Media Release

Australian Government General Government Sector Monthly Financial Statements - February 2015

MC 11/15

Senator the Hon. Mathias Cormann
Minister for Finance

31 March 2015

Key Points

  • The underlying cash balance for the 2014-15 financial year to 28 February 2015 was a deficit of $40,481 million.
  • The fiscal balance for the 2014-15 financial year to 28 February 2015 was a deficit of 
    $36,458 million.
AGGREGATES

ACTUAL
2014-2015
February
$m


ACTUAL
2014-2015
YTD February
$m

MYEFO Profile
2014-2015
YTD February
$m

MYEFO
ESTIMATE*
2014-2015
Full Year
$m
Revenue  31,108 238,127 237,967 385,876
Expenses 31,941 275,250 279,259 422,898
Net operating balance  -833 -37,123 -41,292 -37,022
Net capital investment  162 -665 2 2,784
Fiscal balance  -994 -36,458 -41,294 -39,806
Receipts(a) 27,738 233,537 233,593 379,483
Payments(b) 29,280 271,171 275,513 416,526
Net Future Fund earnings 207 2,847 2,644 3,319
Underlying cash balance(c) -1,748 -40,481 -44,563 -40,362
Headline cash balance  -2,497 -39,078 -44,183 -43,863
Total assets   411,294   422,234
Total liabilities   712,758   651,715
Net worth(d)   -301,464   -229,481
Net debt(e)   254,964   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 28 February 2015 was a deficit of $40,481 million, compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $44,563 million. The difference of $4,082 million largely relates to lower than expected cash payments. 

Fiscal Balance

The fiscal balance for the year to 28 February 2015 was a deficit of $36,458 million, compared to the MYEFO profile deficit of $41,294 million. The difference of $4,836 million is largely due to lower than expected expenses.

  • Revenues 
    Total revenue was $160 million higher than the MYEFO profile, primarily due to higher than expected taxation revenue.
  • Expenses
    Total expenses were $4,009 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 28 February 2015:

  • Net worth is negative $301,464 million;
  • Net debt is $254,964 million; and
  • Net financial liabilities are $451,573 million.



Senator the Hon Mathias Cormann
Minister for Finance 

31 March 2015 
Jane Halton 
Secretary 
Department of Finance 
31 March 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
February
$m

