Australian Government Monthly Financial Statements February 2013

Senator the Hon Penny Wong
Minister for Finance and Deregulation

2/2013
12 April 2013

KEY POINTS

  • The underlying cash balance for the 2012-13 financial year to 28 February 2013 was a deficit of $23,646 million compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profiling Year to Date (YTD) of the underlying cash balance deficit of $17,933 million.
    • The difference of $5,713 million primarily relates to lower taxes received and higher personal benefit payments, partially offset by lower payments for goods and services
  • The fiscal balance for the 2012-13 financial year to 28 February 2013 was a deficit of $15,666 million, compared to the MYEFO YTD profile of the fiscal balance of a deficit of $8,784 million.
AGGREGATES
ACTUAL
2012-2013
February
$m

ACTUAL
2012-2013
YTD February
$m
MYEFO
Profile
2012-2013
YTD February
$m
MYEFO
ESTIMATE*
2012-2013
FULL YEAR
$m
Revenue 32,761 235,190 242,370 373,739
Expenses 29,238 249,782 250,504 375,049
Net operating balance  3,523 -14,593 -8,134 -1,310
Net capital investment  490 1,074 650 -2,517
Fiscal balance  3,033 -15,666 -8,784 1,207
Underlying Cash Receipts 30,050 220,427 227,030 363,931
Underlying Cash Payments 26,884 244,073 244,964 362,853
Underlying cash balance(a) 3,165 -23,646 -17,933 1,077
Headline cash balance  2,987 -25,354 -21,331 -7,325
Total assets 355,140 358,354
Total liabilities 609,223 503,659
Net worth(b)   -254,083   -145,305
Net debt(c)   165,319   143,980

*As published in the 2012-13 MYEFO.
(a) Excludes net Future Fund earnings.
(b) Net worth is calculated as total assets minus total liabilities.
(c) 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 includes cash from operations and net cash provided by investing activities in non-financial assets but excludes the net cash earnings for the Future Fund1.

The underlying cash balance for the year to 28 February 2013 was a deficit of $23,646 million, this is $5,713 below the MYEFO profiling of the year to date balance, largely because of tax revenue collections.

Fiscal Balance

The fiscal balance for the year to 28 February 2013 was a deficit of $15,666 million. The MYEFO profile of the fiscal balance for 2012-13 YTD is a deficit of $8,784 million. The difference of $6,882 million relates to lower revenue of $7,181 million partially offset by lower expenses of $722 million.

FINANCIAL OUTCOMES

Expenses

Total expenses were $249,782 million which is $722 million lower than the MYEFO YTD profile of $250,504 million primarily due to lower wages and salaries expenses.

Revenues

Total revenue was $235,190 million which is $7,181 million lower than the MYEFO profile YTD of $242,370 million primarily due to lower taxation revenue and interest income.

Assets and Liabilities

The net worth of the General Government sector is a negative net asset position of $254,083 million at 28 February 2013.


Senator Penny Wong
Minister for Finance and Deregulation
12 April 2013

David Tune
Secretary to the Department of Finance and Deregulation
12 April 2013

Contact: Senator Penny Wong's Office:
Department of Finance and Deregulation:
Evelyn Ek - (02) 6277 7400
Amelia Huang - (02) 6215 3138

1At 2012-13 MYEFO the Future Fund adjustment was changed to net of operating payments. This report reflects the MYEFO treatment.


Australian Government General Government Sector – INCOME STATEMENT

 
ACTUAL
2012-2013
February
$m

ACTUAL
2012-2013
YTD February
$m
MYEFO
ESTIMATE*
2012-2013
FULL YEAR
$m
Revenue  
Taxation revenue 31,585 221,132 352,092
Sales of goods and services 631 5,641 8,594
Interest income 249 2,332 4,465
Dividend income 237 1,434 2,479
Other 59 4,650 6,109
Total revenue 32,761 235,190 373,739
Expenses  
Gross operating expenses  
Wages and salaries(a) 1,446 12,156 19,205
Superannuation 535 4,304 6,175
Depreciation and amortisation 401 4,078 6,190
Supply of goods and services 5,853 47,013 72,068
Other operating expenses(a) 382 3,500 5,028
Total gross operating expenses 8,618 71,050 108,666
Superannuation interest expense 576 4,608 6,913
Interest expenses 1,024 8,514 12,878
Current transfers  
Current grants 8,789 72,476 108,597
Subsidy expenses 755 8,737 13,316
Personal benefits 8,829 79,096 116,176
Total current transfers 18,372 160,308 238,089
Capital transfers  
Mutually agreed write-downs 167 1,196 2,266
Other capital grants 481 4,105 6,237
Total capital transfers 648 5,301 8,503
Total expenses 29,238 249,782 375,049
Net operating balance 3,523 -14,593 -1,310
Other economic flows  
Gain/loss on equity and on sale of assets(b) 1,430 6,759 7,577
Net write-downs of assets(including bad and doubtful debts) -689 -4,924 -6,658
Assets recognised for the first time 87 356 531
Actuarial revaluations 0 0 1,061
Net foreign exchange gains -244 -141 -17
Net swap interest received 12 256 0
Market valuation of debt -1,001 5,426 2,729
Other economic revaluations(c)  -31 -14 77
Total other economic flows -436 7,718 5,300
Comprehensive result - Total change in net worth 3,087 -6,875 3,990
Net operating balance 3,523 -14,593 -1,310
Net acquisition of non-financial assets  
Purchases of non-financial assets 909 4,870 8,258
less Sales of non-financial assets 10 97 4,872
less Depreciation 401 4,078 6,190
plus Change in inventories -16 302 377
plus Other movements in non-financial assets 8 77 -90
Total net acquisition of non-financial assets 490 1,074 -2,517
Fiscal balance (Net lending/borrowing)(d) 3,033 -15,666 1,207

