Media Release

Consolidated Financial Statements for the Australian Government

MC 16/13

Senator the Hon. Mathias Cormann
Minister for Finance

11 December 2013

Today’s release of the Consolidated Financial Statements for 2012-13 shows the deterioration of the Australian Government’s financial position after the first five years of Labor waste and mismanagement.

The last financial year saw the Australian Government record a $27.9 billion fiscal deficit. This was the fifth successive deficit recorded by Labor.

The Australian Government’s balance sheet shows our net worth at the end of 2012-13 down to -$210.5 billion, with total assets of $430.8 billion being offset by total liabilities of $641.4 billion. This is down from a positive net worth position in 2007-08 of $67.7 billion.

These numbers are a serious indictment on Labor’s most recent record in government.

Labor turned an underlying cash surplus of $24.6 billion in 2007-08 to a deficit of $19.5 billion in 2012-13.

They inherited a budget that was in its sixth successive year of surplus and managed to turn it into a budget that in 2012-13 was in its fifth successive year of deficit.

The Australian Government’s worsening trend in net worth reflected in the 2012-13 Consolidated Financial Statements is due to increased liabilities associated with increased borrowings and increased spending under Labor.

The Coalition Government is working in a calm and methodical way to turn around the situation we inherited from Labor. 

The next step will be the release next Tuesday of the Mid-Year Economic and Fiscal Outlook which will provide a full and thorough account of the true state of the budget the Government inherited from Labor.

The Consolidated Financial Statements present the financial results for the Whole of Government inclusive of all Australian Government controlled entities, including those outside the General Government Sector, such as Australia Post and the Reserve Bank of Australia. 

The Commonwealth Auditor-General has issued an unqualified audit report on the Consolidated Financial Statements. 

Key highlights from the Consolidated Financial Statements are included below. A full copy of the Consolidated Financial Statements is available at: http://www.finance.gov.au/financial-reporting-and-accounting-policy/annual-and-monthly-reporting-processes/2013-commonwealth-consolidated-financial-statements/

AGGREGATES2007-08
$b
2008-092009-102010-112011-122012-13
Revenue 315.1 309.8 298.9 322.3 350.4 372.0
Expenses 289.5 334.8 350.7 368.6 389.8 395.3
Net operating balance 25.6 -25.0 -51.8 -45.7 -39.4 -23.4
less net acquisitions for non-financial assets 3.3 5.0 7.6 6.7 6.9 4.5
Fiscal balance 22.3 -30.0 -59.4 -52.4 -46.3 -27.9
Total assets 339.2 367.2 377.2 377.1 390.6 430.8
Total liabilities 271.5 351.7 431.2 480.7 647.5 641.4
Net worth 67.7 15.5 -53.9 -103.6 -256.9 -210.5
Cash surplus/(deficit) 24.6 -22.9 -56.8 -45.2 -42.1 -19.5

The following table displays the stark contrast between the prudent and responsible legacy of the last Coalition Government and Labor’s legacy of waste and mismanagement:

 

2007–08
Coalition

2012–13
Labor

Fiscal balance $22.3 billion surplus -$27.9 billion deficit
Underlying cash balance $24.6 billion surplus -$19.5 billion deficit
Budget position 6th successive surplus 5th successive deficit
Expenses $289.5 billion $395.3 billion
Revenue $315.1 billion $372.0 billion
Total Assets $339.2 billion $430.8 billion
Total Liabilities $271.5 billion $641.4 billion
Net worth +$67.7 billion -$210.5 billion

Source: Department of Finance

Senator the Hon Mathias Cormann
Minister for Finance

[ENDS]

Media Contact(s): 

Karen Wu        0428 350 139