Media Release

Australian Government General Government Sector Monthly Financial Statements - December 2013

MC 8/14

Senator the Hon. Mathias Cormann
Minister for Finance

28 February 2014

Key Points

  • The underlying cash balance for the 2013-14 financial year to 31 December 2013 was a deficit of $30,376 million.
  • The fiscal balance for the 2013-14 financial year to 31 December 2013 was a deficit of $24,528 million.
AGGREGATESACTUAL
2013-2014
December
$m
ACTUAL
2013-2014
YTD December
$m
MYEFO
PROFILE
2013-2014
YTD December
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Revenue 24,900 173,869 172,157 373,922
Expenses 32,505 197,558 198,575 412,060
Net operating balance -7,605 -23,690 -26,418 -38,137
Net capital investment 220 839 386 3,706
Fiscal balance -7,825 -24,528 -26,804 -41,843
Receipts(a) 23,869 165,775 165,029 364,930
Payments(b) 30,939 194,871 192,177 409,049
Net Future Fund earnings 325 1,280 1,722 2,871
Underlying cash balance(c) -7,395 -30,376 -28,870 -46,989
Headline cash balance -7,988 -32,515 -33,016 -51,640
Total assets   377,838   386,331
Total liabilities   597,224   562,980
Net worth(d)   -219,386   -176,649
Net debt(e)   177,739   191,520

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (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 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.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 31 December 2013 was a deficit of $30,376 million, compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $28,870 million. The difference of $1,506 million relates to higher than expected cash payments, partially offset by higher than expected cash receipts excluding net Future Fund earnings.

Fiscal Balance

The fiscal balance for the year to 31 December 2013 was a deficit of $24,528 million, compared to the MYEFO profile deficit of $26,804 million. The difference of $2,276 million relates to higher than expected revenue and lower than expected expenses, partially offset by higher net capital investment.

  • Revenues
    Total revenue was $1,712 million higher than the MYEFO profile, primarily due to higher than expected taxation revenue. The gain in revenue in December is in part attributable to stronger than expected receivables growth. The movement in receivables is historically volatile and as such the December outcome may not be reflective of outcomes over the remainder of the financial year.
  • Expenses
    Total expenses were $1,017 million lower than the MYEFO profile due to lower gross operating expenses and lower subsidies expenses, partially offset by higher personal benefits expenses.

Assets and Liabilities

The net worth of the Australian Government general government sector is a negative net asset position of $219,386 million as at 31 December 2013. The net debt of the Australian Government general government sector is $177,739 million as at 31 December 2013.

 

Senator the Hon Mathias Cormann
Minister for Finance



 
 28 February 2014
David Tune
Secretary of the
Department of Finance
 
 
 
28 February 2014
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
December
$m
ACTUAL
2013-2014
YTD December
$m
MYEFO PROFILE
2013-2014
YTD December
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Revenue        
Taxation revenue 23,247 162,993 161,239 351,434
Sales of goods and services 703 4,453 4,323 8,680
Interest income 268 1,617 1,938 3,730
Dividend income 255 1,232 1,370 3,792
Other 427 3,572 3,288 6,286
Total revenue 24,900 173,869 172,157 373,922
Expenses        
Gross operating expenses        
Wages and salaries(a) 1,576 9,640 9,807 19,815
Superannuation 414 2,754 2,715 5,304
Depreciation and amortisation 480 3,117 3,159 6,426
Supply of goods and services 6,047 37,145 37,581 74,514
Other operating expenses(a) 296 2,600 2,842 5,647
Total gross operating expenses 8,812 55,256 56,104 111,706
Superannuation interest expense 684 4,101 4,099 8,197
Interest expenses 1,122 6,781 6,936 14,926
Current transfers        
Current grants 8,572 54,382 54,559 118,955
Subsidy expenses 1,269 8,374 8,950 15,345
Personal benefits 10,828 63,379 62,717 122,784
Total current transfers 20,669 126,135 126,226 257,085
Capital transfers        
Mutually agreed write-downs 237 1,282 1,176 2,382
Other capital grants 982 4,003 4,035 17,764
Total capital transfers 1,218 5,286 5,211 20,146
Total expenses 32,505 197,558 198,575 412,060
Net operating balance -7,605 -23,690 -26,418 -38,137
Other economic flows        
- included in operating result(b)        
Net write-downs of assets (including bad and doubtful debts) -1,356 -3,901 -2,987 -6,016
Assets recognised for the first time 48 308 210 456
Liabilities recognised for the first time 0 0 0 0
Actuarial revaluations 0 0 0 0
Net foreign exchange gains -649 -1,000 58 60
Net swap interest received -92 -431 -299 -499
Market valuation of debt -525 4,729 7,385 7,371
Other gains/(losses) 1,863 7,725 2,960 5,672
Total other economic flows        
- included in operating result -712 7,430 7,327 7,043
Operating result -8,318 -16,260 -19,091 -31,094
Non-owner movements in equity(b)        
Revaluation of equity investments(c) 0 0 59 6,430
Actuarial revaluations 0 0 0 10
Other economic revaluations(d) -565 -476 27 865
Total other economic flows - included in equity -565 -476 86 7,305
Comprehensive result - Total change in net worth -8,883 -16,735 -19,005 -23,789
Net operating balance -7,605 -23,690 -26,418 -38,137
Net acquisition of non-financial assets        
Purchases of non-financial assets 609 4,054 3,638 10,154
less Sales of non-financial assets 30 175 141 452
less Depreciation 480 3,117 3,159 6,426
plus Change in inventories 114 19 -27 280
plus Other movements in non-financial assets 7 58 74 150
Total net acquisition of non-financial assets 220 839 386 3,706
Fiscal balance (Net lending/borrowing)(e) -7,825 -24,528 -26,804 -41,843

