Media Release

Australian Government General Government Sector Monthly Financial Statements - October 2013

MC 24/13

Senator the Hon. Mathias Cormann
Minister for Finance

20 December 2013

KEY POINTS

  • The underlying cash balance for the 2013-14 financial year to 31 October 2013 was a deficit of $18,475 million.
  • The fiscal balance for the 2013-14 financial year to 31 October 2013 was a deficit of $13,118 million.
AGGREGATES
ACTUAL
2013-2014
October
$m

ACTUAL
2013-2014
YTD October
$m

Budget
Profile
2013-2014
YTD October
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Revenue 41,610 121,259 126,645 387,749
Expenses 34,833 134,227 137,474 398,301
Net operating balance  6,777 -12,968 -10,829 -10,552
Net capital investment  236 150 594 2,945
Fiscal balance  6,541 -13,118 -11,423 -13,497
Receipts(a) 38,582 116,737 119,306 375,993
Payments(b) 33,912 134,149 134,930 391,198
Net Future Fund earnings 217 1,064 1,050 2,838
Underlying cash balance(c) 4,454 -18,475 -16,674 -18,043
Headline cash balance  4,988 -19,484 -19,281 -25,278
Total assets   373,566   376,601
Total liabilities   584,105   550,059
Net worth(d)   -210,538   -173,458
Net debt(e)   166,535   178,104

*As published in the 2013-14 Budget.
(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 the 2013-14 Budget, 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. 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 October 2013 was a deficit of $18,475 million, compared to the Budget profile deficit of $16,674 million. The difference of $1,801 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 31 October 2013 was a deficit of $13,118 million, compared to the Budget profile deficit of $11,423. The difference of $1,695 million relates to lower than expected revenue, partially offset by lower than expected expenses and net capital investment.

  • Revenues
    Total revenue was $5,386 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 $3,247 million lower than the Budget profile primarily due to lower than expected grants and subsidies. 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 $210,538 million at 31 October 2013. The net debt of the General Government Sector is $166,535 million at 31 October 2013.



Senator the Hon Mathias Cormann
Minister for Finance
20 December 2013

David Tune
Secretary to the Department of Finance
20 December 2013

Contact: Senator the Hon Mathias Cormann’s Office:
Department of Finance:
Karen Wu - (02) 6277 7400
Amelia Huang - (02) 6215 2222

Australian Government General Government Sector – OPERATING STATEMENT

 
ACTUAL
2013-2014
October
$m

ACTUAL
2013-2014
YTD October
$m

Budget
Profile
2013-2014
YTD October
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Revenue        
Taxation revenue 39,897 114,134 119,479 366,664
Sales of goods and services 715 2,960 2,838 8,577
Interest income 231 1,033 1,467 4,313
Dividend income 232 780 1,060 2,426
Other 534 2,350 1,801 5,768
Total revenue 41,610 121,259 126,645 387,749
Expenses        
Gross operating expenses        
Wages and salaries(a) 1,649 6,495 6,720 19,772
Superannuation 475 1,829 1,369 4,039
Depreciation and amortisation 481 2,060 1,928 5,813
Supply of goods and services 6,697 25,112 25,462 75,918
Other operating expenses(a) 477 1,856 1,923 5,467
Total gross operating expenses 9,779 37,351 37,402 111,009
Superannuation interest expense 684 2,734 2,820 8,462
Interest expenses 1,307 4,518 4,586 14,008
Current transfers        
Current grants 10,521 37,010 39,192 118,137
Subsidy expenses 1,116 5,794 6,586 14,944
Personal benefits 10,598 43,624 43,538 121,699
Total current transfers 22,235 86,429 89,316 254,780
Capital transfers        
Mutually agreed write-downs 156 828 782 2,137
Other capital grants 673 2,366 2,569 7,905
Total capital transfers 829 3,195 3,351 10,042
Total expenses 34,833 134,227 137,474 398,301
Net operating balance 6,777 -12,968 -10,829 -10,552
Other economic flows
- included in operating result(b)
       
