Media Release

Australian Government General Government Sector Monthly Financial Statements - September 2014

MC 105/14

Senator the Hon. Mathias Cormann
Minister for Finance

27 October 2014

Key Points

  • The underlying cash balance for the 2014-15 financial year to 30 September 2014 was a deficit of $19,163 million.
  • The fiscal balance for the 2014-15 financial year to 30 September 2014 was a deficit of
    $19,685 million.
AGGREGATES

ACTUAL
2014-2015
September
$m


ACTUAL
2014-2015
YTD September
$m

Budget Profile
2014-2015
YTD September
$m

BUDGET ESTIMATE*
Full Year
$m
Revenue  21,955 83,306 82,874 391,348
Expenses 31,773 102,763 104,777 414,845
Net operating balance  -9,818 -19,456 -21,902 -23,497
Net capital investment  236 229 503 2,359
Fiscal balance  -10,054 -19,685 -22,405 -25,855
Receipts(a) 24,850 85,250 84,241 385,778
Payments(b) 30,784 102,690 104,297 412,484
Net Future Fund earnings 902 1,724 920 3,068
Underlying cash balance(c) -6,836 -19,163 -20,976 -29,773
Headline cash balance  -5,933 -19,265 -21,370 -33,524
Total assets   400,968   414,620
Total liabilities   676,216   626,631
Net worth(d)   -275,248   -212,010
Net debt(e)   221,330   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 30 September 2014 was a deficit of $19,163 million, compared to the Budget profile deficit of $20,976 million. The difference of $1,813 million relates to lower than expected cash payments and higher than expected receipts.

Fiscal Balance

The fiscal balance for the year to 30 September 2014 was a deficit of $19,685 million, compared to the Budget profile deficit of $22,405 million. The difference of $2,720 million is largely due to slightly higher than expected revenue and lower than forecast expenses.   

  • Revenues
    Total revenue was $432 million higher than the Budget profile, primarily due to higher than expected dividend income.
  • Expenses
    Total expenses were $2,014 million lower than the Budget profile, due to lower than expected supply of goods and services, wages and salaries 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 $275,248 million as at 30 September 2014. The net debt of the Australian Government general government sector is $221,330 million as at 30 September 2014.  Net financial liabilities of the Australian Government general government sector are $427,478 million as at 30 September 2014. 



Senator the Hon Mathias Cormann
Minister for Finance

24 October 2014
Jane Halton
Secretary of the
Department of Finance
24 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
September
$m

