Australian Government General Government Sector Monthly Financial Statements March 2016

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

MC 22/16
Friday, 22 April 2016

Australian Government General Government Sector Monthly Financial Statements
March 2016

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Key Points 

  • The underlying cash balance for the 2015-16 financial year to 31 March 2016 was a deficit of $39,909 million.
  • The fiscal balance for the 2015-16 financial year to 31 March 2016 was a deficit of $36,822 million.
AGGREGATESACTUAL
2015-2016
March
$m
ACTUAL
2015-2016
YTD March
$m
MYEFO Profile
2015-2016
YTD March
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Revenue 32,801 281,765 283,304 400,953
Expenses 34,876 317,897 320,613 432,234
Net operating balance -2,075 -36,132 -37,310 -31,281
Net capital investment -544 690 1,747 4,484
Fiscal balance -1,530 -36,822 -39,056 -35,765
Receipts(a) 32,574 274,887 277,544 394,891
less Payments(b) 33,523 312,559 315,051 428,335
less Net Future Fund earnings 241 2,237 3,211 3,955
Underlying cash balance(c) -1,190 -39,909 -40,718 -37,399
Headline cash balance -1,739 -46,549 -49,448 -48,171
Total assets   451,672   475,317
Total liabilities   804,643   730,100
Net worth(d)   -352,972   -254,783
Net debt(e)   288,681   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 March 2016 was a deficit of $39,909 million, compared to the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $40,718 million. The difference of $809 million primarily relates to lower than expected cash payments, partially offset by lower than expected cash receipts (net of Future Fund earnings).

Fiscal Balance

The fiscal balance for the year to 31 March 2016 was a deficit of $36,822 million, compared to the MYEFO profile deficit of $39,056 million. The difference of $2,234 million primarily relates to lower than expected expenses, partially offset by lower than expected revenue.

  • Revenues
    Total revenue was $1,538 million lower than the MYEFO profile, primarily due to lower than expected taxation revenue.
  • Expenses
    Total expenses were $2,716 million lower than the MYEFO profile, primarily due to lower than expected grants, salaries and wages, and personal benefits expenses, partially offset by higher other operating expenses.

Assets and Liabilities

As at 31 March 2016:

