Media Release

Australian Government General Government Sector Monthly Financial Statements - April 2014

MC 52/14

Senator the Hon. Mathias Cormann
Minister for Finance

30 May 2014

Key Points

  • The underlying cash balance for the 2013-14 financial year to 30 April 2014 was a deficit of $31,454 million.
  • The fiscal balance for the 2013-14 financial year to 30 April 2014 was a deficit of
    $21,128 million.
AGGREGATESACTUAL
2013-2014
April
$m
ACTUAL
2013-2014
YTD April
$m
MYEFO PROFILE
2013-2014
YTD April
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Revenue 38,317 309,469 310,000 373,922
Expenses 31,497 328,536 331,609 412,060
Net operating balance 6,820 -19,067 -21,609 -38,137
Net capital investment 746 2,061 1,454 3,706
Fiscal balance 6,074 -21,128 -23,063 -41,843
Receipts(a) 36,298 294,256 295,460 364,930
Payments(b) 32,724 323,626 325,475 409,049
Net Future Fund earnings 244 2,084 2,469 2,871
Underlying cash balance(c) 3,329 -31,454 -32,484 -46,989
Headline cash balance 3,133 -34,709 -38,350 -51,640
Total assets   398,106   386,331
Total liabilities   617,546   562,980
Net worth(d)   -219,440   -176,649
Net debt(e)   179,679   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 30 April 2014 was a deficit of $31,454 million, compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $32,484 million. The difference of $1,030 million relates to lower than expected cash payments, partially offset by lower than expected cash receipts, excluding net Future Fund earnings.

Fiscal Balance

The fiscal balance for the year to 30 April 2014 was a deficit of $21,128 million, compared to the MYEFO profile deficit of $23,063 million. The difference of $1,935 million is largely due to lower than expected expenses, partially offset by lower than expected revenue and higher net capital investment.

  • Revenues
    Total revenue was $532 million lower than the MYEFO profile, due to lower than expected taxation revenue and interest income, partially offset by higher ‘other’ revenue.
  • Expenses
    Total expenses were $3,074 million lower than the MYEFO profile, due to lower than expected supply of goods and services expenses, wages and salaries expenses and grants and subsidies expenses, partially offset by higher personal benefits.

Assets and Liabilities

The net worth of the Australian Government general government sector is a negative net asset position of $219,440 million as at 30 April 2014. The net debt of the Australian Government general government sector is $179,679 million as at 30 April 2014.  Net financial liabilities of the Australian Government general government sector are $356,892 million as at 30 April 2014.




