Australian Government General Government Sector Monthly Financial Statements September 2017

Senator the Hon Mathias Cormann
Minister for Finance

MC 62/17
Friday, 27 October 2017

Australian Government General Government Sector Monthly Financial Statements September 2017

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KEY POINTS

  • The underlying cash balance for the 2017-18 financial year to 30 September 2017 was a deficit of $17,285 million.
  • The fiscal balance for the 2017-18 financial year to 30 September 2017 was a deficit of
    $16,675 million.

AGGREGATES

ACTUAL
2017-2018
September
$m
ACTUAL
2017-2018
YTD September
$m
Budget Profile
2017-2018
YTD September
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Revenue 27,604 98,252 91,731 444,414
Expenses 37,583 114,904 115,084 464,262
Net operating balance -9,979 -16,653 -23,352 -19,848
Net capital investment 388 22 1,043 484
Fiscal balance -10,367 -16,675 -24,396 -20,331
Receipts(a) 27,212 95,713 91,372 433,494
less Payments(b) 35,188 111,890 111,924 459,684
less Net Future Fund earnings 525 1,108 1,530 3,205
Underlying cash balance(c) -8,502 -17,285 -22,081 -29,396
Headline cash balance -9,106 -19,551 -25,232 -48,411
Total assets   509,221   533,220
Total liabilities   912,429   851,329
Net worth(d)   -403,208   -318,109
Net debt(e)   337,733   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 30 September 2017 was a deficit of $17,285 million, which is $4,796 million lower than the 2017-18 Budget profile deficit of $22,081 million.

  • Receipts
    Total receipts were $4,340 million higher than the 2017-18 Budget profile.
  • Payments
    Total payments were $34 million lower than the 2017-18 Budget profile.

Net Operating Balance

The net operating balance for the year to 30 September 2017 was a deficit of $16,653 million, which is $6,700 million lower than the 2017-18 Budget profile deficit of $23,352 million. The difference primarily results from higher than expected revenue.

Fiscal Balance

The fiscal balance for the year to 30 September 2017 was a deficit of $16,675 million, which is $7,721 million lower than the 2017-18 Budget profile deficit of $24,396 million. As with the net operating balance, the difference primarily results from higher than expected revenue.

Assets and Liabilities

As at 30 September 2017:

