Senator the Hon. Mathias Cormann
Minister for Finance
Today’s release of the Consolidated Financial Statements for 2012-13 shows the deterioration of the Australian Government’s financial position after the first five years of Labor waste and mismanagement.
The last financial year saw the Australian Government record a $27.9 billion fiscal deficit. This was the fifth successive deficit recorded by Labor.
The Australian Government’s balance sheet shows our net worth at the end of 2012-13 down to -$210.5 billion, with total assets of $430.8 billion being offset by total liabilities of $641.4 billion. This is down from a positive net worth position in 2007-08 of $67.7 billion.
These numbers are a serious indictment on Labor’s most recent record in government.
Labor turned an underlying cash surplus of $24.6 billion in 2007-08 to a deficit of $19.5 billion in 2012-13.
They inherited a budget that was in its sixth successive year of surplus and managed to turn it into a budget that in 2012-13 was in its fifth successive year of deficit.
The Australian Government’s worsening trend in net worth reflected in the 2012-13 Consolidated Financial Statements is due to increased liabilities associated with increased borrowings and increased spending under Labor.
The Coalition Government is working in a calm and methodical way to turn around the situation we inherited from Labor.
The next step will be the release next Tuesday of the Mid-Year Economic and Fiscal Outlook which will provide a full and thorough account of the true state of the budget the Government inherited from Labor.
The Consolidated Financial Statements present the financial results for the Whole of Government inclusive of all Australian Government controlled entities, including those outside the General Government Sector, such as Australia Post and the Reserve Bank of Australia.
The Commonwealth Auditor-General has issued an unqualified audit report on the Consolidated Financial Statements.
Key highlights from the Consolidated Financial Statements are included below. A full copy of the Consolidated Financial Statements is available at: http://www.finance.gov.au/financial-reporting-and-accounting-policy/annual-and-monthly-reporting-processes/2013-commonwealth-consolidated-financial-statements/
|Net operating balance||25.6||-25.0||-51.8||-45.7||-39.4||-23.4|
|less net acquisitions for non-financial assets||3.3||5.0||7.6||6.7||6.9||4.5|
The following table displays the stark contrast between the prudent and responsible legacy of the last Coalition Government and Labor’s legacy of waste and mismanagement:
|Fiscal balance||$22.3 billion surplus||-$27.9 billion deficit|
|Underlying cash balance||$24.6 billion surplus||-$19.5 billion deficit|
|Budget position||6th successive surplus||5th successive deficit|
|Expenses||$289.5 billion||$395.3 billion|
|Revenue||$315.1 billion||$372.0 billion|
|Total Assets||$339.2 billion||$430.8 billion|
|Total Liabilities||$271.5 billion||$641.4 billion|
|Net worth||+$67.7 billion||-$210.5 billion|
Source: Department of Finance
Senator the Hon Mathias Cormann
Minister for Finance
Karen Wu 0428 350 139