ACTUAL
2014-2015
YTD September
$m
Budget
Profile
2014-2015
YTD September
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Revenue          
Taxation revenue 1, 2 20,108 77,324 77,498 368,814
Sales of goods and services   735 2,198 1,957 8,928
Interest income   320 851 1,175 4,229
Dividend income   192 1,249 669 2,570
Other   600 1,685 1,576 6,807
Total revenue   21,955 83,306 82,874 391,348
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,562 4,711 4,992 19,638
Superannuation   513 1,455 1,075 4,291
Depreciation and amortisation   542 1,639 1,635 6,644
Supply of goods and services   6,424 19,422 19,975 79,875
Other operating expenses(a)   472 1,473 1,678 6,111
Total gross operating expenses   9,513 28,699 29,356 116,559
Superannuation interest expense   747 2,241 2,319 9,275
Interest expenses   1,207 3,717 3,830 15,551
Current transfers          
Current grants   7,937 28,109 29,626 124,121
Subsidy expenses   1,052 3,229 3,074 12,184
Personal benefits   10,784 34,543 34,045 126,336
Total current transfers   19,773 65,880 66,745 262,641
Capital transfers          
Mutually agreed write-downs   29 531 611 2,662
Other capital grants   504 1,693 1,915 8,156
Total capital transfers   533 2,225 2,526 10,818
Total expenses 3 31,773 102,763 104,777 414,845
Net operating balance   -9,818 -19,456 -21,902 -23,497
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -434 -1,738 -1,717 -7,037
Assets recognised for the first time   38 104 86 346
Net foreign exchange gains   -1,078 -922 62 63
Net swap interest received   -58 -10 0 0
Market valuation of debt   2,955 -148 125 372
Other gains/(losses)   1,843 2,466 1,218 6,259
Total other economic flows           
 - included in operating result   3,266 -248 -225 1
Operating result   -6,552 -19,705 -22,128 -23,495
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   -129 -3 0 -2,237
Actuarial revaluations   0 0 0 17
Other economic revaluations(d)   298 505 91 124
Total other economic flows - included in equity   168 502 91 -2,096
Comprehensive result - Total change in net worth   -6,384 -19,203 -22,037 -25,591
Net operating balance   -9,818 -19,456 -21,902 -23,497
Net acquisition of non-financial assets          
Purchases of non-financial assets   775 1,770 2,109 10,679
less Sales of non-financial assets   54 93 32 2,370
less Depreciation   542 1,639 1,635 6,644
plus Change in inventories   58 122 22 492
plus Other movements in non-financial assets   -1 69 40 201
Total net acquisition of non-financial assets   236 229 503 2,359
Fiscal balance (Net lending/borrowing)(e)   -10,054 -19,685 -22,405 -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
30 September 2014
$m
BUDGET ESTIMATE*
as at
30 June 2015
$m
Assets    
Financial assets    
Cash and deposits 3,244 2,480
Advances paid 40,869 45,145
Investments, loans and placements 120,145 128,753
Other receivables 44,771 45,489
Equity investments    
Investments in other public sector entities 37,907 35,506
Equity accounted investments 315 303
Investments - shares 39,394 39,715
Total financial assets 286,645 297,392
Non-financial assets    
Land 9,324 8,875
Buildings 24,827 25,425
Plant, equipment and infrastructure  54,152 57,347
Inventories 8,288 7,987
Intangibles 6,100 5,988
Investment property 235 211
Biological assets 34 35
Heritage and cultural assets 10,835 10,588
Assets held for sale 63 174
Other non-financial assets 466 598
Total non-financial assets 114,323 117,229
Total assets 400,968 414,620
Liabilities    
Interest bearing liabilities    
Deposits held 223 182
Government securities 373,407 387,772
Loans 10,283 13,436
Other borrowing 1,675 1,376
Total interest bearing liabilities 385,588 402,766
Provisions and payables    
Superannuation liability(a) 223,859 163,228
Other employee liabilities  15,367 15,291
Suppliers payable 4,955 4,705
Personal benefits provisions and payable 12,201 11,659
Subsidies provisions and payable 4,482 3,937
Grants provisions and payable 13,247 11,154
Other provisions and payables 16,517 13,891
Total provisions and payables 290,628 223,865
Total liabilities 676,216 626,631
Net worth(b) -275,248 -212,010
Net financial worth(c) -389,571 -329,239
Net financial liabilities(d)  427,478 364,745
Net debt(e) 221,330 226,388