  • Net worth is negative $352,972 million;
  • Net debt is $288,681 million; and
  • Net financial liabilities are $518,013 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
 NoteACTUAL
2015-2016
March
$m
ACTUAL
2015-2016
YTD March
$m
MYEFO Profile
2015-2016
YTD March
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Revenue          
Taxation revenue 1, 2 31,116 266,913 267,874 375,923
Sales of goods and services   612 5,649 5,675 7,956
Interest income   274 2,542 2,664 4,519
Dividend income   272 2,012 2,326 3,841
Other   527 4,649 4,765 8,714
Total revenue   32,801 281,765 283,304 400,953
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,686 13,889 14,665 20,072
Superannuation   544 4,610 4,385 5,930
Depreciation and amortisation   722 5,277 5,253 7,129
Supply of goods and services   7,666 61,236 61,503 82,423
Other operating expenses(a)   535 4,347 3,992 5,439
Total gross operating expenses   11,153 89,358 89,799 120,992
Superannuation interest expense   769 6,925 6,923 9,231
Interest expenses   1,439 12,424 12,625 17,260
Current transfers          
Current grants   8,664 92,507 93,675 127,737
Subsidy expenses   1,114 9,434 9,707 12,944
Personal benefits   11,075 99,760 100,342 133,402
Total current transfers   20,854 201,701 203,724 274,084
Capital transfers          
Mutually agreed write-downs   42 1,228 1,417 1,887
Other capital grants   619 6,261 6,125 8,780
Total capital transfers   661 7,489 7,542 10,667
Total expenses 3 34,876 317,897 320,613 432,234
Net operating balance   -2,075 -36,132 -37,310 -31,281
Other economic flows          
- included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -1,921 -12,429 -5,987 -8,037
Assets recognised for the first time   27 250 289 322
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   1,342 256 -520 -518
Net swap interest received   77 -359 -410 -410
Market valuation of debt   2,677 -6,956 181 832
Other gains/(losses)   -1,395 5,052 4,949 5,195
Total other economic flows          
- included in operating result   808 -14,186 -1,499 -2,616
Operating result   -1,267 -50,318 -38,809 -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)   718 -307 -537 1
Total other economic flows - included in equity   718 -304 -1,136 -2,079
Comprehensive result - Total change in net worth   -549 -50,623 -39,945 -35,976
Net operating balance   -2,075 -36,132 -37,310 -31,281
Net acquisition of non-financial assets          
Purchases of non-financial assets   190 6,106 7,087 11,661
less Sales of non-financial assets   23 325 360 528
less Depreciation   722 5,277 5,253 7,129
plus Change in inventories   -10 42 211 421
plus Other movements in non-financial assets   21 143 62 59
Total net acquisition of non-financial assets   -544 690 1,747 4,484
Fiscal balance (Net lending/borrowing)(e)   -1,530 -36,822 -39,056 -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 March 2016
$m
MYEFO ESTIMATE*
as at
30 June 2016
$m
Assets    
Financial assets    
Cash and deposits 3,421 3,872
Advances paid 49,695 53,218
Investments, loans and placements 146,035 154,537
Other receivables 48,682 46,594
Equity investments    
Investments in other public sector entities 45,116 49,087
Equity accounted investments 304 315
Investments - shares 38,493 44,939
Total financial assets 331,746 352,560
Non-financial assets    
Land 10,377 9,780
Buildings 25,360 26,198
Plant, equipment and infrastructure 57,276 59,667
Inventories 8,178 8,351
Intangibles 6,680 6,835
Investment property 203 187
Biological assets 38 44
Heritage and cultural assets 11,383 11,344
Assets held for sale 89 87
Other non-financial assets 341 265
Total non-financial assets 119,926 122,757
Total assets 451,672 475,317
Liabilities    
Interest bearing liabilities    
Deposits held 216 218
Government securities 469,911 472,416
Loans 16,036 16,191
Other borrowing 1,669 1,562
Total interest bearing liabilities 487,832 490,387
Provisions and payables    
Superannuation liability(a) 253,854 173,958
Other employee liabilities 16,927 17,059
Suppliers payable 5,263 5,972
Personal benefits provisions and payable 11,868 13,304
Subsidies provisions and payable 4,824 5,035
Grants provisions and payable 10,428 9,397
Other provisions and payables 13,646 14,990
Total provisions and payables 316,811 239,714
Total liabilities 804,643 730,100
Net worth(b) -352,972 -254,783
Net financial worth(c) -472,897 -377,540
Net financial liabilities(d) 518,013 426,627
Net debt(e) 288,681 278,761

