Media Release

Australian Government General Government Sector Monthly Financial Statements May 2015

MC 34/15

Senator the Hon. Mathias Cormann
Minister for Finance

25 June 2015

Key Points 

  • The underlying cash balance for the 2014-15 financial year to 31 May 2015 was a deficit of $31,458 million.
  • The fiscal balance for the 2014-15 financial year to 31 May 2015 was a deficit of $26,002 million.
AGGREGATES

ACTUAL
2014-2015
May
$m


ACTUAL
2014-2015
YTD May
$m

Revised Monthly Profile^
2014-2015
YTD May
$m

REVISED BUDGET
ESTIMATE*
2014-2015 
Full Year
$m
Revenue  36,573 350,481 350,800 384,098
Expenses 34,693 376,503 380,545 420,335
Net operating balance  1,881 -26,022 -29,744 -36,237
Net capital investment  -22 -20 1,448 3,138
Fiscal balance  1,903 -26,002 -31,193 -39,375
Receipts(a) 33,982 343,134 344,309 377,309
less Payments(b) 31,916 370,709 375,166 415,000
less Net Future Fund earnings 305 3,884 3,275 3,429
Underlying cash balance(c) 1,760 -31,458 -34,132 -41,121
Headline cash balance  982 -31,791 -35,956 -43,191
Total assets   431,793   428,668
Total liabilities   714,665   659,979
Net worth(d)   -282,872   -231,311
Net debt(e)   236,319   250,234

*As published in the 2015-16 Budget.
^ Based on the previous profile, adjusted for material changes to estimates in the 2015-16 Budget.
(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 May 2015 was a deficit of $31,458 million, compared to the Revised Budget profile deficit of $34,132 million. The difference of $2,674 million largely relates to lower than expected cash payments.

Fiscal Balance

The fiscal balance for the year to 31 May 2015 was a deficit of $26,002 million, compared to the Revised Budget profile deficit of $31,193 million. The difference of $5,191 million is largely due to lower expenses and lower net capital investment. 

  • Revenues 
    Total revenue was $319 million lower than the Revised Budget profile, primarily due to lower than expected taxation revenue.
  • Expenses
    Total expenses were $4,042 million lower than the Revised Budget profile.  Lower supply of goods and services, grants and personal benefits contributed to the difference.

Assets and Liabilities

As at 31 May 2015:

  • Net worth is negative $282,872 million;
  • Net debt is $236,319 million; and
  • Net financial liabilities are $434,931 million.

 

Senator the Hon Mathias Cormann
Minister for Finance 

25 June 2015
Jane Halton 
Secretary 
Department of Finance 
25 June 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
May
$m

ACTUAL
2014-2015
YTD May
$m
Revised Monthly
Profile^
2014-2015
YTD May
$m
REVISED BUDGET
ESTIMATE*
2014-2015
Full Year
$m
Revenue          
Taxation revenue 1, 2 34,452 328,978 330,137 359,117
Sales of goods and services   840 8,308 8,226 9,277
Interest income   285 3,147 3,404 3,653
Dividend income   398 3,883 3,391 4,796
Other   598 6,166 5,642 7,255
Total revenue   36,573 350,481 350,800 384,098
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,573 16,911 17,117 18,939
Superannuation   555 5,880 5,709 6,803
Depreciation and amortisation   703 6,359 6,174 6,804
Supply of goods and services   7,198 71,420 72,491 80,474
Other operating expenses(a)   457 5,118 4,912 5,502
Total gross operating expenses   10,486 105,687 106,403 118,522
Superannuation interest expense   750 8,229 8,242 8,989
Interest expenses   1,298 14,514 14,477 15,915
Current transfers          
Current grants   10,309 109,630 111,265 124,435
Subsidy expenses   965 10,985 11,244 12,522
Personal benefits   10,716 119,235 120,114 130,663
Total current transfers   21,990 239,850 242,623 267,620
Capital transfers          
Mutually agreed write-downs   259 2,007 1,985 2,124
Other capital grants   -90 6,215 6,815 7,164
Total capital transfers   168 8,223 8,800 9,288
Total expenses 3 34,693 376,503 380,545 420,335
Net operating balance   1,881 -26,022 -29,744 -36,237
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   44 -5,368 -4,496 -6,878
Assets recognised for the first time   11 295 287 319
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   -654 -2,426 27 -247
Net swap interest received   61 -969 -484 -799
Market valuation of debt   1,765 -13,462 -14,836 -14,521
Other gains/(losses)   3,002 25,306 16,497 20,826
Total other economic flows           
 - included in operating result   4,229 3,376 -3,005 -1,300
Operating result   6,110 -22,646 -29,744 -37,537
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   -38 -1,169 0 2,681
Actuarial revaluations   0 0 0 -3,383
Other economic revaluations(d)   91 -3,012 -3,369 -3,554
Total other economic flows - included in equity   53 -4,181 -3,369 -4,256
Comprehensive result - Total change in net worth   6,163 -26,827 -36,119 -41,793
Net operating balance   1,881 -26,022 -29,744 -36,237
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,351 8,478 9,512 11,622
less Sales of non-financial assets   185 2,305 2,298 2,348
less Depreciation   703 6,359 6,182 6,804
plus Change in inventories   5 376 255 494
plus Other movements in non-financial assets   -491 -209 161 174
Total net acquisition of non-financial assets   -22 -20 1,448 3,138
Fiscal balance (Net lending/borrowing)(e)   1,903 -26,002 -31,193 -39,375

