Media Release

Australian Government General Government Sector Monthly Financial Statements December 2016

MC 1/17

Senator the Hon. Mathias Cormann
Minister for Finance
Deputy Leader of the Government in the Senate
Senator for Western Australia

3 February 2017

KEY POINTS

  • The underlying cash balance for the 2016-17 financial year to 31 December 2016 was a deficit of $33,025 million.
  • The fiscal balance for the 2016-17 financial year to 31 December 2016 was a deficit of $31,143 million.
AGGREGATESACTUAL
2016-2017
December
$m
ACTUAL
2016-2017
YTD December
$m
MYEFO Profile
2016-2017
YTD December
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Revenue 34,053 193,255 190,647 411,112
Expenses 38,057 222,970 223,816 448,642
Net operating balance -4,004 -29,715 -33,169 -37,530
Net capital investment 993 1,427 1,120 3,953
Fiscal balance -4,997 -31,143 -34,289 -41,482
Receipts(a) 32,950 191,007 189,424 407,350
less Payments(b) 38,392 222,120 221,171 441,063
less Net Future Fund earnings 349 1,911 1,798 2,801
Underlying cash balance(c) -5,791 -33,025 -33,544 -36,514
Headline cash balance -7,155 -38,054 -42,148 -52,505
Total assets   495,121   522,675
Total liabilities   911,197   803,396
Net worth(d)   -416,076   -280,721
Net debt(e)   309,399   317,193

*As published in the 2016-17 MYEFO.
(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 December 2016 monthly financial statements are based on the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO) published on 19 December 2016.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 31 December 2016 was a deficit of $33,025 million, which is $520 million lower than the 2016-17 MYEFO profile deficit of $33,544 million.

  • Receipts
    Total receipts were $1,582 million higher than the 2016-17 MYEFO profile.
  • Payments
    Total payments were $949 million higher than the 2016-17 MYEFO profile.

Fiscal Balance

The fiscal balance for the year to 31 December 2016 was a deficit of $31,143 million, which is $3,147 million lower than the 2016-17 MYEFO profile deficit of $34,289 million. The difference results from higher than expected revenue and lower than expected expenses.

Assets and Liabilities

As at 31 December 2016:

  • Net worth is negative $416,076 million;
  • Net debt is $309,399 million; and
  • Net financial liabilities are $602,805 million.
Senator the Hon Mathias Cormann
Minister for Finance
Rosemary Huxtable PSM
Acting Secretary
Department of Finance
Media Contact  
Karen Wu      0428 350 139

 

Australian Government general government sector operating statement

 NoteACTUAL
2016-2017
December
$m
ACTUAL
2016-2017
YTD December
$m
MYEFO Profile
2016-2017
YTD December
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Revenue          
Taxation revenue 1, 2 31,664 180,292 178,438 386,345
Sales of goods and services   735 4,239 4,145 8,905
Interest income   306 1,838 1,799 3,771
Dividend income   356 1,740 1,541 2,687
Other   992 5,146 4,723 9,404
Total revenue   34,053 193,255 190,647 411,112
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,476 9,594 9,807 20,060
Superannuation   800 3,829 3,784 9,720
Depreciation and amortisation   594 3,811 3,962 7,855
Supply of goods and services   8,324 44,722 44,670 87,762
Other operating expenses(a)   325 2,829 3,046 5,572
Total gross operating expenses   11,520 64,785 65,268 130,969
Superannuation interest expense   746 4,592 4,337 8,446
Interest expenses   1,469 8,392 8,398 17,637
Current transfers          
Current grants   10,723 67,193 66,764 135,615
Subsidy expenses   1,319 6,674 6,653 13,509
Personal benefits   10,932 67,756 68,142 129,749
Total current transfers   22,975 141,623 141,559 278,873
Capital transfers          
Mutually agreed write-downs   56 679 755 1,479
Other capital grants   1,291 2,898 3,499 11,239
Total capital transfers   1,347 3,577 4,254 12,718
Total expenses 3 38,057 222,970 223,816 448,642
Net operating balance   -4,004 -29,715 -33,169 -37,530
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -428 -4,476 -3,624 -8,178
Assets recognised for the first time   35 156 193 328
Liabilities recognised for the first time   0 0 0 0
Actuarial revaluations   0 0 0 -8
Net foreign exchange gains   -335 110 1 -187
Net swap interest received   -18 47 45 45
Market valuation of debt   1,992 22,652 23,450 24,243
Other gains/(losses)   1,666 2,658 1,777 4,558
Total other economic flows          
- included in operating result   2,913 21,145 21,842 20,801
Operating result (b)   -1,091 -8,570 -11,327 -16,728
Non-owner movements in equity          
Revaluation of equity investments(c)   14 11 0 -4,846
Actuarial revaluations   0 0 1 1,665
Other economic revaluations(d)   -51 11,048 12,073 175
Total other economic flows - included in equity   -38 11,059 12,073 -3,006
Comprehensive result - Total change in net worth   -1,129 2,489 746 -19,734
Net operating balance   -4,004 -29,715 -33,169 -37,530
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,480 5,213 5,200 12,284
less Sales of non-financial assets   7 90 126 897
less Depreciation   594 3,811 3,962 7,855
plus Change in inventories   113 51 -16 421
plus Other movements in non-financial assets   1 64 24 0
Total net acquisition of non-financial assets   993 1,427 1,120 3,953
Fiscal balance (Net lending/borrowing)(e)   -4,997 -31,143 -34,289 -41,482