*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
March
$m
ACTUAL
2015-2016
YTD March
$m
MYEFO Profile
2015-2016
YTD March
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Cash receipts from operating activities        
Taxes received 31,114 259,135 260,696 368,230
Receipts from sales of goods and services 593 5,244 5,355 7,870
Interest receipts 177 1,933 2,152 3,874
Dividends and income tax equivalents 266 3,613 3,800 4,516
Other receipts 400 4,739 5,026 8,505
Total operating receipts 32,550 274,664 277,030 392,995
Cash payments for operating activities        
Payments for employees -2,340 -20,034 -20,501 -28,130
Payments for goods and services -8,024 -61,462 -61,592 -82,104
Grants and subsidies paid -10,253 -108,733 -109,232 -150,706
Interest paid -577 -9,652 -9,719 -15,040
Personal benefit payments -11,253 -102,338 -102,742 -135,228
Other payments -497 -4,283 -4,042 -5,313
Total operating payments -32,944 -306,502 -307,827 -416,521
Net cash flows from operating activities -394 -31,838 -30,798 -23,526
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 24 223 514 1,896
Purchases of non-financial assets -579 -5,998 -7,222 -11,812
Net cash flows from investments in
non-financial assets
-555 -5,776 -6,708 -9,917
Net cash flows from investments in
financial assets for policy purposes
-790 -8,876 -11,941 -14,727
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments -9,291 -4,076 -11,939 -13,132
Net cash flows from investments in
financial assets for liquidity purposes
-9,291 -4,076 -11,939 -13,132
Cash flows from financing activities        
Borrowing (net) 8,926 52,659 63,814 64,552
Other financing (net) -52 -1,828 -1,809 -2,535
Net cash flows from financing activities 8,873 50,831 62,005 62,017
Net increase/(decrease) in cash held -2,156 265 618 716
Net cash flows from operating activities
and investments in non-financial assets
(Surplus(+)/deficit(-))
-949 -37,613 -37,506 -33,443
Finance leases and similar arrangements(b) 0 -59 -1 -2
GFS cash surplus(+)/deficit(-) -949 -37,672 -37,507 -33,444
less Net Future Fund earnings 241 2,237 3,211 3,955
Equals underlying cash balance(c) -1,190 -39,909 -40,718 -37,399
plus Net cash flows from investments in
financial assets for policy purposes
-790 -8,876 -11,941 -14,727
plus Net Future Fund earnings 241 2,237 3,211 3,955
Equals headline cash balance -1,739 -46,549 -49,448 -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
March
$m
ACTUAL
2015-2016
YTD March
$m
MYEFO Profile
2015-2016
YTD March
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 15,886 131,478 132,173 176,550
Gross other individuals 4,301 28,094 27,407 44,310
less Refunds 1,080 24,269 23,979 27,500
Total individuals and other withholding taxation 19,106 135,303 135,600 193,360
Fringe benefits tax 11 3,154 3,176 4,610
Company tax 5,416 46,263 47,401 67,996
Superannuation funds 112 5,337 6,237 7,780
Resource rent taxes 4 561 760 960
Total income taxation revenue 24,648 190,618 193,175 274,706

*As published in the 2015-16 MYEFO.

Note 2: Indirect Tax

 ACTUAL
2015-2016
March
$m
ACTUAL
2015-2016
YTD March
$m
MYEFO Profile
2015-2016
YTD March
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Goods and services tax 3,231 44,598 44,117 59,790
Wine equalisation tax 51 661 638 850
Luxury car tax 56 450 404 520
Excise duty 1,706 16,238 16,096 21,393
Customs duty 952 10,086 9,328 12,910
Other indirect tax 471 4,263 4,116 5,754
Total indirect taxation revenue 6,467 76,295 74,699 101,217

*As published in the 2015-16 MYEFO.

 

Note 3: Total expenses by function

 ACTUAL
2015-2016
March
$m
ACTUAL
2015-2016
YTD March
$m
MYEFO ESTIMATE*
2015-2016
Full Year
$m
Expenses by function      
General public services 1,474 15,346 22,639
Defence 2,858 20,296 26,559
Public order and safety 347 3,549 4,958
Education 1,908 26,116 32,478
Health 5,922 49,984 68,686
Social security and welfare 12,646 114,832 152,782
Housing and community amenities 345 3,203 5,434
Recreation and culture 163 2,382 3,440
Fuel and energy 546 4,937 6,773
Agriculture, Forestry and Fishing 187 1,460 3,119
Mining, manufacturing and construction 340 2,484 3,619
Transport and communication(a) 259 3,824 8,882
Other economic affairs 904 6,815 10,131
Other purposes      
Public debt interest 1,333 11,517 15,680
Nominal superannuation interest 769 6,925 9,231
General purpose inter-government transactions 4,875 44,228 59,239
Natural disaster relief 0 0 40
Contingency reserve 0 0 -1,456
Total expenses 34,876 317,897 432,234

*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-march-2016/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 April 2016