Senator the Hon Mathias Cormann
Minister for Finance

30 May 2014
David Tune
Secretary of the
Department of Finance
30 May 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
April
$m
ACTUAL
2013-2014
YTD April
$m
MYEFO PROFILE
2013-2014
YTD April
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Revenue          
Taxation revenue 1, 2 36,597 291,875 292,632 351,434
Sales of goods and services   716 7,212 7,187 8,680
Interest income   277 2,562 3,053 3,730
Dividend income   241 2,158 2,135 3,792
Other   486 5,662 4,994 6,286
Total revenue   38,317 309,469 310,000 373,922
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,600 15,691 16,306 19,815
Superannuation   465 4,575 4,479 5,304
Depreciation and amortisation   591 5,197 5,324 6,426
Supply of goods and services   5,528 61,132 62,458 74,514
Other operating expenses(a)   424 4,414 4,411 5,647
Total gross operating expenses   8,608 91,010 92,978 111,706
Superannuation interest expense   683 6,831 6,831 8,197
Interest expenses   1,321 11,733 11,971 14,926
Current transfers          
Current grants   8,211 91,783 95,026 118,955
Subsidy expenses   928 12,378 12,950 15,345
Personal benefits   9,987 104,572 102,979 122,784
Total current transfers   19,127 208,733 210,955 257,085
Capital transfers          
Mutually agreed write-downs   340 2,551 1,889 2,382
Other capital grants   1,419 7,679 6,986 17,764
Total capital transfers   1,759 10,229 8,875 20,146
Total expenses 3 31,497 328,536 331,609 412,060
Net operating balance   6,820 -19,067 -21,609 -38,137
Other economic flows          
- included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -502 -6,924 -6,250 -6,016
Assets recognised for the first time   46 491 374 456
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   30 -142 59 60
Net swap interest received   136 -488 -429 -499
Market valuation of debt   -1,476 2,555 7,391 7,371
Other gains/(losses)   331 7,725 4,215 5,672
Total other economic flows          
- included in operating result   -1,434 3,218 5,360 7,043
Operating result   5,386 -15,849 -16,249 -31,094
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   22 -1,097 59 6,430
Actuarial revaluations   0 0 0 10
Other economic revaluations(d)   85 156 148 865
Total other economic flows - included in equity   107 -941 208 7,305
Comprehensive result - Total change in net worth   5,492 -16,790 -16,041 -23,789
Net operating balance   6,820 -19,067 -21,609 -38,137
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,151 6,774 6,813 10,154
less Sales of non-financial assets   -48 149 332 452
less Depreciation   591 5,197 5,324 6,426
plus Change in inventories   120 482 175 280
plus Other movements in non-financial assets   16 151 123 150
Total net acquisition of non-financial assets   746 2,061 1,454 3,706
Fiscal balance (Net lending/borrowing)(e)   6,074 -21,128 -23,063 -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
30 April 2014
$m
MYEFO ESTIMATE*
as at
30 June 2014
$m
Assets    
Financial assets    
Cash and deposits 3,265 2,720
Advances paid 38,545 39,807
Investments, loans and placements 131,579 115,405
Other receivables(a) 49,784 44,744
Equity investments    
Investments in other public sector entities 26,490 35,557
Equity accounted investments 293 300
Investments - shares 37,187 34,753
Total financial assets 287,143 273,286
Non-financial assets    
Land 9,116 8,981
Buildings 24,245 24,601
Plant, equipment and infrastructure 52,678 54,485
Inventories 7,978 7,820
Intangibles 5,649 5,828
Investment property 201 198
Biological assets 29 33
Heritage and cultural assets 10,534 10,561
Assets held for sale 99 95
Other non-financial assets(a) 434 442
Total non-financial assets 110,963 113,045
Total assets 398,106 386,331
Liabilities    
Interest bearing liabilities    
Deposits held 220 182
Government securities 341,826 335,066
Loans 9,332 12,708
Other borrowing 1,691 1,496
Total interest bearing liabilities 353,069 349,452
Provisions and payables    
Superannuation liability(b) 198,603 149,786
Other employee liabilities 14,503 14,963
Suppliers payable 4,890 4,830
Personal benefits provisions and payable 12,177 12,147
Subsidies provisions and payable 6,537 3,986
Grants provisions and payable 14,405 14,154
Other provisions and payables 13,363 13,661
Total provisions and payables 264,478 213,527
Total liabilities 617,546 562,980
Net worth(c) -219,440 -176,649
Net financial worth(d) -330,403 -289,693
Net financial liabilities(e) 356,892 325,251
Net debt(f) 179,679 191,520

*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
April
$m
ACTUAL
2013-2014
YTD April
$m
MYEFO PROFILE
2013-2014
YTD April
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Cash receipts from operating activities        
Taxes received 34,506 276,131 277,730 343,480
Receipts from sales of goods and services 734 7,214 7,084 8,626
Interest receipts 242 2,346 2,964 3,591
Dividends and income tax equivalents 306 2,559 2,591 2,883
Other receipts 558 5,858 4,891 5,941
Total operating receipts 36,346 294,107 295,261 364,521
Cash payments for operating activities        
Payments for employees -2,431 -22,252 -22,183 -27,037
Payments for goods and services -5,161 -61,100 -63,366 -74,464
Grants and subsidies paid -10,680 -110,804 -111,888 -153,845
Interest paid -2,693 -10,884 -10,856 -12,419
Personal benefit payments -10,105 -107,006 -105,976 -125,082
Other payments -494 -4,527 -4,246 -5,873
Total operating payments -31,564 -316,573 -318,515 -398,719
Net cash flows from operating activities 4,782 -22,465 -23,254 -34,198
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets -48 149 199 409
Purchases of non-financial assets -688 -6,484 -6,693 -9,861
Net cash flows from investments in
  non-financial assets
-737 -6,335 -6,494 -9,451
Net cash flows from investments in
  financial assets for policy purposes
-440 -5,339 -8,335 -7,522
Cash flows from investments in
  financial assets for liquidity purposes
       
