Media Release

Australian Government General Government Sector Monthly Financial Statements - May 2014

MC 64/14

Senator the Hon. Mathias Cormann
Minister for Finance

27 June 2014

Key Points

  • The underlying cash balance for the 2013-14 financial year to 31 May 2014 was a deficit of $37,747 million.
  • The fiscal balance for the 2013-14 financial year to 31 May 2014 was a deficit of
    $28,543 million.
AGGREGATESACTUAL
2013-2014
May
$m
ACTUAL
2013-2014
YTD May
$m
REVISED
MONTHLY
PROFILE^
2013-2014
YTD May
$m
REVISED
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Revenue 34,966 344,435 345,425 374,267
Expenses 41,768 370,304 374,197 415,294
Net operating balance -6,802 -25,869 -28,771 -41,027
Net capital investment 612 2,673 2,218 4,027
Fiscal balance -7,415 -28,543 -30,989 -45,055
Receipts(a) 33,927 328,183 327,110 363,496
Payments(b) 39,997 363,623 367,075 410,662
Net Future Fund earnings 223 2,307 2,532 2,689
Underlying cash balance(c) -6,293 -37,747 -42,498 -49,855
Headline cash balance -7,126 -41,835 -50,116 -53,741
Total assets   404,143   393,020
Total liabilities   632,350   579,439
Net worth(d)   -228,208   -186,419
Net debt(e)   190,232   197,851

*As published in the 2014-15 Budget.
^ Based on the previous profile, adjusted for material changes in the 2014-15 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 Budget documents, 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 May 2014 was a deficit of $37,747 million, compared to the Revised Monthly profile deficit of $42,498 million. The difference of $4,751 million relates to lower than expected cash payments and higher than expected cash receipts, excluding net Future Fund earnings.

Fiscal Balance

The fiscal balance for the year to 31 May 2014 was a deficit of $28,543 million, compared to the Revised Monthly profile deficit of $30,989 million. The difference of $2,447 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 $991 million lower than the Revised Monthly profile primarily due to lower than expected taxation revenue.
  • Expenses
    Total expenses were $3,893 million lower than the Revised Monthly 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 $228,208 million as at 31 May 2014. The net debt of the Australian Government general government sector is $190,232 million as at 31 May 2014.  Net financial liabilities of the Australian Government general government sector are $367,893 million as at 31 May 2014.




Senator the Hon Mathias Cormann
Minister for Finance

27 June 2014
David Tune
Secretary of the
Department of Finance
27 June 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
May
$m
ACTUAL
2013-2014
YTD May
$m
REVISED
MONTHLY
PROFILE^
2013-2014
YTD May
$m
REVISED
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Revenue          
Taxation revenue 1, 2 33,055 324,930 326,127 350,956
Sales of goods and services   892 8,104 7,900 8,853
Interest income   303 2,865 3,077 3,445
Dividend income   395 2,553 2,413 4,288
Other   321 5,983 5,909 6,724
Total revenue   34,966 344,435 345,425 374,267
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,606 17,298 17,822 19,532
Superannuation   441 5,017 5,337 6,235
Depreciation and amortisation   465 5,662 5,898 6,474
Supply of goods and services   6,344 67,476 68,819 74,552
Other operating expenses(a)   586 5,000 4,873 6,039
Total gross operating expenses   9,443 100,453 102,750 112,833
Superannuation interest expense   683 7,514 7,576 8,320
Interest expenses   1,314 13,047 13,053 14,396
Current transfers          
Current grants   8,598 100,380 103,187 117,437
Subsidy expenses   936 13,313 14,056 15,534
Personal benefits   10,585 115,158 114,231 124,944
Total current transfers   20,118 228,851 231,475 257,915
Capital transfers          
Mutually agreed write-downs   305 2,856 2,782 3,094
Other capital grants   9,904 17,583 16,561 18,736
Total capital transfers   10,210 20,439 19,343 21,830
Total expenses 3 41,768 370,304 374,197 415,294
Net operating balance   -6,802 -25,869 -28,771 -41,027
Other economic flows          
- included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   192 -6,731 -5,694 -5,278
Assets recognised for the first time   -3 488 314 330
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   298 156 -434 -447
Net swap interest received   68 -420 -469 -663
Market valuation of debt   -3,959 -1,404 2,369 2,410
Other gains/(losses)   1,022 8,747 9,643 9,302
Total other economic flows          
- included in operating result   -2,383 835 5,730 5,655
Operating result   -9,185 -25,034 -28,771 -35,372
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   4 -1,093 66 7,185
Actuarial revaluations   0 0 -822 -6,720
Other economic revaluations(d)   413 569 -1,478 704
Total other economic flows - included in equity   418 -524 -2,234 1,168
Comprehensive result - Total change in net worth   -8,768 -25,558 -25,276 -34,204
Net operating balance   -6,802 -25,869 -28,771 -41,027
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,056 7,830 7,862 10,240
less Sales of non-financial assets   37 186 188 273
less Depreciation   465 5,662 5,918 6,474
plus Change in inventories   59 541 367 430
plus Other movements in non-financial assets   0 150 95 105
Total net acquisition of non-financial assets   612 2,673 2,218 4,027
Fiscal balance (Net lending/borrowing)(e)   -7,415 -28,543 -30,989 -45,055

