Media Release

Australian Government General Government Sector Monthly Financial Statements

MC 27/15

Senator the Hon. Mathias Cormann
Minister for Finance

29 May 2015

Key Points 

  • The underlying cash balance for the 2014-15 financial year to 30 April 2015 was a deficit of $33,219 million.
  • The fiscal balance for the 2014-15 financial year to 30 April 2015 was a deficit of $27,905 million.
AGGREGATES

ACTUAL
2014-2015
April
$m


ACTUAL
2014-2015
YTD April
$m

MYEFO
PROFILE
2014-2015
YTD April
$m

MYEFO
ESTIMATE*
2014-2015
Full Year
$m
Revenue  38,126 313,908 315,896 385,876
Expenses 32,515 341,810 348,186 422,898
Net operating balance  5,611 -27,903 -32,289 -37,022
Net capital investment  467 2 703 2,784
Fiscal balance  5,144 -27,905 -32,992 -39,806
Receipts(a) 37,099 309,153 309,364 379,483
less Payments(b) 34,709 338,793 344,636 416,526
less Net Future Fund earnings 384 3,578 3,529 3,319
Underlying cash balance(c) 2,006 -33,219 -38,800 -40,362
Headline cash balance  1,908 -32,774 -40,141 -43,863
Total assets   418,245   422,234
Total liabilities   707,280   651,715
Net worth(d)   -289,035   -229,481
Net debt(e)   239,289   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. 

The 2014-15 estimates were revised as part of the 2015-16 Budget and will be used as the basis of comparison for the May 2015 monthly financial statements.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the year to 30 April 2015 was a deficit of $33,219 million, compared to the Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $38,800 million. The difference of $5,581 million largely relates to lower than expected cash payments.

Fiscal Balance

The fiscal balance for the year to 30 April 2015 was a deficit of $27,905 million, compared to the MYEFO profile deficit of $32,992 million. The difference of $5,087 million is largely due to lower expenses and lower net capital investment, partially offset by lower revenue.   

  • Revenues
    Total revenue was $1,989 million lower than the MYEFO profile, primarily due to lower than expected taxation revenue.
  • Expenses
    Total expenses were $6,375 million lower than the MYEFO profile.  Lower salary and wages, supply of goods and services, grants and personal benefits contributed to the difference.

Assets and Liabilities

As at 30 April 2015:

  • Net worth is negative $289,035 million;
  • Net debt is $239,289 million; and
  • Net financial liabilities are $439,647 million. 

 

Senator the Hon Mathias Cormann
Minister for Finance

29 May 2015
Jane Halton
Secretary
Department of Finance
29 May 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
April
$m