  • Net worth is negative $403,208 million;
  • Net debt is $337,733 million; and
  • Net financial liabilities are $594,473 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
September
$m
ACTUAL
2017-2018
YTD September
$m
Budget Profile
2017-2018
YTD September
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Revenue          
Taxation revenue 1, 2 25,003 91,468 85,370 415,428
Sales of goods and services   833 2,499 2,416 11,496
Interest income   355 1,023 1,077 4,397
Dividend income   508 950 672 3,517
Other   904 2,312 2,197 9,578
Total revenue   27,604 98,252 91,731 444,414
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,561 4,788 4,757 19,906
Superannuation   918 1,964 1,136 4,578
Depreciation and amortisation   756 2,161 2,291 9,226
Supply of goods and services   8,833 24,427 23,892 102,477
Other operating expenses(a)   543 1,509 1,568 5,761
Total gross operating expenses   12,611 34,849 33,644 141,948
Superannuation interest expense   827 2,539 2,598 10,392
Interest expenses   1,449 4,433 4,462 18,544
Current transfers          
Current grants   9,825 33,735 34,553 138,221
Subsidy expenses   1,108 3,110 2,924 12,064
Personal benefits   10,893 35,008 35,280 130,507
Total current transfers   21,826 71,853 72,757 280,792
Capital transfers          
Mutually agreed write-downs   847 1,111 351 1,429
Other capital grants   23 119 1,271 11,157
Total capital transfers   870 1,230 1,622 12,586
Total expenses 3 37,583 114,904 115,084 464,262
Net operating balance   -9,979 -16,653 -23,352 -19,848
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   164 -1,964 -1,569 -9,310
Assets recognised for the first time   24 74 68 285
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 25
Net foreign exchange gains   -421 376 0 -125
Net swap interest received   89 250 0 0
Market valuation of debt   4,223 6,736 528 1,832
Other gains/(losses)   -180 -344 1,064 7,572
Total other economic flows          
- included in operating result   3,898 5,127 92 281
Operating result (b)   -6,081 -11,526 -23,261 -19,567
Non-owner movements in equity          
Revaluation of equity investments(c)   66 -14 0 -6,693
Actuarial revaluations   0 0 -1 8
Other economic revaluations(d)   -455 -772 -641 -162
Total other economic flows - included in equity   -389 -785 -642 -6,847
Comprehensive result - Total change in net worth   -6,470 -12,311 -23,902 -26,414
Net operating balance   -9,979 -16,653 -23,352 -19,848
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,035 2,348 3,254 13,582
less Sales of non-financial assets   7 29 112 4,041
less Depreciation   756 2,161 2,291 9,226
plus Change in inventories   98 -151 192 177
plus Other movements in non-financial assets   19 15 1 -8
Total net acquisition of non-financial assets   388 22 1,043 484
Fiscal balance (Net lending/borrowing)(e)   -10,367 -16,675 -24,396 -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
30 September 2017
$m
BUDGET ESTIMATE*
as at
30 June 2018
$m
Assets    
Financial assets    
Cash and deposits 6,406 3,411
Advances paid 45,709 72,083
Investments, loans and placements 170,749 170,989
Other receivables 53,540 54,322
Equity investments    
Investments in other public sector entities 52,951 44,323
Equity accounted investments 303 479
Investments - shares 41,249 47,905
Total financial assets 370,907 393,511
Non-financial assets    
Land 10,898 10,215
Buildings 25,601 25,883
Plant, equipment and infrastructure 73,840 74,595
Inventories 8,305 8,349
Intangibles 7,530 8,711
Investment property 108 164
Biological assets 51 49
Heritage and cultural assets 11,622 11,412
Assets held for sale 200 227
Other non-financial assets 160 103
Total non-financial assets 138,314 139,709
Total assets 509,221 533,220
Liabilities    
Interest bearing liabilities    
Deposits held 214 217
Government securities 542,959 584,562
Loans 15,739 15,065
Other borrowing 1,685 1,569
Total interest bearing liabilities 560,596 601,414
Provisions and payables    
Superannuation liability(a) 281,801 181,303
Other employee liabilities 18,575 18,560
Suppliers payable 4,288 5,874
Personal benefits provisions and payable 13,353 13,552
Subsidies provisions and payable 529 439
Grants provisions and payable 10,211 10,589
Other provisions and payables 23,075 19,599
Total provisions and payables 351,832 249,915
Total liabilities 912,429 851,329
Net worth(b) -403,208 -318,109
Net financial worth(c) -541,522 -457,818
Net financial liabilities(d) 594,473 502,141
Net debt(e) 337,733 354,931

*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
September
$m
ACTUAL
2017-2018
YTD September
$m
Budget Profile
2017-2018
YTD September
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Cash receipts from operating activities        
Taxes received 24,969 88,154 83,895 404,302
Receipts from sales of goods and services 840 2,434 2,526 11,497
Interest receipts 216 900 811 3,233
Dividends and income tax equivalents 561 2,163 1,764 3,996
Other receipts 619 2,034 2,336 9,104
Total operating receipts 27,205 95,684 91,332 432,133
Cash payments for operating activities        
Payments for employees -1,971 -6,506 -6,633 -28,553
Payments for goods and services -8,456 -24,962 -24,199 -101,003
Grants and subsidies paid -10,883 -38,193 -38,797 -161,202
Interest paid -813 -2,116 -1,960 -16,589
Personal benefit payments -11,245 -35,703 -35,485 -133,463
Other payments -649 -1,720 -1,542 -5,369
Total operating payments -34,016 -109,199 -108,618 -446,179
Net cash flows from operating activities -6,811 -13,516 -17,286 -14,046
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets 7 29 40 1,361
Purchases of non-financial assets -1,173 -2,689 -3,306 -13,506
Net cash flows from investments in
    non-financial assets
-1,165 -2,660 -3,266 -12,145
Net cash flows from investments in
    financial assets for policy purposes
-1,130 -3,374 -4,681 -22,221
Cash flows from investments in
    financial assets for liquidity purposes
       
