Australian Government General Government Sector Monthly Financial Statements April 2018

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

MC 32/18
Friday, 25 May 2018

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KEY POINTS

  • The underlying cash balance for the 2017-18 financial year to 30 April 2018 was a deficit of $14,930 million.
  • The fiscal balance for the 2017-18 financial year to 30 April 2018 was a deficit of $8,314 million.

AGGREGATES

ACTUAL
2017-2018
April
$m
ACTUAL
2017-2018
YTD April
$m
MYEFO Profile
2017-2018
YTD April
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue 44,274 369,495 362,745 448,702
Expenses 35,487 378,060 383,104 466,937
Net operating balance 8,787 -8,565 -20,360 -18,235
Net capital investment -282 -251 -458 193
Fiscal balance 9,068 -8,314 -19,902 -18,428
Receipts(a) 41,262 358,617 353,159 437,075
less Payments(b) 36,335 370,006 373,232 457,606
less Net Future Fund earnings 191 3,541 2,746 3,076
Underlying cash balance(c) 4,736 -14,930 -22,819 -23,608
Headline cash balance 3,746 -22,865 -32,742 -39,573
Total assets   543,049   537,962
Total liabilities   936,732   848,622
Net worth(d)   -393,683   -310,660
Net debt(e)   338,975   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 revenue and expenses vary from month to month.

The 2017-18 estimates were revised as part of the 2018-19 Budget (released on 8 May 2018) and will be used as the basis of comparison for the May 2018 monthly financial statements.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 30 April 2018 was a deficit of $14,930 million, which is $7,889 million lower than the 2017-18 MYEFO profile deficit of $22,819 million.

  • Receipts
    Total receipts were $5,458 million higher than the 2017-18 MYEFO profile.
  • Payments
    Total payments were $3,226 million lower than the 2017-18 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 30 April 2018 was a deficit of $8,565 million, which is $11,795 million lower than the 2017-18 MYEFO profile deficit of $20,360 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 30 April 2018 was a deficit of $8,314 million, which is $11,588 million lower than the 2017-18 MYEFO profile deficit of $19,902 million. As with the net operating balance, the difference primarily results from higher than expected revenue and lower expenses.

Assets and Liabilities

As at 30 April 2018:

