Media Release

Australian Government Monthly Financial Statements - July and August 2013

MC 5/13

Senator the Hon. Mathias Cormann
Minister for Finance

11 October 2013

KEY POINTS

  • The underlying cash balance for the 2013-14 financial year to 31 August 2013 was a deficit of $10,563 million.
  • The fiscal balance for the 2013-14 financial year to 31 August 2013 was a deficit of $5,719 million.
AGGREGATES
ACTUAL
2013-2014
July
$m

ACTUAL
2013-2014
August
$m

ACTUAL
2013-2014
YTD August
$m
Budget
Profile
2013-2014
YTD August
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Revenue 42,960 18,497 61,456 64,530 387,749
Expenses 34,955 32,617 67,572 70,172 398,301
Net operating balance  8,004 -14,120 -6,116 -5,642 -10,552
Net capital investment  -160 -237 -397 241 2,945
Fiscal balance  8,164 -13,884 -5,719 -5,883 -13,497
Underlying Cash Receipts 37,659 21,753 59,412 60,941 373,156
Underlying Cash Payments 38,172 31,803 69,975 70,258 391,198
Underlying cash balance(a) -513 -10,050 -10,563 -9,317 -18,043
Headline cash balance  -2,052 -9,984 -12,035 -10,887 -25,278
Total assets 369,260   362,054   376,601
Total liabilities 562,727   567,962   550,059
Net worth(b) -193,467   -205,908   -173,458
Net debt(c) 153,557   161,253   178,104

*As published in the 2013-14 Budget.
(a) Excludes net Future Fund earnings.
(b) Net worth is calculated as total assets minus total liabilities.
(c) 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. This is particularly so for the first few months of the year.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance includes cash from operations and net cash provided by investing activities in non-financial assets but excludes the net cash earnings for the Future Fund.

The underlying cash balance for the year to 31 August 2013 was a deficit of $10,563 million, compared to the Budget profile deficit of $9,317 million. The difference of $1,246 million relates to lower underlying cash receipts partially offset by lower underlying cash payments.

Fiscal Balance

The fiscal balance for the year to 31 August 2013 was a deficit of $5,719 million, this is $164 million lower than the Budget profile deficit. The difference relates to lower expenses and net capital investment, partially offset by lower revenue.

  • Revenues
    Total revenue was $3,074 million lower than the Budget profile primarily due to lower taxation revenue. This reflects lower company, superannuation fund and individual and other withholding taxation revenue compared to the Budget profile, together with other minor variations including timing of taxation revenues.
  • Expenses
    Total expenses were $2,600 million lower than the Budget profile primarily due to lower grants and personal benefit expenditure.  This is in part consistent with reduced expenditure during the election caretaker period.

Assets and Liabilities

The net worth of the General Government sector is a negative net asset position of $205,908 million at 31 August 2013. The net debt of the General Government sector is $161,253 million at 31 August 2013.

 

 

Senator the Hon Mathias Cormann
Minister for Finance
11 October 2013

David Tune
Secretary to the Department of Finance
11 October 2013

Contact: Senator the Hon Mathias Cormann's Office:
Department of Finance:
Simon Atkinson (02) 6277 7400
Amelia Huang (02) 6215 3138

 


Australian Government General Government Sector – INCOME STATEMENT

 
ACTUAL
2013-2014
July
$m

ACTUAL
2013-2014
August
$m

ACTUAL
2013-2014
YTD August
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Revenue        
Taxation revenue 41,320 16,489 57,809 366,664
Sales of goods and services 680 733 1,413 8,577
Interest income 274 272 546 4,313
Dividend income 70 324 394 2,426
Other 616 679 1,295 5,768
Total revenue 42,960 18,497 61,456 387,749
Expenses        
Gross operating expenses        
Wages and salaries(a) 1,627 1,629 3,255 19,772
Superannuation 445 446 890 4,039
Depreciation and amortisation 542 506 1,048 5,813
Supply of goods and services 5,925 6,651 12,577 75,918
Other operating expenses(a) 408 457 865 5,467
Total gross operating expenses 8,946 9,688 18,635 111,009
Superannuation interest expense 684 684 1,367 8,462
Interest expenses 1,050 1,087 2,137 14,008
Current transfers        
Current grants 10,084 8,664 18,747 118,137
Subsidy expenses 1,094 983 2,077 14,944
Personal benefits 12,110 10,768 22,878 121,699
Total current transfers 23,287 20,415 43,702 254,780
Capital transfers        
Mutually agreed write-downs 376 164 540 2,137
Other capital grants 612 579 1,191 7,905
Total capital transfers 988 743 1,731 10,042
Total expenses 34,955 32,617 67,572 398,301
Net operating balance 8,004 -14,120 -6,116 -10,552
Other economic flows        
- included in operating result(b)        
Net write-downs of assets(including bad and doubtful debts) -341 -443 -785 -7,488
Assets recognised for the first time 50 116 166 559
Net foreign exchange gains -627 -179 -805 73
Net swap interest received -304 -160 -464 0
Market valuation of debt -811 2,546 1,735 2,924
Other gains/(losses) 3,392 -198 3,194 3,655
Total other economic flows        
- included in operating result 1,359 1,681 3,040 -278
Operating Result(c) 9,363 -12,439 -3,076 -10,830
Non-owner movements in equity(b)        
Revaluation of equity investments 0 0 0 -2,223
Actuarial revaluations 0 0 0 140
Other economic revaluations -180 -2 -182 567
Total other economic flows - included in equity -180 -2 -182 -1,517
Comprehensive result - Total change in net worth 9,183 -12,441 -3,258 -12,347
Net operating balance 8,004 -14,120 -6,116 -10,552
Net acquisition of non-financial assets        
Purchases of non-financial assets 582 269 851 8,755
less Sales of non-financial assets 9 70 79 346
less Depreciation 542 506 1,048 5,813
plus Change in inventories -171 51 -120 270
plus Other movements in non-financial assets -21 19 -1 78
Total net acquisition of non-financial assets -160 -237 -397 2,945
Fiscal balance (Net lending/borrowing)(e) 8,164 -13,884 -5,719 -13,497

