Media Release

Australian Government General Government Sector Monthly Financial Statements - January 2014

MC 11/14

Senator the Hon. Mathias Cormann
Minister for Finance

14 March 2014

Key Points

  • The underlying cash balance for the 2013-14 financial year to 31 January 2014 was a deficit of $37,180 million.
  • The fiscal balance for the 2013-14 financial year to 31 January 2014 was a deficit of $27,082 million.
AGGREGATESACTUAL
2013-2014
January
$m
ACTUAL
2013-2014
YTD January
$m
MYEFO
PROFILE
2013-2014
YTD January
$m
MYEFO
ESTIMATE*
2013-2014
Full Year
$m
Revenue 33,007 206,876 204,279 373,922
Expenses 35,309 232,867 235,885 412,060
Net operating balance -2,301 -25,991 -31,606 -38,137
Net capital investment 252 1,090 567 3,706
Fiscal balance -2,553 -27,082 -32,174 -41,843
Receipts(a) 30,718 196,493 196,480 364,930
Payments(b) 37,346 232,217 231,692 409,049
Net Future Fund earnings 176 1,455 1,866 2,871
Underlying cash balance(c) -6,804 -37,180 -37,079 -46,989
Headline cash balance -6,619 -39,134 -41,606 -51,640
Total assets   370,170   386,331
Total liabilities   594,625   562,980
Net worth(d)   -224,455   -176,649
Net debt(e)   185,571   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 January 2014 was a deficit of $37,180 million, compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $37,079 million. The difference of $101 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 January 2014 was a deficit of $27,082 million, compared to the MYEFO profile deficit of $32,174 million. The difference of $5,092 million relates to higher than expected revenue and lower than expected expenses, partially offset by higher net capital investment.

  • Revenues
    Total revenue was $2,597 million higher than the MYEFO profile, primarily due to higher than expected taxation revenue. The gain in revenue in January is in part attributable to stronger than expected receivables growth.  The movement in receivables is historically volatile and as such the January outcome may not be reflective of outcomes over the remainder of the financial year.
  • Expenses
    Total expenses were $3,018 million lower than the MYEFO profile, due to lower than expected supply of goods and services expenses, grants expenses and wages and salaries expenses.

Assets and Liabilities

The net worth of the Australian Government general government sector is a negative net asset position of $224,455 million as at 31 January 2014. The net debt of the Australian Government general government sector is $185,571 million as at 31 January 2014.

 

Senator the Hon Mathias Cormann
Minister for Finance

14 March 2014
David Tune
Secretary of the
Department of Finance
14 March 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