ACTUAL
2014-2015
YTD April
$m
MYEFO
PROFILE
2014-2015
YTD April
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Revenue          
Taxation revenue 1, 2 36,128 294,525 297,053 361,959
Sales of goods and services   867 7,468 7,335 9,190
Interest income   284 2,862 3,314 3,987
Dividend income   329 3,485 3,013 3,396
Other   518 5,567 5,181 7,344
Total revenue   38,126 313,908 315,896 385,876
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,550 15,338 15,714 19,221
Superannuation   561 5,325 5,077 6,777
Depreciation and amortisation   652 5,656 5,597 6,787
Supply of goods and services   6,532 64,221 65,918 80,809
Other operating expenses(a)   463 4,661 4,494 5,472
Total gross operating expenses   9,758 95,201 96,800 119,067
Superannuation interest expense   750 7,479 7,506 8,989
Interest expenses   1,317 13,216 13,538 16,387
Current transfers          
Current grants   8,925 99,322 101,578 124,201
Subsidy expenses   979 10,019 10,070 12,200
Personal benefits   10,125 108,519 110,178 131,506
Total current transfers   20,030 217,860 221,826 267,907
Capital transfers          
Mutually agreed write-downs   107 1,749 2,034 2,564
Other capital grants   553 6,305 6,481 7,984
Total capital transfers   660 8,054 8,515 10,548
Total expenses 3 32,515 341,810 348,186 422,898
Net operating balance   5,611 -27,903 -32,289 -37,022
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -683 -5,411 -5,400 -6,154
Assets recognised for the first time   28 284 261 321
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   450 -1,772 27 28
Net swap interest received   -107 -1,030 -170 -170
Market valuation of debt   7,354 -15,227 -5,725 -5,344
Other gains/(losses)   -811 22,303 12,194 13,446
Total other economic flows           
 - included in operating result   6,230 -853 1,187 2,127
Operating result   11,841 -28,755 -31,102 -34,894
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   -1 -1,131 0 -2,140
Actuarial revaluations   0 0 1 206
Other economic revaluations(d)   187 -3,103 -3,338 -3,243
Total other economic flows - included in equity   186 -4,234 -3,337 -5,177
Comprehensive result - Total change in net worth   12,027 -32,990 -34,439 -40,071
Net operating balance   5,611 -27,903 -32,289 -37,022
Net acquisition of non-financial assets          
Purchases of non-financial assets   989 7,126 8,051 11,222
less Sales of non-financial assets   11 2,121 2,091 2,317
less Depreciation   652 5,656 5,597 6,787
plus Change in inventories   92 371 176 471
plus Other movements in non-financial assets   50 281 165 195
Total net acquisition of non-financial assets   467 2 703 2,784
Fiscal balance (Net lending/borrowing)(e)   5,144 -27,905 -32,992 -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
30 April 2015
$m
MYEFO ESTIMATE*
as at
30 June 2015
$m
Assets    
Financial assets    
Cash and deposits 3,329 3,825
Advances paid 44,359 46,208
Investments, loans and placements 128,469 130,197
Other receivables 47,369 46,024
Equity investments    
Investments in other public sector entities 35,087 35,478
Equity accounted investments 320 327
Investments - shares 43,786 41,724
Total financial assets 302,720 303,784
Non-financial assets    
Land 9,631 9,299
Buildings 25,141 26,125
Plant, equipment and infrastructure  54,627 56,518
Inventories 8,334 8,337
Intangibles 6,033 6,359
Investment property 193 198
Biological assets 28 36
Heritage and cultural assets 10,791 10,842
Assets held for sale 68 133
Other non-financial assets 680 604
Total non-financial assets 115,525 118,450
Total assets 418,245 422,234
Liabilities    
Interest bearing liabilities    
Deposits held 219 211
Government securities 403,346 409,609
Loans 10,236 13,693
Other borrowing 1,645 1,553
Total interest bearing liabilities 415,446 425,066
Provisions and payables    
Superannuation liability(a) 228,435 163,240
Other employee liabilities  15,516 15,977
Suppliers payable 4,955 4,905
Personal benefits provisions and payable 12,023 13,234
Subsidies provisions and payable 4,240 4,397
Grants provisions and payable 13,276 11,671
Other provisions and payables 13,389 13,225
Total provisions and payables 291,833 226,649
Total liabilities 707,280 651,715
Net worth(b) -289,035 -229,481
Net financial worth(c) -404,560 -347,931
Net financial liabilities(d)  439,647 383,409
Net debt(e) 239,289 244,836

*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
April
$m

ACTUAL
2014-2015
YTD April
$m
MYEFO
PROFILE
2014-2015
YTD April
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Cash receipts from operating activities        
Taxes received 35,221 287,386 287,948 353,594
Receipts from sales of goods and services 864 7,321 7,277 9,114
Interest receipts 229 2,263 2,912 3,469
Dividends and income tax equivalents 396 4,243 3,615 3,831
Other receipts 363 5,802 5,465 7,261
Total operating receipts 37,074 307,014 307,216 377,269
Cash payments for operating activities        
Payments for employees -2,300 -21,729 -22,018 -26,691
Payments for goods and services -6,153 -65,193 -66,434 -80,557
Grants and subsidies paid -11,055 -116,553 -119,031 -146,215
Interest paid -3,279 -12,610 -12,894 -14,221
Personal benefit payments -10,465 -111,013 -111,681 -132,142
Other payments  -418 -4,235 -4,342 -5,280
Total operating payments -33,669 -331,332 -336,401 -405,106
Net cash flows from operating activities 3,405 -24,318 -29,185 -27,837
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 25 2,139 2,148 2,215
Purchases of non-financial assets -1,039 -7,412 -8,234 -11,420
Net cash flows from investments in non-financial assets -1,014 -5,273 -6,086 -9,205
Net cash flows from investments in financial assets for policy purposes -482 -3,133 -4,870 -6,821
Cash flows from investments in
financial assets for liquidity purposes
       