*As published in the 2013-14 Budget.
(a) Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b) The presentation of other economic flows has changed to align more closely with AASB 1049. The AASB 1049 version of other economic flows is no longer presented.
(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 July 2013
$m

ACTUAL
as at
31 August 2013
$m
BUDGET
ESTIMATE*
as at
30 June 2014
$m
Assets      
Financial assets      
Cash and deposits 2,348 2,729 2,679
Advances paid 34,911 35,270 41,017
Investments, loans and placements 111,202 108,844 112,965
Other receivables(a) 49,874 44,949 46,756
Equity investments      
Investments in other public sector entities 26,230 26,044 26,208
Equity accounted investments 294 294 331
Investments - shares 34,317 34,000 34,026
Total financial assets 259,176 252,130 263,982
Non-financial assets      
Land 8,938 8,935 8,719
Buildings 23,735 23,758 24,454
Plant, equipment and infrastructure  52,874 52,689 54,888
Inventories 7,742 7,710 7,206
Intangibles 5,613 5,673 5,712
Investment property 212 212 182
Biological assets 33 32 37
Heritage and cultural assets 10,543 10,544 10,465
Assets held for sale 134 91 83
Other non-financial assets(a) 262 281 873
Total non-financial assets 110,085 109,925 112,619
Total assets 369,260 362,054 376,601
Liabilities      
Interest bearing liabilities      
Deposits held 178 182 192
Government securities 291,140 297,301 321,252
Loans 9,446 9,339 11,851
Other borrowing 1,254 1,273 1,470
Total interest bearing liabilities 302,018 308,095 334,765
Provisions and payables      
Superannuation liability(b) 193,850 194,439 148,710
Other employee liabilities  14,745 14,264 14,829
Suppliers payable 4,302 4,218 4,259
Personal benefits provisions and payable 13,525 13,053 13,952
Subsidies provisions and payable 3,599 3,562 3,475
Grants provisions and payable 14,714 14,617 15,892
Other provisions and payables 15,975 15,714 14,178
Total provisions and payables 260,709 259,867 215,294
Total liabilities 562,727 567,962 550,059
Net worth(c) -193,467 -205,908 -173,458
Net financial worth(d) -303,552 -315,832 -286,077
Net financial liabilities(e)  329,781 341,877 312,285
Net debt(f) 153,557 161,253 178,104

*As published in the 2013-14 Budget.
(a) As a result of the 2013-14 Budget there has been a reclassification between other non-financial assets and other receivables.
(b) 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.
(c) Net worth is calculated as total assets minus total liabilities.
(d) Net financial worth equals total financial assets minus total liabilities.
(e) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(f) 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

 ACTUAL
2013-2014
July
$m
ACTUAL
2013-2014
August
$m
ACTUAL
2013-2014
YTD August
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 35,645 19,654 55,299 354,854
Receipts from sales of goods and services 882 661 1,543 8,639
Interest receipts 240 247 487 4,074
Dividends and income tax equivalents 86 608 694 2,526
Other receipts 921 842 1,763 5,496
Total operating receipts 37,773 22,011 59,785 375,589
Cash payments for operating activities        
Payments for employees -3,121 -2,155 -5,276 -26,909
Payments for goods and services -6,513 -7,097 -13,610 -76,293
Grants and subsidies paid -12,731 -10,564 -23,295 -139,740
Interest paid -950 -540 -1,490 -11,909
Personal benefit payments -13,527 -10,296 -23,823 -122,319
Other payments  -763 -766 -1,529 -5,271
Total operating payments -37,605 -31,418 -69,023 -382,442
Net cash flows from operating activities 168 -9,407 -9,239 -6,853
Cash flows from investments in non-financial assets        
Sales of non-financial assets 9 70 79 405
Purchases of non-financial assets -565 -384 -949 -8,288
Net cash flows from investments in
  non-financial assets
-555 -314 -870 -7,883
Net cash flows from investments in
   financial assets for policy purposes
-1,662 -262 -1,924 -10,073
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -2,408 2,123 -285 -4,919
Net cash flows from investments in
   financial assets for liquidity purposes
-2,408 2,123 -285 -4,919
Cash flows from financing activities        
Borrowing (net) 4,778 8,306 13,084 31,996
Other financing (net) -67 -65 -132 -2,059
Net cash flows from financing activities 4,712 8,241 12,952 29,937
Net increase/(decrease) in cash held 254 380 635 209
Net cash flows from operating activities
 and investments in non-financial assets
   (Surplus(+)/deficit(-))
-387 -9,721 -10,108 -14,736
Finance leases and similar arrangements(b) -3 -1 -3 -469
GFS cash surplus(+)/deficit(-) -390 -9,722 -10,111 -15,205
less Future Fund earnings 124 328 452 2,838
Equals underlying cash balance (c) -513 -10,050 -10,563 -18,043
 plus net cash flows from investments in
  financial assets for policy purposes
-1,662 -262 -1,924 -10,073
plus Future fund earnings 124 328 452 2,838
Equals headline cash balance -2,052 -9,984 -12,035 -25,278