 NoteACTUAL
2013-2014
January
$m
ACTUAL
2013-2014
YTD January
$m
MYEFO PROFILE
2013-2014
YTD January
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Revenue          
Taxation revenue 1,2 31,667 194,661 191,866 351,434
Sales of goods and services   711 5,165 5,066 8,680
Interest income   264 1,881 2,197 3,730
Dividend income   87 1,320 1,472 3,792
Other   277 3,850 3,679 6,286
Total revenue   33,007 206,876 204,279 373,922
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,417 11,058 11,550 19,815
Superannuation   433 3,187 3,159 5,304
Depreciation and amortisation   469 3,585 3,699 6,426
Supply of goods and services   5,061 42,206 43,657 74,514
Other operating expenses(a)   500 3,100 3,300 5,647
Total gross operating expenses   7,880 63,136 65,366 111,706
Superannuation interest expense   684 4,785 4,782 8,197
Interest expenses   1,200 7,981 8,204 14,926
Current transfers          
Current grants   12,886 67,267 67,932 118,955
Subsidy expenses   1,404 9,777 9,925 15,345
Personal benefits   10,045 73,424 73,366 122,784
Total current transfers   24,334 150,469 151,223 257,085
Capital transfers          
Mutually agreed write-downs   248 1,530 1,316 2,382
Other capital grants   963 4,966 4,996 17,764
Total capital transfers   1,211 6,496 6,311 20,146
Total expenses 3 35,309 232,867 235,885 412,060
Net operating balance   -2,301 -25,991 -31,606 -38,137
Other economic flows          
- included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -742 -4,643 -3,776 -6,016
Assets recognised for the first time   44 352 251 456
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   -410 -1,410 58 60
Net swap interest received   -157 -588 -324 -499
Market valuation of debt   -2,428 2,301 7,384 7,371
Other gains/(losses)   412 8,138 3,296 5,672
Total other economic flows          
- included in operating result   -3,281 4,149 6,890 7,043
Operating result   -5,582 -21,842 -24,716 -31,094
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   10 10 59 6,430
Actuarial revaluations   0 0 0 10
Other economic revaluations(d)   503 27 55 865
Total other economic flows - included in equity   513 37 115 7,305
Comprehensive result - Total change in net worth   -5,069 -21,804 -24,602 -23,789
Net operating balance   -2,301 -25,991 -31,606 -38,137
Net acquisition of non-financial assets          
Purchases of non-financial assets   623 4,677 4,383 10,154
less Sales of non-financial assets   74 249 289 452
less Depreciation   469 3,585 3,699 6,426
plus Change in inventories   158 176 86 280
plus Other movements in non-financial assets   14 72 86 150
Total net acquisition of non-financial assets   252 1,090 567 3,706
Fiscal balance (Net lending/borrowing)(e)   -2,553 -27,082 -32,174 -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 January 2014
$m
MYEFO
ESTIMATE*
as at
30 June 2014
$m
Assets    
Financial assets    
Cash and deposits 3,652 2,720
Advances paid 37,399 39,807
Investments, loans and placements 105,810 115,405
Other receivables(a) 49,619 44,744
Equity investments    
Investments in other public sector entities 26,336 35,557
Equity accounted investments 296 300
Investments - shares 36,498 34,753
Total financial assets 259,611 273,286
Non-financial assets    
Land 8,906 8,981
Buildings 24,170 24,601
Plant, equipment and infrastructure 52,806 54,485
Inventories 7,811 7,820
Intangibles 5,638 5,828
Investment property 210 198
Biological assets 31 33
Heritage and cultural assets 10,553 10,561
Assets held for sale 80 95
Other non-financial assets(a) 355 442
Total non-financial assets 110,560 113,045
Total assets 370,170 386,331
Liabilities    
Interest bearing liabilities    
Deposits held 222 182
Government securities 320,995 335,066
Loans 9,610 12,708
Other borrowing 1,605 1,496
Total interest bearing liabilities 332,432 349,452
Provisions and payables    
Superannuation liability(b) 197,108 149,786
Other employee liabilities 14,059 14,963
Suppliers payable 4,223 4,830
Personal benefits provisions and payable 11,675 12,147
Subsidies provisions and payable 6,423 3,986
Grants provisions and payable 14,869 14,154
Other provisions and payables 13,835 13,661
Total provisions and payables 262,193 213,527
Total liabilities 594,625 562,980
Net worth(c) -224,455 -176,649
Net financial worth(d) -335,014 -289,693
Net financial liabilities(e) 361,351 325,251
Net debt(f) 185,571 191,520

