Australian Government General Government Sector Monthly Financial Statements December 2017

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

MC 05/18
Friday, 2 February 2018

Australian Government General Government Sector Monthly Financial Statements December 2017

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KEY POINTS

  • The underlying cash balance for the 2017-18 financial year to 31 December 2017 was a deficit of $21,948 million.
  • The fiscal balance for the 2017-18 financial year to 31 December 2017 was a deficit of $15,993 million.

AGGREGATES

ACTUAL
2017-2018
December
$m
ACTUAL
2017-2018
YTD December
$m
MYEFO Profile
2017-2018
YTD December
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue 37,215 212,630 211,302 448,702
Expenses 38,221 228,815 230,072 466,937
Net operating balance -1,006 -16,185 -18,769 -18,235
Net capital investment 693 -193 -657 193
Fiscal balance -1,699 -15,993 -18,113 -18,428
Receipts(a) 38,189 209,089 207,046 437,075
less Payments(b) 38,846 228,644 228,836 457,606
less Net Future Fund earnings 471 2,393 2,073 3,076
Underlying cash balance(c) -1,128 -21,948 -23,864 -23,608
Headline cash balance -459 -25,058 -27,990 -39,573
Total assets   522,383   537,962
Total liabilities   926,931   848,622
Net worth(d)   -404,547   -310,660
Net debt(e)   350,245   343,778

*As published in the 2017-18 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.

Comparators for the December 2017 monthly financial statements are based on the 2017-18 Mid-Year Economic and Fiscal Outlook published in December 2017.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 31 December 2017 was a deficit of $21,948 million, which is $1,916 million lower than the 2017-18 MYEFO profile deficit of $23,864 million.

  • Receipts
    Total receipts were $2,043 million higher than the 2017-18 MYEFO profile.
  • Payments
    Total payments were $192 million lower than the 2017-18 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 31 December 2017 was a deficit of $16,185 million, which is $2,584 million lower than the 2017-18 MYEFO profile deficit of $18,769 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 December 2017 was a deficit of $15,993 million, which is $2,120 million lower than the 2017-18 MYEFO profile deficit of $18,113 million. As with the net operating balance, the difference primarily results from higher than expected revenue and lower expenses.

Assets and Liabilities

As at 31 December 2017:

  • Net worth is negative $404,547 million;
  • Net debt is $350,245 million; and
  • Net financial liabilities are $596,245 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
2017-2018
December
$m
ACTUAL
2017-2018
YTD December
$m
MYEFO Profile
2017-2018
YTD December
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 35,620 199,149 197,692 421,508
Sales of goods and services   703 4,753 4,811 10,491
Interest income   83 1,841 1,792 3,580
Dividend income   449 2,163 1,822 3,112
Other   359 4,724 5,186 10,012
Total revenue   37,215 212,630 211,302 448,702
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,510 9,611 9,874 20,083
Superannuation   289 3,336 3,639 7,748
Depreciation and amortisation   706 4,284 4,780 9,507
Supply of goods and services   9,153 50,589 50,962 104,308
Other operating expenses(a)   427 3,209 2,986 5,832
Total gross operating expenses   12,085 71,030 72,241 147,478
Superannuation interest expense   837 4,992 4,882 9,240
Interest expenses   1,446 8,799 8,834 18,027
Current transfers          
Current grants   11,399 68,535 68,820 140,142
Subsidy expenses   1,022 5,838 5,801 11,869
Personal benefits   10,976 66,393 66,390 128,483
Total current transfers   23,397 140,766 141,011 280,495
Capital transfers          
Mutually agreed write-downs   95 1,383 1,377 1,913
Other capital grants   360 1,845 1,728 9,784
Total capital transfers   455 3,228 3,105 11,697
Total expenses 3 38,221 228,815 230,072 466,937
Net operating balance   -1,006 -16,185 -18,769 -18,235
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -478 -3,692 -3,149 -7,852
Assets recognised for the first time   22 144 102 204
Actuarial revaluations   1 4 -5 8
Net foreign exchange gains   1,081 530 2 -64
Net swap interest received   -46 158 204 250
Market valuation of debt   3,322 2,004 -2,476 -1,303
Other gains/(losses)   3,683 3,814 2,241 7,443
Total other economic flows          
- included in operating result   7,586 2,962 -3,081 -1,314
Operating result (b)   6,580 -13,223 -21,851 -19,549
Non-owner movements in equity          
Revaluation of equity investments(c)   -273 -395 -72 -6,231
Actuarial revaluations   0 0 0 -2,274
Other economic revaluations(d)   138 -812 -952 -302
Total other economic flows - included in equity   -135 -1,207 -1,024 -8,807
Comprehensive result - Total change in net worth   6,445 -14,430 -22,874 -28,355
Net operating balance   -1,006 -16,185 -18,769 -18,235
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,377 6,116 5,751 12,993
less Sales of non-financial assets   96 1,851 1,743 3,699
less Depreciation   706 4,284 4,780 9,507
plus Change in inventories   113 -164 130 405
plus Other movements in non-financial assets   4 -10 -15 1
Total net acquisition of non-financial assets   693 -193 -657 193
Fiscal balance (Net lending/borrowing)(e)   -1,699 -15,993 -18,113 -18,428

