Australian Government General Government Sector Monthly Financial Statements April 2017

Senator the Hon Mathias Cormann
Minister for Finance

MC 25/17
Friday, 26 May 2017

Australian Government General Government Sector Monthly Financial Statements April 2017

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KEY POINTS

  • The underlying cash balance for the 2016-17 financial year to 30 April 2017 was a deficit of $36,078 million.
  • The fiscal balance for the 2016-17 financial year to 30 April 2017 was a deficit of $30,037 million.

AGGREGATES

ACTUAL
2016-2017
April
$m
ACTUAL
2016-2017
YTD April
$m
MYEFO Profile
2016-2017
YTD April
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Revenue 41,840 339,297 334,735 411,112
Expenses 34,009 367,854 372,294 448,642
Net operating balance 7,831 -28,557 -37,559 -37,530
Net capital investment 503 1,480 1,521 3,953
Fiscal balance 7,328 -30,037 -39,080 -41,482
Receipts(a) 37,728 327,108 328,117 407,350
less Payments(b) 34,577 360,051 363,273 441,063
less Net Future Fund earnings 322 3,135 2,498 2,801
Underlying cash balance(c) 2,829 -36,078 -37,654 -36,514
Headline cash balance 2,097 -44,161 -49,005 -52,505
Total assets   523,976   522,675
Total liabilities   945,831   803,396
Net worth(d)   -421,856   -280,721
Net debt(e)   317,384   317,193

*As published in the 2016-17 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.

The 2016-17 estimates were revised as part of the 2017-18 Budget (released on 9 May 2017) and will be used as the basis of comparison for the May 2017 monthly financial statements.

 

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 30 April 2017 was a deficit of $36,078 million, which is $1,577 million lower than the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $37,654 million.

  • Receipts
    Total receipts were $1,008 million lower than the 2016-17 MYEFO profile.
  • Payments
    Total payments were $3,222 million lower than the 2016-17 MYEFO profile.

Fiscal Balance

The fiscal balance for the year to 30 April 2017 was a deficit of $30,037 million, which is $9,043 million lower than the 2016-17 MYEFO profile deficit of $39,080 million. The difference results from higher than expected revenue and lower than expected expenses.

Assets and Liabilities

As at 30 April 2017:

  • Net worth is negative $421,856 million;
  • Net debt is $317,384 million; and
  • Net financial liabilities are $610,880 million.
Senator the Hon Mathias Cormann
Minister for Finance
Rosemary Huxtable PSM
Secretary
Department of Finance
Media Contact  
Karen Wu      0428 350 139

 

Australian Government general government sector operating statement

 NoteACTUAL
2016-2017
April
$m
ACTUAL
2016-2017
YTD April
$m
MYEFO Profile
2016-2017
YTD April
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Revenue          
Taxation revenue 1, 2 39,122 317,235 314,463 386,345
Sales of goods and services   731 7,078 7,131 8,905
Interest income   320 3,009 3,023 3,771
Dividend income   251 2,779 2,193 2,687
Other   1,416 9,196 7,924 9,404
Total revenue   41,840 339,297 334,735 411,112
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,513 15,836 16,251 20,060
Superannuation   780 8,224 8,199 9,720
Depreciation and amortisation   944 7,051 6,628 7,855
Supply of goods and services   6,704 71,823 71,979 87,762
Other operating expenses(a)   506 4,759 4,681 5,572
Total gross operating expenses   10,447 107,694 107,738 130,969
Superannuation interest expense   746 7,464 7,152 8,446
Interest expenses   1,463 14,177 14,159 17,637
Current transfers          
Current grants   9,632 113,032 113,019 135,615
Subsidy expenses   1,073 10,898 11,037 13,509
Personal benefits   10,118 108,483 109,721 129,749
Total current transfers   20,823 232,413 233,777 278,873
Capital transfers          
Mutually agreed write-downs   87 1,030 1,243 1,479
Other capital grants   443 5,076 8,224 11,239
Total capital transfers   530 6,107 9,467 12,718
Total expenses 3 34,009 367,854 372,294 448,642
Net operating balance   7,831 -28,557 -37,559 -37,530
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -1,449 -9,092 -7,139 -8,178
Assets recognised for the first time   17 250 283 328
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 -8
Net foreign exchange gains   -638 1,273 1 -187
Net swap interest received   38 134 45 45
Market valuation of debt   -3,243 17,299 24,099 24,243
Other gains/(losses)   2,599 4,419 3,466 4,558
Total other economic flows          
- included in operating result   -2,677 14,283 20,754 20,801
Operating result (b)   5,154 -14,274 -16,805 -16,728
Non-owner movements in equity          
Revaluation of equity investments(c)   -13 -7 0 -4,846
Actuarial revaluations   0 0 1 1,665
Other economic revaluations(d)   -154 10,990 12,186 175
Total other economic flows - included in equity   -167 10,983 12,187 -3,006
Comprehensive result - Total change in net worth   4,987 -3,291 -4,618 -19,734
Net operating balance   7,831 -28,557 -37,559 -37,530
Net acquisition of non-financial assets          
Purchases of non-financial assets   984 8,511 8,191 12,284
less Sales of non-financial assets   -292 208 118 897
less Depreciation   944 7,051 6,628 7,855
plus Change in inventories   176 157 50 421
plus Other movements in non-financial assets   -5 72 27 0
Total net acquisition of non-financial assets   503 1,480 1,521 3,953
Fiscal balance (Net lending/borrowing)(e)   7,328 -30,037 -39,080 -41,482

