Australian Government General Government Sector Monthly Financial Statements November 2015

Senator the Hon Mathias Cormann
Minister for Finance

MC 67/15
Friday, 18 November 2015

Australian Government General Government Sector Monthly Financial Statements
November 2015

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Key Points 

  • The underlying cash balance for the 2015-16 financial year to 30 November 2015 was a deficit of $27,585 million.
  • The fiscal balance for the 2015-16 financial year to 30 November 2015 was a deficit of $23,400 million.
AGGREGATES
ACTUAL
2015-2016
November
$m

ACTUAL
2015-2016
YTD November
$m
Budget Profile
2015-2016
YTD November
$m
BUDGET
ESTIMATE*
2015-2016 
Full Year
$m
Revenue  31,190 153,090 156,320 405,350
Expenses 34,159 176,656 178,356 434,469
Net operating balance  -2,970 -23,566 -22,036 -29,118
Net capital investment  362 -166 1,025 3,854
Fiscal balance  -3,332 -23,400 -23,061 -32,972
Receipts(a) 31,199 150,122 150,754 397,980
less Payments(b) 32,850 176,280 178,232 429,836
less Net Future Fund earnings 53 1,427 1,988 3,258
Underlying cash balance(c) -1,704 -27,585 -29,466 -35,115
Headline cash balance  -2,790 -30,679 -31,252 -44,764
Total assets   442,343   454,695
Total liabilities   771,064   716,135
Net worth(d)   -328,722   -261,440
Net debt(e)   264,172   285,802

*As published in the 2015-16 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.

Comparators for the November 2015 Monthly Financial Statements are based on the 2015-16 Budget published in May 2015. The 2015-16 Mid-Year Economic and Fiscal Outlook profiles will be available from the December 2015 Monthly Financial Statements onwards.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 30 November 2015 was a deficit of $27,585 million, compared to the 2015-16 Budget profile deficit of $29,466 million. The difference of $1,881 million primarily relates to lower than expected cash payments.

Fiscal Balance

The fiscal balance for the year to 30 November 2015 was a deficit of $23,400 million, compared to the Budget profile deficit of $23,061 million. The difference of $339 million relates to lower than expected revenue, partially offset by lower than expected expenses and net capital investment.

  • Revenues 
    Total revenue was $3,230 million lower than the Budget profile, primarily due to lower than expected taxation revenue, dividend income and interest income, partially offset by sales of goods and services.
  • Expenses
    Total expenses were $1,700 million lower than the Budget profile, primarily due to lower than expected supply of goods and services, grants, personal benefits, and wages and salaries expenses, partially offset by higher than expected superannuation expenses.

Assets and Liabilities

As at 30 November 2015:

  • Net worth is negative $328,722 million;
  • Net debt is $264,172 million; and
  • Net financial liabilities are $490,043 million.

 

Senator the Hon Mathias Cormann
Minister for Finance 

18 December 2015
Jane Halton 
Secretary 
Department of Finance 
18 December 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
November
$m