Increase in investments 6,093 -4,835 -43 -7,736
Net cash flows from investments in
financial assets for liquidity purposes
6,093 -4,835 -43 -7,736
Cash flows from financing activities        
Borrowing (net) -7,428 39,090 41,923 53,855
Other financing (net) -584 -2,046 -2,024 0
Net cash flows from financing activities -8,011 37,044 39,899 51,580
Net increase/(decrease) in cash held -10 -515 -284 -19
Net cash flows from operating activities and investments in non-financial assets
(Surplus(+)/deficit(-))
2,391 -29,591 -35,270 -37,042
Finance leases and similar arrangements(b) 0 -49 -1 0
GFS cash surplus(+)/deficit(-) 2,390 -29,640 -35,272 -37,042
less Net Future Fund earnings 384 3,578 3,529 3,319
Equals underlying cash balance(c) 2,006 -33,219 -38,800 -40,362
plus Net cash flows from investments in financial assets for policy purposes -482 -3,133 -4,870 -6,821
plus Net Future Fund earnings 384 3,578 3,529 3,319
Equals headline cash balance 1,908 -32,774 -40,141 -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
April
$m

ACTUAL
2014-2015
YTD April
$m
MYEFO
PROFILE
2014-2015
YTD April
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  14,470 140,206 140,519 168,430
Gross other individuals 5,665 31,528 31,940 40,470
less Refunds 1,070 24,678 24,909 27,500
Total individuals and other withholding taxation 19,064 147,057 147,549 181,400
Company tax 6,291 55,065 56,446 70,930
Superannuation funds 969 5,750 6,599 7,130
Resource rent taxes 203 1,934 1,798 1,830
Fringe benefits tax 945 4,039 4,018 4,480
Total income taxation revenue 27,473 213,844 216,411 265,770

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

 

Note 2: Indirect Tax

 
ACTUAL
2014-2015
April
$m

ACTUAL
2014-2015
YTD April
$m
MYEFO
PROFILE
2014-2015
YTD April
$m
MYEFO ESTIMATE*
2014-2015
Full Year
$m
Goods and services tax 5,892 48,117 47,977 56,820
Wine equalisation tax 71 688 675 810
Luxury car tax 48 430 363 400
Excise duty 1,685 19,793 20,938 25,360
Customs duty 981 8,682 7,557 9,060
Other indirect tax -22 2,971 3,132 3,740
Total indirect taxation revenue 8,655 80,681 80,642 96,190

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

 

Note 3: Total expenses by function

 
ACTUAL
2014-2015
April
$m

ACTUAL
2014-2015
YTD April
$m
MYEFO
ESTIMATE*
2014-2015
Full Year
$m
Expenses by function      
General public services 1,721 17,278 25,749
Defence 2,281 20,848 24,994
Public order and safety 412 3,648 4,539
Education  1,398 26,901 31,200
Health  5,483 54,130 67,052
Social security and welfare  11,854 123,476 149,913
Housing and community amenities 382 3,688 4,984
Recreation and culture 285 2,722 3,601
Fuel and energy 566 5,593 7,125
Agriculture, Forestry and Fishing 127 1,717 2,828
Mining, manufacturing and construction 203 2,192 2,781
Transport and communication 509 3,474 7,292
Other economic affairs 729 9,184 10,544
Other purposes      
Public debt interest 1,205 12,125 14,733
Nominal superannuation interest 750 7,479 8,989
General purpose inter-government transactions 4,610 47,355 57,157
Natural disaster relief -2 0 83
Contingency reserve 0 0 -665
Total expenses 32,515 341,810 422,898

*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 external link icon.

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 external link icon.

[ENDS]

Senator the Hon Mathias Cormann, Minister for Finance, Perth