Australian Government General Government Sector Monthly Financial Statements October 2017

Senator the Hon Mathias Cormann
Minister for Finance

MC 72/17
Friday, 24 November 2017

Australian Government General Government Sector Monthly Financial Statements October 2017

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KEY POINTS

  • The underlying cash balance for the 2017-18 financial year to 31 October 2017 was a deficit of $23,130 million.
  • The fiscal balance for the 2017-18 financial year to 31 October 2017 was a deficit of $17,181 million.

AGGREGATES

ACTUAL
2017-2018
October
$m
ACTUAL
2017-2018
YTD October
$m
Budget Profile
2017-2018
YTD October
$m
BUDGET
ESTIMATE*
2017-2018
Full Year
$m
Revenue 36,394 134,646 129,675 444,414
Expenses 38,509 153,414 154,421 464,262
Net operating balance -2,115 -18,768 -24,746 -19,848
Net capital investment -1,609 -1,587 1,255 484
Fiscal balance -506 -17,181 -26,001 -20,331
Receipts(a) 34,939 130,652 127,405 433,494
less Payments(b) 40,410 152,300 153,171 459,684
less Net Future Fund earnings 374 1,482 914 3,205
Underlying cash balance(c) -5,845 -23,130 -26,680 -29,396
Headline cash balance -5,869 -25,421 -31,404 -48,411
Total assets   508,783   533,220
Total liabilities   916,739   851,329
Net worth(d)   -407,956   -318,109
Net debt(e)   346,181   354,931

*As published in the 2017-18 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 financial year to 31 October 2017 was a deficit of $23,130 million, which is $3,550 million lower than the 2017-18 Budget profile deficit of $26,680 million.

  • Receipts
    Total receipts were $3,247 million higher than the 2017-18 Budget profile.
  • Payments
    Total payments were $871 million lower than the 2017-18 Budget profile.

Net Operating Balance

The net operating balance for the year to 31 October 2017 was a deficit of $18,768 million, which is $5,978 million lower than the 2017-18 Budget profile deficit of $24,746 million. The difference primarily results from higher than expected revenue.

Fiscal Balance

The fiscal balance for the year to 31 October 2017 was a deficit of $17,181 million, which is $8,820 million lower than the 2017-18 Budget profile deficit of $26,001 million. As with the net operating balance, the difference primarily results from higher than expected revenue.

Assets and Liabilities

As at 31 October 2017:

  • Net worth is negative $407,956 million;
  • Net debt is $346,181 million; and
  • Net financial liabilities are $599,253 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
2017-2018
October
$m
ACTUAL
2017-2018
YTD October
$m
Budget Profile
2017-2018
YTD October
$m
BUDGET
ESTIMATE*
2017-2018
Full Year
$m
Revenue          
Taxation revenue 1, 2 34,046 125,514 121,070 415,428
Sales of goods and services   791 3,290 3,350 11,496
Interest income   343 1,367 1,421 4,397
Dividend income   373 1,323 964 3,517
Other   841 3,153 2,870 9,578
Total revenue   36,394 134,646 129,675 444,414
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,618 6,406 6,360 19,906
Superannuation   530 2,494 1,513 4,578
Depreciation and amortisation   714 2,876 3,057 9,226
Supply of goods and services   8,099 32,526 33,081 102,477
Other operating expenses(a)   486 1,995 2,164 5,761
Total gross operating expenses   11,448 46,297 46,173 141,948
Superannuation interest expense   856 3,395 3,464 10,392
Interest expenses   1,479 5,912 5,993 18,544
Current transfers          
Current grants   13,083 46,818 47,633 138,221
Subsidy expenses   964 4,073 3,885 12,064
Personal benefits   9,834 44,842 45,170 130,507
Total current transfers   23,880 95,734 96,688 280,792
Capital transfers          
Mutually agreed write-downs   76 1,187 510 1,429
Other capital grants   771 890 1,593 11,157
Total capital transfers   846 2,076 2,102 12,586
Total expenses 3 38,509 153,414 154,421 464,262
Net operating balance   -2,115 -18,768 -24,746 -19,848
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -829 -2,793 -2,684 -9,310
Assets recognised for the first time   24 97 91 285
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 25
Net foreign exchange gains   -538 -162 0 -125
Net swap interest received   11 261 0 0
Market valuation of debt   -5,998 738 703 1,832
Other gains/(losses)   4,484 4,140 1,407 7,572
Total other economic flows          
- included in operating result   -2,846 2,281 -483 281
Operating result (b)   -4,961 -16,487 -25,229 -19,567
Non-owner movements in equity          
Revaluation of equity investments(c)   -3 -17 0 -6,693
Actuarial revaluations   0 0 -1 8
Other economic revaluations(d)   216 -556 -685 -162
Total other economic flows - included in equity   213 -572 -686 -6,847
Comprehensive result - Total change in net worth   -4,748 -17,059 -25,915 -26,414
Net operating balance   -2,115 -18,768 -24,746 -19,848
Net acquisition of non-financial assets          
Purchases of non-financial assets   886 3,234 4,238 13,582
less Sales of non-financial assets   1,772 1,801 118 4,041
less Depreciation   714 2,876 3,057 9,226
plus Change in inventories   -8 -159 190 177
plus Other movements in non-financial assets   -1 14 1 -8
Total net acquisition of non-financial assets   -1,609 -1,587 1,255 484
Fiscal balance (Net lending/borrowing)(e)   -506 -17,181 -26,001 -20,331

