Australian Government General Government Sector Monthly Financial Statements February 2016

Senator the Hon Mathias Cormann
Minister for Finance
Deputy Leader of the Government in the Senate

MC 16/16
Thursday, 24 March 2016

Australian Government General Government Sector Monthly Financial Statements
February 2016

Key Points

The underlying cash balance for the 2015-16 financial year to 29 February 2016 was a deficit of $38,719 million.
The fiscal balance for the 2015-16 financial year to 29 February 2016 was a deficit of $35,292 million.

AGGREGATES	ACTUAL 2015-2016 February $m	ACTUAL 2015-2016 YTD February $m	MYEFO Profile 2015-2016 YTD February $m	MYEFO ESTIMATE* 2015-2016 Full Year $m
Revenue	39,662	248,964	250,187	400,953
Expenses	33,315	283,021	285,852	432,234
Net operating balance	6,347	-34,057	-35,665	-31,281
Net capital investment	113	1,235	1,054	4,484
Fiscal balance	6,234	-35,292	-36,719	-35,765
Receipts(a)	37,312	242,313	244,703	394,891
less Payments(b)	30,670	279,036	281,312	428,335
less Net Future Fund earnings	68	1,996	2,853	3,955
Underlying cash balance(c)	6,574	-38,719	-39,462	-37,399
Headline cash balance	5,522	-44,809	-47,444	-48,171
Total assets		440,323		475,317
Total liabilities		792,746		730,100
Net worth(d)		-352,423		-254,783
Net debt(e)		287,920		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 29 February 2016 was a deficit of $38,719 million, compared to the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $39,462 million. The difference of $743 million primarily relates to lower than expected cash payments and net future fund earnings, partially offset by lower than expected cash receipts.

Fiscal Balance

The fiscal balance for the year to 29 February 2016 was a deficit of $35,292 million, compared to the MYEFO profile deficit of $36,719 million. The difference of $1,427 million primarily relates to lower than expected expenses, partially offset by lower than expected revenue.

Revenues
Total revenue was $1,223 million lower than the MYEFO profile, primarily due to lower than expected taxation revenue and dividend income.
Expenses
Total expenses were $2,831 million lower than the MYEFO profile, primarily due to lower than expected supply of goods and services, wages and salaries and grants expenses.

Assets and Liabilities

As at 29 February 2016:

Net worth is negative $352,423 million;
Net debt is $287,920 million; and
Net financial liabilities are $516,561 million.

Senator the Hon Mathias Cormann Minister for Finance	Jane Halton Secretary Department of Finance
Contact: Senator the Hon Mathias Cormann's Office: Department of Finance:	Karen Wu (02) 6277 7400 Liz Pash (02) 6215 2222