ACTUAL
2015-2016
YTD November
$m
Budget Profile
2015-2016
YTD November
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Revenue          
Taxation revenue 1, 2 30,977 143,534 146,004 380,074
Sales of goods and services   720 4,113 3,890 9,542
Interest income   270 1,444 1,783 4,083
Dividend income^   -1,552 1,193 1,767 3,143
Other   775 2,806 2,875 8,508
Total revenue   31,190 153,090 156,320 405,350
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,551 7,813 8,201 19,801
Superannuation   516 2,556 1,958 4,760
Depreciation and amortisation   535 2,882 2,964 7,182
Supply of goods and services   6,583 33,975 34,642 85,046
Other operating expenses(a)   511 2,519 2,257 5,510
Total gross operating expenses   9,695 49,745 50,022 122,298
Superannuation interest expense   770 3,848 4,112 9,869
Interest expenses   1,356 6,763 6,919 17,270
Current transfers          
Current grants   9,566 50,177 50,563 128,415
Subsidy expenses   992 5,077 5,159 12,654
Personal benefits   10,567 56,727 57,191 133,123
Total current transfers   21,125 111,982 112,914 274,191
Capital transfers          
Mutually agreed write-downs   339 945 852 2,199
Other capital grants   874 3,374 3,536 8,641
Total capital transfers   1,213 4,319 4,389 10,840
Total expenses 3 34,159 176,656 178,356 434,469
Net operating balance   -2,970 -23,566 -22,036 -29,118
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -1,369 -3,381 -4,529 -8,638
Assets recognised for the first time   133 245 139 335
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   892 -689 46 46
Net swap interest received   -43 -453 0 0
Market valuation of debt   5,934 -449 1,544 3,625
Other gains/(losses)   -1,185 2,729 3,063 5,604
Total other economic flows           
 - included in operating result   4,363 -1,998 263 972
Operating result   1,394 -25,564 -21,773 -28,147
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   1 15 643 -2,221
Actuarial revaluations   0 0 42 105
Other economic revaluations(d)   451 -183 -71 135
Total other economic flows - included in equity   453 -168 615 -1,981
Comprehensive result - Total change in net worth   1,206 -26,373 -21,158 -30,128
Net operating balance   -2,970 -23,566 -22,036 -29,118
Net acquisition of non-financial assets          
Purchases of non-financial assets   773 2,773 4,092 11,408
less Sales of non-financial assets   61 187 190 491
less Depreciation   535 2,882 2,964 7,182
plus Change in inventories   169 54 97 352
plus Other movements in non-financial assets   16 76 -10 -234
Total net acquisition of non-financial assets   362 -166 1,025 3,854
Fiscal balance (Net lending/borrowing)(e)   -3,332 -23,400 -23,061 -32,972

*As published in the 2015-16 Budget.
^This movement in November relates to an adjustment made to the year-to-date Dividend income from that previously reported in September and October 2015. This amount should have been reported as a reduction in Other receivables in the balance sheet for these months. This adjustment does not impact the Government's underlying cash balance.
(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
30 November 2015
$m
BUDGET ESTIMATE*
as at
30 June 2016
$m
Assets    
Financial assets    
Cash and deposits 3,615 3,435
Advances paid 48,404 52,901
Investments, loans and placements 140,186 137,947
Other receivables 47,537 45,980
Equity investments    
Investments in other public sector entities 42,685 45,471
Equity accounted investments 304 326
Investments - shares 40,975 46,537
Total financial assets 323,707 332,597
Non-financial assets    
Land 9,936 9,144
Buildings 25,465 26,927
Plant, equipment and infrastructure  56,440 59,766
Inventories 8,336 8,211
Intangibles 6,585 6,547
Investment property 190 195
Biological assets 39 36
Heritage and cultural assets 11,273 10,852
Assets held for sale 99 72
Other non-financial assets 274 348
Total non-financial assets 118,636 122,098
Total assets 442,343 454,695
Liabilities    
Interest bearing liabilities    
Deposits held 217 211
Government securities 442,590 464,298
Loans 11,877 14,148
Other borrowing 1,693 1,428
Total interest bearing liabilities 456,377 480,084
Provisions and payables    
Superannuation liability(a) 251,339 173,921
Other employee liabilities  17,322 16,105
Suppliers payable 4,694 4,914
Personal benefits provisions and payable 11,789 12,826
Subsidies provisions and payable 4,646 4,854
Grants provisions and payable 10,166 8,472
Other provisions and payables 14,732 14,959
Total provisions and payables 314,688 236,051
Total liabilities 771,064 716,135
Net worth(b) -328,722 -261,440
Net financial worth(c) -447,358 -383,538
Net financial liabilities(d)  490,043 429,009
Net debt(e) 264,172 285,802

*As published in the 2015-16 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 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
November
$m

ACTUAL
2015-2016
YTD November
$m
Budget Profile
2015-2016
YTD November
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Cash receipts from operating activities        
Taxes received 29,728 139,051 139,321 370,140
Receipts from sales of goods and services 669 3,663 3,957 9,475
Interest receipts 183 1,202 1,496 3,334
Dividends and income tax equivalents -81 2,927 3,200 4,623
Other receipts 662 3,127 2,093 8,549
Total operating receipts 31,162 149,970 150,068 396,121
Cash payments for operating activities        
Payments for employees -2,152 -11,128 -11,574 -27,891
Payments for goods and services -6,510 -34,756 -34,160 -85,076
Grants and subsidies paid -11,648 -59,879 -60,978 -150,792
Interest paid -698 -6,615 -6,731 -14,953
Personal benefit payments -10,989 -59,144 -58,754 -134,744
Other payments  -301 -2,123 -1,935 -5,218
Total operating payments -32,297 -173,644 -174,132 -418,674
Net cash flows from operating activities -1,135 -23,675 -24,064 -22,553
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 37 153 687 1,859
Purchases of non-financial assets -498 -2,578 -4,100 -11,161
Net cash flows from investments in non-financial assets -461 -2,426 -3,413 -9,302
Net cash flows from investments in financial assets for policy purposes -1,139 -4,521 -3,774 -12,908
Cash flows from investments in 
financial assets for liquidity purposes
       