*As published in the 2016-17 MYEFO.
(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) Operating result under Australian Accounting Standards.
(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 December 2016
$m
MYEFO ESTIMATE*
as at
30 June 2017
$m
Assets    
Financial assets    
Cash and deposits 8,539 2,942
Advances paid 54,773 59,987
Investments, loans and placements 153,479 177,400
Other receivables 49,929 47,959
Equity investments    
Investments in other public sector entities 50,777 51,944
Equity accounted investments 253 299
Investments - shares 41,419 43,343
Total financial assets 359,169 383,874
Non-financial assets    
Land 10,624 10,613
Buildings 25,503 25,982
Plant, equipment and infrastructure 72,266 73,645
Inventories 8,287 8,499
Intangibles 7,206 8,097
Investment properties 137 164
Biological assets 42 49
Heritage and cultural assets 11,516 11,413
Assets held for sale 202 227
Other non-financial assets 169 112
Total non-financial assets 135,952 138,801
Total assets 495,121 522,675
Liabilities    
Interest bearing liabilities    
Deposits held 230 217
Government securities 508,010 540,184
Loans 16,277 15,455
Other borrowing 1,673 1,666
Total interest bearing liabilities 526,190 557,522
Provisions and payables    
Superannuation liability(a) 318,670 175,047
Other employee liabilities 18,191 18,638
Suppliers payable 4,934 6,358
Personal benefits provisions and payable 12,164 12,677
Subsidies provisions and payable 427 931
Grants provisions and payable 11,157 11,710
Other provisions and payables 19,465 20,513
Total provisions and payables 385,007 245,874
Total liabilities 911,197 803,396
Net worth(b) -416,076 -280,721
Net financial worth(c) -552,028 -419,522
Net financial liabilities(d) 602,805 471,466
Net debt(e) 309,399 317,193

*As published in the 2016-17 MYEFO.
(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 (a)

