Media Release

Australian Government General Government Sector Monthly Financial Statements - November 2014

MC 146/14

Senator the Hon. Mathias Cormann
Minister for Finance

19 December 2014

Key Points

  • The underlying cash balance for the 2014-15 financial year to 30 November 2014 was a deficit of $24,782 million.
  • The fiscal balance for the 2014-15 financial year to 30 November 2014 was a deficit of $21,270 million.
AGGREGATES

ACTUAL
2014-2015
November
$m


ACTUAL
2014-2015
YTD November
$m

Budget Profile
2014-2015
YTD November
$m

BUDGET ESTIMATE*
2014-2015
Full Year
$m
Revenue  30,536 150,953 151,757 391,348
Expenses 33,155 171,550 173,362 414,845
Net operating balance  -2,620 -20,597 -21,606 -23,497
Net capital investment  135 674 956 2,359
Fiscal balance  -2,755 -21,270 -22,562 -25,855
Receipts(a) 28,863 148,966 149,467 385,778
Payments(b) 31,414 171,962 173,134 412,484
Net Future Fund earnings -103 1,786 1,380 3,068
Underlying cash balance(c) -2,447 -24,782 -25,047 -29,773
Headline cash balance  1,727 -20,676 -25,806 -33,524
Total assets   410,996   414,620
Total liabilities   692,744   626,631
Net worth(d)   -281,749   -212,010
Net debt(e)   224,345   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.

Comparators for the November 2014 Monthly Financial Statements are based on the 2014-15 Budget published in May 2014. The 2014-15 Mid-Year Economic and Fiscal Outlook profiles will be available from the December 2014 Monthly Financial Statements onwards.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 30 November 2014 was a deficit of $24,782 million, compared to the Budget profile deficit of $25,047 million. The difference of $266 million relates to lower than expected cash payments and cash receipts.

Fiscal Balance

The fiscal balance for the year to 30 November 2014 was a deficit of $21,270 million, compared to the Budget profile deficit of $22,562 million. The difference of $1,292 million is largely due to lower than expected expenses and revenue.

  • Revenues
    Total revenue was $803 million lower than the Budget profile, primarily due to lower than expected taxation revenue.
  • Expenses
    Total expenses were $1,812 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 $281,749 million as at 30 November 2014. The net debt of the Australian Government general government sector is $224,345 million as at 30 November 2014.  Net financial liabilities of the Australian Government general government sector are $430,368 million as at 30 November 2014. 



Senator the Hon Mathias Cormann
Minister for Finance

19 December 2014
Rosemary Huxtable
Acting Secretary of the
Department of Finance
19 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
November
$m