ACTUAL
2014-2015
YTD February
$m
MYEFO
PROFILE
2014-2015
YTD February
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Revenue          
Taxation revenue 1, 2 29,293 222,678 222,474 361,959
Sales of goods and services   836 5,879 5,840 9,190
Interest income   263 2,288 2,735 3,987
Dividend income   321 2,771 2,679 3,396
Other   395 4,511 4,238 7,344
Total revenue   31,108 238,127 237,967 385,876
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,505 12,170 12,572 19,221
Superannuation   585 4,161 3,837 6,777
Depreciation and amortisation   573 4,400 4,477 6,787
Supply of goods and services   6,147 50,995 52,265 80,809
Other operating expenses(a)   484 3,793 3,596 5,472
Total gross operating expenses   9,295 75,519 76,747 119,067
Superannuation interest expense   750 5,978 6,034 8,989
Interest expenses   1,265 10,538 10,725 16,387
Current transfers          
Current grants   9,207 81,236 82,479 124,201
Subsidy expenses   962 7,990 8,040 12,200
Personal benefits   9,602 87,381 88,428 131,506
Total current transfers   19,772 176,607 178,946 267,907
Capital transfers          
Mutually agreed write-downs   173 1,415 1,504 2,564
Other capital grants   686 5,192 5,302 7,984
Total capital transfers   859 6,607 6,806 10,548
Total expenses 3 31,941 275,250 279,259 422,898
Net operating balance   -833 -37,123 -41,292 -37,022
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -619 -4,058 -4,203 -6,154
Assets recognised for the first time   29 227 209 321
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   41 -2,340 27 28
Net swap interest received   -225 -799 -170 -170
Market valuation of debt   -676 -20,353 -6,164 -5,344
Other gains/(losses)   3,638 22,715 11,681 13,446
Total other economic flows           
 - included in operating result   2,187 -4,608 1,380 2,127
Operating result   1,354 -41,732 -39,912 -34,894
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   -1 -4 0 -2,140
Actuarial revaluations   0 0 1 206
Other economic revaluations(d)   79 -3,682 -3,401 -3,243
Total other economic flows - included in equity   78 -3,686 -3,401 -5,177
Comprehensive result - Total change in net worth   1,432 -45,418 -43,313 -40,071
Net operating balance   -833 -37,123 -41,292 -37,022
Net acquisition of non-financial assets          
Purchases of non-financial assets   780 5,426 6,278 11,222
less Sales of non-financial assets   57 2,081 2,077 2,317
less Depreciation   573 4,400 4,477 6,787
plus Change in inventories   -16 177 143 471
plus Other movements in non-financial assets   27 213 135 195
Total net acquisition of non-financial assets   162 -665 2 2,784
Fiscal balance (Net lending/borrowing)(e)   -994 -36,458 -41,294 -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
28 February 2015
$m
MYEFO ESTIMATE*
as at
30 June 2015
$m
Assets    
Financial assets    
Cash and deposits 3,981 3,825
Advances paid 43,358 46,208
Investments, loans and placements 119,096 130,197
Other receivables 49,279 46,024
Equity investments    
Investments in other public sector entities 34,939 35,478
Equity accounted investments 314 327
Investments - shares 45,157 41,724
Total financial assets 296,123 303,784
Non-financial assets    
Land 9,369 9,299
Buildings 25,059 26,125
Plant, equipment and infrastructure  54,704 56,518
Inventories 8,197 8,337
Intangibles 6,094 6,359
Investment property 202 198
Biological assets 31 36
Heritage and cultural assets 10,841 10,842
Assets held for sale 61 133
Other non-financial assets 612 604
Total non-financial assets 115,171 118,450
Total assets 411,294 422,234
Liabilities    
Interest bearing liabilities    
Deposits held 220 211
Government securities 409,063 409,609
Loans 10,473 13,693
Other borrowing 1,642 1,553
Total interest bearing liabilities 421,399 425,066
Provisions and payables    
Superannuation liability(a) 227,231 163,240
Other employee liabilities  15,073 15,977
Suppliers payable 5,812 4,905
Personal benefits provisions and payable 11,528 13,234
Subsidies provisions and payable 4,141 4,397
Grants provisions and payable 13,584 11,671
Other provisions and payables 13,989 13,225
Total provisions and payables 291,359 226,649
Total liabilities 712,758 651,715
Net worth(b) -301,464 -229,481
Net financial worth(c) -416,634 -347,931
Net financial liabilities(d)  451,573 383,409
Net debt(e) 254,964 244,836

*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
February
$m

ACTUAL
2014-2015
YTD February
$m
MYEFO
PROFILE
2014-2015
YTD February
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Cash receipts from operating activities        
Taxes received 26,483 215,821 215,361 353,594
Receipts from sales of goods and services 882 5,790 5,821 9,114
Interest receipts 180 1,829 2,414 3,469
Dividends and income tax equivalents 235 3,509 3,347 3,831
Other receipts -89 4,490 4,517 7,261
Total operating receipts 27,691 231,439 231,460 377,269
Cash payments for operating activities        
Payments for employees -2,132 -17,489 -17,569 -26,691
Payments for goods and services -5,282 -51,250 -52,401 -80,557
Grants and subsidies paid -10,855 -95,241 -96,729 -146,215
Interest paid -454 -8,484 -8,853 -14,221
Personal benefit payments -9,472 -89,330 -90,150 -132,142
Other payments  -305 -3,683 -3,381 -5,280
Total operating payments -28,500 -265,477 -269,082 -405,106
Net cash flows from operating activities -809 -34,037 -37,623 -27,837
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets 47 2,098 2,134 2,215
Purchases of non-financial assets -778 -5,668 -6,430 -11,420
Net cash flows from investments in 
    non-financial assets
-731 -3,570 -4,296 -9,205
Net cash flows from investments in 
   financial assets for policy purposes
-955 -1,444 -2,263 -6,821
Cash flows from investments in 
   financial assets for liquidity purposes
       