*As published in the 2012-13 MYEFO.
(a) Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b) Reflects changes in the market valuation of investments and any revaluations at the point of disposal or sale.
(c) Largely reflects other revaluation of assets and liabilities.
(d) The term fiscal balance is not used by the ABS.

Australian Government General Government Sector - BALANCE SHEET


ACTUAL
as at
28 February 2013
$m
MYEFO
ESTIMATE*
as at
30 June 2013
$m
Assets  
Financial assets  
Cash and deposits 4,748 2,638
Advances paid 33,712 35,622
Investments, loans and placements 102,667 112,135
Other receivables 46,246 40,910
Equity investments  
Investments in other public sector entities 23,051 24,773
Equity accounted investments 326 313
Investments - shares 32,816 29,347
Total financial assets 243,567 245,738
Non-financial assets  
Land 8,660 8,596
Buildings 23,624 24,115
Plant, equipment and infrastructure  52,846 53,480
Inventories 7,311 7,357
Intangibles 5,630 5,689
Investment property 206 181
Biological assets 33 37
Heritage and cultural assets 10,429 10,447
Assets held for sale 92 90
Other non-financial assets 2,742 2,624
Total non-financial assets 111,573 112,616
Total assets 355,140 358,354
Liabilities  
Interest bearing liabilities  
Deposits held 216 192
Government securities 296,274 281,195
Loans 8,790 11,780
Other borrowing 1,166 1,208
Total interest bearing liabilities 306,446 294,375
Provisions and payables  
Superannuation liability(a) 239,733 142,723
Other employee liabilities  13,645 14,773
Suppliers payable 3,811 4,807
Personal benefits provisions and payable 12,847 14,587
Subsidies provisions and payable 4,710 3,363
Grants provisions and payable 13,519 14,699
Other provisions and payables 14,512 14,332
Total provisions and payables 302,777 209,284
Total liabilities 609,223 503,659
Net worth(b) -254,083 -145,305
Net financial worth(c) -365,656 -257,921
Net financial liabilities(d)  388,707 282,694
Net debt(e) 165,319 143,980

*As published in the 2012-13 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
2012-2013
February
$m
ACTUAL
2012-2013
YTD February
$m
MYEFO
ESTIMATE*
2012-2013
FULL YEAR
$m
Cash receipts from operating activities      
Taxes received 29,023 207,578 339,209
Receipts from sales of goods and services 837 5,767 8,818
Interest receipts 126 2,476 4,390
Dividends and income tax equivalents 158 2,297 3,268
Other receipts 117 4,420 6,484
Total operating receipts 30,262 222,538 362,170
Cash payments for operating activities  
Payments for employees -2,024 -17,349 -25,946
Payments for goods and services -5,160 -48,123 -72,350
Grants and subsidies paid -9,776 -83,850 -125,799
Interest paid -607 -7,196 -11,537
Personal benefit payments -8,347 -79,576 -114,755
Other payments  -293 -3,550 -4,733
Total operating payments -26,207 -239,643 -355,119
Net cash flows from operating activities 4,054 -17,106 7,051
Cash flows from investments in non-financial assets  
Sales of non-financial assets 10 97 4,872
Purchases of non-financial assets -735 -4,611 -7,721
Net cash flows from investments in
  non-financial assets
-726 -4,514 -2,850
Net cash flows from investments in
   financial assets for policy purposes
-339 -3,712 -11,121
Cash flows from investments in
   financial assets for liquidity purposes
 
Increase in investments -3,759 -3,234 -6,000
Net cash flows from investments in
   financial assets for liquidity purposes
-3,759 -3,234 -6,000
Cash flows from financing activities  
Borrowing (net) 3,388 31,794 14,645
Other financing (net) -77 -1,004 -1,610
Net cash flows from financing activities 3,311 30,790 13,035
Net increase/(decrease) in cash held 2,543 2,224 115
Net cash flows from operating activities
 and investments in non-financial assets
   (Surplus(+)/deficit(-))
3,329 -21,620 4,201
Finance leases and similar arrangements(b) -3 -22 -406
GFS cash surplus(+)/deficit(-) 3,325 -21,642 3,796
less Future Fund earnings 160 2,004 2,718
Equals underlying cash balance (c) 3,165 -23,646 1,077
 plus net cash flows from investments in
  financial assets for policy purposes
-339 -3,712 -11,121
plus Future fund earnings 160 2,004 2,718
Equals headline cash balance 2,987 -25,354 -7,325

*As published in the 2012-13 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 ABS.


