02/2008
1 February 2008
The Australian Government monthly financial statements for 2007-08 have been re-designed to provide Government Finance Statistics (GFS) information only, whilst past statements included an AAS based set of statements all analysis and commentary was on a GFS basis.
As a result of a change in accounting policy by the Australian Government which was included in the Consolidated Financial Statements 2006-07 published on 20 December 2007, these statements now include GST as an Australian Government tax with associated payments to the States and Territories treated as a grant expense.
Care needs to be taken when comparing monthly or cumulative data across years and to full year estimates. Revenues and expenses do vary from month-to-month. The accrual framework, including the timing of payments and policy decisions, can have a large impact on fiscal aggregates from one year to the next and on year-to-date outcomes.
The main components of the underlying cash balance are cash from operations and cash movements in the net investment in non-financial assets.
The underlying cash balance for the year to 30 September 2007 was a deficit of $3,272 million. This underlying cash balance is $6,981 million lower than the 2007-08 MYEFO pro rata. The difference reflects a number of individual variations including the following:
Lower receipts from:
Lower payments for:
The fiscal balance for the year to 30 September 2007 was a deficit of $1,366 million. This fiscal balance is $5,357 million lower than the 2007-08 MYEFO pro rata.
GFS Expenses are $2,945 million lower when compared with a pro rata of the 2007-08 MYEFO estimate whilst GFS Revenue is $8,406 million lower when compared with a pro rata of the 2007-08 MYEFO estimate.
The main reason for the lower expenses is due to the timing of grant and personal benefit payments whilst lower revenue is due to the seasonality of revenue collections.
The net worth balance within the General Government sector is a positive net asset position of
$8,858 million at 30 September 2007.
Lindsay Tanner MP |
I J Watt |
Contact: Lindsay Tanner MP’s Office: George Wright - 0419 556 616 Department of Finance and Deregulation: Tim Youngberry (02) 6215 2660 First Assistant Secretary Financial Reporting and Cash Management |
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(a) Change in net worth arising from a change in 05-06 outcomes
(b) Revaluations of equity reflects changes in the market valuation of commercial entities. This line also reflects any
equity revaluations at the point of disposal or sale.
(c) Largely reflects revaluation of assets and liabilities.
The framework used a basis for these statements are generally consistent with the requirements of GFS. The Financial Management and Accountability Act 1997 requires monthly financial statements to be consistent with the Budget estimates, accordingly, and pursuant to the Charter of Budget Honesty Act 1998, this presentation covers the General Government sector on a GFS basis, and therefore does not include full note disclosures.
With the introduction of Business Activity Statements and Instalment Activity Statements in 2000-2001, taxpayers provide information on payments associated with several types of tax when lodging the statement and paying the aggregate net tax amount. Thus, 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 statements are received and processed. The outcomes for some revenue items provided in this statement are thus estimates, in accordance with the best judgement of the Taxation Commissioner, and subject to revision. The taxation revenue items not affected are: Petroleum Resource Rent Tax, Excise duty, Customs duty, Other Taxes and Individuals Refunds.
The sum of the revenue accrued in the month and the revisions to prior periods equals the revenue reported in the Statement of Revenue and Expenses.
All taxation items in these notes are reported on a GFS basis, unless otherwise indicated.
These statements reflect the GST as an Australian Government tax, with associated payments.