Increase in investments -1,115 3,175 755 -7,736
Net cash flows from investments in 
   financial assets for liquidity purposes
-1,115 3,175 755 -7,736
Cash flows from financing activities        
Borrowing (net) 4,175 37,678 44,686 53,855
Other financing (net) -394 -1,666 -1,426 0
Net cash flows from financing activities 3,781 36,012 43,261 51,580
Net increase/(decrease) in cash held 171 136 -166 -19
Net cash flows from operating activities
  and investments in non-financial assets
    (Surplus(+)/deficit(-))
-1,540 -37,607 -41,919 -37,042
Finance leases and similar arrangements(b) -1 -27 -1 0
GFS cash surplus(+)/deficit(-) -1,542 -37,634 -41,920 -37,042
less Net Future Fund earnings 207 2,847 2,644 3,319
Equals underlying cash balance(c) -1,748 -40,481 -44,563 -40,362
 plus Net cash flows from investments in
   financial assets for policy purposes
-955 -1,444 -2,263 -6,821
plus Net Future Fund earnings 207 2,847 2,644 3,319
Equals headline cash balance -2,497 -39,078 -44,183 -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
February
$m

ACTUAL
2014-2015
YTD February
$m
MYEFO
PROFILE
2014-2015
YTD February
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  14,374 110,525 110,362 168,430
Gross other individuals 2,699 20,120 20,783 40,470
less Refunds 1,001 22,538 22,593 27,500
Total individuals and other withholding taxation 16,072 108,107 108,551 181,400
Company tax 4,049 42,409 41,637 70,930
Superannuation funds -290 4,316 4,700 7,130
Resource rent taxes 35 1,482 1,520 1,830
Fringe benefits tax 156 3,041 2,947 4,480
Total income taxation revenue 20,021 159,355 159,356 265,770

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

 

Note 2: Indirect Tax

 
ACTUAL
2014-2015
February
$m

ACTUAL
2014-2015
YTD February
$m
MYEFO
PROFILE
2014-2015
YTD February
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Goods and services tax 5,969 37,113 36,936 56,820
Wine equalisation tax 88 555 555 810
Luxury car tax 39 342 303 400
Excise duty 1,896 15,874 16,487 25,360
Customs duty 792 6,753 6,241 9,060
Other indirect tax 487 2,686 2,595 3,740
Total indirect taxation revenue 9,271 63,323 63,118 96,190

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

 

Note 3: Total expenses by function

 
ACTUAL
2014-2015
February
$m

ACTUAL
2014-2015
YTD February
$m
MYEFO
ESTIMATE*
2014-2015
Full Year
$m
Expenses by function      
General public services 1,716 13,987 25,749
Defence 2,041 16,391 24,994
Public order and safety 357 2,931 4,539
Education  1,777 23,152 31,200
Health  5,328 42,997 67,052
Social security and welfare  10,755 99,308 149,913
Housing and community amenities 360 2,946 4,984
Recreation and culture 273 2,129 3,601
Fuel and energy 552 4,474 7,125
Agriculture, Forestry and Fishing 166 1,454 2,828
Mining, manufacturing and construction 189 1,728 2,781
Transport and communication 557 2,603 7,292
Other economic affairs 841 7,322 10,544
Other purposes      
Public debt interest 1,148 9,678 14,733
Nominal superannuation interest 750 5,978 8,989
General purpose inter-government transactions 5,130 38,172 57,157
Natural disaster relief 0 0 83
Contingency reserve 0 0 -665
Total expenses 31,941 275,250 422,898

*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.

Electronic access to monthly financial statements

The Australian Government general government sector Monthly Financial Statements and the historical series are available in electronic format at: http://data.gov.au/dataset/australian-government-general-government-sector-monthly-financial-statements-tables-and-data.

[ENDS]

Senator the Hon Mathias Cormann, Minister for Finance, Perth