ACTUAL
2014-2015
YTD November
$m
Budget
Profile
2014-2015
YTD November
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Revenue          
Taxation revenue 1, 2 28,313 140,832 142,782 368,814
Sales of goods and services   765 3,711 3,301 8,928
Interest income   288 1,423 1,818 4,229
Dividend income   338 2,033 1,118 2,570
Other   832 2,954 2,738 6,807
Total revenue   30,536 150,953 151,757 391,348
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,480 7,790 8,163 19,638
Superannuation   479 2,439 1,778 4,291
Depreciation and amortisation   577 2,733 2,734 6,644
Supply of goods and services   6,955 32,818 33,350 79,875
Other operating expenses(a)   446 2,430 2,702 6,111
Total gross operating expenses   9,937 48,211 48,727 116,559
Superannuation interest expense   747 3,734 3,865 9,275
Interest expenses   1,240 6,266 6,379 15,551
Current transfers          
Current grants   9,680 48,756 50,329 124,121
Subsidy expenses   971 5,147 5,021 12,184
Personal benefits   9,836 55,404 54,671 126,336
Total current transfers   20,487 109,307 110,021 262,641
Capital transfers          
Mutually agreed write-downs   70 969 1,123 2,662
Other capital grants   674 3,062 3,247 8,156
Total capital transfers   744 4,031 4,370 10,818
Total expenses 3 33,155 171,550 173,362 414,845
Net operating balance   -2,620 -20,597 -21,606 -23,497
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -579 -2,780 -3,417 -7,037
Assets recognised for the first time   -82 163 144 346
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   -731 -1,425 62 63
Net swap interest received   -63 -232 0 0
Market valuation of debt   -4,781 -8,020 192 372
Other gains/(losses)   8,099 11,407 1,996 6,259
Total other economic flows           
 - included in operating result   1,863 -888 -1,023 1
Operating result   -757 -21,484 -22,628 -23,495
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   -11 -13 0 -2,237
Actuarial revaluations   0 0 0 17
Other economic revaluations(d)   -4,027 -4,206 145 124
Total other economic flows - included in equity   -4,038 -4,219 145 -2,096
Comprehensive result - Total change in net worth   -4,795 -25,704 -22,483 -25,591
Net operating balance   -2,620 -20,597 -21,606 -23,497
Net acquisition of non-financial assets          
Purchases of non-financial assets   719 3,355 3,763 10,679
less Sales of non-financial assets   33 265 219 2,370
less Depreciation   577 2,733 2,734 6,644
plus Change in inventories   5 182 74 492
plus Other movements in non-financial assets   21 134 71 201
Total net acquisition of non-financial assets   135 674 956 2,359
Fiscal balance (Net lending/borrowing)(e)   -2,755 -21,270 -22,562 -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 November 2014
$m
BUDGET ESTIMATE*
as at
30 June 2015
$m
Assets    
Financial assets    
Cash and deposits 3,571 2,480
Advances paid 41,367 45,145
Investments, loans and placements 129,142 128,753
Other receivables 46,864 45,489
Equity investments    
Investments in other public sector entities 33,821 35,506
Equity accounted investments 315 303
Investments - shares 41,117 39,715
Total financial assets 296,197 297,392
Non-financial assets    
Land 9,315 8,875
Buildings 24,879 25,425
Plant, equipment and infrastructure  54,450 57,347
Inventories 8,291 7,987
Intangibles 6,134 5,988
Investment property 269 211
Biological assets 31 35
Heritage and cultural assets 10,841 10,588
Assets held for sale 57 174
Other non-financial assets 533 598
Total non-financial assets 114,798 117,229
Total assets 410,996 414,620
Liabilities    
Interest bearing liabilities    
Deposits held 222 182
Government securities 386,104 387,772
Loans 10,423 13,436
Other borrowing 1,676 1,376
Total interest bearing liabilities 398,425 402,766
Provisions and payables    
Superannuation liability(a) 225,099 163,228
Other employee liabilities  15,593 15,291
Suppliers payable 5,055 4,705
Personal benefits provisions and payable 11,637 11,659
Subsidies provisions and payable 4,376 3,937
Grants provisions and payable 13,181 11,154
Other provisions and payables 19,378 13,891
Total provisions and payables 294,319 223,865
Total liabilities 692,744 626,631
Net worth(b) -281,749 -212,010
Net financial worth(c) -396,547 -329,239
Net financial liabilities(d)  430,368 364,745
Net debt(e) 224,345 226,388