Increase in investments -7,400 -22,673 -10,932 -2,968
Net cash flows from investments in
  financial assets for liquidity purposes
-7,400 -22,673 -10,932 -2,968
Cash flows from financing activities        
Borrowing (net) 4,766 59,777 59,901 56,850
Other financing (net) -492 -1,774 -1,823 -2,065
Net cash flows from financing activities 4,274 58,003 58,078 54,785
Net increase/(decrease) in cash held 479 1,190 9,063 645
Net cash flows from operating activities
  and investments in non-financial assets
    (Surplus(+)/deficit(-))
4,045 -28,801 -29,748 -43,650
Finance leases and similar arrangements(b) -472 -569 -266 -469
GFS cash surplus(+)/deficit(-) 3,573 -29,370 -30,015 -44,118
less Net Future Fund earnings 244 2,084 2,469 2,871
Equals underlying cash balance(c) 3,329 -31,454 -32,484 -46,989
plus Net cash flows from investments in
  financial assets for policy purposes
-440 -5,339 -8,335 -7,522
plus Net Future Fund earnings 244 2,084 2,469 2,871
Equals headline cash balance 3,133 -34,709 -38,350 -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
April
$m

ACTUAL
2013-2014
YTD April
$m
MYEFO PROFILE
2013-2014
YTD April
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 12,844 131,353 131,701 158,510
Gross other individuals 5,783 30,292 29,184 36,650
less Refunds 1,106 24,881 24,870 27,200
Total individuals and other withholding taxation 17,521 136,764 136,016 167,960
Company tax 7,743 58,699 59,875 70,400
Superannuation funds 384 5,735 6,514 6,990
Petroleum resource rent tax 454 1,321 1,553 1,900
Minerals resource rent tax 32 169 500 500
Fringe benefits tax 886 3,755 3,709 4,140
Total income taxation revenue 27,019 206,442 208,167 251,890

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

Note 2: Indirect Tax

 ACTUAL
2013-2014
April
$m
ACTUAL
2013-2014
YTD April
$m
MYEFO PROFILE
2013-2014
YTD April
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Goods and services tax 5,929 46,220 45,333 52,680
Wine equalisation tax 65 682 621 750
Luxury car tax 40 382 350 400
Excise duty 1,966 21,486 21,924 25,900
Customs duty 727 7,565 7,397 8,930
Carbon pricing mechanism (a) 612 6,181 6,117 7,340
Other indirect tax 239 2,916 2,723 3,545
Total indirect taxation revenue 9,578 85,432 84,465 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
April
$m
ACTUAL
2013-2014
YTD April
$m
MYEFO ESTIMATE*
2013-2014
Full Year
$m
Expenses by function      
General public services 1,900 17,386 33,362
Defence 1,480 18,988 22,646
Public order and safety 369 3,508 4,415
Education 1,603 25,570 30,174
Health 5,663 52,500 64,685
Social security and welfare 11,297 116,726 138,667
Housing and community amenities 412 6,672 8,622
Recreation and culture 285 2,512 3,835
Fuel and energy 481 5,403 7,256
Agriculture, Forestry and Fishing 134 1,735 2,632
Mining, manufacturing and construction 220 2,155 2,870
Transport and communication 463 3,443 7,398
Other economic affairs 1,046 10,115 11,793
Other purposes      
Public debt interest 1,206 11,004 13,467
Nominal superannuation interest 683 6,831 8,197
General purpose inter-government transactions 4,253 43,988 52,379
Natural disaster relief 0 0 157
Contingency reserve 0 0 -497
Total expenses 31,497 328,536 412,060

* 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, minerals 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. 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 Australian Office of Financial Management website at http://aofm.gov.au/statistics/securities-on-issue.

[ENDS]