Australian Government General Government Sector Monthly Financial Statements November 2016

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Senator the Hon Mathias Cormann
Minister for Finance

MC 70/16
Thursday, 22 December 2016

Australian Government General Government Sector Monthly Financial Statements November 2016

 

KEY POINTS

  • The underlying cash balance for the 2016-17 financial year to 30 November 2016 was a deficit of $27,234 million.
  • The fiscal balance for the 2016-17 financial year to 30 November 2016 was a deficit of $26,146 million.
AGGREGATES ACTUAL
2016-2017
November
$m
ACTUAL
2016-2017
YTD November
$m
Budget Profile
2016-2017
YTD November
$m
BUDGET
ESTIMATE*
2016-2017
Full Year $m
Revenue 33,699 159,202 160,033 416,862
Expenses 35,861 184,913 188,272 450,553
Net operating balance -2,162 -25,712 -28,238 -33,691
Net capital investment 65 434 1,439 3,437
Fiscal balance -2,227 -26,146 -29,677 -37,129
Receipts(a) 33,777 158,057 157,830 411,284
less Payments(b) 36,257 183,728 186,901 445,045
less Net Future Fund earnings 205 1,562 713 3,321
Underlying cash balance(c) -2,686 -27,234 -29,784 -37,081
Headline cash balance -3,503 -30,899 -37,355 -53,438
Total assets 493,893 509,633
Total liabilities 908,840 810,561
Net worth(d) -414,947 -300,929
Net debt(e) 305,099 325,962

*As published 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.

Comparators for the November 2016 monthly financial statements are based on the 2016-17 Budget published in May 2016. From the December 2016 monthly financial statements, the comparators will be based on updated estimates from the 2016-17 Mid-Year Economic and Fiscal Outlook.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 30 November 2016 was a deficit of $27,234 million, which is $2,550 million lower than the 2016-17 Budget profile deficit of $29,784 million.

  • Receipts
    Total receipts were $227 million higher than the 2016-17 Budget profile.
  • Payments
    Total payments were $3,173 million lower than the 2016-17 Budget profile.

Fiscal Balance

The fiscal balance for the year to 30 November 2016 was a deficit of $26,146 million, which is $3,531 million lower than the 2016-17 Budget profile deficit of $29,677 million. The difference results from lower than expected expenses and net capital investment, partially offset by lower than expected revenue.

Assets and Liabilities

As at 30 November 2016:

  • Net worth is negative $414,947 million;
  • Net debt is $305,099 million; and
  • Net financial liabilities are $599,938 million.
Senator the Hon Mathias Cormann
Minister for Finance
Rosemary Huxtable
Acting Secretary
Department of Finance
Media Contact  
Karen Wu      0428 350 139

Australian Government general government sector operating statement

Note ACTUAL
2016-2017
November
$m
ACTUAL
2016-2017
YTD November
$m
Budget Profile
2016-2017
YTD November
$m
BUDGET
ESTIMATE*
2016-2017
Full Year $m
Revenue
Taxation revenue 1, 2 31,626 148,628 149,713 391,283
Sales of goods and services 739 3,504 3,611 9,249
Interest income 304 1,531 1,749 4,280
Dividend income 284 1,385 1,416 3,242
Other 745 4,153 3,545 8,807
Total revenue 33,699 159,202 160,033 416,862
Expenses
Gross operating expenses
Wages and salaries(a) 1,639 8,118 8,206 20,071
Superannuation 627 3,028 1,880 4,618
Depreciation and amortisation 735 3,217 3,124 7,522
Supply of goods and services 7,432 36,398 35,966 86,745
Other operating expenses(a) 564 2,505 2,245 5,452
Total gross operating expenses 10,998 53,266 51,421 124,408
Superannuation interest expense 769 3,846 4,150 9,959
Interest expenses 1,403 6,924 7,402 18,725
Current transfers
Current grants 12,439 56,470 56,717 138,966
Subsidy expenses 1,039 5,355 5,485 13,425
Personal benefits 10,652 56,824 57,877 132,562
Total current transfers 24,129 118,648 120,079 284,953
Capital transfers
Mutually agreed write-downs 151 623 770 1,845
Other capital grants -1,589 1,607 4,450 10,663
Total capital transfers -1,438 2,230 5,220 12,508
Total expenses 3 35,861 184,913 188,272 450,553
Net operating balance -2,162 -25,712 -28,238 -33,691
Other economic flows
- included in operating result
Net write-downs of assets (including bad and doubtful debts) 1,570 -4,049 -3,009 -8,077
Assets recognised for the first time 25 120 169 348
Liabilities recognised for the first time 0 0 0 0
Actuarial revaluations 0 0 0 0
Net foreign exchange gains -688 445 8 8
Net swap interest received 3 64 0 0
Market valuation of debt 10,861 20,660 1,397 3,156
Other gains/(losses) -454 991 2,017 4,705
Total other economic flows
- included in operating result 11,318 18,233 582 140
Operating result (b) 9,156 -7,479 -27,656 -33,552
Non-owner movements in equity
Revaluation of equity investments(c) 0 -2 0 -2,880
Actuarial revaluations 0 0 0 -6
Other economic revaluations(d) 10,644 11,099 5,704 536
Total other economic flows
- included in equity
10,645 11,097 5,704 -2,350
Comprehensive result
- Total change in net worth
19,801 3,618 -21,952 -35,902
Net operating balance -2,162 -25,712 -28,238 -33,691
Net acquisition of non-financial assets
Purchases of non-financial assets 1,036 3,733 4,572 11,416
less Sales of non-financial assets 11 83 143 932
less Depreciation 735 3,217 3,124 7,522
plus Change in inventories -224 -62 110 449
plus Other movements in non-financial assets 0 63 24 26
Total net acquisition of non-financial assets 65 434 1,439 3,437
Fiscal balance (Net lending/borrowing)(e) -2,227 -26,146 -29,677 -37,129

