Media Release

Senator the Hon Penny Wong
Minister for Finance and Deregulation

08/2012
16 November 2012

Australian Government Monthly Financial Statements
July and August 2012

KEY POINTS

• The underlying cash balance for the 2012-13 financial year to 31 August 2012 was a deficit of $7,418 million.
• The fiscal balance for the 2012-13 financial year to 31 August 2012 was a deficit of $5,230 million.

AGGREGATES	ACTUAL 2012-2013 YTD July $m	ACTUAL 2012-2013 August $m	ACTUAL 2012-2013 YTD August $m	Budget Profile 2012-2013 YTD August $m	BUDGET ESTIMATE* 2012-2013 FULL YEAR $m
Revenue	36,996	21,826	58,822	59,014	376,071
Expenses	33,145	30,892	64,037	64,775	376,273
Net operating balance	3,851	-9,066	-5,215	-5,761	-202
Net capital investment	-226	241	15	-832	-2,701
Fiscal balance	4,077	-9,307	-5,230	-4,930	2,500
Underlying Cash Receipts	36,400	21,255	57,655	58,291	365,744
Underlying Cash Payments	34,265	30,808	65,073	65,311	364,209
Underlying cash balance(a)	2,134	-9,552	-7,418	-7,020	1,536
Headline cash balance	2,387	-9,475	-7,088	-10,370	-8,715
Total assets	336,774		338,970		349,396
Total liabilities	580,184		590,282		487,174
Net worth(b)	-243,410		-251,312		-137,778
Net debt(c)	146,113		153,233		143,345

*As published in the 2012-13 Budget. The monthly profiles are constructed prospectively, and therefore will be comparable to the Mid Year Economic and Fiscal Outlook estimates from the November monthly statements.
(a) Excludes Future Fund earnings.
(b) Net worth is calculated as total assets minus total liabilities.
(c) 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 includes cash from operations and net cash provided by investing activities in non-financial assets but excludes the cash earnings for the Future Fund¹.

The underlying cash balance for the year to 31 August 2012 was a deficit of $7,418 million, compared to the Budget profile of the underlying cash balance deficit of $7,020 million. The difference of $398 million relates to lower underlying cash receipts partially offset by lower underlying cash payments.

Fiscal Balance

The fiscal balance for the year to 31 August 2012 was a deficit of $5,230 million. The Budget profile of the fiscal balance for 2012-13 is a deficit of $4,930 million. The difference of $300 million primarily relates to lower expenses, offset by higher net acquisition of non‑financial assets and lower revenue.

FINANCIAL OUTCOMES

Revenues and Expenses

Total revenue was $192 million lower than the Budget profile estimate for 2012-13 primarily due to lower interest income and lower taxation revenue, partially offset by an increase in other revenue.

Total expenses were $738 million lower when compared with the Budget profile estimate for 2012-13 primarily due to lower grants expenditure, partially offset by higher interest expenses.

Assets and Liabilities

The net worth of the General Government sector is a negative net asset position of $251,312 million at 31 August 2012.

Senator Penny Wong Minister for Finance and Deregulation 16 November 2012	David Tune Secretary to the Department of Finance and Deregulation 16 November 2012
Contact: Senator Penny Wong's Office: Department of Finance and Deregulation:	Evelyn Ek - (02) 6277 7400 Amelia Huang - (02) 6215 3138

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Australian Government General Government Sector – INCOME STATEMENT

	ACTUAL 2012-2013 YTD July $m	ACTUAL 2012-2013 August $m	ACTUAL 2013-2013 YTD August $m	BUDGET ESTIMATE* 2012-2013 FULL YEAR $m
Revenue
Taxation revenue	35,573	19,858	55,432	354,626
Sales of goods and services	589	656	1,245	8,264
Interest income	229	416	645	5,113
Dividend income	58	246	305	2,485
Other	547	650	1,196	5,583
Total revenue	36,996	21,826	58,822	376,071
Expenses
Gross operating expenses
Wages and salaries(a)	1,556	1,612	3,168	19,110
Superannuation	550	520	1,070	3,968
Depreciation and amortisation	466	516	982	6,188
Supply of goods and services	5,988	6,324	12,312	71,120
Other operating expenses(a)	458	476	935	5,057
Total gross operating expenses	9,018	9,449	18,467	105,443
Superannuation interest expense	576	576	1,152	8,015
Interest expenses	1,032	1,149	2,180	13,587
Current transfers
Current grants	9,845	7,635	17,479	112,720
Subsidy expenses	709	785	1,494	12,943
Personal benefits	11,251	10,717	21,968	114,975
Total current transfers	21,805	19,137	40,942	240,637
Capital transfers
Mutually agreed write-downs	178	142	321	2,266
Other capital grants	536	440	976	6,324
Total capital transfers	714	582	1,296	8,589
Total expenses	33,145	30,892	64,037	376,273
Net operating balance	3,851	-9,066	-5,215	-202
Other economic flows
Gain/loss on equity and on sale of assets(b)	-1,312	2,249	937	6,554
Net write-downs of assets(including bad and doubtful debts)	-527	-630	-1,157	-5,358
Assets recognised for the first time	44	44	87	531
Actuarial revaluations	0	0	0	0
Net foreign exchange gains	1,110	-624	486	-17
Net swap interest received	5	35	39	0
Market valuation of debt	597	58	655	2,635
Other economic revaluations(c)	31	33	63	-153
Total other economic flows	-53	1,164	1,111	4,193
Comprehensive result - Total change in net worth	3,798	-7,901	-4,104	3,991
Net operating balance	3,851	-9,066	-5,215	-202
Net acquisition of non-financial assets
Purchases of non-financial assets	530	520	1,050	8,040
less Sales of non-financial assets	16	11	27	4,872
less Depreciation	466	516	982	6,188
plus Change in inventories	-239	207	-32	384
plus Other movements in non-financial assets	-36	42	6	-65
Total net acquisition of non-financial assets	-226	241	15	-2,701
Fiscal balance (Net lending/borrowing)(d)	4,077	-9,307	-5,230	2,500

