Media Release

Australian Government General Government Sector Monthly Financial Statements - July and August 2014

MC 95/14

Senator the Hon. Mathias Cormann
Minister for Finance

10 October 2014

Key Points

  • The underlying cash balance for the 2014-15 financial year to 31 August 2014 was a deficit of $12,327 million.
  • The fiscal balance for the 2014-15 financial year to 31 August 2014 was a deficit of
    $9,631 million.
AGGREGATES

ACTUAL
 2014-2015
July
$m


ACTUAL
2014-2015
August
$m


ACTUAL
2014-2015
YTD August
$m

Budget Profile
2014-2015
YTD August
$m

BUDGET ESTIMATE*
Full Year
$m
Revenue  34,640 26,712 61,351 60,521 391,348
Expenses 37,169 33,821 70,990 71,370 414,845
Net operating balance  -2,530 -7,109 -9,639 -10,849 -23,497
Net capital investment  -124 116 -7 279 2,359
Fiscal balance  -2,406 -7,225 -9,631 -11,128 -25,855
Receipts(a) 34,049 26,351 60,400 60,107 385,778
Payments(b) 40,028 31,878 71,906 72,009 412,484
Net Future Fund earnings 455 366 821 644 3,068
Underlying cash balance(c) -6,435 -5,893 -12,327 -12,546 -29,773
Headline cash balance  -6,936 -6,396 -13,332 -12,778 -33,524
Total assets 398,038   400,032   414,620
Total liabilities 656,877   668,896   626,631
Net worth(d) -258,838   -268,864   -212,010
Net debt(e) 208,149   217,550   226,388

*As published 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 August 2014 was a deficit of $12,327 million, compared to the Budget profile deficit of $12,546 million. The difference of $219 million relates to higher than expected receipts and lower than expected cash payments.

Fiscal Balance

The fiscal balance for the year to 31 August 2014 was a deficit of $9,631 million, compared to the Budget profile deficit of $11,128 million. The difference of $1,497 million is largely due to higher than expected revenue and slightly lower than forecast expenses.   

  • Revenues
    Total revenue was $831 million higher than the Budget profile, primarily due to higher than expected taxation revenue and dividend income.
  • Expenses
    Total expenses were $380 million lower than the Budget profile, due to lower than expected supply of goods and services and grants 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 $268,864 million as at 31 August 2014. The net debt of the Australian Government general government sector is $217,550 million as at 31 August 2014.  Net financial liabilities of the Australian Government general government sector are $420,917 million as at 31 August 2014. 



Senator the Hon Mathias Cormann
Minister for Finance

10 October 2014
Jane Halton
Secretary of the
Department of Finance
10 October 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

 Note
ACTUAL
2014-2015
 July
$m

ACTUAL
2014-2015
August
$m

ACTUAL
2014-2015
YTD August
$m
Budget
Profile
2014-2015
YTD August
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Revenue            
Taxation revenue 1, 2 32,740 24,476 57,216 56,799 368,814
Sales of goods and services   680 783 1,463 1,345 8,928
Interest income   260 270 530 806 4,229
Dividend income   595 462 1,057 467 2,570
Other   365 720 1,086 1,103 6,807
Total revenue   34,640 26,712 61,351 60,521 391,348
Expenses            
Gross operating expenses            
Wages and salaries(a)   1,584 1,564 3,149 3,390 19,638
Superannuation   458 484 942 719 4,291
Depreciation and amortisation   542 555 1,097 1,090 6,644
Supply of goods and services   6,335 6,663 12,998 13,415 79,875
Other operating expenses(a)   380 621 1,001 1,175 6,111
Total gross operating expenses   9,299 9,887 19,186 19,789 116,559
Superannuation interest expense   747 747 1,494 1,546 9,275
Interest expenses   1,253 1,258 2,510 2,566 15,551
Current transfers            
Current grants   10,876 9,295 20,172 20,751 124,121
Subsidy expenses   886 1,290 2,176 2,002 12,184
Personal benefits   13,183 10,576 23,759 23,018 126,336
Total current transfers   24,946 21,162 46,107 45,771 262,641
Capital transfers            
Mutually agreed write-downs   302 201 502 414 2,662
Other capital grants   623 567 1,189 1,284 8,156
Total capital transfers   925 767 1,692 1,698 10,818
Total expenses 3 37,169 33,821 70,990 71,370 414,845
Net operating balance   -2,530 -7,109 -9,639 -10,849 -23,497
Other economic flows             
 - included in operating result(b)            
Net write-downs of assets (including bad and doubtful debts)   -536 -768 -1,304 -1,348 -7,037
Assets recognised for the first time   28 38 66 57 346
Net foreign exchange gains   -95 251 156 62 63
Net swap interest received   35 13 48 0 0
Market valuation of debt   -179 -2,924 -3,103 82 372
Other gains/(losses)   1,787 -1,164 623 853 6,259
Total other economic flows             
 - included in operating result   1,040 -4,554 -3,514 -294 1
Operating result   -1,489 -11,663 -13,153 -11,142 -23,495
Non-owner movements in equity(b)            
Revaluation of equity investments(c)   1 125 126 0 -2,237
Actuarial revaluations   0 0 0 0 17
Other economic revaluations(d)   -1,305 1,512 208 -53 124
Total other economic flows - included in equity   -1,303 1,637 334 -53 -2,096
Comprehensive result - Total change in net worth   -2,793 -10,026 -12,819 -11,196 -25,591
Net operating balance   -2,530 -7,109 -9,639 -10,849 -23,497
Net acquisition of non-financial assets            
Purchases of non-financial assets   473 522 995 1,361 10,679
less Sales of non-financial assets   23 16 39 25 2,370
less Depreciation   542 555 1,097 1,090 6,644
plus Change in inventories   -76 140 64 7 492
plus Other movements in non-financial assets   44 26 70 26 201
Total net acquisition of non-financial assets   -124 116 -7 279 2,359
Fiscal balance (Net lending/borrowing)(e)   -2,406 -7,225 -9,631 -11,128 -25,855