*As published 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) Operating result under Australian Accounting Standards.
(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. For November 2016 this primarily relates to Specialist Military Equipment assets - refer to footnote (f) in the balance sheet.
(e) The term fiscal balance is not used by the ABS.

Australian Government general government sector balance sheet

*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.
(f) Consistent with the 2015-16 Consolidated Financial Statements and the 2016-17 Mid-Year Fiscal and Economic Outlook (MYEFO), Specialist Military Equipment assets are measured on a fair value basis for actual results. The 2015-16 Budget estimate included these assets at cost, pending finalisation of fair valuation. The 2016-17 MYEFO estimates, released on 19 December 2016, will be used as the comparator from December 2016.

Australian Government general government sector cash flow statement(a)

*As published 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
2016-2017
November
$m
ACTUAL
2016-2017
YTD November
$m
Budget Profile
2016-2017
YTD November
$m
BUDGET
ESTIMATE*
2016-2017
Full Year $m
Individuals and other withholding taxes
Gross income tax withholding 15,726 74,529 75,553 183,380
Gross other individuals 1,971 17,290 17,418 47,300
less Refunds 2,405 20,137 20,607 29,350
Total individuals and other withholding taxation 15,292 71,681 72,363 201,330
Fringe benefits tax 42 1,970 2,151 4,760
Company tax 5,251 25,779 25,729 70,100
Superannuation funds 984 3,931 3,393 7,510
Resource rent taxes 2 507 441 850
Total income taxation revenue 21,571 103,868 104,078 284,550

*As published in the 2016-17 Budget.

Note 2: Indirect Tax

ACTUAL
2016-2017
November
$m
ACTUAL
2016-2017
YTD November
$m
Budget Profile
2016-2017
YTD November
$m
BUDGET
ESTIMATE*
2016-2017
Full Year $m
Goods and services tax 6,386 27,408 27,911 63,340
Wine equalisation tax 76 314 340 910
Luxury car tax 55 274 236 570
Excise duty 1,809 9,101 9,236 21,785
Customs duty 1,010 5,040 5,259 14,010
Other indirect tax 720 2,623 2,653 6,118
Total indirect taxation revenue 10,055 44,760 45,635 106,733

*As published in the 2016-17 Budget.

Note 3: Total expenses by function

ACTUAL
2016-2017
November
$m
ACTUAL
2016-2017
YTD November
$m
Budget Profile
2016-2017
YTD November
$m
BUDGET
ESTIMATE*
2016-2017
Full Year $m
Goods and services tax 6,386 27,408 27,911 63,340
Wine equalisation tax 76 314 340 910
Luxury car tax 55 274 236 570
Excise duty 1,809 9,101 9,236 21,785
Customs duty 1,010 5,040 5,259 14,010
Other indirect tax 720 2,623 2,653 6,118
Total indirect taxation revenue 10,055 44,760 45,635 106,733

*As published in the 2016-17 Budget.

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/quarterly-data-september-2016/.

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.


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