*As published in the 2014-15 Budget.
^ Based on the previous profile, adjusted for material changes in the 2014-15 Budget.
(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 May 2014
$m
REVISED
BUDGET
ESTIMATE*
as at
30 June 2014
$m
Assets    
Financial assets    
Cash and deposits 2,874 3,004
Advances paid 39,011 39,737
Investments, loans and placements 134,342 117,371
Other receivables(a) 50,018 46,051
Equity investments    
Investments in other public sector entities 27,000 35,781
Equity accounted investments 292 300
Investments - shares 37,920 37,549
Total financial assets 291,457 279,792
Non-financial assets    
Land 9,251 8,929
Buildings 24,728 24,335
Plant, equipment and infrastructure 53,388 54,875
Inventories 8,310 7,942
Intangibles 5,694 5,810
Investment property 215 196
Biological assets 28 35
Heritage and cultural assets 10,538 10,573
Assets held for sale 100 136
Other non-financial assets(a) 434 397
Total non-financial assets 112,685 113,228
Total assets 404,143 393,020
Liabilities    
Interest bearing liabilities    
Deposits held 220 182
Government securities 355,216 346,648
Loans 9,334 9,608
Other borrowing 1,689 1,524
Total interest bearing liabilities 366,459 357,963
Provisions and payables    
Superannuation liability(b) 199,196 157,067
Other employee liabilities 14,785 15,102
Suppliers payable 4,984 4,632
Personal benefits provisions and payable 12,758 12,384
Subsidies provisions and payable 6,318 4,242
Grants provisions and payable 14,305 14,170
Other provisions and payables 13,545 13,879
Total provisions and payables 265,892 221,477
Total liabilities 632,350 579,439
Net worth(c) -228,208 -186,419
Net financial worth(d) -340,893 -299,647
Net financial liabilities(e) 367,893 335,428
Net debt(f) 190,232 197,851

*As published in the 2014-15 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
May
$m
ACTUAL
2013-2014
YTD May
$m
REVISED
MONTHLY
PROFILE^
2013-2014
YTD May
$m
REVISED
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Cash receipts from operating activities        
Taxes received 32,123 308,253 307,521 341,643
Receipts from sales of goods and services 894 8,108 7,770 8,764
Interest receipts 287 2,633 2,916 3,210
Dividends and income tax equivalents 313 2,871 2,905 3,040
Other receipts 274 6,132 5,657 6,376
Total operating receipts 33,890 327,998 326,770 363,032
Cash payments for operating activities        
Payments for employees -1,901 -24,153 -24,397 -26,587
Payments for goods and services -6,466 -67,567 -69,406 -74,438
Grants and subsidies paid -19,735 -130,539 -131,446 -152,953
Interest paid -680 -11,564 -11,714 -13,935
Personal benefit payments -10,023 -117,028 -117,582 -126,398
Other payments -214 -4,741 -4,584 -6,056
Total operating payments -39,019 -355,592 -359,130 -400,366
Net cash flows from operating activities -5,129 -27,594 -32,361 -37,334
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 37 186 340 464
Purchases of non-financial assets -978 -7,462 -7,609 -9,827
Net cash flows from investments in
  non-financial assets
-941 -7,276 -7,269 -9,363
Net cash flows from investments in
  financial assets for policy purposes
-1,056 -6,395 -10,150 -6,575
Cash flows from investments in
  financial assets for liquidity purposes
       