*As published 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 July 2014
$m

ACTUAL
as at
31 August 2014
$m
BUDGET ESTIMATE*
as at
30 June 2015
$m
Assets      
Financial assets      
Cash and deposits 2,771 2,383 2,480
Advances paid 40,383 40,783 45,145
Investments, loans and placements 118,232 117,893 128,753
Other receivables 45,805 46,973 45,489
Equity investments      
Investments in other public sector entities 37,516 38,067 35,506
Equity accounted investments 291 291 303
Investments - shares 39,117 39,656 39,715
Total financial assets 284,114 286,046 297,392
Non-financial assets      
Land 9,205 9,310 8,875
Buildings 24,916 24,706 25,425
Plant, equipment and infrastructure  54,061 54,030 57,347
Inventories 8,130 8,242 7,987
Intangibles 6,037 6,084 5,988
Investment property 239 264 211
Biological assets 35 35 35
Heritage and cultural assets 10,826 10,827 10,588
Assets held for sale 69 56 174
Other non-financial assets 406 431 598
Total non-financial assets 113,925 113,986 117,229
Total assets 398,038 400,032 414,620
Liabilities      
Interest bearing liabilities      
Deposits held 218 223 182
Government securities 357,726 366,799 387,772
Loans 9,914 9,913 13,436
Other borrowing 1,677 1,675 1,376
Total interest bearing liabilities 369,535 378,609 402,766
Provisions and payables      
Superannuation liability(a) 222,365 223,129 163,228
Other employee liabilities  15,073 15,272 15,291
Suppliers payable 4,580 5,776 4,705
Personal benefits provisions and payable 12,534 11,984 11,659
Subsidies provisions and payable 4,285 4,494 3,937
Grants provisions and payable 13,468 12,990 11,154
Other provisions and payables 15,036 16,641 13,891
Total provisions and payables 287,341 290,287 223,865
Total liabilities 656,877 668,896 626,631
Net worth(b) -258,838 -268,864 -212,010
Net financial worth(c) -372,763 -382,850 -329,239
Net financial liabilities(d)  410,279 420,917 364,745
Net debt(e) 208,149 217,550 226,388

*As published in the 2014-15 Budget.
(a) 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.
(b) Net worth is calculated as total assets minus total liabilities.
(c) Net financial worth equals total financial assets minus total liabilities.
(d) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(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.

Australian Government general government sector cash flow statement

 
ACTUAL
2014-2015
 July
$m

ACTUAL
2014-2015
August
$m

ACTUAL
2014-2015
YTD August
$m
Budget
Profile
2014-2015
YTD August
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Cash receipts from operating activities          
Taxes received 31,541 23,560 55,101 54,293 360,372
Receipts from sales of goods and services 677 943 1,620 1,328 8,910
Interest receipts 194 237 430 705 3,657
Dividends and income tax equivalents 425 1,012 1,436 2,158 4,257
Other receipts 1,189 584 1,772 1,556 6,339
Total operating receipts 34,026 26,335 60,361 60,040 383,534
Cash payments for operating activities          
Payments for employees -2,943 -2,108 -5,051 -4,647 -27,022
Payments for goods and services -7,462 -6,330 -13,792 -14,317 -79,807
Grants and subsidies paid -13,328 -10,562 -23,890 -24,352 -147,617
Interest paid -1,189 -752 -1,942 -1,822 -14,174
Personal benefit payments -14,169 -10,992 -25,161 -24,822 -127,221
Other payments  -318 -592 -910 -683 -5,890
Total operating payments -39,411 -31,335 -70,746 -70,642 -401,730
Net cash flows from operating activities -5,386 -5,000 -10,386 -10,602 -18,196
Cash flows from investments in
    non-financial assets
         