 ACTUAL
2016-2017
December
$m
ACTUAL
2016-2017
YTD December
$m
MYEFO Profile
2016-2017
YTD December
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Cash receipts from operating activities        
Taxes received 30,959 175,358 173,745 378,756
Receipts from sales of goods and services 597 4,131 3,913 8,766
Interest receipts 245 1,570 1,447 2,990
Dividends and income tax equivalents 379 5,045 4,823 5,828
Other receipts 780 4,813 5,421 8,673
Total operating receipts 32,960 190,917 189,350 405,013
Cash payments for operating activities        
Payments for employees -2,294 -13,524 -14,082 -28,259
Payments for goods and services -8,910 -46,076 -45,525 -87,328
Grants and subsidies paid -11,726 -75,353 -76,381 -159,698
Interest paid -80 -7,384 -7,377 -15,377
Personal benefit payments -13,126 -71,828 -69,612 -132,884
Other payments -797 -3,136 -2,871 -5,235
Total operating payments -36,934 -217,301 -215,848 -428,781
Net cash flows from operating activities -3,974 -26,384 -26,499 -23,768
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets -10 90 75 2,337
Purchases of non-financial assets -1,456 -4,810 -5,320 -12,282
Net cash flows from investments in
non-financial assets
-1,466 -4,720 -5,246 -9,945
Net cash flows from investments in
financial assets for policy purposes
-1,714 -6,941 -10,401 -18,792
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments 7,699 -3,711 -16,807 -27,724
Net cash flows from investments in
financial assets for liquidity purposes
7,699 -3,711 -16,807 -27,724
Cash flows from financing activities        
Borrowing (net) 3,766 48,083 51,279 82,682
Other financing (net) -18 -1,426 -1,409 -3,149
Net cash flows from financing activities 3,749 46,656 49,870 79,533
Net increase/(decrease) in cash held 4,294 4,901 -9,082 -696
Net cash flows from operating activities
and investments in non-financial assets
(surplus(+)/deficit(-))
-5,440 -31,104 -31,744 -33,713
Finance leases and similar arrangements(b) -1 -9 -3 0
GFS cash surplus(+)/deficit(-) -5,442 -31,113 -31,747 -33,713
less Net Future Fund earnings 349 1,911 1,798 2,801
Equals underlying cash balance(c) -5,791 -33,025 -33,544 -36,514
plus Net cash flows from investments in
financial assets for policy purposes
-1,714 -6,941 -10,401 -18,792
plus Net Future Fund earnings 349 1,911 1,798 2,801
Equals headline cash balance -7,155 -38,054 -42,148 -52,505

*As published in the 2016-17 MYEFO.
(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
2016-2017
December
$m
ACTUAL
2016-2017
YTD December
$m
MYEFO Profile
2016-2017
YTD December
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 15,219 89,748 89,903 180,680
Gross other individuals 1,295 18,585 18,330 46,700
less Refunds 976 21,114 21,570 28,900
Total individuals and other withholding taxation 15,538 87,219 86,662 198,480
Fringe benefits tax 27 1,997 2,002 4,540
Company tax 7,125 32,904 32,262 68,700
Superannuation funds 1,415 5,346 5,175 8,080
Resource rent taxes 16 523 527 920
Total income taxation revenue 24,120 127,988 126,630 280,720

*As published in the 2016-17 MYEFO.

Note 2: Indirect Tax

 ACTUAL
2016-2017
December
$m
ACTUAL
2016-2017
YTD December
$m
MYEFO Profile
2016-2017
YTD December
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Goods and services tax 3,403 30,811 30,915 62,410
Wine equalisation tax 93 407 425 910
Luxury car tax 55 329 321 640
Excise duty 1,872 10,973 10,562 21,410
Customs duty 1,580 6,620 6,554 14,260
Other indirect tax 541 3,164 3,031 5,995
Total indirect taxation revenue 7,543 52,304 51,809 105,625

*As published in the 2016-17 MYEFO.

Note 3: Total expenses by function

 ACTUAL
2016-2017
December
$m
ACTUAL
2016-2017
YTD December
$m
MYEFO ESTIMATE*
2016-2017
Full Year
$m
Expenses by function      
General public services 1,601 10,451 26,991
Defence 2,346 13,944 26,816
Public order and safety 381 2,376 5,117
Education 2,535 17,019 33,339
Health 5,707 36,813 72,842
Social security and welfare 14,273 80,888 155,792
Housing and community amenities 339 2,021 5,131
Recreation and culture 280 1,576 3,532
Fuel and energy 554 3,320 6,874
Agriculture, Forestry and Fishing 218 1,046 2,914
Mining, manufacturing and construction 325 1,765 4,052
Transport and communication(a) 1,466 3,148 10,296
Other economic affairs 789 4,539 9,866
Other purposes      
Public debt interest 1,381 7,732 15,984
Nominal superannuation interest 746 4,592 8,446
General purpose inter-government transactions 5,116 31,739 62,696
Natural disaster relief 0 0 32
Contingency reserve 0 0 -2,077
Total expenses 38,057 222,970 448,642

*As published in the 2016-17 MYEFO.

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 Special Data Dissemination Standards

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 (SDDS). 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/cgs-quarterly/quarterly-data-december-2016/.

Electronic access to monthly financial statements

The Australian Government general government sector monthly financial statements and the historical series are available in electronic format at:

http://data.gov.au/dataset/australian-government-general-government-sector-monthly-financial-statements-tables-and-data.

[ENDS]

Media Contact(s): 

Karen Wu - 0428 350 139