Australian Government General Government Sector Monthly Financial Statements May 2016

Friday, 24 June 2016

Australian Government General Government Sector Monthly Financial Statements
May 2016

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AGGREGATESACTUAL
2015-2016
May
$m
ACTUAL
2015-2016
YTD May
$m
Revised Monthly^ Profile
2015-2016
YTD May
$m
Revised Budget ESTIMATE*
2015-2016
Full Year
$m
Revenue 40,456 360,209 358,892 396,396
Expenses 35,909 388,061 390,375 431,470
Net operating balance 4,547 -27,852 -31,484 -35,074
Net capital investment 1,342 2,759 3,291 4,355
Fiscal balance 3,204 -30,611 -34,775 -39,429
Receipts(a) 38,905 349,860 349,794 388,027
less Payments(b) 34,558 381,905 384,311 424,961
less Net Future Fund earnings 224 2,814 2,710 3,012
Underlying cash balance(c) 4,124 -34,860 -37,227 -39,946
Headline cash balance 3,093 -43,530 -47,321 -51,487
Total assets   488,067   465,421
Total liabilities   831,956   730,448
Net worth(d)   -343,889   -265,027
Net debt(e)   284,657   285,684

*As published in the 2016-17 Budget.
^Based on the previous profile, adjusted for significant changes in the 2016-17 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.

Australian Government general government sector operating statement

 NoteACTUAL
2015-2016
May
$m
ACTUAL
2015-2016
YTD May
$m
Revised Monthly Profile^
2015-2016
YTD May
$m
Revised Budget ESTIMATE*
2015-2016
Full Year
$m
Revenue          
Taxation revenue 1, 2 38,615 340,866 339,702 371,923
Sales of goods and services   688 7,142 6,979 7,697
Interest income   271 3,120 3,137 3,506
Dividend income   329 2,638 2,238 5,564
Other   551 6,443 6,836 7,706
Total revenue   40,456 360,209 358,892 396,396
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,695 17,118 17,480 19,767
Superannuation   529 5,659 5,575 7,052
Depreciation and amortisation   499 6,429 6,464 7,165
Supply of goods and services   7,371 76,085 76,792 81,414
Other operating expenses(a)   671 5,516 5,045 5,483
Total gross operating expenses   10,764 110,808 111,357 120,881
Superannuation interest expense   769 8,463 8,430 9,167
Interest expenses   1,455 15,282 15,300 16,774
Current transfers          
Current grants   10,450 112,197 114,347 128,393
Subsidy expenses   1,054 11,547 11,471 12,763
Personal benefits   10,763 120,897 121,348 133,416
Total current transfers   22,267 244,641 247,166 274,572
Capital transfers          
Mutually agreed write-downs   37 1,365 1,497 1,722
Other capital grants   616 7,501 6,625 8,354
Total capital transfers   654 8,866 8,122 10,076
Total expenses 3 35,909 388,061 390,375 431,470
Net operating balance   4,547 -27,852 -31,484 -35,074
Other economic flows          
- included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   2,300 -9,568 -5,683 -7,106
Assets recognised for the first time   -24 289 323 296
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   -1,136 -1,083 -40 -9
Net swap interest received   57 -200 -257 -437
Market valuation of debt   -5,291 -10,961 -4,992 -4,673
Other gains/(losses)   695 5,804 5,601 713
Total other economic flows          
- included in operating result   -3,399 -15,719 -5,048 -11,215
Operating result   1,147 -43,570 -36,532 -46,289
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   86 106 -599 -3,026
Actuarial revaluations   0 0 0 1,032
Other economic revaluations(d)   2,269 1,924 3,181 371
Total other economic flows - included in equity   2,354 2,030 2,582 -1,623
Comprehensive result - Total change in net worth   3,502 -41,540 -34,200 -47,912
Net operating balance   4,547 -27,852 -31,484 -35,074
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,733 9,201 9,367 11,559
less Sales of non-financial assets   23 389 366 404
less Depreciation   499 6,429 6,164 7,165
plus Change in inventories   141 226 401 310
plus Other movements in non-financial assets   -10 149 53 56
Total net acquisition of non-financial assets   1,342 2,759 3,291 4,355
Fiscal balance (Net lending/borrowing)(e)   3,204 -30,611 -34,775 -39,429

