Media Release

Australian Government General Government Sector Monthly Financial Statements, March 2015

MC 17/15

Senator the Hon. Mathias Cormann
Minister for Finance

24 April 2015

Key Points

  • The underlying cash balance for the 2014-15 financial year to 31 March 2015 was a deficit of $35,225 million.
  • The fiscal balance for the 2014-15 financial year to 31 March 2015 was a deficit of $33,048 million.
AGGREGATES

ACTUAL
2014-2015
MARCH
$M


ACTUAL
2014-2015
YTD MARCH
$M

MYEFO
PROFILE
2014-2015
YTD MARCH
$M

MYEFO
ESTIMATE*
2014-2015
FULL YEAR
$M
Revenue  37,655 275,782 276,426 385,876
Expenses 34,045 309,295 314,009 422,898
Net operating balance  3,610 -33,514 -37,584 -37,022
Net capital investment  200 -465 330 2,784
Fiscal balance  3,410 -33,048 -37,914 -39,806
Receipts(a) 38,516 272,054 272,021 379,483
Payments(b) 32,913 304,084 308,720 416,526
Net Future Fund earnings 347 3,194 2,765 3,319
Underlying cash balance(c) 5,256 -35,225 -39,464 -40,362
Headline cash balance  4,396 -34,682 -40,481 -43,863
Total assets   424,014   422,234
Total liabilities   725,076   651,715
Net worth(d)   -301,062   -229,481
Net debt(e)   250,050   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 March 2015 was a deficit of $35,225 million, compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $39,464 million. The difference of $4,239 million largely relates to lower than expected cash payments.

Fiscal Balance

The fiscal balance for the year to 31 March 2015 was a deficit of $33,048 million, compared to the MYEFO profile deficit of $37,914 million. The difference of $4,866 million is largely due to lower than expected expenses.  

  • Revenues 
    Total revenue was $644 million lower than the MYEFO profile, primarily due to lower than expected taxation revenue.
  • Expenses
    Total expenses were $4,714 million lower than the MYEFO profile.  Lower supply of goods and services, grants and personal benefits contributed to the difference.

Assets and Liabilities

As at 31 March 2015:

  • Net worth is negative $301,062 million;
  • Net debt is $250,050 million; and
  • Net financial liabilities are $451,110 million.



Senator the Hon Mathias Cormann
Minister for Finance 

24 April 2015 
Jane Halton 
Secretary 
Department of Finance 
24 April 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
MARCH
$M

