Media Release

Australian Government General Government Sector Monthly Financial Statements - October 2014

MC 131/14

Senator the Hon. Mathias Cormann
Minister for Finance

5 December 2014

Key Points

  • The underlying cash balance for the 2014-15 financial year to 31 October 2014 was a deficit of $22,334 million.
  • The fiscal balance for the 2014-15 financial year to 31 October 2014 was a deficit of $18,515 million.

 

AGGREGATES

ACTUAL
2014-2015
October
$m


ACTUAL
2014-2015
YTD October
$m

Budget Profile
2014-2015
YTD October
$m

BUDGET ESTIMATE*
Full Year
$m
Revenue  37,111 120,417 121,180 391,348
Expenses 35,632 138,394 141,207 414,845
Net operating balance  1,479 -17,977 -20,028 -23,497
Net capital investment  310 538 642 2,359
Fiscal balance  1,170 -18,515 -20,670 -25,855
Receipts(a) 34,853 120,103 119,675 385,778
Payments(b) 37,859 140,548 142,423 412,484
Net Future Fund earnings 165 1,889 1,104 3,068
Underlying cash balance(c) -3,171 -22,334 -23,852 -29,773
Headline cash balance  -3,138 -22,403 -24,439 -33,524
Total assets   399,662   414,620
Total liabilities   676,616   626,631
Net worth(d)   -276,954   -212,010
Net debt(e)   225,494   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 October 2014 was a deficit of $22,334 million, compared to the Budget profile deficit of $23,852 million. The difference of $1,518 million relates to lower than expected cash payments partially offset by slightly higher than expected receipts.

Fiscal Balance

The fiscal balance for the year to 31 October 2014 was a deficit of $18,515 million, compared to the Budget profile deficit of $20,670 million. The difference of $2,155 million is largely due to lower than forecast expenses and slightly lower revenue.

  • Revenues
    Total revenue was $762 million lower than the Budget profile, primarily due to lower than expected taxation revenue.
  • Expenses
    Total expenses were $2,813 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 and superannuation expense.

Assets and Liabilities

The net worth of the Australian Government general government sector is a negative net asset position of $276,954 million as at 31 October 2014. The net debt of the Australian Government general government sector is $225,494 million as at 31 October 2014.  Net financial liabilities of the Australian Government general government sector are $428,987 million as at 31 October 2014.



Senator the Hon Mathias Cormann
Minister for Finance

5 December 2014
Jane Halton
Secretary of the
Department of Finance
5 December 2014
 
 
 
Contact: Senator the Hon Mathias Cormann's Office:
               Department of Finance
Karen Wu     (02) 6277 7400
Amelia Gard (02) 6215 2222