*As published in the 2016-17 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) 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.
(e) The term fiscal balance is not used by the ABS.

 

Australian Government general government sector balance sheet

 ACTUAL
as at
30 April 2017
$m
MYEFO ESTIMATE*
as at
30 June 2017
$m
Assets    
Financial assets    
Cash and deposits 6,065 2,942
Advances paid 55,974 59,987
Investments, loans and placements 173,842 177,400
Other receivables 56,297 47,959
Equity investments    
Investments in other public sector entities 53,360 51,944
Equity accounted investments 292 299
Investments - shares 42,481 43,343
Total financial assets 388,311 383,874
Non-financial assets    
Land 10,536 10,613
Buildings 25,708 25,982
Plant, equipment and infrastructure 71,487 73,645
Inventories 8,602 8,499
Intangibles 7,235 8,097
Investment property 141 164
Biological assets 42 49
Heritage and cultural assets 11,501 11,413
Assets held for sale 238 227
Other non-financial assets 174 112
Total non-financial assets 135,664 138,801
Total assets 523,976 522,675
Liabilities    
Interest bearing liabilities    
Deposits held 230 217
Government securities 535,195 540,184
Loans 16,165 15,455
Other borrowing 1,674 1,666
Total interest bearing liabilities 553,265 557,522
Provisions and payables    
Superannuation liability(a) 323,138 175,047
Other employee liabilities 18,749 18,638
Suppliers payable 3,560 6,358
Personal benefits provisions and payable 13,408 12,677
Subsidies provisions and payable 477 931
Grants provisions and payable 10,993 11,710
Other provisions and payables 22,241 20,513
Total provisions and payables 392,566 245,874
Total liabilities 945,831 803,396
Net worth(b) -421,856 -280,721
Net financial worth(c) -557,520 -419,522
Net financial liabilities(d) 610,880 471,466
Net debt(e) 317,384 317,193