Australian Government general government sector operating statement

	Note	ACTUAL 2015-2016 February $m	ACTUAL 2015-2016 YTD February $m	MYEFO Profile 2015-2016 YTD February $m	MYEFO ESTIMATE* 2015-2016 Full Year $m
Revenue
Taxation revenue	1, 2	38,099	235,797	236,638	375,923
Sales of goods and services		620	5,037	5,057	7,956
Interest income		256	2,268	2,344	4,519
Dividend income		171	1,740	1,984	3,841
Other		516	4,122	4,163	8,714
Total revenue		39,662	248,964	250,187	400,953
Expenses
Gross operating expenses
Wages and salaries(a)		1,545	12,203	12,970	20,072
Superannuation		514	4,065	3,894	5,930
Depreciation and amortisation		520	4,555	4,654	7,129
Supply of goods and services		6,571	53,570	54,768	82,423
Other operating expenses(a)		481	3,812	3,619	5,439
Total gross operating expenses		9,630	78,205	79,905	120,992
Superannuation interest expense		769	6,156	6,154	9,231
Interest expenses		1,357	10,986	11,125	17,260
Current transfers
Current grants		9,359	83,842	84,403	127,737
Subsidy expenses		1,071	8,320	8,533	12,944
Personal benefits		10,043	88,685	88,899	133,402
Total current transfers		20,473	180,847	181,836	274,084
Capital transfers
Mutually agreed write-downs		163	1,186	1,265	1,887
Other capital grants		923	5,642	5,567	8,780
Total capital transfers		1,086	6,828	6,832	10,667
Total expenses	3	33,315	283,021	285,852	432,234
Net operating balance		6,347	-34,057	-35,665	-31,281
Other economic flows
- included in operating result(b)
Net write-downs of assets (including bad and doubtful debts)		-2,965	-10,509	-4,575	-8,037
Assets recognised for the first time		27	223	278	322
Liabilities recognised for the first time		0	0	0	0
Actuarial revaluations		0	0	0	0
Net foreign exchange gains		231	-1,086	-520	-518
Net swap interest received		5	-437	-410	-410
Market valuation of debt		-4,373	-9,633	-51	832
Other gains/(losses)		1,708	6,447	4,309	5,195
Total other economic flows
- included in operating result		-5,367	-14,994	-970	-2,616
Operating result		980	-49,051	-36,635	-33,897
Non-owner movements in equity(b)
Revaluation of equity investments(c)		0	3	-599	846
Actuarial revaluations		0	0	0	-2,926
Other economic revaluations(d)		6	-1,025	-530	1
Total other economic flows - included in equity		5	-1,022	-1,128	-2,079
Comprehensive result - Total change in net worth		985	-50,074	-37,763	-35,976
Net operating balance		6,347	-34,057	-35,665	-31,281
Net acquisition of non-financial assets
Purchases of non-financial assets		672	5,916	5,853	11,661
less Sales of non-financial assets		14	302	341	528
less Depreciation		520	4,555	4,654	7,129
plus Change in inventories		-32	53	138	421
plus Other movements in non-financial assets		6	122	57	59
Total net acquisition of non-financial assets		113	1,235	1,054	4,484
Fiscal balance (Net lending/borrowing)(e)		6,234	-35,292	-36,719	-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 29 February 2016 $m	MYEFO ESTIMATE* as at 30 June 2016 $m
Assets
Financial assets
Cash and deposits	5,577	3,872
Advances paid	49,400	53,218
Investments, loans and placements	133,374	154,537
Other receivables	49,128	46,594
Equity investments
Investments in other public sector entities	44,698	49,087
Equity accounted investments	304	315
Investments - shares	38,402	44,939
Total financial assets	320,884	352,560
Non-financial assets
Land	9,918	9,780
Buildings	25,460	26,198
Plant, equipment and infrastructure	57,309	59,667
Inventories	8,209	8,351
Intangibles	6,625	6,835
Investment property	203	187
Biological assets	42	44
Heritage and cultural assets	11,267	11,344
Assets held for sale	87	87
Other non-financial assets	320	265
Total non-financial assets	119,440	122,757
Total assets	440,323	475,317
Liabilities
Interest bearing liabilities
Deposits held	216	218
Government securities	462,859	472,416
Loans	11,521	16,191
Other borrowing	1,674	1,562
Total interest bearing liabilities	476,270	490,387
Provisions and payables
Superannuation liability(a)	253,400	173,958
Other employee liabilities	16,621	17,059
Suppliers payable	5,202	5,972
Personal benefits provisions and payable	11,816	13,304
Subsidies provisions and payable	4,874	5,035
Grants provisions and payable	10,430	9,397
Other provisions and payables	14,133	14,990
Total provisions and payables	316,476	239,714
Total liabilities	792,746	730,100
Net worth(b)	-352,423	-254,783
Net financial worth(c)	-471,863	-377,540
Net financial liabilities(d)	516,561	426,627
Net debt(e)	287,920	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^(a)

