Australian Government General Government Sector Monthly Financial Statements January 2018

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

MC 10/18
Friday, 23 February 2018

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KEY POINTS

  • The underlying cash balance for the 2017-18 financial year to 31 January 2018 was a deficit of $28,170 million.
  • The fiscal balance for the 2017-18 financial year to 31 January 2018 was a deficit of $24,979 million.

AGGREGATES

ACTUAL
2017-2018
January
$m
ACTUAL
2017-2018
YTD January
$m
MYEFO Profile
2017-2018
YTD January
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue 31,823 244,453 240,260 448,702
Expenses 40,333 269,148 272,266 466,937
Net operating balance -8,510 -24,695 -32,006 -18,235
Net capital investment 477 284 -612 193
Fiscal balance -8,986 -24,979 -31,394 -18,428
Receipts(a) 30,605 239,694 234,818 437,075
less Payments(b) 36,552 265,196 266,818 457,606
less Net Future Fund earnings 275 2,668 2,316 3,076
Underlying cash balance(c) -6,222 -28,170 -34,316 -23,608
Headline cash balance -8,261 -33,319 -39,884 -39,573
Total assets   514,760   537,962
Total liabilities   923,148   848,622
Net worth(d)   -408,388   -310,660
Net debt(e)   353,359   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 January 2018 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 January 2018 was a deficit of $28,170 million, which is $6,146 million lower than the 2017-18 MYEFO profile deficit of $34,316 million.

  • Receipts
    Total receipts were $4,876 million higher than the 2017-18 MYEFO profile.
  • Payments
    Total payments were $1,622 million lower than the 2017-18 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 31 January 2018 was a deficit of $24,695 million, which is $7,311 million lower than the 2017-18 MYEFO profile deficit of $32,006 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 January 2018 was a deficit of $24,979 million, which is $6,415 million lower than the 2017-18 MYEFO profile deficit of $31,394 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 January 2018:

  • Net worth is negative $408,388 million;
  • Net debt is $353,359 million; and
  • Net financial liabilities are $600,929 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
January
$m
ACTUAL
2017-2018
YTD January
$m
MYEFO Profile
2017-2018
YTD January
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 29,845 228,994 225,473 421,508
Sales of goods and services   787 5,540 5,736 10,491
Interest income   304 2,145 1,877 3,580
Dividend income   199 2,361 1,950 3,112
Other   689 5,413 5,224 10,012
Total revenue   31,823 244,453 240,260 448,702
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,476 11,087 11,455 20,083
Superannuation   1,057 4,393 4,173 7,748
Depreciation and amortisation   655 4,939 5,564 9,507
Supply of goods and services   6,219 56,809 58,019 104,308
Other operating expenses(a)   494 3,703 3,361 5,832
Total gross operating expenses   9,901 80,930 82,571 147,478
Superannuation interest expense   798 5,790 5,608 9,240
Interest expenses   1,538 10,337 10,359 18,027
Current transfers          
Current grants   15,487 84,022 84,848 140,142
Subsidy expenses   946 6,784 6,779 11,869
Personal benefits   10,038 76,431 76,758 128,483
Total current transfers   26,471 167,237 168,385 280,495
Capital transfers          
Mutually agreed write-downs   101 1,484 1,441 1,913
Other capital grants   1,524 3,369 3,902 9,784
Total capital transfers   1,625 4,853 5,343 11,697
Total expenses 3 40,333 269,148 272,266 466,937
Net operating balance   -8,510 -24,695 -32,006 -18,235
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -152 -3,844 -4,307 -7,852
Assets recognised for the first time   -23 121 119 204
Actuarial revaluations   23 27 5 8
Net foreign exchange gains   871 1,402 0 -64
Net swap interest received   24 182 204 250
Market valuation of debt   4,055 6,059 -2,260 -1,303
Other gains/(losses)   3,057 2,793 2,359 7,443
Total other economic flows
   - included in operating result
  7,855 6,739 -3,881 -1,314
Operating Result (b)   -654 -17,956 -35,886 -19,549
Non-owner movements in equity          
Revaluation of equity investments(c)   269 -125 -2,055 -6,231
Actuarial revaluations   0 0 38 -2,274
Other economic revaluations(d)   1,625 813 9 -302
Total other economic flows
    - included in equity
  1,894 687 -2,008 -8,807
Comprehensive result - Total change in net worth   1,240 -17,268 -37,894 -28,355
Net operating balance   -8,510 -24,695 -32,006 -18,235
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,063 7,179 6,440 12,993
less Sales of non-financial assets   85 1,936 1,582 3,699
less Depreciation   655 4,939 5,564 9,507
plus Change in inventories   106 -57 114 405
plus Other movements in non-financial assets   47 37 -20 1
Total net acquisition of non-financial assets   477 284 -612 193
Fiscal balance (Net lending/borrowing)(e)   -8,986 -24,979 -31,394 -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 January 2018
$m
MYEFO ESTIMATE*
as at
30 June 2018
$m
Assets    
Financial assets    
Cash and deposits 7,396 4,400
Advances paid 50,048 63,049
Investments, loans and placements 159,279 186,430
Other receivables 53,290 53,945
Equity investments    
Investments in other public sector entities 52,102 46,725
Equity accounted investments 79 200
Investments - shares 52,128 42,546
Total financial assets 374,322 397,295
Non-financial assets    
Land 11,029 10,882
Buildings 25,399 26,280
Plant, equipment and infrastructure 75,891 74,670
Inventories 8,367 8,538
Intangibles 7,573 8,381
Investment property 159 113
Biological assets 48 54
Heritage and cultural assets 11,678 11,601
Assets held for sale 196 86
Other non-financial assets 97 61
Total non-financial assets 140,438 140,666
Total assets 514,760 537,962
Liabilities    
Interest bearing liabilities    
Deposits held 214 218
Government securities 552,474 580,340
Loans 15,716 15,518
Other borrowing 1,678 1,582
Total interest bearing liabilities 570,082 597,658
Provisions and payables    
Superannuation liability(a) 284,553 181,257
Other employee liabilities 18,488 18,600
Suppliers payables 5,404 8,015
Personal benefits payables 3,020 2,993
Subsidies payables 342 554
Grants payables 2,942 3,350
Other payables 4,305 2,183
Provisions 34,012 34,012
Total provisions and payables 353,066 250,964
Total liabilities 923,148 848,622
Net worth(b) -408,388 -310,660
Net financial worth(c) -548,826 -451,326
Net financial liabilities(d) 600,929 498,052
Net debt(e) 353,359 343,778