*As published in the 2016-17 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
2016-2017
April
$m
ACTUAL
2016-2017
YTD April
$m
MYEFO Profile
2016-2017
YTD April
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Cash receipts from operating activities        
Taxes received 35,328 303,549 304,893 378,756
Receipts from sales of goods and services 654 6,881 6,745 8,766
Interest receipts 217 2,470 2,447 2,990
Dividends and income tax equivalents 321 6,088 5,484 5,828
Other receipts 1,164 7,934 7,909 8,673
Total operating receipts 37,685 326,922 327,479 405,013
Cash payments for operating activities        
Payments for employees -2,154 -22,169 -21,910 -28,259
Payments for goods and services -5,848 -72,480 -72,471 -87,328
Grants and subsidies paid -11,317 -128,815 -131,612 -159,698
Interest paid -3,937 -13,470 -13,538 -15,377
Personal benefit payments -10,088 -110,023 -111,082 -132,884
Other payments -508 -5,156 -4,338 -5,235
Total operating payments -33,852 -352,114 -354,952 -428,781
Net cash flows from operating activities 3,833 -25,192 -27,473 -23,768
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 43 187 638 2,337
Purchases of non-financial assets -725 -7,928 -8,318 -12,282
Net cash flows from investments in
   non-financial assets
-683 -7,741 -7,681 -9,945
Net cash flows from investments in
   financial assets for policy purposes
-1,054 -11,219 -13,848 -18,792
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -4,166 -22,108 -12,397 -27,724
Net cash flows from investments in
   financial assets for liquidity purposes
-4,166 -22,108 -12,397 -27,724
Cash flows from financing activities        
Borrowing (net) 4,453 71,478 68,322 82,682
Other financing (net) -801 -2,792 -2,760 -3,149
Net cash flows from financing activities 3,651 68,687 65,562 79,533
Net increase/(decrease) in cash held 1,582 2,427 4,163 -696
Net cash flows from operating activities
   and investments in non-financial assets
     (Surplus(+)/deficit(-))
3,151 -32,933 -35,154 -33,713
Finance leases and similar arrangements(b) 0 -9 -3 0
GFS cash surplus(+)/deficit(-) 3,151 -32,942 -35,156 -33,713
less Net Future Fund earnings 322 3,135 2,498 2,801
Equals underlying cash balance(c) 2,829 -36,078 -37,654 -36,514
plus Net cash flows from investments in
   financial assets for policy purposes
-1,054 -11,219 -13,848 -18,792
plus Net Future Fund earnings 322 3,135 2,498 2,801
Equals headline cash balance 2,097 -44,161 -49,005 -52,505

*As published in the 2016-17 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
2016-2017
April
$m
ACTUAL
2016-2017
YTD April
$m
MYEFO Profile
2016-2017
YTD April
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 13,901 149,324 150,129 180,680
Gross other individuals 6,959 36,499 35,816 46,700
less Refunds 1,028 25,685 26,238 28,900
Total individuals and other withholding taxation 19,833 160,139 159,707 198,480
Fringe benefits tax 974 4,043 4,169 4,540
Company tax 7,641 56,986 54,665 68,700
Superannuation funds 867 7,149 7,007 8,080
Resource rent taxes 227 971 893 920
Total income taxation revenue 29,541 229,287 226,439 280,720

*As published in the 2016-17 MYEFO.

 

Note 2: Indirect Tax

 ACTUAL
2016-2017
April
$m
ACTUAL
2016-2017
YTD April
$m
MYEFO Profile
2016-2017
YTD April
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Goods and services tax 6,168 52,499 53,031 62,410
Wine equalisation tax 67 703 754 910
Luxury car tax 64 557 520 640
Excise duty 1,716 18,058 17,781 21,410
Customs duty 1,150 11,099 11,176 14,260
Other indirect tax 417 5,033 4,762 5,995
Total indirect taxation revenue 9,582 87,949 88,024 105,625

*As published in the 2016-17 MYEFO.

 

Note 3: Total expenses by function

 ACTUAL
2016-2017
April
$m
ACTUAL
2016-2017
YTD April
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Expenses by function      
General public services 1,883 21,252 26,991
Defence 2,562 22,357 26,816
Public order and safety 438 4,005 5,117
Education 1,766 28,698 33,339
Health 5,380 60,046 72,842
Social security and welfare 12,537 128,792 155,792
Housing and community amenities 359 3,507 5,131
Recreation and culture 273 2,735 3,532
Fuel and energy 580 5,588 6,874
Agriculture, Forestry and Fishing 182 1,925 2,914
Mining, manufacturing and construction 298 2,993 4,052
Transport and communication 66 5,681 10,296
Other economic affairs 589 7,395 9,866
Other purposes      
Public debt interest 1,393 13,256 15,984
Nominal superannuation interest 746 7,464 8,446
General purpose inter-government transactions 4,957 52,162 62,696
Natural disaster relief 0 0 32
Contingency reserve 0 0 -2,077
Total expenses 34,009 367,854 448,642

*As published in the 2016-17 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 PDF 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-march-2017/ PDF 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-data PDF icon.

Last updated: 26 May 2017