	ACTUAL 2015-2016 February $m	ACTUAL 2015-2016 YTD February $m	MYEFO Profile 2015-2016 YTD February $m	MYEFO ESTIMATE* 2015-2016 Full Year $m
Cash receipts from operating activities
Taxes received	35,985	228,022	229,652	368,230
Receipts from sales of goods and services	662	4,651	4,729	7,870
Interest receipts	128	1,756	1,893	3,874
Dividends and income tax equivalents	102	3,346	3,466	4,516
Other receipts	425	4,338	4,466	8,505
Total operating receipts	37,302	242,114	244,206	392,995
Cash payments for operating activities
Payments for employees	-2,075	-17,694	-18,095	-28,130
Payments for goods and services	-6,218	-53,438	-54,802	-82,104
Grants and subsidies paid	-11,220	-98,480	-98,132	-150,706
Interest paid	-631	-9,075	-9,106	-15,040
Personal benefit payments	-9,533	-91,085	-91,479	-135,228
Other payments	-413	-3,786	-3,721	-5,313
Total operating payments	-30,090	-273,558	-275,336	-416,521
Net cash flows from operating activities	7,212	-31,444	-31,130	-23,526
Cash flows from investments in non-financial assets
Sales of non-financial assets	10	199	497	1,896
Purchases of non-financial assets	-579	-5,419	-5,975	-11,812
Net cash flows from investments in non-financial assets	-569	-5,220	-5,478	-9,917
Net cash flows from investments in financial assets for policy purposes	-1,120	-8,086	-10,835	-14,727
Cash flows from investments in financial assets for liquidity purposes
Increase in investments	-5,197	5,215	-6,334	-13,132
Net cash flows from investments in financial assets for liquidity purposes	-5,197	5,215	-6,334	-13,132
Cash flows from financing activities
Borrowing (net)	2,428	43,733	56,205	64,552
Other financing (net)	-120	-1,775	-1,752	-2,535
Net cash flows from financing activities	2,308	41,958	54,453	62,017
Net increase/(decrease) in cash held	2,633	2,421	675	716
Net cash flows from operating activities and investments in non-financial assets (Surplus(+)/deficit(-))	6,643	-36,665	-36,608	-33,443
Finance leases and similar arrangements(b)	-1	-58	-1	-2
GFS cash surplus(+)/deficit(-)	6,642	-36,723	-36,609	-33,444
less Net Future Fund earnings	68	1,996	2,853	3,955
Equals underlying cash balance(c)	6,574	-38,719	-39,462	-37,399
plus Net cash flows from investments in financial assets for policy purposes	-1,120	-8,086	-10,835	-14,727
plus Net Future Fund earnings	68	1,996	2,853	3,955
Equals headline cash balance	5,522	-44,809	-47,444	-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 February $m	ACTUAL 2015-2016 YTD February $m	MYEFO Profile 2015-2016 YTD February $m	MYEFO ESTIMATE* 2015-2016 Full Year $m
Individuals and other withholding taxes
Gross income tax withholding	16,126	115,592	116,363	176,550
Gross other individuals	4,242	23,793	23,429	44,310
less Refunds	1,119	23,189	22,879	27,500
Total individuals and other withholding taxation	19,249	116,196	116,914	193,360
Fringe benefits tax	211	3,143	3,142	4,610
Company tax	5,847	40,848	41,590	67,996
Superannuation funds	543	5,224	5,938	7,780
Resource rent taxes	0	558	760	960
Total income taxation revenue	25,850	165,969	168,344	274,706

_{*As published in the 2015-16 MYEFO.}

Note 2: Indirect Tax

	ACTUAL 2015-2016 February $m	ACTUAL 2015-2016 YTD February $m	MYEFO Profile 2015-2016 YTD February $m	MYEFO ESTIMATE* 2015-2016 Full Year $m
Goods and services tax	8,497	41,367	40,734	59,790
Wine equalisation tax	86	610	579	850
Luxury car tax	47	393	371	520
Excise duty	1,960	14,532	14,474	21,393
Customs duty	1,246	9,133	8,466	12,910
Other indirect tax	412	3,792	3,669	5,754
Total indirect taxation revenue	12,248	69,827	68,294	101,217

_{*As published in the 2015-16 MYEFO.}

Note 3: Total expenses by function

	ACTUAL 2015-2016 February $m	ACTUAL 2015-2016 YTD February $m	MYEFO ESTIMATE* 2015-2016 Full Year $m
Expenses by function
General public services	1,848	13,872	22,639
Defence	2,085	17,437	26,559
Public order and safety	342	3,202	4,958
Education	1,812	24,208	32,478
Health	5,552	44,063	68,686
Social security and welfare	11,360	102,186	152,782
Housing and community amenities	325	2,858	5,434
Recreation and culture	370	2,219	3,440
Fuel and energy	559	4,391	6,773
Agriculture, Forestry and Fishing	173	1,273	3,119
Mining, manufacturing and construction	295	2,144	3,619
Transport and communication	682	3,565	8,882
Other economic affairs	729	5,910	10,131
Other purposes
Public debt interest	1,275	10,184	15,680
Nominal superannuation interest	769	6,156	9,231
General purpose inter-government transactions	5,138	39,353	59,239
Natural disaster relief	0	0	40
Contingency reserve	0	0	-1,456
Total expenses	33,315	283,021	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. 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/.

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.

Australian Government General Government Sector Monthly Financial Statements February 2016