Australian Government General Government Sector Monthly Financial Statements December 2015

Senator the Hon Mathias Cormann
Minister for Finance

MC 1/16
Friday, 22 January 2016

Australian Government General Government Sector Monthly Financial Statements
December 2015

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Key Points 

  • The underlying cash balance for the 2015-16 financial year to 31 December 2015 was a deficit of $35,488 million.
  • The fiscal balance for the 2015-16 financial year to 31 December 2015 was a deficit of $28,529 million.
AGGREGATES
ACTUAL
2015-2016
December
$m

ACTUAL
2015-2016
YTD December
$m
MYEFO Profile
2015-2016
YTD December
$m
MYEFO
ESTIMATE*
2015-2016
Full Year
$m
Revenue  30,737 183,826 182,069 400,953
Expenses 35,341 211,997 213,225 432,234
Net operating balance  -4,605 -28,171 -31,156 -31,281
Net capital investment  524 358 359 4,484
Fiscal balance  -5,129 -28,529 -31,515 -35,765
Receipts(a) 30,496 180,619 179,353 394,891
less Payments(b) 38,108 214,389 211,845 428,335
less Net Future Fund earnings 290 1,718 2,232 3,955
Underlying cash balance(c) -7,903 -35,488 -34,752 -37,399
Headline cash balance  -8,745 -39,424 -38,118 -48,171
Total assets   431,847   475,317
Total liabilities   767,424   730,100
Net worth(d)   -335,577   -254,783
Net debt(e)   274,133   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 31 December 2015 was a deficit of $35,488 million, compared to the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $34,725 million. The difference of $763 million primarily relates to higher than expected cash payments, partially offset by higher than expected cash receipts.

Fiscal Balance

The fiscal balance for the year to 31 December 2015 was a deficit of $28,529 million, compared to the MYEFO profile deficit of $31,515 million. The difference of $2,986 million relates to higher than expected revenue and lower than expected expenses.

  • Revenues
    Total revenue was $1,758 million higher than the MYEFO profile, primarily due to higher than expected taxation revenue.
  • Expenses
    Total expenses were $1,228 million lower than the MYEFO profile, primarily due to lower supply of goods and services, and wages and salaries expenses.

Assets and Liabilities

As at 31 December 2015:

  • Net worth is negative $335,577 million;
  • Net debt is $274,133 million; and
  • Net financial liabilities are $497,890 million. 

 

Senator the Hon Mathias Cormann
Minister for Finance

22 January 2015
Jane Halton
Secretary
Department of Finance
22 January 2015
 
 
 
Contact: Senator the Hon Mathias Cormann's Office:
Department of Finance:
Karen Wu     (02) 6277 7400
Amelia Gard (02) 6215 2222