Net write-downs of assets (including bad and doubtful debts) -325 -1,823 -2,924 -7,488
Assets recognised for the first time 48 214 186 559
Net foreign exchange gains 392 832 73 73
Net swap interest received 100 -408 0 0
Market valuation of debt 1,857 2,964 1,021 2,924
Other gains/(losses) 1,110 3,178 1,350 3,655
Total other economic flows - included in operating result 3,182 4,956 -294 -278
Operating result 9,959 -8,012 -11,124 -10,830
Non-owner movements in equity(b)        
Revaluation of equity investments(c) -69 50 0 -2,223
Actuarial revaluations 0 0 0 140
Other economic revaluations(d) 241 73 56 567
Total other economic flows - included in equity 172 124 56 -1,517
Comprehensive result - Total change in net worth 10,131 -7,888 -11,067 -12,347
Net operating balance 6,777 -12,968 -10,829 -10,552
Net acquisition of non-financial assets        
Purchases of non-financial assets 645 2,400 2,381 8,755
less Sales of non-financial assets -8 95 93 346
less Depreciation 481 2,060 1,928 5,813
plus Change in inventories 47 -119 135 270
plus Other movements in non-financial assets 17 23 98 78
Total net acquisition of non-financial assets 236 150 594 2,945
Fiscal balance (Net lending/borrowing)(e) 6,541 -13,118 -11,423 -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 October 2013
$m
BUDGET
ESTIMATE*
as at
30 June 2014
$m
Assets    
Financial assets    
Cash and deposits 3,698 2,679
Advances paid 35,806 41,017
Investments, loans and placements 115,402 112,965
Other receivables(a) 46,766 46,756
Equity investments    
Investments in other public sector entities 26,330 26,208
Equity accounted investments 297 331
Investments - shares 35,188 34,026
Total financial assets 263,487 263,982
Non-financial assets    
Land 8,911 8,719
Buildings 23,847 24,454
Plant, equipment and infrastructure  52,847 54,888
Inventories 7,642 7,206
Intangibles 5,629 5,712
Investment property 204 182
Biological assets 32 37
Heritage and cultural assets 10,555 10,465
Assets held for sale 106 83
Other non-financial assets(a) 306 873
Total non-financial assets 110,080 112,619
Total assets 373,566 376,601
Liabilities    
Interest bearing liabilities    
Deposits held 235 192
Government securities 310,615 321,252
Loans 9,207 11,851
Other borrowing 1,383 1,470
Total interest bearing liabilities 321,441 334,765
Provisions and payables    
Superannuation liability(b) 195,350 148,710
Other employee liabilities  14,507 14,829
Suppliers payable 4,282 4,259
Personal benefits provisions and payable 13,216 13,952
Subsidies provisions and payable 5,280 3,475
Grants provisions and payable 14,383 15,892
Other provisions and payables 15,646 14,178
Total provisions and payables 262,664 215,294
Total liabilities 584,105 550,059
Net worth(c) -210,538 -173,458
Net financial worth(d) -320,618 -286,077
Net financial liabilities(e)  346,948 312,285
Net debt(f) 166,535 178,104

*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
October
$m
ACTUAL
2013-2014
YTD October
$m