*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
September
$m

ACTUAL
2014-2015
YTD September
$m
Budget
Profile
2014-2015
YTD September
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Cash receipts from operating activities        
Taxes received 20,738 75,840 74,733 360,372
Receipts from sales of goods and services 646 2,267 2,008 8,910
Interest receipts 260 691 1,040 3,657
Dividends and income tax equivalents 821 2,258 2,359 4,257
Other receipts 326 2,098 2,061 6,339
Total operating receipts 22,793 83,153 82,201 383,534
Cash payments for operating activities        
Payments for employees -1,646 -6,697 -6,786 -27,022
Payments for goods and services -6,398 -20,190 -21,399 -79,807
Grants and subsidies paid -10,208 -34,098 -35,157 -147,617
Interest paid -351 -2,292 -2,419 -14,174
Personal benefit payments -10,847 -36,008 -35,253 -127,221
Other payments  -544 -1,454 -1,163 -5,890
Total operating payments -29,994 -100,740 -102,177 -401,730
Net cash flows from operating activities -7,201 -17,587 -19,976 -18,196
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets 2,057 2,097 2,039 2,244
Purchases of non-financial assets -782 -1,941 -2,119 -10,753
Net cash flows from investments in
    non-financial assets
1,275 155 -80 -8,509
Net cash flows from investments in
   financial assets for policy purposes
1 -1,825 -1,314 -6,819
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -1,760 -1,989 4,444 -7,017
Net cash flows from investments in
   financial assets for liquidity purposes
-1,760 -1,989 4,444 -7,017
Cash flows from financing activities        
Borrowing (net) 8,974 21,058 17,264 42,308
Other financing (net) -243 -412 -452 -2,289
Net cash flows from financing activities 8,731 20,646 16,812 40,018
Net increase/(decrease) in cash held 1,046 -600 -114 -523
Net cash flows from operating activities
  and investments in non-financial assets
      (Surplus(+)/deficit(-))
-5,926 -17,432 -20,056 -26,705
Finance leases and similar arrangements(b) -8 -8 0 0
GFS cash surplus(+)/deficit(-) -5,934 -17,440 -20,056 -26,705
less Net Future Fund earnings 902 1,724 920 3,068
Equals underlying cash balance(c) -6,836 -19,163 -20,976 -29,773
plus Net cash flows from investments in
   financial assets for policy purposes
1 -1,825 -1,314 -6,819
plus Net Future Fund earnings 902 1,724 920 3,068
Equals headline cash balance -5,933 -19,265 -21,370 -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
September
$m

ACTUAL
2014-2015
YTD September
$m
Budget
Profile
2014-2015
YTD September
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  13,859 42,213 42,586 171,170
Gross other individuals 836 7,985 8,708 40,120
less Refunds 3,846 13,897 14,182 27,700
Total individuals and other withholding taxation 10,849 36,301 37,113 183,590
Company tax 3,337 15,230 14,539 73,230
Superannuation funds  -164 1,537 1,834 7,870
Resource rent taxes 53 486 452 2,060
Fringe benefits tax -1 989 931 4,440
Total income taxation revenue 14,073 54,542 54,868 271,190

*As published in the 2014-15 Budget.
(a) The negative movement in September revenue reflects the higher level of on-assessment refunds issued in September.

Note 2: Indirect Tax

 
ACTUAL
2014-2015
September
$m

ACTUAL
2014-2015
YTD September
$m
Budget
Profile
2014-2015
YTD September
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Goods and services tax 2,783 13,216 12,868 56,970
Wine equalisation tax 55 175 164 790
Luxury car tax 38 134 98 360
Excise duty 2,170 6,090 6,384 26,470
Customs duty 688 2,290 2,264 9,270
Other indirect tax 300 877 852 3,764
Total indirect taxation revenue 6,034 22,782 22,630 97,624

*As published in the 2014-15 Budget.

Note 3: Total expenses by function

 
ACTUAL
2014-2015
September
$m

ACTUAL
2014-2015
YTD September
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Expenses by function      
General public services 1,494 5,080 23,185
Defence 2,084 6,110 24,197
Public order and safety 359 1,089 4,389
Education  1,205 7,297 29,553
Health  5,329 16,656 66,892
Social security and welfare  12,243 38,791 145,773
Housing and community amenities 299 1,039 4,835
Recreation and culture 655 804 3,512
Fuel and energy 506 1,742 7,058
Agriculture, Forestry and Fishing 120 402 2,752
Mining, manufacturing and construction 274 698 2,740
Transport and communication -282 391 7,286
Other economic affairs 991 3,019 10,670
Other purposes      
Public debt interest 1,163 3,596 14,708
Nominal superannuation interest 747 2,241 9,275
General purpose inter-government transactions 4,585 13,808 57,148
Natural disaster relief 0 0 98
Contingency reserve 0 0 773
Total expenses 31,773 102,763 414,845

*As published in the 2014-15 Budget.
(a) The negative movement in September reflects a reclassification of expenses since August.

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]