Media Release

Australian Government Monthly Financial Statements - September 2013

MC 11/13

Senator the Hon. Mathias Cormann
Minister for Finance

8 November 2013

KEY POINTS

  • The underlying cash balance for the 2013-14 financial year to 30 September 2013 was a deficit of $22,929 million.
  • The fiscal balance for the 2013-14 financial year to 30 September 2013 was a deficit of $19,659 million.
AGGREGATES
ACTUAL
2013-2014
September
$m

ACTUAL
2013-2014
YTD September
$m

Budget
Profile
2013-2014
YTD September
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Revenue 18,193 79,649 84,229 387,749
Expenses 31,821 99,394 104,030 398,301
Net operating balance  -13,629 -19,745 -19,801 -10,552
Net capital investment  311 -86 438 2,945
Fiscal balance  -13,940 -19,659 -20,239 -13,497
Underlying Cash Receipts(a) 17,896 77,308 79,599 373,156
Underlying Cash Payments 30,262 100,237 101,319 391,198
Underlying cash balance(a) -12,365 -22,929 -21,720 -18,043
Headline cash balance  -12,436 -24,472 -23,137 -25,278
Total assets   358,144   376,601
Total liabilities   578,814   550,059
Net worth(b)   -220,670   -173,458
Net debt(c)   174,577   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 30 September 2013 was a deficit of $22,929 million, compared to the Budget profile deficit of $21,720 million. The difference of $1,209 million relates to lower than expected underlying cash receipts partially offset by lower than expected underlying cash payments.

Fiscal Balance

The fiscal balance for the year to 30 September 2013 was a deficit of $19,659 million. This is $580 million lower than the Budget profile deficit. The difference relates to lower than expected expenses and net capital investment, partially offset by lower than expected revenue.

  • Revenues
    Total revenue was $4,580 million lower than the Budget profile primarily due to lower than expected taxation revenue. This reflects lower than expected individuals and other withholding taxation, company tax, superannuation fund tax and resource rent taxes.
  • Expenses
    Total expenses were $4,636 million lower than the Budget profile primarily due to lower than expected grants and subsidies, suppliers and personal benefits expenditure.  This is in part consistent with reduced expenditure during the election caretaker period and reflecting timing differences, particularly for grants and subsidies.

Assets and Liabilities

The net worth of the General Government sector is a negative net asset position of $220,670 million at 30 September 2013. The net debt of the General Government sector is $174,557 million at 30 September 2013.



Senator the Hon Mathias Cormann
Minister for Finance
8 November 2013

David Tune
Secretary to the Department of Finance
8 November 2013

Contact: Senator the Hon Mathias Cormann’s Office:
Department of Finance:
Mathew Fox - (02) 6277 7400
Amelia Huang - (02) 6215 3138

 


Australian Government General Government Sector – OPERATING STATEMENT

 
ACTUAL
2013-2014
September
$m

ACTUAL
2013-2014
YTD September
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Revenue      
Taxation revenue 16,428 74,237 366,664
Sales of goods and services 833 2,246 8,577
Interest income 256 802 4,313
Dividend income 154 548 2,426
Other 521 1,816 5,768
Total revenue 18,193 79,649 387,749
Expenses      
Gross operating expenses      
Wages and salaries(a) 1,590 4,846 19,772
Superannuation 463 1,354 4,039
Depreciation and amortisation 531 1,579 5,813
Supply of goods and services 5,838 18,415 75,918
Other operating expenses(a) 515 1,380 5,467
Total gross operating expenses 8,938 27,572 111,009
Superannuation interest expense 684 2,051 8,462
Interest expenses 1,075 3,211 14,008
Current transfers      
Current grants 7,742 26,489 118,137
Subsidy expenses 2,601 4,678 14,944
Personal benefits 10,148 33,026 121,699
Total current transfers 20,491 64,194 254,780
Capital transfers      
Mutually agreed write-downs 132 672 2,137
Other capital grants 502 1,693 7,905
Total capital transfers 634 2,366 10,042
Total expenses 31,821 99,394 398,301
Net operating balance -13,629 -19,745 -10,552
Other economic flows
- including in operating result(b)
     