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (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) The presentation of other economic flows has changed to align more closely with Australian Accounting Standard AASB 1049.
(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 December 2013
$m
MYEFO ESTIMATE*
as at
30 June 2014
$m
Assets    
Financial assets    
Cash and deposits 4,962 2,720
Advances paid 37,371 39,807
Investments, loans and placements 112,289 115,405
Other receivables(a) 49,026 44,744
Equity investments    
Investments in other public sector entities 26,336 35,557
Equity accounted investments 293 300
Investments - shares 37,015 34,753
Total financial assets 267,293 273,286
Non-financial assets    
Land 8,906 8,981
Buildings 24,168 24,601
Plant, equipment and infrastructure 52,890 54,485
Inventories 7,696 7,820
Intangibles 5,650 5,828
Investment property 230 198
Biological assets 31 33
Heritage and cultural assets 10,552 10,561
Assets held for sale 80 95
Other non-financial assets(a) 341 442
Total non-financial assets 110,545 113,045
Total assets 377,838 386,331
Liabilities    
Interest bearing liabilities    
Deposits held 229 182
Government securities 321,022 335,066
Loans 9,645 12,708
Other borrowing 1,465 1,496
Total interest bearing liabilities 332,361 349,452
Provisions and payables    
Superannuation liability(b) 196,520 149,786
Other employee liabilities 14,461 14,963
Suppliers payable 3,327 4,830
Personal benefits provisions and payable 14,081 12,147
Subsidies provisions and payable 6,018 3,986
Grants provisions and payable 15,832 14,154
Other provisions and payables 14,624 13,661
Total provisions and payables 264,862 213,527
Total liabilities 597,224 562,980
Net worth(c) -219,386 -176,649
Net financial worth(d) -329,931 -289,693
Net financial liabilities(e) 356,267 325,251
Net debt(f) 177,739 191,520