*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
November
$m

ACTUAL
2014-2015
YTD November
$m
Budget
Profile
2014-2015
YTD November
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Cash receipts from operating activities        
Taxes received 27,563.00 136,187 136,801 360,372
Receipts from sales of goods and services 692 3,660 3,323 8,910
Interest receipts 222 1,198 1,590 3,657
Dividends and income tax equivalents -204 2,590 2,807 4,257
Other receipts 570 3,238 2,890 6,339
Total operating receipts 28,841 146,873 147,411 383,534
Cash payments for operating activities        
Payments for employees -1,995 -10,887 -11,278 -27,022
Payments for goods and services -6,333 -33,111 -33,919 -79,807
Grants and subsidies paid -11,188 -58,120 -59,265 -147,617
Interest paid -664 -6,294 -6,440 -14,174
Personal benefit payments -9,983 -57,383 -56,343 -127,221
Other payments  -510 -2,564 -2,103 -5,890
Total operating payments -30,672 -168,359 -169,350 -401,730
Net cash flows from operating activities -1,831 -21,486 -21,939 -18,196
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets 22 2,093 2,056 2,244
Purchases of non-financial assets -737 -3,590 -3,785 -10,753
Net cash flows from investments in
    non-financial assets
-715 -1,497 -1,728 -8,509
Net cash flows from investments in
   financial assets for policy purposes
4,277 2,320 -2,139 -6,819
Cash flows from investments in
   financial assets for liquidity purposes
-8,643 -6,599 9,799 -7,017
Increase in investments
Net cash flows from investments in
   financial assets for liquidity purposes
-8,643 -6,599 9,799 -7,017
Cash flows from financing activities        
Borrowing (net) 6,788 27,866 16,776 42,308
Other financing (net) -117 -877 -919 -2,289
Net cash flows from financing activities 6,671 26,989 15,857 40,018
Net increase/(decrease) in cash held -241 -273 -149 -523
Net cash flows from operating activities
  and investments in non-financial assets
    (Surplus(+)/deficit(-))
-2,546 -22,983 -23,667 -26,705
Finance leases and similar arrangements(b) -4 -13 0 0
GFS cash surplus(+)/deficit(-) -2,551 -22,996 -23,667 -26,705
less Net Future Fund earnings -103 1,786 1,380 3,068
Equals underlying cash balance(c) -2,447 -24,782 -25,047 -29,773
 plus Net cash flows from investments in
   financial assets for policy purposes
4,277 2,320 -2,139 -6,819
plus Net Future Fund earnings -103 1,786 1,380 3,068
Equals headline cash balance 1,727 -20,676 -25,806 -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
November
$m

ACTUAL
2014-2015
YTD November
$m
Budget
Profile
2014-2015
YTD November
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  13,635 69,992 71,192 171,170
Gross other individuals 2,788 15,688 15,974 40,120
less Refunds 2,174 19,212 19,459 27,700
Total individuals and other withholding taxation 14,248 66,468 67,707 183,590
Company tax 4,322 26,530 26,389 73,230
Superannuation funds 608 3,390 3,839 7,870
Resource rent taxes 0 1,097 972 2,060
Fringe benefits tax 67 2,074 1,975 4,440
Total income taxation revenue 19,244 99,559 100,882 271,190

*As published in the 2014-15 Budget.

 

Note 2: Indirect Tax

 
ACTUAL
2014-2015
November
$m

ACTUAL
2014-2015
YTD November
$m
Budget
Profile
2014-2015
YTD November
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Goods and services tax 5,793 25,267 25,179 56,970
Wine equalisation tax 82 309 285 790
Luxury car tax 43 220 152 360
Excise duty 1,920 9,790 10,588 26,470
Customs duty 949 3,932 3,992 9,270
Other indirect tax 285 1,759 1,704 3,764
Total indirect taxation revenue 9,069 41,274 41,900 97,624

*As published in the 2014-15 Budget.

 

Note 3: Total expenses by function

 
ACTUAL
2014-2015
November
$m

ACTUAL
2014-2015
YTD November
$m
BUDGET ESTIMATE*
2014-2015
Full Year
$m
Expenses by function      
General public services 1,626 8,609 23,185
Defence 2,104 10,232 24,197
Public order and safety 325 1,812 4,389
Education  1,543 12,823 29,553
Health  5,489 27,576 66,892
Social security and welfare  11,564 62,941 145,773
Housing and community amenities 528 1,993 4,835
Recreation and culture 254 1,321 3,512
Fuel and energy 433 2,756 7,058
Agriculture, Forestry and Fishing 318 910 2,752
Mining, manufacturing and construction 194 1,081 2,740
Transport and communication 380 919 7,286
Other economic affairs 927 4,875 10,670
Other purposes      
Public debt interest 1,198 6,053 14,708
Nominal superannuation interest 747 3,734 9,275
General purpose inter-government transactions 5,526 23,913 57,148
Natural disaster relief 0 0 98
Contingency reserve 0 0 773
Total expenses 33,155 171,550 414,845

*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]