Net write-downs of assets (including bad and doubtful debts) -714 -1,499 -7,488
Assets recognised for the first time 0 166 559
Net foreign exchange gains 1,245 440 73
Net swap interest received -44 -509 0
Market valuation of debt -628 1,107 2,924
Other gains/(losses) -1,125 2,068 3,655
Total other economic flows - included in operating result -1,267 1,774 -278
Operating result(c) -14,895 -17,971 -10,830
Non-owner movements in equity(b)      
Revaluation of equity investments 119 119 -2,223
Actuarial revaluations 0 0 140
Other economic revaluations 14 -168 567
Total other economic flows - included in equity 133 -49 -1,517
Comprehensive result - Total change in net worth -14,762 -18,020 -12,347
Net operating balance -13,629 -19,745 -10,552
Net acquisition of non-financial assets      
Purchases of non-financial assets 904 1,755 8,755
less Sales of non-financial assets 23 102 346
less Depreciation 531 1,579 5,813
plus Change in inventories -46 -165 270
plus Other movements in non-financial assets 7 5 78
Total net acquisition of non-financial assets 311 -86 2,945
Fiscal balance (Net lending/borrowing)(e) -13,940 -19,659 -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
30 September 2013
$m
BUDGET
ESTIMATE*
as at
30 June 2014
$m
Assets    
Financial assets    
Cash and deposits 4,179 2,679
Advances paid 35,660 41,017
Investments, loans and placements 102,620 112,965
Other receivables(a) 44,958 46,756
Equity investments    
Investments in other public sector entities 26,322 26,208
Equity accounted investments 298 331
Investments - shares 34,213 34,026
Total financial assets 248,251 263,982
Non-financial assets    
Land 8,913 8,719
Buildings 23,731 24,454
Plant, equipment and infrastructure  52,819 54,888
Inventories 7,632 7,206
Intangibles 5,634 5,712
Investment property 193 182
Biological assets 32 37
Heritage and cultural assets 10,556 10,465
Assets held for sale 94 83
Other non-financial assets(a) 288 873
Total non-financial assets 109,893 112,619
Total assets 358,144 376,601
Liabilities    
Interest bearing liabilities    
Deposits held 238 192
Government securities 306,288 321,252
Loans 9,187 11,851
Other borrowing 1,322 1,470
Total interest bearing liabilities 317,036 334,765
Provisions and payables    
Superannuation liability(b) 195,002 148,710
Other employee liabilities  14,442 14,829
Suppliers payable 4,698 4,259
Personal benefits provisions and payable 13,311 13,952
Subsidies provisions and payable 4,536 3,475
Grants provisions and payable 14,539 15,892
Other provisions and payables 15,250 14,178
Total provisions and payables 261,778 215,294
Total liabilities 578,814 550,059
Net worth(c) -220,670 -173,458
Net financial worth(d) -330,563 -286,077
Net financial liabilities(e)  356,885 312,285
Net debt(f) 174,577 178,104

*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
September
$m
ACTUAL
2013-2014
YTD September
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Cash receipts from operating activities      
Taxes received 15,980 71,279 354,854
Receipts from sales of goods and services 553 2,095 8,639
Interest receipts 173 660 4,074
Dividends and income tax equivalents 444 1,138 2,526
Other receipts 1,118 2,880 5,496
Total operating receipts 18,268 78,053 375,589
Cash payments for operating activities      
Payments for employees -1,683 -6,959 -26,909
Payments for goods and services -6,427 -20,037 -76,293
Grants and subsidies paid -9,978 -33,274 -139,740
Interest paid -470 -1,960 -11,909
Personal benefit payments -10,349 -34,171 -122,319
Other payments  -390 -1,920 -5,271
Total operating payments -29,297 -98,320 -382,442
Net cash flows from operating activities -11,029 -20,268 -6,853
Cash flows from investments in non-financial assets      
Sales of non-financial assets 23 102 405
Purchases of non-financial assets -894 -1,842 -8,288
Net cash flows from investments in
  non-financial assets
-871 -1,740 -7,883
Net cash flows from investments in
   financial assets for policy purposes
-466 -2,389 -10,073
Cash flows from investments in
   financial assets for liquidity purposes
     