  • net worth is negative $393,683 million;
  • net debt is $338,975 million; and
  • net financial liabilities are $587,690 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
April
$m
ACTUAL
2017-2018
YTD April
$m
MYEFO Profile
2017-2018
YTD April
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 41,399 347,221 341,572 421,508
Sales of goods and services   921 8,035 8,461 10,491
Interest income   320 2,899 2,818 3,580
Dividend income   175 3,287 2,406 3,112
Other   1,459 8,052 7,488 10,012
Total revenue   44,274 369,495 362,745 448,702
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,606 15,945 16,425 20,083
Superannuation   1,033 6,560 6,276 7,748
Depreciation and amortisation   653 7,108 7,931 9,507
Supply of goods and services   6,728 81,875 84,093 104,308
Other operating expenses(a)   705 5,365 4,739 5,832
Total gross operating expenses   10,725 116,853 119,463 147,478
Superannuation interest expense   827 8,272 7,787 9,240
Interest expenses   1,508 14,757 14,748 18,027
Current transfers          
Current grants   10,460 114,382 115,740 140,142
Subsidy expenses   953 9,786 9,805 11,869
Personal benefits   10,265 106,951 107,725 128,483
Total current transfers   21,677 231,120 233,269 280,495
Capital transfers          
Mutually agreed write-downs   96 1,825 1,747 1,913
Other capital grants   655 5,232 6,089 9,784
Total capital transfers   750 7,058 7,837 11,697
Total expenses 3 35,487 378,060 383,104 466,937
Net operating balance   8,787 -8,565 -20,360 -18,235
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -943 -6,764 -6,628 -7,852
Assets recognised for the first time   17 172 170 204
Actuarial revaluations   0 0 7 8
Net foreign exchange gains   -404 -875 0 -64
Net swap interest received   -27 236 204 250
Market valuation of debt   4,363 4,777 -1,679 -1,303
Other gains/(losses)   2,071 7,042 3,590 7,443
Total other economic flows
- included in operating result
  5,076 4,588 -4,337 -1,314
Operating Result (b)   13,863 -3,977 -24,697 -19,549
Non-owner movements in equity          
Revaluation of equity investments(c)   -83 -185 -2,030 -6,231
Actuarial revaluations   0 0 38 -2,274
Other economic revaluations(d)   260 1,693 23 -302
Total other economic flows - included in equity   176 1,508 -1,969 -8,807
Comprehensive result - Total change in net worth   14,039 -2,469 -26,665 -28,355
Net operating balance   8,787 -8,565 -20,360 -18,235
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,051 9,693 9,761 12,993
less Sales of non-financial assets   748 3,010 2,612 3,699
less Depreciation   653 7,108 7,931 9,507
plus Change in inventories   71 136 331 405
plus Other movements in non-financial assets   -2 37 -7 1
Total net acquisition of non-financial assets   -282 -251 -458 193
Fiscal balance (Net lending/borrowing)(e)   9,068 -8,314 -19,902 -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
30 April 2018
$m
MYEFO ESTIMATE*
as at
30 June 2018
$m
Assets    
Financial assets    
Cash and deposits 7,592 4,400
Advances paid 53,715 63,049
Investments, loans and placements 181,164 186,430
Other receivables 53,805 53,945
Equity investments    
Investments in other public sector entities 52,209 46,725
Equity accounted investments 83 200
Investments - shares 52,683 42,546
Total financial assets 401,251 397,295
Non-financial assets    
Land 11,192 10,882
Buildings 25,750 26,280
Plant, equipment and infrastructure 76,554 74,670
Inventories 8,474 8,538
Intangibles 7,649 8,381
Investment property 159 113
Biological assets 48 54
Heritage and cultural assets 11,656 11,601
Assets held for sale 219 86
Other non-financial assets 97 61
Total non-financial assets 141,798 140,666
Total assets 543,049 537,962
Liabilities    
Interest bearing liabilities    
Deposits held 214 218
Government securities 562,775 580,340
Loans 16,790 15,518
Other borrowing 1,666 1,582
Total interest bearing liabilities 581,446 597,658
Provisions and payables    
Superannuation liability(a) 286,935 181,257
Other employee liabilities 19,115 18,600
Suppliers payables 6,547 8,015
Personal benefits payables 3,456 2,993
Subsidies payables 478 554
Grants payables 2,693 3,350
Other payables 1,610 2,183
Provisions 34,450 34,012
Total provisions and payables 355,286 250,964
Total liabilities 936,732 848,622
Net worth(b) -393,683 -310,660
Net financial worth(c) -535,481 -451,326
Net financial liabilities(d) 587,690 498,052
Net debt(e) 338,975 343,778

*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
April
$m
ACTUAL
2017-2018
YTD April
$m
MYEFO Profile
2017-2018
YTD April
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 39,107 334,873 329,984 409,350
Receipts from sales of goods and services 799 8,078 8,896 10,609
Interest receipts 237 2,658 2,420 3,249
Dividends and income tax equivalents 229 4,426 3,581 4,174
Other receipts 929 7,353 7,294 8,305
Total operating receipts 41,301 357,388 352,175 435,686
Cash payments for operating activities        
Payments for employees -2,188 -22,741 -22,953 -28,917
Payments for goods and services -6,575 -80,982 -80,325 -101,030
Grants and subsidies paid -11,947 -130,125 -132,320 -162,144
Interest paid -4,006 -13,895 -13,981 -16,623
Personal benefit payments -9,909 -107,625 -109,187 -130,231
Other payments -601 -5,420 -4,823 -5,498
Total operating payments -35,226 -360,788 -363,589 -444,443
Net cash flows from operating activities 6,075 -3,400 -11,414 -8,757
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets -39 1,229 984 1,389
Purchases of non-financial assets -1,109 -9,127 -9,643 -13,163
Net cash flows from investments in
    non-financial assets
-1,148 -7,898 -8,659 -11,774
Net cash flows from investments in
    financial assets for policy purposes
-1,181 -11,476 -12,669 -19,042
Cash flows from investments in
    financial assets for liquidity purposes
       