Sales of non-financial assets 23 16 39 68 2,244
Purchases of non-financial assets -616 -543 -1,159 -1,367 -10,753
Net cash flows from investments in
    non-financial assets
-593 -527 -1,120 -1,300 -8,509
Net cash flows from investments in
   financial assets for policy purposes
-957 -869 -1,826 -876 -6,819
Cash flows from investments in
   financial assets for liquidity purposes
         
Increase in investments -567 338 -229 1,764 -7,017
Net cash flows from investments in
   financial assets for liquidity purposes
-567 338 -229 1,764 -7,017
Cash flows from financing activities          
Borrowing (net) 6,440 5,644 12,084 11,516 42,308
Other financing (net) -194 25 -168 -448 -2,289
Net cash flows from financing activities 6,246 5,669 11,915 11,068 40,018
Net increase/(decrease) in cash held -1,257 -388 -1,645 54 -523
Net cash flows from
  operating activities
  and investments in
    non-financial assets
      (Surplus(+)/deficit(-))
-5,979 -5,527 -11,506 -11,902 -26,705
Finance leases and similar arrangements(b) 0 0 0 0 0
GFS cash surplus(+)/deficit(-) -5,979 -5,527 -11,506 -11,902 -26,705
less Net Future Fund earnings 455 366 821 644 3,068
Equals underlying cash balance(c) -6,435 -5,893 -12,327 -12,546 -29,773
 plus Net cash flows from investments in
   financial assets for policy purposes
-957 -869 -1,826 -876 -6,819
plus Net Future Fund earnings 455 366 821 644 3,068
Equals headline cash balance -6,936 -6,396 -13,332 -12,778 -33,524

*As published 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
2014-2015
 July
$m

ACTUAL
2014-2015
August
$m

ACTUAL
2014-2015
YTD August
$m
Budget
Profile
2014-2015
YTD August
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Individuals and other withholding taxes          
Gross income tax withholding  14,053 14,300 28,354 28,543 171,170
Gross other individuals 4,699 2,450 7,149 7,367 40,120
less Refunds 4,812 5,239 10,051 10,309 27,700
Total individuals and other withholding taxation 13,940 11,512 25,452 25,601 183,590
Company tax 7,744 4,149 11,893 11,068 73,230
Superannuation funds  865 836 1,701 1,934 7,870
Resource rent taxes 8 425 433 452 2,060
Fringe benefits tax 933 56 989 931 4,440
Total income taxation revenue 23,490 16,978 40,468 39,986 271,190

*As published in the 2014-15 Budget.

Note 2: Indirect Tax

 
ACTUAL
2014-2015
July
$m

ACTUAL
2014-2015
August
$m

ACTUAL
2014-2015
YTD August
$m
Budget
Profile
2014-2015
YTD August
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Goods and services tax 5,920 4,513 10,432 10,504 56,970
Wine equalisation tax 56 64 121 111 790
Luxury car tax 47 48 95 64 360
Excise duty 1,989 1,931 3,920 4,055 26,470
Customs duty 828 774 1,602 1,525 9,270
Other indirect tax 409 168 577 555 3,764
Total indirect taxation revenue 9,250 7,498 16,747 16,814 97,624

*As published in the 2014-15 Budget.

Note 3: Total expenses by function

 
ACTUAL
2014-2015
 July
$m

ACTUAL
2014-2015
August
$m

ACTUAL
2014-2015
YTD August
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Expenses by function        
General public services 1,525 2,062 3,587 23,185
Defence 1,844 2,181 4,026 24,197
Public order and safety 338 392 730 4,389
Education  4,083 2,008 6,092 29,553
Health  5,631 5,695 11,327 66,892
Social security and welfare  14,967 11,581 26,548 145,773
Housing and community amenities 193 547 740 4,835
Recreation and culture 23 125 148 3,512
Fuel and energy 641 595 1,236 7,058
Agriculture, Forestry and Fishing 134 148 282 2,752
Mining, manufacturing and construction 235 188 423 2,740
Transport and communication 398 276 674 7,286
Other economic affairs 1,130 898 2,028 10,670
Other purposes        
Public debt interest 1,212 1,222 2,433 14,708
Nominal superannuation interest 747 747 1,494 9,275
General purpose inter-government transactions 4,068 5,155 9,223 57,148
Natural disaster relief 0 0 0 98
Contingency reserve 0 0 0 773
Total expenses 37,169 33,821 70,990 414,845

*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 47 of the Public Governance, Performance and Accountability Act 2013. 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 therefore 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. 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]