*As published in the 2016-17 Budget.
^Based on the previous profile, adjusted for significant changes in the 2016-17 Budget.
(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 May 2016
$m
Revised Budget ESTIMATE*
as at
30 June 2016
$m
Assets    
Financial assets    
Cash and deposits 3,562 3,512
Advances paid 50,515 52,782
Investments, loans and placements 172,294 153,233
Other receivables 50,087 48,492
Equity investments    
Investments in other public sector entities 48,746 44,798
Equity accounted investments 302 344
Investments - shares 40,231 39,394
Total financial assets 365,738 342,555
Non-financial assets    
Land 10,361 9,729
Buildings 25,357 25,992
Plant, equipment and infrastructure 59,468 59,692
Inventories 8,334 8,195
Intangibles 6,758 6,881
Investment property 205 200
Biological assets 35 44
Heritage and cultural assets 11,366 11,697
Assets held for sale 98 174
Other non-financial assets 347 262
Total non-financial assets 122,329 122,866
Total assets 488,067 465,421
Liabilities    
Interest bearing liabilities    
Deposits held 216 218
Government securities 492,858 476,999
Loans 16,229 16,425
Other borrowing 1,727 1,569
Total interest bearing liabilities 511,029 495,211
Provisions and payables    
Superannuation liability(a) 255,130 169,308
Other employee liabilities 17,475 17,004
Suppliers payable 5,319 5,868
Personal benefits provisions and payable 12,720 14,446
Subsidies provisions and payable 5,188 4,908
Grants provisions and payable 10,231 10,466
Other provisions and payables 14,863 13,237
Total provisions and payables 320,927 235,237
Total liabilities 831,956 730,448
Net worth(b) -343,889 -265,027
Net financial worth(c) -466,218 -387,893
Net financial liabilities(d) 514,964 432,691
Net debt(e) 284,657 285,684

*As published in the 2016-17 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
May
$m
ACTUAL
2015-2016
YTD May
$m
Revised Monthly Profile^
2015-2016
YTD May
$m
Revised Budget ESTIMATE*
2015-2016
Full Year
$m
Cash receipts from operating activities        
Taxes received 36,195 329,600 328,614 364,507
Receipts from sales of goods and services 908 6,605 6,624 7,686
Interest receipts 246 2,382 2,488 2,842
Dividends and income tax equivalents 1,157 5,161 5,009 5,332
Other receipts 345 5,780 6,626 7,321
Total operating receipts 38,851 349,528 349,360 387,688
Cash payments for operating activities        
Payments for employees -2,153 -24,330 -25,168 -27,893
Payments for goods and services -6,832 -74,911 -76,648 -80,834
Grants and subsidies paid -12,474 -131,687 -132,902 -149,656
Interest paid -888 -14,084 -13,958 -14,822
Personal benefit payments -10,696 -123,117 -122,229 -134,887
Other payments -433 -5,205 -4,837 -5,308
Total operating payments -33,476 -373,335 -375,743 -413,400
Net cash flows from operating activities 5,375 -23,807 -26,382 -25,712
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 54 332 434 339
Purchases of non-financial assets -1,018 -8,447 -8,567 -11,559
Net cash flows from investments in 
non-financial assets
-963 -8,114 -8,133 -11,221
Net cash flows from investments in 
financial assets for policy purposes
-1,254 -11,485 -10,094 -14,553
Cash flows from investments in 
financial assets for liquidity purposes
       