Increase in investments -4,657 5,693 14,971 8,165
Net cash flows from investments in
    financial assets for liquidity purposes
-4,657 5,693 14,971 8,165
Cash flows from financing activities        
Borrowing (net) 3,105 22,185 24,034 33,746
Other financing (net) -1,187 -2,696 -2,171 -3,076
Net cash flows from financing activities 1,918 19,489 21,863 30,669
Net increase/(decrease) in cash held 1,007 2,408 4,092 -739
GFS cash surplus(+)/deficit(-)(b)(c) 4,927 -11,298 -20,073 -20,531
less Finance leases and similar arrangements(d) 0 91 0 0
less Net Future Fund earnings 191 3,541 2,746 3,076
Equals underlying cash balance(e) 4,736 -14,930 -22,819 -23,608
plus Net cash flows from investments in
    financial assets for policy purposes
-1,181 -11,476 -12,669 -19,042
plus Net Future Fund earnings 191 3,541 2,746 3,076
Equals headline cash balance 3,746 -22,865 -32,742 -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
April
$m
ACTUAL
2017-2018
YTD April
$m
MYEFO Profile
2017-2018
YTD April
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 15,453 160,152 158,272 190,600
Gross other individuals 6,883 35,880 35,924 47,800
less Refunds 1,170 26,353 26,480 29,200
Total individuals and other withholding taxation 21,165 169,679 167,716 209,200
Fringe benefits tax 898 3,842 3,733 4,080
Company tax 7,295 67,587 66,477 83,800
Superannuation fund taxes 900 9,926 9,409 10,570
Petroleum resource rent tax 241 1,080 1,034 1,030
Total income taxation revenue 30,499 252,114 248,370 308,680

*As published in the 2017-18 MYEFO.



Note 2: Indirect Tax

 ACTUAL
2017-2018
April
$m
ACTUAL
2017-2018
YTD April
$m
MYEFO Profile
2017-2018
YTD April
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Goods and services tax 6,625 55,653 54,901 65,560
Wine equalisation tax 66 728 753 920
Luxury car tax 59 612 561 680
Excise duty 2,133 19,144 18,937 22,350
Customs duty 1,396 12,281 11,580 14,800
Other indirect tax 620 6,688 6,470 8,518
Total indirect taxation revenue 10,900 95,107 93,202 112,828

*As published in the 2017-18 MYEFO.



Note 3: Total expenses by function

 ACTUAL
2017-2018
April
$m
ACTUAL
2017-2018
YTD April
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Expenses by function      
General public services 2,354 19,848 24,371
Defence 2,580 23,781 31,022
Public order and safety 425 4,263 5,249
Education 1,774 29,312 33,793
Health 5,476 61,659 75,942
Social security and welfare 11,949 133,019 163,953
Housing and community amenities 369 3,673 5,383
Recreation and culture 261 2,430 3,731
Fuel and energy 580 5,840 7,393
Agriculture, forestry and fishing 192 1,862 3,027
Mining, manufacturing and construction 260 2,773 3,557
Transport and communication 845 5,630 9,389
Other economic affairs 876 8,150 10,106
Other purposes      
Public debt interest 1,440 14,112 16,959
Nominal superannuation interest 827 8,272 9,240
General purpose inter-government transactions 5,277 53,436 64,347
Natural disaster relief 0 0 12
Contingency reserve 0 0 -538
Total expenses 35,487 378,060 466,937

*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. 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/.

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.

Last updated: 26 June 2018