Australian Government general government sector operating statement

 Note
ACTUAL
2015-2016
December
$m

ACTUAL
2015-2016
YTD December
$m
MYEFO Profile
2015-2016
YTD December
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Revenue          
Taxation revenue 1, 2 30,026 173,560 172,052 375,923
Sales of goods and services   -245 3,869 3,769 7,956
Interest income   289 1,734 1,749 4,519
Dividend income   283 1,476 1,358 3,841
Other   383 3,188 3,141 8,714
Total revenue   30,737 183,826 182,069 400,953
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,462 9,274 9,820 20,072
Superannuation   491 3,047 2,932 5,930
Depreciation and amortisation   551 3,433 3,462 7,129
Supply of goods and services   6,740 40,715 41,390 82,423
Other operating expenses(a)   355 2,874 2,823 5,439
Total gross operating expenses   9,598 59,343 60,428 120,992
Superannuation interest expense   770 4,617 4,616 9,231
Interest expenses   1,421 8,183 8,271 17,260
Current transfers          
Current grants   10,124 60,302 60,331 127,737
Subsidy expenses   1,123 6,201 6,308 12,944
Personal benefits   11,423 68,150 68,318 133,402
Total current transfers   22,671 134,653 134,957 274,084
Capital transfers          
Mutually agreed write-downs   237 1,182 1,023 1,887
Other capital grants   645 4,019 3,931 8,780
Total capital transfers   882 5,201 4,954 10,667
Total expenses 3 35,341 211,997 213,225 432,234
Net operating balance   -4,605 -28,171 -31,156 -31,281
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -2,245 -5,626 -3,181 -8,037
Assets recognised for the first time   -77 167 255 322
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   -88 -777 -519 -518
Net swap interest received   43 -410 -410 -410
Market valuation of debt   -202 -651 -494 832
Other gains/(losses)   693 3,422 3,124 5,195
Total other economic flows           
 - included in operating result   -1,876 -3,875 -1,226 -2,616
Operating result   -6,481 -32,045 -32,382 -33,897
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   -11 4 -599 846
Actuarial revaluations   0 0 47,075 -2,926
Other economic revaluations(d)   -1,003 -1,186 -71,849 1
Total other economic flows - included in equity   -1,014 -1,182 -25,373 -2,079
Comprehensive result - Total change in net worth   -7,495 -33,228 -57,754 -35,976
Net operating balance   -4,605 -28,171 -31,156 -31,281
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,209 3,982 3,969 11,661
less Sales of non-financial assets   79 266 276 528
less Depreciation   551 3,433 3,462 7,129
plus Change in inventories   -71 -17 81 421
plus Other movements in non-financial assets   16 92 47 59
Total net acquisition of non-financial assets   524 358 359 4,484
Fiscal balance (Net lending/borrowing)(e)   -5,129 -28,529 -31,515 -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
31 December 2015
$m
MYEFO ESTIMATE*
as at
30 June 2016
$m
Assets    
Financial assets    
Cash and deposits 5,305 3,872
Advances paid 48,384 53,218
Investments, loans and placements 127,720 154,537
Other receivables 47,914 46,594
Equity investments    
Investments in other public sector entities 43,325 49,087
Equity accounted investments 314 315
Investments - shares 39,896 44,939
Total financial assets 312,858 352,560
Non-financial assets    
Land 9,935 9,780
Buildings 25,430 26,198
Plant, equipment and infrastructure  56,879 59,667
Inventories 8,241 8,351
Intangibles 6,605 6,835
Investment property 203 187
Biological assets 39 44
Heritage and cultural assets 11,276 11,344
Assets held for sale 92 87
Other non-financial assets 289 265
Total non-financial assets 118,989 122,757
Total assets 431,847 475,317
Liabilities    
Interest bearing liabilities    
Deposits held 217 218
Government securities 442,128 472,416
Loans 11,515 16,191
Other borrowing 1,682 1,562
Total interest bearing liabilities 455,542 490,387
Provisions and payables    
Superannuation liability(a) 252,043 173,958
Other employee liabilities  16,487 17,059
Suppliers payable 3,881 5,972
Personal benefits provisions and payable 10,304 13,304
Subsidies provisions and payable 4,441 5,035
Grants provisions and payable 11,015 9,397
Other provisions and payables 13,710 14,990
Total provisions and payables 311,881 239,714
Total liabilities 767,424 730,100
Net worth(b) -335,577 -254,783
Net financial worth(c) -454,565 -377,540
Net financial liabilities(d)  497,890 426,627
Net debt(e) 274,133 278,761