Australian Government general government sector operating statement

 Note
ACTUAL
2014-2015
October
$m

ACTUAL
2014-2015
YTD October
$m
Budget
Profile
2014-2015
YTD October
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Revenue          
Taxation revenue 1, 2 35,195 112,519 113,962 368,814
Sales of goods and services   748 2,946 2,696 8,928
Interest income   285 1,135 1,473 4,229
Dividend income   447 1,695 917 2,570
Other   437 2,122 2,131 6,807
Total revenue   37,111 120,417 121,180 391,348
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,600 6,310 6,596 19,638
Superannuation   506 1,960 1,426 4,291
Depreciation and amortisation   517 2,157 2,184 6,644
Supply of goods and services   6,441 25,863 26,848 79,875
Other operating expenses(a)   511 1,984 2,274 6,111
Total gross operating expenses   9,575 38,274 39,328 116,559
Superannuation interest expense   747 2,988 3,092 9,275
Interest expenses   1,309 5,026 5,135 15,551
Current transfers          
Current grants   10,967 39,076 41,060 124,121
Subsidy expenses   947 4,176 4,034 12,184
Personal benefits   11,025 45,569 44,997 126,336
Total current transfers   22,939 88,820 90,091 262,641
Capital transfers          
Mutually agreed write-downs   367 898 906 2,662
Other capital grants   695 2,388 2,655 8,156
Total capital transfers   1,062 3,286 3,562 10,818
Total expenses 3 35,632 138,394 141,207 414,845
Net operating balance   1,479 -17,977 -20,028 -23,497
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -463 -2,201 -2,876 -7,037
Assets recognised for the first time   142 246 115 346
Net foreign exchange gains   228 -694 62 63
Net swap interest received   -160 -170 0 0
Market valuation of debt   -3,091 -3,239 166 372
Other gains/(losses)   841 3,308 1,632 6,259
Total other economic flows           
 - included in operating result   -2,502 -2,750 -900 1
Operating result   -1,023 -20,727 -20,928 -23,495
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   1 -2 0 -2,237
Actuarial revaluations   0 0 0 17
Other economic revaluations(d)   -685 -179 48 124
Total other economic flows - included in equity   -684 -181 48 -2,096
Comprehensive result - Total change in net worth   -1,706 -20,909 -20,880 -25,591
Net operating balance   1,479 -17,977 -20,028 -23,497
Net acquisition of non-financial assets          
Purchases of non-financial assets   866 2,636 2,929 10,679
less Sales of non-financial assets   139 232 211 2,370
less Depreciation   517 2,157 2,184 6,644
plus Change in inventories   56 178 53 492
plus Other movements in non-financial assets   44 113 55 201
Total net acquisition of non-financial assets   310 538 642 2,359
Fiscal balance (Net lending/borrowing)(e)   1,170 -18,515 -20,670 -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 October 2014
$m
BUDGET ESTIMATE*
as at
30 June 2015
$m
Assets    
Financial assets    
Cash and deposits 3,812 2,480
Advances paid 40,927 45,145
Investments, loans and placements 116,061 128,753
Other receivables 46,028 45,489
Equity investments    
Investments in other public sector entities 37,385 35,506
Equity accounted investments 315 303
Investments - shares 40,486 39,715
Total financial assets 285,015 297,392
Non-financial assets    
Land 9,314 8,875
Buildings 24,855 25,425
Plant, equipment and infrastructure  54,367 57,347
Inventories 8,315 7,987
Intangibles 6,091 5,988
Investment property 253 211
Biological assets 32 35
Heritage and cultural assets 10,834 10,588
Assets held for sale 76 174
Other non-financial assets 511 598
Total non-financial assets 114,647 117,229
Total assets 399,662 414,620
Liabilities    
Interest bearing liabilities    
Deposits held 222 182
Government securities 374,129 387,772
Loans 10,270 13,436
Other borrowing 1,674 1,376
Total interest bearing liabilities 386,295 402,766
Provisions and payables    
Superannuation liability(a) 224,394 163,228
Other employee liabilities  15,490 15,291
Suppliers payable 4,680 4,705
Personal benefits provisions and payable 11,636 11,659
Subsidies provisions and payable 4,442 3,937
Grants provisions and payable 12,969 11,154
Other provisions and payables 16,711 13,891
Total provisions and payables 290,322 223,865
Total liabilities 676,616 626,631
Net worth(b) -276,954 -212,010
Net financial worth(c) -391,601 -329,239
Net financial liabilities(d)  428,987 364,745
Net debt(e) 225,494 226,388