ACTUAL
2014-2015
YTD MARCH
$M
MYEFO
PROFILE
2014-2015
YTD MARCH
$M
MYEFO ESTIMATE*
2014-2015
FULL YEAR
$M
Revenue          
Taxation revenue 1, 2 35,720 258,397 259,348 361,959
Sales of goods and services   722 6,600 6,554 9,190
Interest income   290 2,579 3,031 3,987
Dividend income   385 3,156 2,827 3,396
Other   538 5,049 4,666 7,344
Total revenue   37,655 275,782 276,426 385,876
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,618 13,788 14,162 19,221
Superannuation   603 4,764 4,456 6,777
Depreciation and amortisation   604 5,004 5,036 6,787
Supply of goods and services   6,694 57,689 59,177 80,809
Other operating expenses(a)   405 4,198 4,020 5,472
Total gross operating expenses   9,924 85,443 86,850 119,067
Superannuation interest expense   750 6,729 6,770 8,989
Interest expenses   1,361 11,899 12,164 16,387
Current transfers          
Current grants   9,161 90,397 91,856 124,201
Subsidy expenses   1,050 9,040 9,077 12,200
Personal benefits   11,013 98,394 99,644 131,506
Total current transfers   21,224 197,830 200,577 267,907
Capital transfers          
Mutually agreed write-downs   227 1,642 1,762 2,564
Other capital grants   560 5,752 5,886 7,984
Total capital transfers   787 7,394 7,648 10,548
Total expenses 3 34,045 309,295 314,009 422,898
Net operating balance   3,610 -33,514 -37,584 -37,022
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -670 -4,728 -4,402 -6,154
Assets recognised for the first time   29 256 235 321
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   119 -2,222 27 28
Net swap interest received   -123 -922 -170 -170
Market valuation of debt   -2,228 -22,581 -5,932 -5,344
Other gains/(losses)   400 23,114 11,936 13,446
Total other economic flows           
 - included in operating result   -2,475 -7,083 1,695 2,127
Operating result   1,135 -40,597 -35,889 -34,894
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   -1,126 -1,130 0 -2,140
Actuarial revaluations   0 0 1 206
Other economic revaluations(d)   393 -3,290 -3,367 -3,243
Total other economic flows - included in equity   -733 -4,420 -3,366 -5,177
Comprehensive result - Total change in net worth   402 -45,016 -39,255 -40,071
Net operating balance   3,610 -33,514 -37,584 -37,022
Net acquisition of non-financial assets          
Purchases of non-financial assets   711 6,137 7,146 11,222
less Sales of non-financial assets   28 2,109 2,086 2,317
less Depreciation   604 5,004 5,036 6,787
plus Change in inventories   102 279 157 471
plus Other movements in non-financial assets   18 232 150 195
Total net acquisition of non-financial assets   200 -465 330 2,784
Fiscal balance (Net lending/borrowing)(e)   3,410 -33,048 -37,914 -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 MARCH 2015
$M
MYEFO ESTIMATE*
AS AT
30 JUNE 2015
$M
Assets    
Financial assets    
Cash and deposits 3,339 3,825
Advances paid 44,070 46,208
Investments, loans and placements 135,579 130,197
Other receivables 47,130 46,024
Equity investments    
Investments in other public sector entities 34,266 35,478
Equity accounted investments 314 327
Investments - shares 43,533 41,724
Total financial assets 308,231 303,784
Non-financial assets    
Land 9,628 9,299
Buildings 25,203 26,125
Plant, equipment and infrastructure  54,893 56,518
Inventories 8,270 8,337
Intangibles 6,117 6,359
Investment property 202 198
Biological assets 30 36
Heritage and cultural assets 10,754 10,842
Assets held for sale 54 133
Other non-financial assets 630 604
Total non-financial assets 115,783 118,450
Total assets 424,014 422,234
Liabilities    
Interest bearing liabilities    
Deposits held 219 211
Government securities 420,703 409,609
Loans 10,440 13,693
Other borrowing 1,676 1,553
Total interest bearing liabilities 433,038 425,066
Provisions and payables    
Superannuation liability(a) 228,022 163,240
Other employee liabilities  15,291 15,977
Suppliers payable 5,469 4,905
Personal benefits provisions and payable 12,341 13,234
Subsidies provisions and payable 4,185 4,397
Grants provisions and payable 13,443 11,671
Other provisions and payables 13,287 13,225
Total provisions and payables 292,038 226,649
Total liabilities 725,076 651,715
Net worth(b) -301,062 -229,481
Net financial worth(c) -416,845 -347,931
Net financial liabilities(d)  451,110 383,409
Net debt(e) 250,050 244,836

*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
MARCH
$M

ACTUAL
2014-2015
YTD MARCH
$M
MYEFO
PROFILE
2014-2015
YTD MARCH
$M
MYEFO ESTIMATE*
2014-2015
FULL YEAR
$M
Cash receipts from operating activities        
Taxes received 36,344 252,165 252,226 353,594
Receipts from sales of goods and services 666 6,456 6,511 9,114
Interest receipts 205 2,034 2,660 3,469
Dividends and income tax equivalents 337 3,847 3,462 3,831
Other receipts 948 5,438 5,020 7,261
Total operating receipts 38,501 269,940 269,878 377,269
Cash payments for operating activities        
Payments for employees -1,940 -19,429 -19,693 -26,691
Payments for goods and services -7,790 -59,040 -59,811 -80,557
Grants and subsidies paid -10,257 -105,498 -107,764 -146,215
Interest paid -847 -9,331 -9,475 -14,221
Personal benefit payments -11,218 -100,548 -100,860 -132,142
Other payments  -134 -3,816 -3,803 -5,280
Total operating payments -32,186 -297,663 -301,405 -405,106
Net cash flows from operating activities 6,314 -27,723 -31,527 -27,837
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets 16 2,113 2,143 2,215
Purchases of non-financial assets -705 -6,373 -7,313 -11,420
Net cash flows from investments in 
    non-financial assets
-689 -4,259 -5,170 -9,205
Net cash flows from investments in 
   financial assets for policy purposes
-1,208 -2,651 -3,782 -6,821
Cash flows from investments in 
   financial assets for liquidity purposes
       