Increase in investments 6,273 5,988 -4,919
Net cash flows from investments in
   financial assets for liquidity purposes
6,273 5,988 -4,919
Cash flows from financing activities      
Borrowing (net) 7,732 20,817 31,996
Other financing (net) -190 -322 -2,059
Net cash flows from financing activities 7,542 20,494 29,937
Net increase/(decrease) in cash held 1,450 2,085 209
Net cash flows from operating activities
 and investments in non-financial assets
   (Surplus(+)/deficit(-))
-11,900 -22,008 -14,736
Finance leases and similar arrangements(b) -71 -74 -469
GFS cash surplus(+)/deficit(-) -11,971 -22,082 -15,205
less Future Fund earnings 395 847 2,838
Equals underlying cash balance (c) -12,365 -22,929 -18,043
 plus net cash flows from investments in
  financial assets for policy purposes
-466 -2,389 -10,073
plus Future fund earnings 395 847 2,838
Equals headline cash balance -12,436 -24,472 -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
September
$m
ACTUAL
2013-2014
YTD September
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Expenses by function      
General public services 1,576 5,648 23,023
Defence 1,764 5,098 22,045
Public order and safety 321 1,067 4,272
Education  1,492 7,056 29,742
Health  5,490 16,443 64,636
Social security and welfare  11,302 36,861 138,145
Housing and community amenities 1,945 2,576 8,775
Recreation and culture -236 629 3,696
Fuel and energy 438 1,705 7,586
Agriculture, forestry and fishing 264 565 2,654
Mining, manufacturing and construction 175 494 2,431
Transport and communication 230 579 6,453
Other economic affairs 982 2,814 11,283
Other purposes      
Public debt interest 1,015 3,036 12,456
Nominal superannuation interest 684 2,051 8,462
General purpose inter-government transactions 4,379 12,773 52,397
Natural disaster relief 0 0 147
Contingency reserve 0 0 98
Total expenses 31,821 99,394 398,301

* As published in the 2013-14 Budget.
(a) The negative movement in September reflects a reclassification of expenses since August.

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
September
$m
ACTUAL
2013-2014
YTD September
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Individuals and other withholding taxes      
Gross income tax withholding  12,778 39,433 164,660
Gross other individuals 1,182 7,688 37,490
Less refunds 3,638 14,004 26,800
Total individuals and other withholding taxation 10,322 33,117 175,350
Company tax  549 14,478 73,969
Superannuation funds -129 1,583 8,480
Resource rent taxes (a) -325 276 3,420
Fringe benefits tax 13 880 4,320
Total income taxation revenue 10,430 50,334 265,539

*As published in the 2013-14 Budget.
(a) Includes both the Minerals Resource Rent Tax ($173 million) and the Petroleum Resource Rent Tax ($103 million). The negative figure (-$325 million) primarily reflects end of year adjustments for overpaid instalments for 2012-13 (-$4 million for MRRT and -$321 million for PRRT).

Note 2: Indirect Tax

 ACTUAL
2013-2014
September
$m
ACTUAL
2013-2014
YTD September
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Goods and services tax 1,841 11,890 53,080
Wine equalisation tax 51 166 780
Luxury car tax 32 109 400
Excise duty 2,492 6,842 26,050
Customs duty 735 2,190 8,830
Carbon pricing mechanism (a) 665 1,995 8,340
Other indirect tax 182 712 3,646
Total indirect taxation revenue 5,998 23,903 101,126

*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 Data Dissemination 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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