Australian Government General Government Sector - EXPENSES BY FUNCTION

ACTUAL
2012-2013
February
$m
ACTUAL
2012-2013
YTD February
$m
MYEFO
ESTIMATE(a)
2012-2013
FULL YEAR
$m
Expenses by function      
General public services 1,712 14,975 23,980
Defence 1,626 13,839 21,606
Public order and safety 297 2,575 3,976
Education  2,023 20,813 28,654
Health  5,533 40,299 61,024
Social security and welfare  9,658 88,778 131,827
Housing and community amenities 418 5,091 7,262
Recreation and culture 187 1,691 3,608
Fuel and energy 497 3,986 6,531
Agriculture, forestry and fishing 169 1,286 2,588
Mining, manufacturing and construction 129 1,199 2,093
Transport and communication 210 2,268 4,961
Other economic affairs 833 6,625 10,160
Other purposes  
Public debt interest 976 8,047 12,017
Nominal superannuation interest 576 4,608 6,913
General purpose inter-government transactions 4,394 33,703 50,569
Natural disaster relief 0 0 98
Contingency reserve 0 0 -2,818
Total expenses 29,238 249,782 375,049

(a) As published in the 2012-13 MYEFO.

NOTES:

The Australian Government monthly financial statements have been prepared on a basis consistent with the Budget as required under section 54 of the Financial Management and Accountability Act 1997. 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.

In response to the report ‘Review of Operation Sunlight: Overhauling Budgetary Transparency’, the Australian Government has improved the transparency and accountability of the Monthly Financial Statements by reporting against a profile of expected revenue and expenses. This allows for a more accurate commentary and account for seasonality or patterns of revenue and expenses.

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. The exception is the June and July Monthly Financial Statements, for which the IMF has given Australia special dispensation to release before 31 October.

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 thus estimates, in accordance with the best judgement of the Taxation Commissioner, and subject to revision. The taxation revenue items not affected are: petroleum resource rent tax, excise duty, customs duty, other taxes and individuals refunds.

The sum of the revenue accrued in the month and the revisions to prior periods equals the revenue reported in the Income Statement.

Note 1: Income Tax

ACTUAL
2012-2013
February
$m
ACTUAL
2012-2013
YTD February
$m
MYEFO
ESTIMATE*
2012-2013
FULL YEAR
$m
Individuals and other withholding taxes      
Gross income tax withholding  13,639 100,242 152,590
Gross other individuals 3,497 20,623 37,840
Less refunds 994 22,402 26,500
Total individuals and other withholding taxation 16,141 98,463 163,930
Company tax  3,537 46,249 72,982
Superannuation funds 852 5,950 8,250
Resource rent taxes (a) 57 1,602 5,580
Fringe benefits tax 199 2,622 4,040
Total income taxation revenue 20,786 154,886 254,782

*As published in the 2012-13 MYEFO.
(a) Includes both the minerals resource rent tax and petroleum resource rent tax. Aggregating this data minimises the risk of breaching the secrecy provisions of the Taxation Administration Act 1953.

Note 2: Indirect Tax

ACTUAL
2012-2013
February
$m
ACTUAL
2012-2013
YTD February
$m
MYEFO
ESTIMATE*
2012-2013
FULL YEAR
$m
Goods and services tax 7,245 34,518 50,790
Wine equalisation tax 71 485 720
Luxury car tax 39 292 450
Excise duty 1,860 17,324 26,490
Customs duty 580 5,600 7,830
Carbon pricing mechanism (a) 641 5,127 7,690
Other indirect tax 364 2,900 3,339
Total indirect taxation revenue 10,799 66,246 97,309

*As published in the 2012-13 MYEFO.
(a) Revenue from the Carbon pricing mechanism has been estimated based on expected annual results.

NOTE:

Style Conventions

  1. 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)

  1. In accordance with the IMF's SDDS, quarter ahead notice of the date of release of the data on central government operations, which is contained in the Australian Government Financial Statements, is given on the IMF's Data Dissemination Bulletin Board at http//dsbb.imf.org [External Site].
  2. 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 Site]. 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 AOFM website at http://www.aofm.gov.au/content/borrowing/commonwealth.asp?NavID=32 [External Site].

Last updated: 23 February 2015