Increase in investments -14,102 -10,928 -8,865 -7,736
Net cash flows from investments in 
   financial assets for liquidity purposes
-14,102 -10,928 -8,865 -7,736
Cash flows from financing activities        
Borrowing (net) 8,839 46,517 50,714 53,855
Other financing (net) 204 -1,462 -1,460 0
Net cash flows from financing activities 9,043 45,055 49,254 51,580
Net increase/(decrease) in cash held -642 -505 -91 -19
Net cash flows from operating activities
  and investments in non-financial assets
    (Surplus(+)/deficit(-))
5,625 -31,982 -36,697 -37,042
Finance leases and similar arrangements(b) -22 -49 -1 0
GFS cash surplus(+)/deficit(-) 5,603 -32,031 -36,698 -37,042
less Net Future Fund earnings 347 3,194 2,765 3,319
Equals underlying cash balance(c) 5,256 -35,225 -39,464 -40,362
 plus Net cash flows from investments in
   financial assets for policy purposes
-1,208 -2,651 -3,782 -6,821
plus Net Future Fund earnings 347 3,194 2,765 3,319
Equals headline cash balance 4,396 -34,682 -40,481 -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
MARCH
$M

ACTUAL
2014-2015
YTD MARCH
$M
MYEFO
PROFILE
2014-2015
YTD MARCH
$M
MYEFO ESTIMATE*
2014-2015
FULL YEAR
$M
Individuals and other withholding taxes        
Gross income tax withholding  15,211 125,736 126,149 168,430
Gross other individuals 5,744 25,864 25,626 40,470
less Refunds 1,069 23,607 23,765 27,500
Total individuals and other withholding taxation 19,886 127,993 128,010 181,400
Company tax 6,365 48,773 49,703 70,930
Superannuation funds 464 4,781 5,334 7,130
Resource rent taxes 249 1,731 1,525 1,830
Fringe benefits tax 53 3,094 3,119 4,480
Total income taxation revenue 27,017 186,372 187,690 265,770

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

 

Note 2: Indirect Tax

 
ACTUAL
2014-2015
MARCH
$M

ACTUAL
2014-2015
YTD MARCH
$M
MYEFO
PROFILE
2014-2015
YTD MARCH
$M
MYEFO ESTIMATE*
2014-2015
FULL YEAR
$M
Goods and services tax 5,112 42,225 42,102 56,820
Wine equalisation tax 62 617 607 810
Luxury car tax 40 382 323 400
Excise duty 2,234 18,108 18,931 25,360
Customs duty 947 7,700 6,850 9,060
Other indirect tax 307 2,994 2,845 3,740
Total indirect taxation revenue 8,703 72,026 71,658 96,190

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

 

Note 3: Total expenses by function

 
ACTUAL
2014-2015
MARCH
$M

ACTUAL
2014-2015
YTD MARCH
$M
MYEFO
ESTIMATE*
2014-2015
FULL YEAR
$M
Expenses by function      
General public services 1,570 15,557 25,749
Defence 2,175 18,566 24,994
Public order and safety 305 3,236 4,539
Education  2,351 25,503 31,200
Health  5,651 48,648 67,052
Social security and welfare  12,314 111,622 149,913
Housing and community amenities 360 3,306 4,984
Recreation and culture 307 2,436 3,601
Fuel and energy 553 5,027 7,125
Agriculture, Forestry and Fishing 136 1,590 2,828
Mining, manufacturing and construction 261 1,989 2,781
Transport and communication 362 2,965 7,292
Other economic affairs 1,133 8,455 10,544
Other purposes      
Public debt interest 1,242 10,920 14,733
Nominal superannuation interest 750 6,729 8,989
General purpose inter-government transactions 4,573 42,745 57,157
Natural disaster relief 2 2 83
Contingency reserve 0 0 -665
Total expenses 34,045 309,295 422,898

*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