Media Release

Australian Government General Government Sector Monthly Financial Statements - January 2015

MC 06/15

Senator the Hon. Mathias Cormann
Minister for Finance

27 February 2015

Key Points

  • The underlying cash balance for the 2014-15 financial year to 31 January 2015 was a deficit of $38,733 million.
  • The fiscal balance for the 2014-15 financial year to 31 January 2015 was a deficit of $35,464 million.
AGGREGATES

ACTUAL
2014-2015
January
$m


ACTUAL
2014-2015
YTD January
$m

MYEFO
PROFILE
2014-2015
YTD January
$m

MYEFO
ESTIMATE*
2014-2015
Full Year
$m
Revenue  27,471 207,018 207,575 385,876
Expenses 35,098 243,309 245,630 422,898
Net operating balance  -7,627 -36,291 -38,054 -37,022
Net capital investment  -1,875 -827 -324 2,784
Fiscal balance  -5,752 -35,464 -37,730 -39,806
Receipts(a) 26,929 205,799 205,824 379,483
Payments(b) 34,095 241,892 243,954 416,526
Net Future Fund earnings 201 2,640 2,447 3,319
Underlying cash balance(c) -7,367 -38,733 -40,577 -40,362
Headline cash balance  -9,253 -36,581 -39,244 -43,863
Total assets   402,751   422,234
Total liabilities   705,647   651,715
Net worth(d)   -302,896   -229,481
Net debt(e)   252,254   244,836

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (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.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 31 January 2015 was a deficit of $38,733 million, compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $40,577 million. The difference of $1,844 million largely relates to lower than expected cash payments.

Fiscal Balance

The fiscal balance for the year to 31 January 2015 was a deficit of $35,464 million, compared to the MYEFO profile deficit of $37,730 million. The difference of $2,266 million is largely due to lower than expected expenses.

  • Revenues 
    Total revenue was $557 million lower than the MYEFO profile, primarily due to lower than expected taxation revenue and interest income.
  • Expenses
    Total expenses were $2,321 million lower than the MYEFO profile.  Lower wages and salaries, supply of goods and services, current grants and personal benefits contributed to the difference.

Assets and Liabilities

As at 31 January 2015:

  • Net worth is negative $302,896 million;
  • Net debt is $252,254 million; and
  • Net financial liabilities are $452,362 million.  



Senator the Hon Mathias Cormann
Minister for Finance 

27 February 2015 
Jane Halton 
Secretary 
Department of Finance 
27 February 2015 
  
 
  
Contact: Senator the Hon Mathias Cormann's Office:
               Department of Finance
Karen Wu     (02) 6277 7400 
Amelia Gard (02) 6215 2222

Australian Government general government sector operating statement

 Note
ACTUAL
2014-2015
January
$m

ACTUAL
2014-2015
YTD January
$m
MYEFO
PROFILE
2014-2015
YTD January
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Revenue          
Taxation revenue 1, 2 25,723 193,385 193,862 361,959
Sales of goods and services   612 5,042 5,016 9,190
Interest income   292 2,025 2,458 3,987
Dividend income   139 2,449 2,525 3,396
Other   706 4,116 3,714 7,344
Total revenue   27,471 207,018 207,575 385,876
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,394 10,665 11,066 19,221
Superannuation   658 3,577 3,221 6,777
Depreciation and amortisation   502 3,827 3,921 6,787
Supply of goods and services   5,610 44,847 45,540 80,809
Other operating expenses(a)   471 3,309 3,203 5,472
Total gross operating expenses   8,634 66,224 66,951 119,067
Superannuation interest expense   747 5,228 5,298 8,989
Interest expenses   1,388 9,273 9,433 16,387
Current transfers          
Current grants   13,294 72,029 72,623 124,201
Subsidy expenses   811 7,028 7,053 12,200
Personal benefits   9,264 77,779 78,407 131,506
Total current transfers   23,368 156,835 158,083 267,907
Capital transfers          
Mutually agreed write-downs   87 1,243 1,321 2,564
Other capital grants   874 4,506 4,544 7,984
Total capital transfers   961 5,749 5,865 10,548
Total expenses 3 35,098 243,309 245,630 422,898
Net operating balance   -7,627 -36,291 -38,054 -37,022
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -439 -3,439 -2,949 -6,154
Assets recognised for the first time   27 198 183 321
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   -344 -2,381 27 28
Net swap interest received   -146 -573 -170 -170
Market valuation of debt   -6,237 -19,677 -6,371 -5,344
Other gains/(losses)   5,443 19,077 11,409 13,446
Total other economic flows           
 - included in operating result   -1,697 -6,795 2,129 2,127
Operating result   -9,323 -43,086 -35,925 -34,894
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   9 -3 0 -2,140
Actuarial revaluations   0 0 1 206
Other economic revaluations(d)   243 -3,761 -3,439 -3,243
Total other economic flows - included in equity   252 -3,765 -3,439 -5,177
Comprehensive result - Total change in net worth   -9,071 -46,850 -39,364 -40,071
Net operating balance   -7,627 -36,291 -38,054 -37,022
Net acquisition of non-financial assets          
Purchases of non-financial assets   417 4,646 5,412 11,222
less Sales of non-financial assets   1,796 2,025 2,054 2,317
less Depreciation   502 3,827 3,921 6,787
plus Change in inventories   -20 193 120 471
plus Other movements in non-financial assets   26 186 119 195
Total net acquisition of non-financial assets   -1,875 -827 -324 2,784
Fiscal balance (Net lending/borrowing)(e)   -5,752 -35,464 -37,730 -39,806