*As published in the 2017-18 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
31 December 2017
$m
MYEFO ESTIMATE*
as at
30 June 2018
$m
Assets    
Financial assets    
Cash and deposits 6,429 4,400
Advances paid 48,987 63,049
Investments, loans and placements 171,984 186,430
Other receivables 51,730 53,945
Equity investments    
Investments in other public sector entities 51,757 46,725
Equity accounted investments 66 200
Investments - shares 51,490 42,546
Total financial assets 382,442 397,295
Non-financial assets    
Land 11,045 10,882
Buildings 25,475 26,280
Plant, equipment and infrastructure 75,449 74,670
Inventories 8,336 8,538
Intangibles 7,565 8,381
Investment property 159 113
Biological assets 48 54
Heritage and cultural assets 11,617 11,601
Assets held for sale 196 86
Other non-financial assets 50 61
Total non-financial assets 139,941 140,666
Total assets 522,383 537,962
Liabilities    
Interest bearing liabilities    
Deposits held 214 218
Government securities 560,001 580,340
Loans 15,756 15,518
Other borrowing 1,673 1,582
Total interest bearing liabilities 577,645 597,658
Provisions and payables    
Superannuation liability(a) 283,703 181,257
Other employee liabilities 18,437 18,600
Suppliers payables 5,189 8,015
Personal benefits payables 2,931 2,993
Subsidies payables 436 554
Grants payables 2,415 3,350
Other payables 3,017 2,183
Provisions 33,157 34,012
Total provisions and payables 349,286 250,964
Total liabilities 926,931 848,622
Net worth(b) -404,547 -310,660
Net financial worth(c) -544,488 -451,326
Net financial liabilities(d) 596,245 498,052
Net debt(e) 350,245 343,778

*As published in the 2017-18 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, that best matches each individual scheme's liability duration, 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
2017-2018
December
$m
ACTUAL
2017-2018
YTD December
$m
MYEFO Profile
2017-2018
YTD December
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 35,814 194,355 192,794 409,350
Receipts from sales of goods and services 730 4,629 4,625 10,609
Interest receipts 258 1,869 1,715 3,249
Dividends and income tax equivalents 395 3,268 2,898 4,174
Other receipts 897 4,829 4,961 8,305
Total operating receipts 38,094 208,950 206,992 435,686
Cash payments for operating activities        
Payments for employees -1,413 -13,234 -13,531 -28,917
Payments for goods and services -9,870 -51,343 -51,515 -101,030
Grants and subsidies paid -12,845 -77,749 -77,851 -162,144
Interest paid -464 -8,211 -8,420 -16,623
Personal benefit payments -11,839 -68,786 -68,642 -130,231
Other payments -1,046 -3,549 -3,332 -5,498
Total operating payments -37,477 -222,872 -223,291 -444,443
Net cash flows from operating activities 617 -13,922 -16,299 -8,757
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 95 139 54 1,389
Purchases of non-financial assets -1,369 -5,681 -5,545 -13,163
Net cash flows from investments in
   non-financial assets
-1,274 -5,542 -5,492 -11,774
Net cash flows from investments in
   financial assets for policy purposes
198 -5,503 -6,200 -19,042
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -1,996 12,556 10,889 8,165
Net cash flows from investments in
   financial assets for liquidity purposes
-1,996 12,556 10,889 8,165
Cash flows from financing activities        
Borrowing (net) 2,904 15,710 17,474 33,746
Other financing (net) -645 -1,490 -1,112 -3,076
Net cash flows from financing activities 2,259 14,220 16,363 30,669
Net increase/(decrease) in cash held -196 1,809 -739 -739
GFS cash surplus(+)/deficit(-)(b)(c) -657 -19,464 -21,791 -20,531
less Finance leases and similar arrangements(d) 0 91 0 0
less Net Future Fund earnings 471 2,393 2,073 3,076
Equals underlying cash balance(e) -1,128 -21,948 -23,864 -23,608
plus Net cash flows from investments in
   financial assets for policy purposes
198 -5,503 -6,200 -19,042
plus Net Future Fund earnings 471 2,393 2,073 3,076
Equals headline cash balance -459 -25,058 -27,990 -39,573