Increase in investments 6,395 20,869 21,370 10,475
Net cash flows from investments in
    financial assets for liquidity purposes
6,395 20,869 21,370 10,475
Cash flows from financing activities        
Borrowing (net) 3,045 486 4,200 41,366
Other financing (net) -129 -496 -422 -3,427
Net cash flows from financing activities 2,916 -10 3,778 37,939
Net increase/(decrease) in cash held 205 1,310 -85 3
GFS cash surplus(+)/deficit(-)(b)(c) -7,976 -16,176 -20,551 -26,191
less Finance leases and similar arrangements(d) 3 2 0 0
less Net Future Fund earnings 525 1,108 1,530 3,205
Equals underlying cash balance(e) -8,502 -17,285 -22,081 -29,396
plus Net cash flows from investments in
    financial assets for policy purposes
-1,130 -3,374 -4,681 -22,221
plus Net Future Fund earnings 525 1,108 1,530 3,205
Equals headline cash balance -9,106 -19,551 -25,232 -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
September
$m
ACTUAL
2017-2018
YTD September
$m
Budget Profile
2017-2018
YTD September
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 16,036 47,778 46,916 188,750
Gross other individuals 1,708 9,868 9,835 49,860
less Refunds 3,448 15,290 14,937 29,000
Total individuals and other withholding taxation 14,297 42,356 41,814 209,610
Fringe benefits tax 94 944 952 4,430
Company tax 3,796 19,153 14,603 79,400
Superannuation funds 628 2,763 2,174 8,540
Resource rent taxes -17 233 282 990
Total income taxation revenue 18,799 65,449 59,825 302,970

*As published in the 2017-18 Budget.



Note 2: Indirect Tax

 ACTUAL
2017-2018
September
$m
ACTUAL
2017-2018
YTD September
$m
Budget Profile
2017-2018
YTD September
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Goods and services tax 3,177 14,976 14,922 65,710
Wine equalisation tax 62 183 185 900
Luxury car tax 60 177 159 650
Excise duty 1,734 5,555 5,404 22,190
Customs duty 569 3,436 3,284 14,730
Other indirect tax 603 1,692 1,591 8,278
Total indirect taxation revenue 6,204 26,018 25,545 112,458

*As published in the 2017-18 Budget.



Note 3: Total expenses by function

 ACTUAL
2017-2018
September
$m
ACTUAL
2017-2018
YTD September
$m
BUDGET ESTIMATE*
2017-2018
Full Year
$m
Expenses by function      
General public services 2,426 5,784 20,703
Defence 3,010 7,717 30,051
Public order and safety 370 1,177 5,042
Education 1,752 8,182 33,800
Health 5,939 18,930 75,277
Social security and welfare 13,590 42,762 164,059
Housing and community amenities 372 1,035 5,351
Recreation and culture 295 854 3,632
Fuel and energy 554 1,655 6,940
Agriculture, Forestry and Fishing 224 592 2,972
Mining, manufacturing and construction 309 902 3,825
Transport and communication 485 861 10,420
Other economic affairs 808 2,333 9,411
Other purposes      
Public debt interest 1,370 4,213 17,154
Nominal superannuation interest 827 2,539 10,392
General purpose inter-government transactions 5,253 15,368 64,274
Natural disaster relief 0 0 9
Contingency reserve 0 0 951
Total expenses 37,583 114,904 464,262

*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/quarterly-data-june-2017/ 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 October 2017