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (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) The presentation of other economic flows has changed to align more closely with Australian Accounting Standard AASB 1049. 
(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 January 2015
$m
MYEFO ESTIMATE*
as at
30 June 2015
$m
Assets    
Financial assets    
Cash and deposits 3,810 3,825
Advances paid 42,968 46,208
Investments, loans and placements 117,396 130,197
Other receivables 45,738 46,024
Equity investments    
Investments in other public sector entities 34,406 35,478
Equity accounted investments 314 327
Investments - shares 43,059 41,724
Total financial assets 287,690 303,784
Non-financial assets    
Land 9,381 9,299
Buildings 24,992 26,125
Plant, equipment and infrastructure  54,604 56,518
Inventories 8,243 8,337
Intangibles 6,124 6,359
Investment property 198 198
Biological assets 31 36
Heritage and cultural assets 10,839 10,842
Assets held for sale 63 133
Other non-financial assets 585 604
Total non-financial assets 115,060 118,450
Total assets 402,751 422,234
Liabilities    
Interest bearing liabilities    
Deposits held 222 211
Government securities 403,803 409,609
Loans 10,744 13,693
Other borrowing 1,659 1,553
Total interest bearing liabilities 416,428 425,066
Provisions and payables    
Superannuation liability(a) 226,523 163,240
Other employee liabilities  14,883 15,977
Suppliers payable 5,644 4,905
Personal benefits provisions and payable 11,335 13,234
Subsidies provisions and payable 4,102 4,397
Grants provisions and payable 13,568 11,671
Other provisions and payables 13,164 13,225
Total provisions and payables 289,218 226,649
Total liabilities 705,647 651,715
Net worth(b) -302,896 -229,481
Net financial worth(c) -417,956 -347,931
Net financial liabilities(d)  452,362 383,409
Net debt(e) 252,254 244,836

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (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

 
ACTUAL
2014-2015
January
$m

ACTUAL
2014-2015
YTD January
$m
MYEFO
PROFILE
2014-2015
YTD January
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Cash receipts from operating activities        
Taxes received 25,239 189,338 189,192 353,594
Receipts from sales of goods and services 507 4,908 4,992 9,114
Interest receipts 210 1,649 2,169 3,469
Dividends and income tax equivalents 156 3,274 3,227 3,831
Other receipts 815 4,579 4,134 7,261
Total operating receipts 26,928 203,748 203,714 377,269
Cash payments for operating activities        
Payments for employees -1,881 -15,357 -15,481 -26,691
Payments for goods and services -5,373 -45,968 -46,219 -80,557
Grants and subsidies paid -15,447 -84,387 -85,117 -146,215
Interest paid -1,078 -8,030 -8,154 -14,221
Personal benefit payments -9,342 -79,857 -80,361 -132,142
Other payments  -529 -3,377 -3,074 -5,280
Total operating payments -33,651 -236,977 -238,406 -405,106
Net cash flows from operating activities -6,723 -33,228 -34,693 -27,837
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets 2 2,051 2,110 2,215
Purchases of non-financial assets -443 -4,890 -5,546 -11,420
Net cash flows from investments in 
    non-financial assets
-441 -2,839 -3,436 -9,205
Net cash flows from investments in 
   financial assets for policy purposes
-2,087 -488 -1,114 -6,821
Cash flows from investments in 
   financial assets for liquidity purposes
       
