
Non-owner movements in equity          
Revaluation of equity investments(c)   5 2 0 -4,846
Actuarial revaluations   0 0 1 1,665
Other economic revaluations(d)   55 10,889 12,249 175
Total other economic flows - included in equity   60 10,891 12,250 -3,006
Comprehensive result - Total change in net worth   7,047 -5,302 -6,706 -19,734
Net operating balance   6,137 -35,266 -40,471 -37,530
Net acquisition of non-financial assets          
Purchases of non-financial assets   623 6,329 6,459 12,284
less Sales of non-financial assets   20 116 139 897
less Depreciation   800 5,359 5,242 7,855
plus Change in inventories   205 271 -23 421
plus Other movements in non-financial assets   5 74 28 0
Total net acquisition of non-financial assets   13 1,200 1,084 3,953
Fiscal balance (Net lending/borrowing)(e)   6,124 -36,467 -41,555 -41,482

*As published in the 2016-17 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) Operating result under Australian Accounting Standards.
(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
28 February 2017
$m
MYEFO ESTIMATE*
as at
30 June 2017
$m
Assets    
Financial assets    
Cash and deposits 6,223 2,942
Advances paid 55,102 59,987
Investments, loans and placements 150,226 177,400
Other receivables 51,969 47,959
Equity investments    
Investments in other public sector entities 52,173 51,944
Equity accounted investments 288 299
Investments - shares 41,867 43,343
Total financial assets 357,848 383,874
Non-financial assets    
Land 10,597 10,613
Buildings 25,436 25,982
Plant, equipment and infrastructure 71,496 73,645
Inventories 8,392 8,499
Intangibles 7,220 8,097
Investment property 138 164
Biological assets 42 49
Heritage and cultural assets 11,505 11,413
Assets held for sale 241 227
Other non-financial assets 177 112
Total non-financial assets 135,244 138,801
Total assets 493,092 522,675
Liabilities    
Interest bearing liabilities    
Deposits held 221 217
Government securities 511,016 540,184
Loans 16,062 15,455
Other borrowing 1,676 1,666
Total interest bearing liabilities 528,975 557,522
Provisions and payables    
Superannuation liability(a) 321,597 175,047
Other employee liabilities 18,312 18,638
Suppliers payable 3,653 6,358
Personal benefits provisions and payable 13,250 12,677
Subsidies provisions and payable 400 931
Grants provisions and payable 11,100 11,710
Other provisions and payables 19,673 20,513
Total provisions and payables 387,983 245,874
Total liabilities 916,959 803,396
Net worth(b) -423,866 -280,721
Net financial worth(c) -559,110 -419,522
Net financial liabilities(d) 611,283 471,466
Net debt(e) 317,425 317,193

*As published in the 2016-17 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 (a)