*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
December
$m

ACTUAL
2015-2016
YTD December
$m
MYEFO Profile
2015-2016
YTD December
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Cash receipts from operating activities        
Taxes received 29,970 169,021 168,177 368,230
Receipts from sales of goods and services -220 3,443 3,681 7,870
Interest receipts 188 1,389 1,396 3,874
Dividends and income tax equivalents 217 3,144 2,849 4,516
Other receipts 323 3,449 2,847 8,505
Total operating receipts 30,477 180,446 178,950 392,995
Cash payments for operating activities        
Payments for employees -2,581 -13,708 -13,698 -28,130
Payments for goods and services -7,756 -42,511 -41,960 -82,104
Grants and subsidies paid -11,995 -71,874 -71,075 -150,706
Interest paid -667 -7,282 -7,289 -15,040
Personal benefit payments -13,411 -72,555 -70,841 -135,228
Other payments  -617 -2,740 -2,917 -5,313
Total operating payments -37,027 -210,671 -207,780 -416,521
Net cash flows from operating activities -6,550 -30,225 -28,830 -23,526
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 20 172 403 1,896
Purchases of non-financial assets -1,082 -3,660 -4,065 -11,812
Net cash flows from investments in non-financial assets -1,062 -3,488 -3,662 -9,917
Net cash flows from investments in financial assets for policy purposes -1,133 -5,654 -5,626 -14,727
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments 11,792 10,411 -1,276 -13,132
Net cash flows from investments in
financial assets for liquidity purposes
11,792 10,411 -1,276 -13,132
Cash flows from financing activities        
Borrowing (net) -1,263 32,404 41,001 64,552
Other financing (net) -93 -1,298 -1,252 -2,535
Net cash flows from financing activities -1,356 31,106 39,749 62,017
Net increase/(decrease) in cash held 1,690 2,150 353 716
Net cash flows from operating activities and investments in non-financial assets
(Surplus(+)/deficit(-))
-7,612 -33,713 -32,492 -33,443
Finance leases and similar arrangements(b) 0 -58 -1 -2
GFS cash surplus(+)/deficit(-) -7,612 -33,770 -32,493 -33,444
less Net Future Fund earnings 290 1,718 2,232 3,955
Equals underlying cash balance(c) -7,903 -35,488 -34,725 -37,399
plus Net cash flows from investments in financial assets for policy purposes -1,133 -5,654 -5,626 -14,727
plus Net Future Fund earnings 290 1,718 2,232 3,955
Equals headline cash balance -8,745 -39,424 -38,118 -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
December
$m

ACTUAL
2015-2016
YTD December
$m
MYEFO Profile
2015-2016
YTD December
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  15,058 87,612 88,099 176,550
Gross other individuals 1,497 18,141 17,735 44,310
less Refunds 1,323 20,998 20,940 27,500
Total individuals and other withholding taxation 15,233 84,754 84,894 193,360
Fringe benefits tax 20 2,079 2,086 4,610
Company tax 6,226 30,820 30,075 67,996
Superannuation funds 447 3,950 4,057 7,780
Resource rent taxes 0 416 416 960
Total income taxation revenue 21,926 122,019 121,529 274,706

*As published in the 2015-16 MYEFO.

 

Note 2: Indirect Tax

 
ACTUAL
2015-2016
December
$m

ACTUAL
2015-2016
YTD December
$m
MYEFO Profile
2015-2016
YTD December
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Goods and services tax 3,101 29,754 29,686 59,790
Wine equalisation tax 95 422 395 850
Luxury car tax 48 293 294 520
Excise duty 1,774 11,019 10,867 21,393
Customs duty 1,577 6,818 6,390 12,910
Other indirect tax 1,505 3,233 2,891 5,754
Total indirect taxation revenue 8,100 51,541 50,523 101,217

*As published in the 2015-16 MYEFO.

 

Note 3: Total expenses by function

 
ACTUAL
2015-2016
December
$m
ACTUAL
2015-2016
YTD December
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Expenses by function      
General public services 1,686 10,174 22,639
Defence 2,099 13,230 26,559
Public order and safety 426 2,446 4,958
Education  2,815 16,457 32,478
Health  4,844 33,185 68,686
Social security and welfare  13,404 78,381 152,782
Housing and community amenities 349 2,233 5,434
Recreation and culture 285 1,579 3,440
Fuel and energy 574 3,286 6,773
Agriculture, Forestry and Fishing 170 962 3,119
Mining, manufacturing and construction 353 1,555 3,619
Transport and communication 655 2,462 8,882
Other economic affairs 739 4,482 10,131
Other purposes      
Public debt interest 1,352 7,585 15,680
Nominal superannuation interest 770 4,617 9,231
General purpose inter-government transactions 4,822 29,364 59,239
Natural disaster relief 0 0 40
Contingency reserve 0 0 -1,456
Total expenses 35,341 211,997 432,234

*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: 22 January 2016