*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
January
$m
ACTUAL
2017-2018
YTD January
$m
MYEFO Profile
2017-2018
YTD January
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 26,819 221,174 217,735 409,350
Receipts from sales of goods and services 1,130 5,759 6,130 10,609
Interest receipts 235 2,104 1,743 3,249
Dividends and income tax equivalents 247 3,515 3,187 4,174
Other receipts 645 5,474 5,328 8,305
Total operating receipts 29,076 238,026 234,123 435,686
Cash payments for operating activities        
Payments for employees -2,243 -15,477 -15,983 -28,917
Payments for goods and services -6,403 -57,746 -57,345 -101,030
Grants and subsidies paid -17,370 -95,119 -96,326 -162,144
Interest paid -734 -8,945 -9,107 -16,623
Personal benefit payments -8,756 -77,542 -78,119 -130,231
Other payments -446 -3,995 -3,434 -5,498
Total operating payments -35,952 -258,824 -260,314 -444,443
Net cash flows from operating activities -6,876 -20,798 -26,191 -8,757
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets 1,529 1,668 695 1,389
Purchases of non-financial assets -600 -6,281 -6,504 -13,163
Net cash flows from investments in
    non-financial assets
929 -4,613 -5,809 -11,774
Net cash flows from investments in
    financial assets for policy purposes
-2,314 -7,817 -7,884 -19,042
Cash flows from investments in
    financial assets for liquidity purposes
       
Increase in investments 13,076 25,632 36,882 8,165
Net cash flows from investments in
    financial assets for liquidity purposes
13,076 25,632 36,882 8,165
Cash flows from financing activities        
Borrowing (net) -4,001 11,709 10,474 33,746
Other financing (net) -333 -1,823 -1,408 -3,076
Net cash flows from financing activities -4,334 9,886 9,066 30,669
Net increase/(decrease) in cash held 481 2,290 6,064 -739
GFS cash surplus(+)/deficit(-)(b)(c) -5,947 -25,411 -32,000 -20,531
less Finance leases and similar arrangements(d) 0 91 0 0
less Net Future Fund earnings 275 2,668 2,316 3,076
Equals underlying cash balance(e) -6,222 -28,170 -34,316 -23,608
plus Net cash flows from investments in
    financial assets for policy purposes
-2,314 -7,817 -7,884 -19,042
plus Net Future Fund earnings 275 2,668 2,316 3,076
Equals headline cash balance -8,261 -33,319 -39,884 -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
January
$m
ACTUAL
2017-2018
YTD January
$m
MYEFO Profile
2017-2018
YTD January
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 13,871 109,697 109,183 190,600
Gross other individuals 1,724 20,919 20,568 47,800
less Refunds 1,202 23,105 23,250 29,200
Total individuals and other withholding taxation 14,393 107,511 106,501 209,200
Fringe benefits tax 786 2,708 2,629 4,080
Company tax 7,052 47,041 45,996 83,800
Superannuation fund taxes 50 7,780 7,575 10,570
Petroleum resource rent tax 240 839 809 1,030
Total income taxation revenue 22,521 165,880 163,510 308,680

*As published in the 2017-18 MYEFO.



Note 2: Indirect Tax

 ACTUAL
2017-2018
January
$m
ACTUAL
2017-2018
YTD January
$m
MYEFO Profile
2017-2018
YTD January
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Goods and services tax 3,355 36,400 35,573 65,560
Wine equalisation tax 83 518 525 920
Luxury car tax 57 440 401 680
Excise duty 1,940 13,444 13,400 22,350
Customs duty 1,320 8,203 8,054 14,800
Other indirect tax 569 4,109 4,010 8,518
Total indirect taxation revenue 7,324 63,114 61,963 112,828

*As published in the 2017-18 MYEFO.



Note 3: Total expenses by function

 ACTUAL
2017-2018
January
$m
ACTUAL
2017-2018
YTD January
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Expenses by function      
General public services 2,983 13,905 24,371
Defence 1,748 16,145 31,022
Public order and safety 663 3,094 5,249
Education 7,716 23,877 33,793
Health 5,755 43,645 75,942
Social security and welfare 11,125 94,752 163,953
Housing and community amenities 503 2,592 5,383
Recreation and culture 69 1,797 3,731
Fuel and energy 609 4,004 7,393
Agriculture, forestry and fishing 258 1,341 3,027
Mining, manufacturing and construction 238 2,007 3,557
Transport and communication 405 3,295 9,389
Other economic affairs 726 5,697 10,106
Other purposes      
Public debt interest 1,455 9,886 16,959
Nominal superannuation interest 798 5,790 9,240
General purpose inter-government transactions 5,281 37,321 64,347
Natural disaster relief 0 0 12
Contingency reserve 0 0 -538
Total expenses 40,333 269,148 466,937

*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: 02 May 2018