Budget
Profile
2013-2014
YTD October
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 36,750 108,029 111,649 354,854
Receipts from sales of goods and services 833 2,929 3,010 8,639
Interest receipts 249 909 1,379 4,074
Dividends and income tax equivalents 298 1,437 1,070 2,526
Other receipts 459 3,340 2,046 5,496
Total operating receipts 38,590 116,642 119,154 375,589
Cash payments for operating activities        
Payments for employees -2,365 -9,324 -9,161 -26,909
Payments for goods and services -5,912 -25,949 -26,437 -76,293
Grants and subsidies paid -11,853 -45,127 -46,540 -139,740
Interest paid -2,374 -4,334 -4,254 -11,909
Personal benefit payments -10,331 -44,502 -44,335 -122,319
Other payments  -418 -2,338 -1,726 -5,271
Total operating payments -33,253 -131,574 -132,452 -382,442
Net cash flows from operating activities 5,336 -14,931 -13,298 -6,853
Cash flows from investments in non-financial assets        
Sales of non-financial assets -8 95 152 405
Purchases of non-financial assets -656 -2,498 -2,355 -8,288
Net cash flows from investments in
  non-financial assets
-663 -2,403 -2,203 -7,883
Net cash flows from investments in
   financial assets for policy purposes
317 -2,072 -3,657 -10,073
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -12,738 -6,751 583 -4,919
Net cash flows from investments in
   financial assets for liquidity purposes
-12,738 -6,751 583 -4,919
Cash flows from financing activities        
Borrowing (net) 7,667 28,483 18,307 31,996
Other financing (net) -381 -703 -755 -2,059
Net cash flows from financing activities 7,286 27,780 17,552 29,937
Net increase/(decrease) in cash held -462 1,623 -1,023 209
Net cash flows from operating activities
 and investments in non-financial assets
   (Surplus(+)/deficit(-))
4,673 -17,335 -15,501 -14,736
Finance leases and similar arrangements(b) -3 -77 -123 -469
GFS cash surplus(+)/deficit(-) 4,670 -17,412 -15,624 -15,205
less Net Future Fund earnings 217 1,064 1,050 2,838
Equals underlying cash balance (c) 4,454 -18,475 -16,674 -18,043
plus Net cash flows from investments in
  financial assets for policy purposes
317 -2,072 -3,657 -10,073
plus Net Future Fund earnings 217 1,064 1,050 2,838
Equals headline cash balance 4,988 -19,484 -19,281 -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
October
$m
ACTUAL
2013-2014
YTD October
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Expenses by function      
General public services 2,165 7,812 23,023
Defence 1,951 7,049 22,045
Public order and safety 394 1,461 4,272
Education  3,805 10,861 29,742
Health  4,786 21,228 64,636
Social security and welfare  11,978 48,839 138,145
Housing and community amenities 863 3,439 8,775
Recreation and culture 442 1,070 3,696
Fuel and energy 745 2,450 7,586
Agriculture, forestry and fishing 159 724 2,654
Mining, manufacturing and construction 153 647 2,431
Transport and communication 211 790 6,453
Other economic affairs 933 3,747 11,283
Other purposes      
Public debt interest 1,086 4,122 12,456
Nominal superannuation interest 684 2,734 8,462
General purpose inter-government transactions 4,481 17,254 52,397
Natural disaster relief 0 0 147
Contingency reserve 0 0 98
Total expenses 34,833 134,227 398,301

* 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 Operating Statement.

 

Note 1: Income Tax

 ACTUAL
2013-2014
October
$m
ACTUAL
2013-2014
YTD October
$m

Budget
Profile
2013-2014
YTD October
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding  13,419 52,852 54,540 164,660
Gross other individuals 4,694 12,382 12,743 37,490
Less refunds 3,153 17,157 16,880 26,800
Total individuals and other withholding taxation 14,960 48,077 50,402 175,350
Company tax  11,942 26,420 27,463 73,969
Superannuation funds 1,054 2,637 3,539 8,480
Resource rent taxes (a) 481 757 1,552 3,420
Fringe benefits tax 934 1,814 1,834 4,320
Total income taxation revenue 29,371 79,705 84,790 265,539

*As published in the 2013-14 Budget.
(a) Includes both the minerals resource rent tax ($260 million YTD) and the petroleum resource rent tax ($497 million YTD).

 

Note 2: Indirect Tax

 ACTUAL
2013-2014
October
$m
ACTUAL
2013-2014
YTD October
$m

Budget
Profile
2013-2014
YTD October
$m
BUDGET
ESTIMATE*
2013-2014
FULL YEAR
$m
Goods and services tax 6,519 18,409 18,526 53,080
Wine equalisation tax 52 217 209 780
Luxury car tax 40 149 141 400
Excise duty 1,921 8,763 8,900 26,050
Customs duty 824 3,014 2,892 8,830
Carbon pricing mechanism (a) 665 2,660 2,780 8,340
Other indirect tax 505 1,217 1,242 3,646
Total indirect taxation revenue 10,526 34,430 34,689 101,126

*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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