*As published in the 2012-13 Budget.
(a) Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b) Reflects changes in the market valuation of investments and any revaluations at the point of disposal or sale.
(c) Largely reflects other revaluation of assets and liabilities.
(d) The term fiscal balance is not used by the ABS.

Australian Government General Government Sector - BALANCE SHEET

	ACTUAL as at 31 July 2012 $m	ACTUAL as at 31 August 2012 $m	BUDGET ESTIMATE* as at 30 June 2013 $m
Assets
Financial assets
Cash and deposits	3,054	2,061	2,224
Advances paid	32,713	31,831	33,044
Investments, loans and placements	97,758	103,614	107,796
Other receivables	39,268	39,888	39,772
Equity investments
Investments in other public sector entities	24,923	21,780	25,305
Equity accounted investments	312	313	317
Investments - shares	27,234	28,025	30,075
Total financial assets	225,262	227,512	238,532
Non-financial assets
Land	8,543	8,650	8,558
Buildings	23,127	23,287	23,188
Plant, equipment and infrastructure	52,958	52,781	53,011
Inventories	7,112	7,270	7,095
Intangibles	5,467	5,526	5,528
Investment property	437	186	660
Biological assets	35	34	36
Heritage and cultural assets	10,427	10,434	9,581
Assets held for sale	100	69	146
Other non-financial assets	3,305	3,223	3,061
Total non-financial assets	111,512	111,458	110,864
Total assets	336,774	338,970	349,396
Liabilities
Interest bearing liabilities
Deposits held	231	219	209
Government securities	269,910	280,860	274,231
Loans	8,512	8,677	10,880
Other borrowing	986	983	1,089
Total interest bearing liabilities	279,639	290,739	286,408
Provisions and payables
Superannuation liability(a)	235,885	236,505	143,667
Other employee liabilities	14,161	13,839	12,896
Suppliers payable	4,707	4,475	4,555
Personal benefits provisions and payable	13,439	13,005	13,929
Subsidies provisions and payable	2,823	2,747	3,289
Grants provisions and payable	13,867	13,509	11,248
Other provisions and payables	15,664	15,462	11,182
Total provisions and payables	300,546	299,542	200,765
Total liabilities	580,184	590,282	487,174
Net worth(b)	-243,410	-251,312	-137,778
Net financial worth(c)	-354,922	-362,770	-248,642
Net financial liabilities(d)	379,845	384,549	273,946
Net debt(e)	146,113	153,233	143,345

*As published in the 2012-13 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 2012-2013 YTD July $m	ACTUAL 2012-2013 August $m	ACTUAL 2012-2013 YTD August $m	BUDGET ESTIMATE* 2012-2013 FULL YEAR $m
Cash receipts from operating activities
Taxes received	34,592	19,677	54,268	343,107
Receipts from sales of goods and services	719	738	1,457	8,289
Interest receipts	514	297	811	4,660
Dividends and income tax equivalents	155	156	311	2,518
Other receipts	842	620	1,461	5,329
Total operating receipts	36,821	21,488	58,310	363,902
Cash payments for operating activities
Payments for employees	-2,038	-2,707	-4,744	-25,849
Payments for goods and services	-7,740	-6,617	-14,356	-71,162
Grants and subsidies paid	-11,469	-9,152	-20,621	-129,330
Interest paid	-688	-418	-1,106	-11,661
Personal benefit payments	-11,267	-11,066	-22,333	-113,517
Other payments	-489	-422	-911	-4,760
Total operating payments	-33,691	-30,381	-64,073	-356,280
Net cash flows from operating activities	3,130	-8,893	-5,763	7,622
Cash flows from investments in non-financial assets
Sales of non-financial assets	16	11	27	4,872
Purchases of non-financial assets	-574	-426	-1,000	-7,523
Net cash flows from investments in   non-financial assets	-558	-415	-973	-2,651
Net cash flows from investments in    financial assets for policy purposes	-185	-167	-352	-13,281
Cash flows from investments in    financial assets for liquidity purposes
Increase in investments	-2,655	-1,571	-4,227	-1,979
Net cash flows from investments in    financial assets for liquidity purposes	-2,655	-1,571	-4,227	-1,979
Cash flows from financing activities
Borrowing (net)	658	10,622	11,280	11,549
Other financing (net)	-261	-167	-428	-1,507
Net cash flows from financing activities	397	10,455	10,852	10,043
Net increase/(decrease) in cash held	128	-591	-463	-246
Net cash flows from operating activities  and investments in non-financial assets    (Surplus(+)/deficit(-))	2,572	-9,308	-6,736	4,971
Finance leases and similar arrangements(b)	0	0	0	-406
GFS cash surplus(+)/deficit(-)	2,572	-9,308	-6,736	4,565
less Future Fund earnings	437	245	682	3,030
Equals underlying cash balance (c)	2,134	-9,552	-7,418	1,536
plus net cash flows from investments in   financial assets for policy purposes	-185	-167	-352	-13,281
plus Future fund earnings	437	245	682	3,030
Equals headline cash balance	2,387	-9,475	-7,088	-8,715