Increase in investments -18,621 -27,749 -23,078 -9,396
Net cash flows from investments in 
financial assets for liquidity purposes
-18,621 -27,749 -23,078 -9,396
Cash flows from financing activities        
Borrowing (net) 15,310 74,146 70,722 63,753
Other financing (net) -176 -2,584 -2,572 -2,516
Net cash flows from financing activities 15,134 71,562 68,150 61,238
Net increase/(decrease) in cash held -330 407 463 356
Net cash flows from operating activities
and investments in non-financial assets
(Surplus(+)/deficit(-))
4,411 -31,922 -34,516 -36,933
Finance leases and similar arrangements(b) -64 -123 -1 -2
GFS cash surplus(+)/deficit(-) 4,347 -32,045 -34,517 -36,934
less Net Future Fund earnings 224 2,814 2,710 3,012
Equals underlying cash balance(c) 4,124 -34,860 -37,227 -39,946
plus Net cash flows from investments in
financial assets for policy purposes
-1,254 -11,485 -12,804 -14,553
plus Net Future Fund earnings 224 2,814 2,710 3,012
Equals headline cash balance 3,093 -43,530 -47,321 -51,487

*As published in the 2016-17 Budget.
^Based on the previous profile, adjusted for significant changes in the 2016-17 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
May
$m
ACTUAL
2015-2016
YTD May
$m
Revised Monthly Profile^
2015-2016
YTD May
$m
Revised Budget ESTIMATE*
2015-2016
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 15,053 160,343 160,362 175,510
Gross other individuals 7,027 41,116 40,695 44,850
less Refunds 1,637 27,075 26,920 27,800
Total individuals and other withholding taxation 20,442 174,384 174,137 192,560
Fringe benefits tax 279 4,440 4,589 4,590
Company tax 7,802 59,185 58,797 65,000
Superannuation funds 556 6,613 6,483 6,710
Resource rent taxes 0 711 702 840
Total income taxation revenue 29,080 245,333 244,708 269,700

*As published in the 2016-17 Budget.
^Based on the previous profile, adjusted for significant changes in the 2016-17 Budget.

Note 2: Indirect Tax

 ACTUAL
2015-2016
May
$m
ACTUAL
2015-2016
YTD May
$m
Revised Monthly Profile^
2015-2016
YTD May
$m
Revised Budget ESTIMATE*
2015-2016
Full Year
$m
Goods and services tax 5,533 56,722 56,879 60,040
Wine equalisation tax 76 804 803 880
Luxury car tax 60 560 542 590
Excise duty 2,006 19,870 19,700 21,423
Customs duty 1,393 12,467 12,046 13,430
Other indirect tax 468 5,110 5,025 5,860
Total indirect taxation revenue 9,536 95,533 94,995 102,223

*As published in the 2016-17 Budget.
^Based on the previous profile, adjusted for significant changes in the 2016-17 Budget.

Note 3: Total expenses by function

 ACTUAL
2015-2016
May
$m
ACTUAL
2015-2016
YTD May
$m
Revised Budget ESTIMATE*
2015-2016
Full Year
$m
Expenses by function      
General public services 1,913 18,965 23,967
Defence 2,386 24,756 25,986
Public order and safety 412 4,331 4,958
Education 1,864 29,801 32,515
Health 6,701 62,944 69,172
Social security and welfare 12,259 139,377 152,838
Housing and community amenities 498 4,001 4,865
Recreation and culture 274 2,992 3,512
Fuel and energy 552 6,037 6,528
Agriculture, Forestry and Fishing 174 1,771 2,768
Mining, manufacturing and construction 315 3,112 3,650
Transport and communication(a) 804 5,056 8,647
Other economic affairs 505 8,076 9,626
Other purposes      
Public debt interest 1,282 14,101 15,376
Nominal superannuation interest 769 8,463 9,167
General purpose inter-government transactions 5,199 54,277 59,380
Natural disaster relief 0 0 49
Contingency reserve 0 0 -1,536
Total expenses 35,909 388,061 431,470

*As published in the 2016-17 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 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: 24 June 2016