Increase in investments -1,938 -24,611 -22,586 -8,592
Net cash flows from investments in
  financial assets for liquidity purposes
-1,938 -24,611 -22,586 -8,592
Cash flows from financing activities        
Borrowing (net) 8,691 68,469 67,297 64,689
Other financing (net) -84 -1,858 -1,888 -1,897
Net cash flows from financing activities 8,607 66,611 65,409 62,792
Net increase/(decrease) in cash held -456 734 -6,957 928
Net cash flows from operating activities
  and investments in non-financial assets
    (Surplus(+)/deficit(-))
-6,070 -34,871 -39,629 -46,698
Finance leases and similar arrangements(b) 0 -569 -336 -469
GFS cash surplus(+)/deficit(-) -6,070 -35,440 -39,966 -47,166
less Net Future Fund earnings 223 2,307 2,532 2,689
Equals underlying cash balance(c) -6,293 -37,747 -42,498 -49,855
plus Net cash flows from investments in
  financial assets for policy purposes
-1,056 -6,395 -10,150 -6,575
plus Net Future Fund earnings 223 2,307 2,532 2,689
Equals headline cash balance -7,126 -41,835 -50,116 -53,741

*As published in the 2014-15 Budget.
^ Based on the previous profile, adjusted for material changes in the 2014-15 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 Australian Bureau of Statistics.

Note 1: Income Tax

 
ACTUAL
2013-2014
May
$m

ACTUAL
2013-2014
YTD May
$m
REVISED
MONTHLY
PROFILE^
2013-2014
YTD May
$m
REVISED
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 14,246 145,600 145,641 158,300
Gross other individuals 5,411 35,703 36,160 37,180
less Refunds 1,548 26,429 26,206 27,100
Total individuals and other withholding taxation 18,109 154,873 155,596 168,380
Company tax 4,639 63,338 64,646 69,400
Superannuation funds 531 6,266 6,562 6,580
Petroleum resource rent tax 1 1,322 1,400 1,470
Minerals resource rent tax -5 164 170 170
Fringe benefits tax 460 4,215 4,069 4,140
Total income taxation revenue 23,736 230,179 232,443 250,140

*As published in the 2014-15 Budget.
^ Based on the previous profile, adjusted for material changes in the 2014-15 Budget.

Note 2: Indirect Tax

 ACTUAL
2013-2014
May
$m
ACTUAL
2013-2014
YTD May
$m
REVISED
MONTHLY
PROFILE
2013-2014
YTD May
$m
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Goods and services tax 5,213 51,433 51,093 54,321
Wine equalisation tax 80 762 742 810
Luxury car tax 44 426 412 430
Excise duty 1,951 23,437 23,267 25,230
Customs duty 902 8,467 8,144 9,020
Carbon pricing mechanism (a) 705 6,886 6,728 7,340
Other indirect tax 423 3,339 3,299 3,666
Total indirect taxation revenue 9,319 94,751 93,684 100,817

*As published in the 2014-15 Budget.
^ Based on the previous profile, adjusted for material changes in the 2014-15 Budget.
(a) Revenue from the carbon pricing mechanism has been estimated based on expected annual results.

Note 3: Total expenses by function

 ACTUAL
2013-2014
May
$m
ACTUAL
2013-2014
YTD May
$m
REVISED
BUDGET
ESTIMATE*
2013-2014
Full Year
$m
Expenses by function      
General public services 10,756 28,141 34,151
Defence 1,594 20,582 22,840
Public order and safety 340 3,848 4,446
Education 1,608 27,178 29,707
Health 5,302 57,802 64,511
Social security and welfare 11,869 128,595 140,569
Housing and community amenities 416 7,088 8,383
Recreation and culture 339 2,852 3,725
Fuel and energy 514 5,917 7,047
Agriculture, Forestry and Fishing 196 1,931 2,629
Mining, manufacturing and construction 227 2,382 3,139
Transport and communication 423 3,866 8,495
Other economic affairs 1,125 11,241 11,263
Other purposes      
Public debt interest 1,439 12,443 13,454
Nominal superannuation interest 683 7,514 8,320
General purpose inter-government transactions 4,937 48,924 53,224
Natural disaster relief 0 0 183
Contingency reserve 0 0 -793
Total expenses 41,768 370,304 415,294

*As published in the 2014-15 Budget.

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]