*As published in the 2015-16 Budget.
^ Based on the previous profile, adjusted for material changes in the 2015-16 Budget.
(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 May 2015
$m
REVISED BUDGET ESTIMATE*
as at
30 June 2015
$m
Assets    
Financial assets    
Cash and deposits 3,172 3,144
Advances paid 44,891 45,874
Investments, loans and placements 136,976 131,157
Other receivables 49,888 44,828
Equity investments    
Investments in other public sector entities 35,104 39,708
Equity accounted investments 324 326
Investments - shares 44,484 44,847
Total financial assets 314,838 309,884
Non-financial assets    
Land 9,552 9,287
Buildings 25,595 26,043
Plant, equipment and infrastructure  55,749 57,012
Inventories 8,547 8,360
Intangibles 6,170 6,312
Investment property 194 195
Biological assets 26 36
Heritage and cultural assets 10,868 10,843
Assets held for sale 64 113
Other non-financial assets 189 582
Total non-financial assets 116,955 118,784
Total assets 431,793 428,668
Liabilities    
Interest bearing liabilities    
Deposits held 219 211
Government securities 409,123 418,307
Loans 10,348 10,347
Other borrowing 1,667 1,545
Total interest bearing liabilities 421,357 430,409
Provisions and payables    
Superannuation liability(a) 229,164 167,327
Other employee liabilities  15,672 16,030
Suppliers payable 5,162 4,956
Personal benefits provisions and payable 12,656 13,261
Subsidies provisions and payable 4,114 4,585
Grants provisions and payable 13,096 10,325
Other provisions and payables 13,444 13,086
Total provisions and payables 293,308 229,571
Total liabilities 714,665 659,979
Net worth(b) -282,872 -231,311
Net financial worth(c) -399,827 -350,096
Net financial liabilities(d)  434,931 389,804
Net debt(e) 236,319 250,234

*As published in the 2015-16 Budget.
(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
May
$m

ACTUAL
2014-2015
YTD May
$m
Revised Monthly
Profile^
2014-2015
YTD May
$m
REVISED BUDGET ESTIMATE*
2014-2015
Full Year
$m
Cash receipts from operating activities        
Taxes received 32,100 319,486 321,451 351,452
Receipts from sales of goods and services 751 8,072 8,168 9,218
Interest receipts 204 2,467 2,985 3,131
Dividends and income tax equivalents 320 4,563 3,846 4,121
Other receipts 594 6,395 5,705 7,164
Total operating receipts 33,970 340,984 342,155 375,087
Cash payments for operating activities        
Payments for employees -2,070 -23,799 -23,823 -26,061
Payments for goods and services -6,866 -72,060 -72,788 -80,293
Grants and subsidies paid -11,453 -128,006 -130,192 -146,048
Interest paid -677 -13,287 -13,172 -14,037
Personal benefit payments -9,882 -120,895 -121,388 -131,520
Other payments  -232 -4,467 -4,581 -5,247
Total operating payments -31,181 -362,513 -365,945 -403,206
Net cash flows from operating activities 2,789 -21,530 -23,790 -28,119
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 12 2,150 2,154 2,222
Purchases of non-financial assets -726 -8,138 -9,220 -11,795
Net cash flows from investments in non-financial assets -714 -5,987 -7,066 -9,572
Net cash flows from investments in financial assets for policy purposes -1,083 -4,217 -5,099 -5,500
Cash flows from investments in 
financial assets for liquidity purposes
       