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).
(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
December
$m
ACTUAL
2013-2014
YTD December
$m
MYEFO
PROFILE
2013-2014
YTD December
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Cash receipts from operating activities        
Taxes received 22,139 153,996 153,508 343,480
Receipts from sales of goods and services 712 4,409 4,255 8,626
Interest receipts 208 1,413 1,887 3,591
Dividends and income tax equivalents 283 1,607 1,727 2,883
Other receipts 497 4,175 3,511 5,941
Total operating receipts 23,839 165,600 164,888 364,521
Cash payments for operating activities        
Payments for employees -2,111 -13,384 -13,402 -27,037
Payments for goods and services -7,706 -38,790 -37,794 -74,464
Grants and subsidies paid -9,169 -64,920 -64,269 -153,845
Interest paid -1,121 -6,050 -5,983 -12,419
Personal benefit payments -9,715 -64,448 -64,227 -125,082
Other payments -494 -3,022 -2,765 -5,873
Total operating payments -30,317 -190,613 -188,440 -398,719
Net cash flows from operating activities -6,478 -25,014 -23,552 -34,198
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 30 175 141 409
Purchases of non-financial assets -621 -4,178 -3,685 -9,861
Net cash flows from investments in
non-financial assets
-591 -4,003 -3,544 -9,451
Net cash flows from investments in
financial assets for policy purposes
-917 -3,418 -5,869 -7,522
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments 11,607 -3,996 -6,270 -2,968
Net cash flows from investments in
financial assets for liquidity purposes
11,607 -3,996 -6,270 -2,968
Cash flows from financing activities        
Borrowing (net) -2,274 40,218 40,129 56,850
Other financing (net) -130 -900 -910 -2,065
Net cash flows from financing activities -2,405 39,318 39,218 54,785
Net increase/(decrease) in cash held 1,216 2,886 -16 645
Net cash flows from operating activities
and investments in non-financial assets
(Surplus(+)/deficit(-))
-7,069 -29,017 -27,096 -43,650
Finance leases and similar arrangements(b) -2 -80 -52 -469
GFS cash surplus(+)/deficit(-) -7,070 -29,097 -27,147 -44,118
less Net Future Fund earnings 325 1,280 1,722 2,871
Equals underlying cash balance(c) -7,395 -30,376 -28,870 -46,989
plus Net cash flows from investments in
financial assets for policy purposes
-917 -3,418 -5,869 -7,522
plus Net Future Fund earnings 325 1,280 1,722 2,871
Equals headline cash balance -7,988 -32,515 -33,016 -51,640

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).
(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 Australian Bureau of Statistics.

Note 1: Income Tax

 
ACTUAL
2013-2014
December
$m

ACTUAL
2013-2014
YTD December
$m

MYEFO PROFILE
2013-2014
YTD December
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 13,414 79,422 78,904 158,510
Gross other individuals 1,172 15,918 15,849 36,650
less Refunds 1,217 20,645 20,699 27,200
Total individuals and other withholding taxation 13,370 74,695 74,054 167,960
Company tax 1,518 30,180 29,228 70,400
Superannuation funds 1,136 4,449 4,160 6,990
Petroleum resource rent tax -103 387 564 1,900
Minerals resource rent tax -22 232 253 500
Fringe benefits tax 25 1,906 1,902 4,140
Total income taxation revenue 15,924 111,849 110,161 251,890

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).

Note 2: Indirect Tax

 ACTUAL
2013-2014
December
$m
ACTUAL
2013-2014
YTD December
$m
MYEFO PROFILE
2013-2014
YTD December
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Goods and services tax 3,062 26,801 26,913 52,680
Wine equalisation tax 81 387 378 750
Luxury car tax 35 216 219 400
Excise duty 2,575 13,542 13,484 25,900
Customs duty 834 4,644 4,605 8,930
Carbon pricing mechanism (a) 387 3,717 3,670 7,340
Other indirect tax 350 1,837 1,808 3,545
Total indirect taxation revenue 7,323 51,144 51,077 99,545

*As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (MYEFO).
(a) Revenue from the carbon pricing mechanism has been estimated based on expected annual results.

Note 3: Total expenses by function

 ACTUAL
2013-2014
December
$m
ACTUAL
2013-2014
YTD December
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Expenses by function      
General public services 443 9,837 33,362
Defence 1,521 10,454 22,646
Public order and safety 364 2,095 4,415
Education 2,789 14,938 30,174
Health 4,696 31,294 64,685
Social security and welfare 12,696 71,767 138,667
Housing and community amenities 342 5,136 8,622
Recreation and culture 249 1,358 3,835
Fuel and energy 250 3,423 7,256
Agriculture, Forestry and Fishing 209 1,104 2,632
Mining, manufacturing and construction 552 1,235 2,870
Transport and communication 701 1,838 7,398
Other economic affairs 1,555 6,166 11,793
Other purposes      
Public debt interest 1,157 6,361 13,467
Nominal superannuation interest 684 4,101 8,197
General purpose inter-government transactions 4,297 26,451 52,379
Natural disaster relief 0 0 157
Contingency reserve 0 0 -497
Total expenses 32,505 197,558 412,060

* As published in the 2013-14 Mid-Year Economic and Fiscal Outlook (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 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.

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 thus 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 (IMF) Special Data Dissemination Standards (SDDS)

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 standard IMF requirement is that monthly data is released at 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 AOFM website at http://aofm.gov.au/statistics/securities-on-issue.

[ENDS]