*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
January
$m
ACTUAL
2013-2014
YTD January
$m
MYEFO
PROFILE
2013-2014
YTD January
$m
MYEFO
ESTIMATE*
2013-2014
Full Year
$m
Cash receipts from operating activities        
Taxes received 29,726 183,722 183,441 343,480
Receipts from sales of goods and services 718 5,127 5,022 8,626
Interest receipts 281 1,694 2,130 3,591
Dividends and income tax equivalents 169 1,775 1,909 2,883
Other receipts -224 3,951 3,823 5,941
Total operating receipts 30,670 196,270 196,324 364,521
Cash payments for operating activities        
Payments for employees -2,453 -15,837 -15,825 -27,037
Payments for goods and services -4,087 -42,876 -44,206 -74,464
Grants and subsidies paid -15,766 -80,686 -80,156 -153,845
Interest paid -1,083 -7,133 -7,066 -12,419
Personal benefit payments -12,987 -77,435 -76,695 -125,082
Other payments -335 -3,357 -3,250 -5,873
Total operating payments -36,712 -227,325 -227,199 -398,719
Net cash flows from operating activities -6,042 -31,055 -30,874 -34,198
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 48 223 155 409
Purchases of non-financial assets -627 -4,805 -4,397 -9,861
Net cash flows from investments in
non-financial assets
-579 -4,582 -4,242 -9,451
Net cash flows from investments in
financial assets for policy purposes
9 -3,410 -6,393 -7,522
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments 7,874 3,877 -3,072 -2,968
Net cash flows from investments in
financial assets for liquidity purposes
7,874 3,877 -3,072 -2,968
Cash flows from financing activities        
Borrowing (net) -2,256 37,962 44,360 56,850
Other financing (net) -316 -1,217 -1,226 -2,065
Net cash flows from financing activities -2,572 36,746 43,134 54,785
Net increase/(decrease) in cash held -1,310 1,576 -1,446 645
Net cash flows from operating activities
and investments in non-financial assets
(Surplus(+)/deficit(-))
-6,620 -35,637 -35,116 -43,650
Finance leases and similar arrangements(b) -7 -87 -97 -469
GFS cash surplus(+)/deficit(-) -6,628 -35,724 -35,213 -44,118
less Net Future Fund earnings 176 1,455 1,866 2,871
Equals underlying cash balance(c) -6,804 -37,180 -37,079 -46,989
plus Net cash flows from investments in
financial assets for policy purposes
9 -3,410 -6,393 -7,522
plus Net Future Fund earnings 176 1,455 1,866 2,871
Equals headline cash balance -6,619 -39,134 -41,606 -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
January
$m

ACTUAL
2013-2014
YTD January
$m
MYEFO
PROFILE
2013-2014
YTD January
$m
MYEFO
ESTIMATE*
2013-2014
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 11,426 90,848 90,528 158,510
Gross other individuals 1,302 17,220 16,908 36,650
less Refunds 1,133 21,778 21,920 27,200
Total individuals and other withholding taxation 11,595 86,290 85,515 167,960
Company tax 12,188 42,368 40,506 70,400
Superannuation funds 246 4,695 4,614 6,990
Petroleum resource rent tax 251 638 1,060 1,900
Minerals resource rent tax 80 312 377 500
Fringe benefits tax 725 2,631 2,597 4,140
Total income taxation revenue 25,084 136,933 134,669 251,890

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

Note 2: Indirect Tax

 ACTUAL
2013-2014
January
$m
ACTUAL
2013-2014
YTD January
$m
MYEFO
PROFILE
2013-2014
YTD January
$m
MYEFO
ESTIMATE*
2013-2014
Full Year
$m
Goods and services tax 2,885 29,686 29,165 52,680
Wine equalisation tax 89 476 452 750
Luxury car tax 38 254 250 400
Excise duty 1,730 15,272 15,712 25,900
Customs duty 843 5,487 5,327 8,930
Carbon pricing mechanism (a) 738 4,455 4,282 7,340
Other indirect tax 260 2,097 2,011 3,545
Total indirect taxation revenue 6,583 57,727 57,197 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
January
$m
ACTUAL
2013-2014
YTD January
$m
MYEFO
ESTIMATE*
2013-2014
Full Year
$m
Expenses by function      
General public services 3,040 12,876 33,362
Defence 1,474 11,928 22,646
Public order and safety 397 2,493 4,415
Education 5,423 20,360 30,174
Health 4,847 36,141 64,685
Social security and welfare 10,536 82,302 138,667
Housing and community amenities 580 5,716 8,622
Recreation and culture 333 1,692 3,835
Fuel and energy 517 3,940 7,256
Agriculture, Forestry and Fishing 186 1,290 2,632
Mining, manufacturing and construction 210 1,445 2,870
Transport and communication 525 2,363 7,398
Other economic affairs 883 7,049 11,793
Other purposes      
Public debt interest 1,154 7,515 13,467
Nominal superannuation interest 684 4,785 8,197
General purpose inter-government transactions 4,520 30,972 52,379
Natural disaster relief 0 0 157
Contingency reserve 0 0 -497
Total expenses 35,309 232,867 412,060

* 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]