 ACTUAL
2016-2017
February
$m
ACTUAL
2016-2017
YTD February
$m
MYEFO Profile
2016-2017
YTD February
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Cash receipts from operating activities        
Taxes received 36,541 236,221 235,777 378,756
Receipts from sales of goods and services 714 5,520 5,263 8,766
Interest receipts 248 2,057 1,949 2,990
Dividends and income tax equivalents 105 5,379 5,121 5,828
Other receipts 259 6,142 6,240 8,673
Total operating receipts 37,867 255,318 254,350 405,013
Cash payments for operating activities        
Payments for employees -2,174 -17,599 -18,419 -28,259
Payments for goods and services -6,714 -58,328 -57,965 -87,328
Grants and subsidies paid -11,464 -105,686 -106,961 -159,698
Interest paid -430 -8,894 -8,870 -15,377
Personal benefit payments -8,547 -89,188 -90,061 -132,884
Other payments -424 -4,078 -3,582 -5,235
Total operating payments -29,752 -283,773 -285,858 -428,781
Net cash flows from operating activities 8,115 -28,454 -31,508 -23,768
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 20 116 92 2,337
Purchases of non-financial assets -620 -5,918 -6,587 -12,282
Net cash flows from investments in
   non-financial assets
-600 -5,803 -6,495 -9,945
Net cash flows from investments in
   financial assets for policy purposes
-1,280 -9,434 -12,151 -18,792
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments 3,958 -1,016 937 -27,724
Net cash flows from investments in
   financial assets for liquidity purposes
3,958 -1,016 937 -27,724
Cash flows from financing activities        
Borrowing (net) -8,186 49,199 53,875 82,682
Other financing (net) -101 -1,907 -1,898 -3,149
Net cash flows from financing activities -8,286 47,292 51,977 79,533
Net increase/(decrease) in cash held 1,907 2,585 2,761 -696
Net cash flows from operating activities
   and investments in non-financial assets
     (Surplus(+)/deficit(-))
7,515 -34,257 -38,003 -33,713
Finance leases and similar arrangements(b) 0 -9 -3 0
GFS cash surplus(+)/deficit(-) 7,515 -34,266 -38,006 -33,713
less Net Future Fund earnings 128 2,376 2,149 2,801
Equals underlying cash balance(c) 7,387 -36,642 -40,155 -36,514
plus Net cash flows from investments in
   financial assets for policy purposes
-1,280 -9,434 -12,151 -18,792
plus Net Future Fund earnings 128 2,376 2,149 2,801
Equals headline cash balance 6,235 -43,700 -50,157 -52,505

*As published in the 2016-17 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
2016-2017
February
$m
ACTUAL
2016-2017
YTD February
$m
MYEFO Profile
2016-2017
YTD February
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 16,654 118,845 119,377 180,680
Gross other individuals 4,171 24,407 24,598 46,700
less Refunds 995 23,432 23,920 28,900
Total individuals and other withholding taxation 19,830 119,820 120,054 198,480
Fringe benefits tax 183 3,020 3,120 4,540
Company tax 5,059 43,200 42,350 68,700
Superannuation funds 555 5,961 6,070 8,080
Resource rent taxes 1 739 731 920
Total income taxation revenue 25,626 172,739 172,325 280,720

*As published in the 2016-17 MYEFO.

 

Note 2: Indirect Tax

 ACTUAL
2016-2017
February
$m
ACTUAL
2016-2017
YTD February
$m
MYEFO Profile
2016-2017
YTD February
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Goods and services tax 8,906 42,795 42,994 62,410
Wine equalisation tax 84 583 635 910
Luxury car tax 49 436 419 640
Excise duty 1,665 14,591 14,401 21,410
Customs duty 1,127 8,981 8,875 14,260
Other indirect tax 483 4,090 3,847 5,995
Total indirect taxation revenue 12,315 71,475 71,172 105,625

*As published in the 2016-17 MYEFO.

 

Note 3: Total expenses by function

 ACTUAL
2016-2017
February
$m
ACTUAL
2016-2017
YTD February
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Expenses by function      
General public services 1,468 14,513 26,991
Defence 2,616 20,201 26,816
Public order and safety 354 3,191 5,117
Education 1,834 25,089 33,339
Health 5,745 47,913 72,842
Social security and welfare 11,391 103,818 155,792
Housing and community amenities 338 2,742 5,131
Recreation and culture 274 2,158 3,532
Fuel and energy 559 4,456 6,874
Agriculture, Forestry and Fishing 307 1,550 2,914
Mining, manufacturing and construction 283 2,341 4,052
Transport and communication 390 3,993 10,296
Other economic affairs 745 5,997 9,866
Other purposes      
Public debt interest 1,265 10,417 15,984
Nominal superannuation interest 633 5,971 8,446
General purpose inter-government transactions 5,541 42,246 62,696
Natural disaster relief 0 0 32
Contingency reserve 0 0 -2,077
Total expenses 33,743 296,595 448,642

*As published in the 2016-17 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 PDF 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/quarterly-data-december-2016/ PDF 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 PDF icon.

Last updated: 28 April 2017