Increase in investments -8,214 -13,048 -6,846 -9,021
Net cash flows from investments in 
financial assets for liquidity purposes
-8,214 -13,048 -6,846 -9,021
Cash flows from financing activities        
Borrowing (net) 7,189 46,279 44,631 53,695
Other financing (net) -124 -2,169 -2,173 -2,184
Net cash flows from financing activities 7,065 44,110 42,458 51,512
Net increase/(decrease) in cash held -157 -672 -343 -701
Net cash flows from operating activities and investments in non-financial assets
(Surplus(+)/deficit(-))
2,074 -27,517 -30,855 -37,691
Finance leases and similar arrangements(b) -9 -57 -1 0
GFS cash surplus(+)/deficit(-) 2,066 -27,574 -30,856 -37,691
less Net Future Fund earnings 305 3,884 3,275 3,429
Equals underlying cash balance(c) 1,760 -31,458 -34,132 -41,121
plus Net cash flows from investments in financial assets for policy purposes -1,083 -4,217 -5,099 -5,500
plus Net Future Fund earnings 305 3,884 3,275 3,429
Equals headline cash balance 982 -31,791 -35,956 -43,191

*As published in the 2015-16 Budget.
^ Based on the previous profile, adjusted for material changes in the 2015-16 Budget.
(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
May
$m

ACTUAL
2014-2015
YTD May
$m
Revised Monthly
Profile
2014-2015
YTD May
$m
REVISED BUDGET ESTIMATE*
2014-2015
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  14,098 154,303 154,482 167,860
Gross other individuals 6,112 37,640 37,758 40,600
less Refunds 1,428 26,106 26,216 27,300
Total individuals and other withholding taxation 18,782 165,838 166,024 181,160
Company tax 6,228 61,292 62,517 69,900
Superannuation funds 314 6,064 6,291 6,200
Resource rent taxes -64 1,870 1,934 1,700
Fringe benefits tax 317 4,356 4,398 4,480
Total income taxation revenue 25,576 239,420 241,163 263,440

*As published in the 2015-16 Budget.

 

Note 2: Indirect Tax

 
ACTUAL
2014-2015
May
$m

ACTUAL
2014-2015
YTD May
$m
Revised Monthly
Profile
2014-2015
YTD May
$m
REVISED BUDGET
ESTIMATE*
2014-2015
Full Year
$m
Goods and services tax 5,445 53,562 53,742 56,690
Wine equalisation tax 72 759 748 820
Luxury car tax 49 479 466 510
Excise duty 1,778 21,571 21,833 24,140
Customs duty 1,068 9,750 8,694 9,750
Other indirect tax 466 3,437 3,490 3,767
Total indirect taxation revenue 8,877 89,558 88,974 95,677

*As published in the 2015-16 Budget.

 

Note 3: Total expenses by function

 
ACTUAL
2014-2015
May
$m

ACTUAL
2014-2015
YTD May
$m
REVISED BUDGET
ESTIMATE*
2014-2015
Full Year
$m
Expenses by function      
General public services 2,024 19,302 25,169
Defence 2,201 23,049 24,612
Public order and safety 318 3,967 4,580
Education  1,779 28,680 31,202
Health  5,592 59,722 67,037
Social security and welfare  12,224 135,701 149,107
Housing and community amenities 419 4,107 4,940
Recreation and culture 371 3,093 3,520
Fuel and energy 565 6,158 6,986
Agriculture, Forestry and Fishing 164 1,880 2,731
Mining, manufacturing and construction 196 2,388 3,218
Transport and communication 526 4,000 6,504
Other economic affairs 1,064 10,248 10,680
Other purposes      
Public debt interest 1,232 13,356 14,468
Nominal superannuation interest 750 8,229 8,989
General purpose inter-government transactions 5,265 52,621 57,467
Natural disaster relief 0 0 36
Contingency reserve 0 0 -911
Total expenses 34,693 376,503 420,335

*As published in the 2015-16 Budget.

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 Calendarhttp://dsbb.imf.org external link icon. 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