*As published in the 2017-18 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) 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
31 October 2017
$m
BUDGET
ESTIMATE*
as at
30 June 2018
$m
Assets    
Financial assets    
Cash and deposits 5,735 3,411
Advances paid 46,170 72,083
Investments, loans and placements 169,739 170,989
Other receivables 51,379 54,322
Equity investments    
Investments in other public sector entities 52,892 44,323
Equity accounted investments 300 479
Investments - shares 44,162 47,905
Total financial assets 370,378 393,511
Non-financial assets    
Land 11,005 10,215
Buildings 25,400 25,883
Plant, equipment and infrastructure 74,081 74,595
Inventories 8,271 8,349
Intangibles 7,553 8,711
Investment property 110 164
Biological assets 50 49
Heritage and cultural assets 11,583 11,412
Assets held for sale 195 227
Other non-financial assets 158 103
Total non-financial assets 138,405 139,709
Total assets 508,783 533,220
Liabilities    
Interest bearing liabilities    
Deposits held 228 217
Government securities 550,037 584,562
Loans 15,840 15,065
Other borrowing 1,721 1,569
Total interest bearing liabilities 567,826 601,414
Provisions and payables    
Superannuation liability(a) 282,500 181,303
Other employee liabilities 18,756 18,560
Suppliers payable 3,641 5,874
Personal benefits provisions and payable 13,257 13,552
Subsidies provisions and payable 641 439
Grants provisions and payable 9,999 10,589
Other provisions and payables 20,120 19,599
Total provisions and payables 348,913 249,915
Total liabilities 916,739 851,329
Net worth(b) -407,956 -318,109
Net financial worth(c) -546,361 -457,818
Net financial liabilities(d) 599,253 502,141
Net debt(e) 346,181 354,931

*As published in the 2017-18 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, that best matches each individual scheme's liability duration, 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
2017-2018
October
$m
ACTUAL
2017-2018
YTD October
$m
Budget Profile
2017-2018
YTD October
$m
BUDGET
ESTIMATE*
2017-2018
Full Year
$m
Cash receipts from operating activities        
Taxes received 32,430 120,584 117,619 404,302
Receipts from sales of goods and services 627 3,060 3,627 11,497
Interest receipts 307 1,207 1,051 3,233
Dividends and income tax equivalents 413 2,576 2,063 3,996
Other receipts 1,182 3,216 2,990 9,104
Total operating receipts 34,959 130,643 127,351 432,133
Cash payments for operating activities        
Payments for employees -2,174 -8,680 -8,869 -28,553
Payments for goods and services -8,483 -33,445 -33,267 -101,003
Grants and subsidies paid -14,674 -52,867 -53,103 -161,202
Interest paid -4,119 -6,235 -6,034 -16,589
Personal benefit payments -9,593 -45,295 -45,501 -133,463
Other payments -411 -2,131 -2,112 -5,369
Total operating payments -39,454 -148,654 -148,887 -446,179
Net cash flows from operating activities -4,495 -18,011 -21,536 -14,046
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets -20 9 54 1,361
Purchases of non-financial assets -866 -3,555 -4,284 -13,506
Net cash flows from investments in
    non-financial assets
-886 -3,547 -4,230 -12,145
Net cash flows from investments in
    financial assets for policy purposes
-399 -3,773 -5,638 -22,221
Cash flows from investments in
    financial assets for liquidity purposes
       