*As published in the 2013-14 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 ABS.

 

Australian Government General Government Sector - EXPENSES BY FUNCTION

 ACTUAL
2013-2014
July
$m
ACTUAL
2013-2014
August
$m
ACTUAL
2013-2014
YTD August
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Expenses by function        
General public services 1,994 2,079 4,072 23,023
Defence 1,570 1,763 3,333 22,045
Public order and safety 371 375 746 4,272
Education  3,933 1,631 5,564 29,742
Health  5,301 5,652 10,952 64,636
Social security and welfare  13,518 12,040 25,558 138,145
Housing and community amenities 487 144 631 8,775
Recreation and culture 339 525 864 3,696
Fuel and energy 528 739 1,267 7,586
Agriculture, forestry and fishing 287 14 301 2,654
Mining, manufacturing and construction 155 164 319 2,431
Transport and communication 86 262 348 6,453
Other economic affairs 876 956 1,832 11,283
Other purposes        
Public debt interest 1,002 1,020 2,022 12,456
Nominal superannuation interest 684 684 1,367 8,462
General purpose inter-government transactions 3,825 4,569 8,394 52,397
Natural disaster relief 0 0 0 147
Contingency reserve 0 0 0 98
Total expenses 34,955 32,617 67,572 398,301

* As published in the 2013-14 Budget.

NOTES:

The Australian Government monthly financial statements have been prepared on a basis consistent with the Budget as required under section 54 of the Financial Management and Accountability Act 1997. 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.

The Australian Government has improved the transparency and accountability of the Monthly Financial Statements by reporting against a profile of expected revenue and expenses. This allows for a more accurate commentary and account for seasonality or patterns of revenue and expenses.

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. Under these standards the timeframe for releasing the Monthly Financial Statements is by the end of the following month. The exception is the June and July Monthly Financial Statements, for which the IMF has given Australia special dispensation to release before 31 October.

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 thus estimates, in accordance with the best judgement of the Taxation Commissioner, and subject to revision. The taxation revenue items not affected are: petroleum resource rent tax, excise duty, customs duty, other taxes and individuals refunds.

The sum of the revenue accrued in the month and the revisions to prior periods equals the revenue reported in the Income Statement.

Note 1: Income Tax

 ACTUAL
2013-2014
July
$m
ACTUAL
2013-2014
August
$m
ACTUAL
2013-2014
YTD August
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding  12,533 14,122 26,656 164,660
Gross other individuals 8,461 -1,956 6,505 37,490
Less Refunds 4,709 5,658 10,366 26,800
Total individuals and other withholding taxation 16,285 6,509 22,795 175,350
Company tax  13,474 456 13,929 73,969
Superannuation funds 1,170 542 1,712 8,480
Resource rent tax (a) 198 403 601 3,420
Fringe benefits tax 840 27 867 4,320
Total income taxation revenue 31,967 7,936 39,904 265,539

*As published in the 2013-14 Budget.
(a) Includes both the Minerals Resource Rent Tax and the Petroleum Resource Rent Tax.

Note 2: Indirect Tax

 ACTUAL
2013-2014
July
$m
ACTUAL
2013-2014
August
$m
ACTUAL
2013-2014
YTD August
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Goods and services tax 5,151 4,898 10,049 53,080
Wine equalisation tax 63 51 115 780
Luxury car tax 41 36 77 400
Excise duty 2,399 1,951 4,350 26,050
Customs duty 726 729 1,455 8,830
Carbon pricing mechanism (a) 665 665 1,330 8,340
Other indirect tax 308 222 530 3,646
Total indirect taxation revenue 9,353 8,552 17,905 101,126

*As published in the 2013-14 Budget.
(a) Revenue from the Carbon pricing mechanism has been estimated based on expected annual results.

NOTE:

Style Conventions

  1. 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 (IMF) Special Data Dissemination Standards (SDDS)

  1. In accordance with the IMF's SDDS, quarter ahead notice of the date of release of the data on central government operations, which is contained in the Australian Government Financial Statements, is given on the IMF's Dissemination Standards Bulletin Board at http//dsbb.imf.org.
  2. 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 AOFM website at http://aofm.gov.au/statistics/securities-on-issue.

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