Increase in investments 4,377 4,289 1,681 -7,736
Net cash flows from investments in 
   financial assets for liquidity purposes
4,377 4,289 1,681 -7,736
Cash flows from financing activities        
Borrowing (net) 2,047 33,503 38,654 53,855
Other financing (net) -410 -1,272 -1,307 0
Net cash flows from financing activities 1,637 32,231 37,347 51,580
Net increase/(decrease) in cash held -3,237 -34 -215 -19
Net cash flows from operating activities
  and investments in non-financial assets
    (Surplus(+)/deficit(-))
-7,164 -36,067 -38,129 -37,042
Finance leases and similar arrangements(b) -1 -26 -1 0
GFS cash surplus(+)/deficit(-) -7,166 -36,092 -38,130 -37,042
less Net Future Fund earnings 201 2,640 2,447 3,319
Equals underlying cash balance(c) -7,367 -38,733 -40,577 -40,362
 plus Net cash flows from investments in
   financial assets for policy purposes
-2,087 -488 -1,114 -6,821
plus Net Future Fund earnings 201 2,640 2,447 3,319
Equals headline cash balance -9,253 -36,581 -39,244 -43,863

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (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
2014-2015
January
$m

ACTUAL
2014-2015
YTD January
$m
MYEFO
PROFILE
2014-2015
YTD January
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  11,430 96,151 96,392 168,430
Gross other individuals 1,655 17,421 18,217 40,470
less Refunds 1,054 21,537 21,590 27,500
Total individuals and other withholding taxation 12,031 92,035 93,019 181,400
Company tax 6,121 38,360 37,149 70,930
Superannuation funds 731 4,606 4,862 7,130
Resource rent taxes 323 1,447 1,491 1,830
Fringe benefits tax 778 2,885 2,830 4,480
Total income taxation revenue 19,985 139,333 139,351 265,770

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (MYEFO).

 

Note 2: Indirect Tax

 
ACTUAL
2014-2015
January
$m

ACTUAL
2014-2015
YTD January
$m
MYEFO
PROFILE
2014-2015
YTD January
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Goods and services tax 2,882 31,144 31,311 56,820
Wine equalisation tax 85 467 487 810
Luxury car tax 43 303 278 400
Excise duty 1,689 13,978 14,498 25,360
Customs duty 929 5,960 5,599 9,060
Other indirect tax 110 2,200 2,338 3,740
Total indirect taxation revenue 5,738 54,052 54,510 96,190

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (MYEFO).

 

Note 3: Total expenses by function

 
ACTUAL
2014-2015
January
$m

ACTUAL
2014-2015
YTD January
$m
MYEFO
ESTIMATE*
2014-2015
Full Year
$m
Expenses by function      
General public services 2,080 12,271 25,749
Defence 2,063 14,350 24,994
Public order and safety 335 2,574 4,539
Education  5,525 21,375 31,200
Health  5,077 37,669 67,052
Social security and welfare  10,867 88,552 149,913
Housing and community amenities 224 2,586 4,984
Recreation and culture 256 1,856 3,601
Fuel and energy 585 3,922 7,125
Agriculture, Forestry and Fishing 135 1,288 2,828
Mining, manufacturing and construction 192 1,539 2,781
Transport and communication 476 2,046 7,292
Other economic affairs 698 6,481 10,544
Other purposes      
Public debt interest 1,260 8,530 14,733
Nominal superannuation interest 747 5,228 8,989
General purpose inter-government transactions 4,580 33,043 57,157
Natural disaster relief 0 0 83
Contingency reserve 0 0 -665
Total expenses 35,098 243,309 422,898

*As published in the 2014-15 Mid-Year Economic and Fiscal Outlook (MYEFO).

NOTES:

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 (IMF) Special Data Dissemination Standards (SDDS)

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. 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://www.aofm.gov.au/content/borrowing/commonwealth.asp?NavID=32.

[ENDS]

Senator the Hon Mathias Cormann, Minister for Finance, Perth