Increase in investments 1,391 22,261 21,610 10,475
Net cash flows from investments in
    financial assets for liquidity purposes
1,391 22,261 21,610 10,475
Cash flows from financing activities        
Borrowing (net) 4,471 4,957 10,247 41,366
Other financing (net) -754 -1,249 -1,241 -3,427
Net cash flows from financing activities 3,717 3,708 9,006 37,939
Net increase/(decrease) in cash held -671 639 -788 3
GFS cash surplus(+)/deficit(-)(b)(c) -5,381 -21,557 -25,766 -26,191
less Finance leases and similar arrangements(d) 89 91 0 0
less Net Future Fund earnings 374 1,482 914 3,205
Equals underlying cash balance(e) -5,845 -23,130 -26,680 -29,396
plus Net cash flows from investments in
    financial assets for policy purposes
-399 -3,773 -5,638 -22,221
plus Net Future Fund earnings 374 1,482 914 3,205
Equals headline cash balance -5,869 -25,421 -31,404 -48,411

*As published in the 2017-18 Budget.
(a) A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b) Due to the implementation of the 2015 ABS GFS Manual in the 2017-18 Budget, finance leases are no longer deducted in the derivation of the GFS cash surplus/deficit.
(c) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(d) The acquisition of assets under finance leases worsens the underlying cash balance. The disposal of assets previously held under finance leases improves the underlying cash balance.
(e) The term underlying cash balance is not used by the Australian Bureau of Statistics.



Note 1: Income Tax

 ACTUAL
2017-2018
October
$m
ACTUAL
2017-2018
YTD October
$m
Budget Profile
2017-2018
YTD October
$m
BUDGET
ESTIMATE*
2017-2018
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 14,595 62,373 61,992 188,750
Gross other individuals 4,862 14,730 15,669 49,860
less Refunds 3,156 18,446 18,161 29,000
Total individuals and other withholding taxation 16,301 58,657 59,500 209,610
Fringe benefits tax 892 1,836 1,981 4,430
Company tax 4,452 23,605 19,903 79,400
Superannuation funds 1,223 3,985 2,959 8,540
Resource rent taxes 342 574 564 990
Total income taxation revenue 23,209 88,658 84,907 302,970

*As published in the 2017-18 Budget.



Note 2: Indirect Tax

 ACTUAL
2017-2018
October
$m
ACTUAL
2017-2018
YTD October
$m
Budget Profile
2017-2018
YTD October
$m
BUDGET
ESTIMATE*
2017-2018
Full Year
$m
Goods and services tax 7,243 22,218 22,091 65,710
Wine equalisation tax 57 240 231 900
Luxury car tax 55 232 211 650
Excise duty 2,130 7,685 7,515 22,190
Customs duty 834 4,270 4,079 14,730
Other indirect tax 518 2,210 2,036 8,278
Total indirect taxation revenue 10,837 36,856 36,163 112,458

*As published in the 2017-18 Budget.



Note 3: Total expenses by function

 ACTUAL
2017-2018
October
$m
ACTUAL
2017-2018
YTD October
$m
BUDGET
ESTIMATE*
2017-2018
Full Year
$m
Expenses by function      
General public services 2,498 8,282 20,703
Defence 1,684 9,401 30,051
Public order and safety 353 1,530 5,042
Education 4,516 12,698 33,800
Health 6,138 25,068 75,277
Social security and welfare 12,801 55,563 164,059
Housing and community amenities 334 1,370 5,351
Recreation and culture 237 1,091 3,632
Fuel and energy 575 2,230 6,940
Agriculture, Forestry and Fishing 156 748 2,972
Mining, manufacturing and construction 279 1,181 3,825
Transport and communication 259 1,120 10,420
Other economic affairs 1,160 3,493 9,411
Other purposes      
Public debt interest 1,407 5,619 17,154
Nominal superannuation interest 856 3,395 10,392
General purpose inter-government transactions 5,257 20,625 64,274
Natural disaster relief 0 0 9
Contingency reserve 0 0 951
Total expenses 38,509 153,414 464,262

*As published in the 2017-18 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 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/ 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: 27 November 2017