*As published in the 2017-18 MYEFO.
(a) A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b) Due to the implementation of the 2015 ABS GFS Manual in the 2017-18 Budget, finance leases are no longer deducted in the derivation of the GFS cash surplus/deficit.
(c) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(d) The acquisition of assets under finance leases worsens the underlying cash balance. The disposal of assets previously held under finance leases improves the underlying cash balance.
(e) The term underlying cash balance is not used by the Australian Bureau of Statistics.



Note 1: Income Tax

 ACTUAL
2017-2018
December
$m
ACTUAL
2017-2018
YTD December
$m
MYEFO Profile
2017-2018
YTD December
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 15,801 95,826 95,672 190,600
Gross other individuals 1,248 19,195 19,131 47,800
less Refunds 1,109 21,903 21,994 29,200
Total individuals and other withholding taxation 15,940 93,118 92,809 209,200
Fringe benefits tax 21 1,922 1,906 4,080
Company tax 9,094 39,990 39,974 83,800
Superannuation fund taxes 2,342 7,730 7,381 10,570
Petroleum resource rent tax 24 599 570 1,030
Total income taxation revenue 27,422 143,358 142,640 308,680

*As published in the 2017-18 MYEFO.



Note 2: Indirect Tax

 ACTUAL
2017-2018
December
$m
ACTUAL
2017-2018
YTD December
$m
MYEFO Profile
2017-2018
YTD December
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Goods and services tax 3,863 33,046 32,554 65,560
Wine equalisation tax 106 435 427 920
Luxury car tax 89 383 344 680
Excise duty 1,960 11,504 11,352 22,350
Customs duty 1,620 6,882 6,848 14,800
Other indirect tax 560 3,540 3,527 8,518
Total indirect taxation revenue 8,199 55,791 55,052 112,828

*As published in the 2017-18 MYEFO.



Note 3: Total expenses by function

 ACTUAL
2017-2018
December
$m
ACTUAL
2017-2018
YTD December
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Expenses by function      
General public services 1,388 10,922 24,371
Defence 2,362 14,397 31,022
Public order and safety 284 2,431 5,249
Education 1,800 16,160 33,793
Health 5,890 37,890 75,942
Social security and welfare 15,253 83,627 163,953
Housing and community amenities 335 2,089 5,383
Recreation and culture 289 1,727 3,731
Fuel and energy 630 3,395 7,393
Agriculture, Forestry and Fishing 118 1,083 3,027
Mining, manufacturing and construction 291 1,769 3,557
Transport and communication 1,350 2,890 9,389
Other economic affairs 699 4,971 10,106
Other purposes      
Public debt interest 1,441 8,432 16,959
Nominal superannuation interest 837 4,992 9,240
General purpose inter-government transactions 5,253 32,040 64,347
Natural disaster relief 0 0 12
Contingency reserve 0 0 -538
Total expenses 38,221 228,815 466,937

*As published in the 2017-18 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/ 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: 21 February 2018