Increase in investments -6,600 -1,381 10,891 -3,129
Net cash flows from investments in 
financial assets for liquidity purposes
-6,600 -1,381 10,891 -3,129
Cash flows from financing activities        
Borrowing (net) 9,937 33,668 21,177 50,790
Other financing (net) -159 -1,206 -1,199 -2,608
Net cash flows from financing activities 9,778 32,462 19,979 48,182
Net increase/(decrease) in cash held 442 459 -382 291
Net cash flows from operating activities and investments in non-financial assets
(Surplus(+)/deficit(-))
-1,596 -26,100 -27,477 -31,855
Finance leases and similar arrangements(b) -55 -58 -1 -2
GFS cash surplus(+)/deficit(-) -1,651 -26,158 -27,478 -31,856
less Net Future Fund earnings 53 1,427 1,988 3,258
Equals underlying cash balance(c) -1,704 -27,585 -29,466 -35,115
plus Net cash flows from investments in financial assets for policy purposes -1,139 -4,521 -3,774 -12,908
plus Net Future Fund earnings 53 1,427 1,988 3,258
Equals headline cash balance -2,790 -30,679 -31,252 -44,764

*As published in the 2015-16 Budget.
(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
November
$m

ACTUAL
2015-2016
YTD November
$m
Budget Profile
2015-2016
YTD November
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  14,640 72,553 73,674 178,460
Gross other individuals 2,988 16,643 16,589 43,800
less Refunds 2,323 19,675 19,650 28,000
Total individuals and other withholding taxation 15,304 69,521 70,613 194,260
Fringe benefits tax 36 2,059 2,221 5,020
Company tax 5,057 24,593 24,696 69,800
Superannuation funds 695 3,502 4,637 9,180
Resource rent taxes -11 416 829 1,420
Total income taxation revenue 21,081 100,093 102,996 279,680

*As published in the 2015-16 Budget.

 

Note 2: Indirect Tax

 
ACTUAL
2015-2016
November
$m

ACTUAL
2015-2016
YTD November
$m
Budget Profile
2015-2016
YTD November
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Goods and services tax 6,184 26,654 26,513 60,330
Wine equalisation tax 80 327 296 840
Luxury car tax 50 245 191 450
Excise duty 1,941 9,245 10,538 24,920
Customs duty 1,134 5,241 3,747 9,480
Other indirect tax 506 1,729 1,724 4,374
Total indirect taxation revenue 9,896 43,441 43,009 100,394

*As published in the 2015-16 Budget.

 

Note 3: Total expenses by function

 
ACTUAL
2015-2016
November
$m
ACTUAL
2015-2016
YTD November
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Expenses by function      
General public services 1,720 8,488 22,162
Defence 2,078 11,131 26,348
Public order and safety 407 2,019 4,885
Education  1,536 13,642 31,854
Health  5,603 28,341 69,381
Social security and welfare  12,311 64,978 154,000
Housing and community amenities 349 1,884 5,329
Recreation and culture 180 1,293 3,530
Fuel and energy 536 2,713 6,706
Agriculture, Forestry and Fishing 196 792 3,063
Mining, manufacturing and construction 226 1,202 3,142
Transport and communication 873 1,807 8,575
Other economic affairs 695 3,743 9,792
Other purposes      
Public debt interest 1,248 6,233 15,561
Nominal superannuation interest 770 3,848 9,869
General purpose inter-government transactions 5,432 24,542 60,038
Natural disaster relief 0 0 33
Contingency reserve 0 0 201
Total expenses 34,159 176,656 434,469

*As published in the 2015-16 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 (IMF) Special Data Dissemination Standards (SDDS)

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. 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/quarterly-data-september-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: 18 December 2015