03/2008
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 31 October 2007 was a surplus of $3,104 million. This underlying cash balance is $1,841 million lower than the 2007-08 MYEFO pro rata. The difference reflects a number of individual variations including the following:
Lower receipts compared to pro rata MYEFO estimates from:
Higher payments compared to pro rata MYEFO estimates for:
The fiscal balance for the year to 31 October 2007 was a surplus of $6,491 million. This fiscal balance is $1,170 million higher than the 2007-08 MYEFO pro rata estimate.
GFS Expenses are $23 million higher when compared with a pro rata of the 2007-08 MYEFO estimate whilst GFS Revenue is $1,022 million higher when compared with a pro rata of the 2007-08 MYEFO estimate.
The main reason for the higher expenses is due to the timing of grant and supplier payments whilst higher 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
$17,864 million at 31 October 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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The framework used a basis for these statements and notes is 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.
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.
These statements reflect the GST as an Australian Government tax, with associated payments.
Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components are due to rounding.
In accordance with the IMF's SDDS, quarter ahead notice of the date of release of the data on central government operations, which is contained in the Australian Government Financial Statements, is given on the IMF's Data Dissemination Bulletin Board at 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 AOFM website at http://www.aofm.gov.au/content/borrowing/commonwealth.asp?NavID=32. 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 Calender http://dsbb.imf.org.