*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
October
$m

ACTUAL
2014-2015
YTD October
$m
Budget
Profile
2014-2015
YTD October
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Cash receipts from operating activities        
Taxes received 32,784 108,624 108,486 360,372
Receipts from sales of goods and services 702 2,969 2,740 8,910
Interest receipts 286 977 1,294 3,657
Dividends and income tax equivalents 537 2,794 2,607 4,257
Other receipts 570 2,668 2,500 6,339
Total operating receipts 34,879 118,032 117,626 383,534
Cash payments for operating activities        
Payments for employees -2,195 -8,892 -9,134 -27,022
Payments for goods and services -6,588 -26,778 -27,895 -79,807
Grants and subsidies paid -12,835 -46,932 -48,364 -147,617
Interest paid -3,337 -5,630 -5,725 -14,174
Personal benefit payments -11,392 -47,401 -46,701 -127,221
Other payments  -599 -2,054 -1,658 -5,890
Total operating payments -36,947 -137,687 -139,478 -401,730
Net cash flows from operating activities -2,068 -19,655 -21,852 -18,196
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets -26 2,071 2,049 2,244
Purchases of non-financial assets -911 -2,853 -2,945 -10,753
Net cash flows from investments in
    non-financial assets
-937 -782 -896 -8,509
Net cash flows from investments in
   financial assets for policy purposes
-132 -1,957 -1,691 -6,819
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments 4,032 2,043 14,173 -7,017
Net cash flows from investments in
   financial assets for liquidity purposes
4,032 2,043 14,173 -7,017
Cash flows from financing activities        
Borrowing (net) 20 21,078 11,015 42,308
Other financing (net) -347 -759 -799 -2,289
Net cash flows from financing activities -327 20,319 10,216 40,018
Net increase/(decrease) in cash held 568 -32 -50 -523
Net cash flows from operating activities
  and investments in non-financial assets
      (Surplus(+)/deficit(-))
-3,005 -20,437 -22,748 -26,705
Finance leases and similar arrangements(b) -1 -9 0 0
GFS cash surplus(+)/deficit(-) -3,006 -20,446 -22,748 -26,705
less Net Future Fund earnings 165 1,889 1,104 3,068
Equals underlying cash balance(c) -3,171 -22,334 -23,852 -29,773
plus Net cash flows from investments in
   financial assets for policy purposes
-132 -1,957 -1,691 -6,819
plus Net Future Fund earnings 165 1,889 1,104 3,068
Equals headline cash balance -3,138 -22,403 -24,439 -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
October
$m

ACTUAL
2014-2015
YTD October
$m
Budget
Profile
2014-2015
YTD October
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  14,145 56,357 57,106 171,170
Gross other individuals 4,915 12,900 13,609 40,120
less Refunds 3,140 17,038 17,255 27,700
Total individuals and other withholding taxation 15,919 52,220 53,460 183,590
Company tax 6,979 22,208 21,608 73,230
Superannuation funds  1,245 2,782 3,256 7,870
Resource rent taxes 611 1,097 972 2,060
Fringe benefits tax 1,018 2,007 1,865 4,440
Total income taxation revenue 25,772 80,314 81,162 271,190

*As published in the 2014-15 Budget.

Note 2: Indirect Tax

 
ACTUAL
2014-2015
October
$m

ACTUAL
2014-2015
YTD October
$m
Budget
Profile
2014-2015
YTD October
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Goods and services tax 6,258 19,474 19,496 56,970
Wine equalisation tax 51 227 209 790
Luxury car tax 44 177 129 360
Excise duty 1,780 7,870 8,399 26,470
Customs duty 693 2,983 3,104 9,270
Other indirect tax 596 1,473 1,463 3,764
Total indirect taxation revenue 9,423 32,205 32,801 97,624

*As published in the 2014-15 Budget.

Note 3: Total expenses by function

 
ACTUAL
2014-2015
October
$m

ACTUAL
2014-2015
YTD October
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Expenses by function      
General public services 1,903 6,983 23,185
Defence 2,018 8,128 24,197
Public order and safety 398 1,487 4,389
Education  3,984 11,281 29,553
Health  5,431 22,087 66,892
Social security and welfare  12,586 51,377 145,773
Housing and community amenities 426 1,465 4,835
Recreation and culture 263 1,067 3,512
Fuel and energy 581 2,323 7,058
Agriculture, Forestry and Fishing 190 592 2,752
Mining, manufacturing and construction 189 887 2,740
Transport and communication 149 540 7,286
Other economic affairs 930 3,948 10,670
Other purposes      
Public debt interest 1,259 4,855 14,708
Nominal superannuation interest 747 2,988 9,275
General purpose inter-government transactions 4,579 18,387 57,148
Natural disaster relief 0 0 98
Contingency reserve 0 0 773
Total expenses 35,632 138,394 414,845

*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]