*As published in the 2012-13 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 ABS.

Australian Government General Government Sector - EXPENSES BY FUNCTION

	ACTUAL 2012-2013 YTD July $m	ACTUAL 2012-2013 August $m	ACTUAL 2012-2013 YTD August $m	BUDGET ESTIMATE(a) 2012-2013 FULL YEAR $m
Expenses by function
General public services	1,650	1,794	3,444	22,054
Defence	1,528	1,855	3,383	21,559
Public order and safety	457	321	778	3,957
Education	3,704	1,644	5,348	29,572
Health	5,462	5,232	10,694	61,003
Social security and welfare	12,696	11,844	24,540	131,656
Housing and community amenities	190	261	451	7,276
Recreation and culture	270	459	730	3,605
Fuel and energy	453	525	978	6,523
Agriculture, forestry and fishing	107	148	255	2,609
Mining, manufacturing and construction	125	118	243	2,084
Transport and communication	61	283	344	5,048
Other economic affairs	756	890	1,647	9,331
Other purposes
Public debt interest	957	970	1,926	12,017
Nominal superannuation interest	576	576	1,152	8,015
General purpose inter-government transactions	4,154	3,970	8,125	50,519
Natural disaster relief	0	0	0	113
Contingency reserve	0	0	0	-670
Total expenses	33,145	30,892	64,037	376,273

* As published in the 2012-13 Budget.

NOTES:

The Australian Government monthly financial statements have been prepared on a basis consistent with the Budget as required under section 54 of the Financial Management and Accountability Act 1997. 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.

In response to the report ‘Review of Operation Sunlight: Overhauling Budgetary Transparency’, the Australian Government has improved the transparency and accountability of the Monthly Financial Statements by reporting against a profile of expected revenue and expenses. This allows for a more accurate commentary and account for seasonality or patterns of revenue and expenses.

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. The exception is the June and July Monthly Financial Statements, for which the IMF has given Australia special dispensation to release before 30 September.

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 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 Income Statement.

Note 1: Income Tax

	ACTUAL 2012-2013 YTD July $m	ACTUAL 2012-2013 August $m	ACTUAL 2012-2013 YTD August $m	BUDGET ESTIMATE* 2012-2013 FULL YEAR $m
Individuals and other withholding taxes
Gross income tax withholding	11,884	13,794	25,678	151,620
Gross other individuals	4,227	2,856	7,083	37,670
Less refunds	4,324	5,894	10,219	26,240
Total individuals and other withholding taxation	11,786	10,756	22,542	163,050
Company tax	13,229	1,556	14,786	75,032
Superannuation funds	1,121	602	1,724	8,250
Resource rent tax (a)	-35	439	404	7,410
Fringe benefits tax	779	39	817	3,900
Total income taxation revenue	26,881	13,392	40,273	257,642

*As published in the 2012-13 Budget.
(a) The negative figure reflects refunds.

Note 2: Indirect Tax

	ACTUAL 2012-2013 July $m	ACTUAL 2012-2013 August $m	ACTUAL 2012-2013 YTD August $m	BUDGET ESTIMATE* 2012-2013 FULL YEAR $m
Goods and services tax	5,126	3,724	8,850	50,486
Wine equalisation tax	48	48	95	780
Luxury car tax	48	34	83	450
Excise duty	2,479	1,852	4,331	26,885
Customs duty	698	631	1,329	7,370
Carbon pricing mechanism	0	0	0	7,690
Other indirect tax	293	178	471	3,323
Total indirect taxation revenue	8,692	6,467	15,159	96,984

*As published in the 2012-13 Budget.
(a) Since the Carbon pricing mechanism is new, no amounts were expected for July and August. Therefore no revenue has been recorded YTD for the carbon pricing mechanism.

NOTE:

Style Conventions

1. 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)

2. 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 [].
3. 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 AOFM website at http://www.aofm.gov.au/content/borrowing/commonwealth.asp?NavID=32 [].

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Last Updated: 16 November, 2012