Media Release

Australian Government General Government Sector Monthly Financial Statements September 2015

MC 54/15

Senator the Hon. Mathias Cormann
Minister for Finance

23 October 2015

Key Points 

  • The underlying cash balance for the 2015-16 financial year to 30 September 2015 was a deficit of $21,312 million.
  • The fiscal balance for the 2015-16 financial year to 30 September 2015 was a deficit of $21,408 million.
AGGREGATES
ACTUAL
2015-2016
September
$m

ACTUAL
2015-2016
YTD September
$m
Budget Profile
2015-2016
YTD September
$m
BUDGET
ESTIMATE*
2015-2016 
Full Year
$m
Revenue  23,492 84,605 85,494 405,350
Expenses 33,192 106,686 107,468 434,469
Net operating balance  -9,700 -22,081 -21,974 -29,118
Net capital investment  65 -673 644 3,854
Fiscal balance  -9,765 -21,408 -22,618 -32,972
Receipts(a) 24,604 84,963 84,362 397,980
less Payments(b) 32,002 105,389 107,329 429,836
less Net Future Fund earnings 380 887 1,377 3,258
Underlying cash balance(c) -7,778 -21,312 -24,344 -35,115
Headline cash balance  -8,050 -22,898 -25,626 -44,764
Total assets   438,656   454,695
Total liabilities   770,823   716,135
Net worth(d)   -332,168   -261,440
Net debt(e)   264,787   285,802

*As published 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 30 September 2015 was a deficit of $21,312 million, compared to the 2015-16 Budget profile deficit of $24,344 million. The difference of $3,032 million relates to higher than expected cash receipts and lower than expected cash payments.

Fiscal Balance

The fiscal balance for the year to 30 September 2015 was a deficit of $21,408 million, compared to the Budget profile deficit of $22,618 million. The difference of $1,210 million relates to lower than expected expenses and net capital investment, partially offset by lower than expected revenue.

  • Revenues 
    Total revenue was $889 million lower than the Budget profile, primarily due to lower than expected taxation revenue, partially offset by higher dividend income.
  • Expenses
    Total expenses were $781 million lower than the Budget profile, primarily due to lower than expected current grants, wages and salaries and supply of goods and services expenses, partially offset by higher than expected personal benefit and superannuation expenses.

Assets and Liabilities

As at 30 September 2015:

  • Net worth is negative $332,168 million;
  • Net debt is $264,787 million; and
  • Net financial liabilities are $770,823 million.

 

Senator the Hon Mathias Cormann
Minister for Finance 

23 October 2015
Jane Halton 
Secretary 
Department of Finance 
23 October 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
2015-2016
September
$m

ACTUAL
2015-2016
YTD September
$m
Budget Profile
2015-2016
YTD September
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Revenue          
Taxation revenue 1, 2 19,838 77,506 79,193 380,074
Sales of goods and services   835 2,510 2,281 9,542
Interest income   296 863 1,160 4,083
Dividend income   1,884 2,327 1,326 3,143
Other   639 1,399 1,534 8,508
Total revenue   23,492 84,605 85,494 405,350
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,571 4,699 5,026 19,801
Superannuation   526 1,515 1,182 4,760
Depreciation and amortisation   550 1,803 1,780 7,182
Supply of goods and services   6,795 20,666 20,994 85,046
Other operating expenses(a)   442 1,487 1,350 5,510
Total gross operating expenses   9,884 30,170 30,332 122,298
Superannuation interest expense   771 2,312 2,467 9,869
Interest expenses   1,304 4,007 4,119 17,270
Current transfers          
Current grants   8,435 29,176 29,768 128,415
Subsidy expenses   1,052 3,075 3,118 12,654
Personal benefits   10,909 35,620 35,161 133,123
Total current transfers   20,397 67,871 68,046 274,191
Capital transfers          
Mutually agreed write-downs   129 467 477 2,199
Other capital grants   708 1,861 2,026 8,641
Total capital transfers   837 2,328 2,503 10,840
Total expenses 3 33,192 106,686 107,468 434,469
Net operating balance   -9,700 -22,081 -21,974 -29,118
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -630 -1,615 -2,142 -8,638
Assets recognised for the first time   69 123 83 335
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   8 -2,203 46 46
Net swap interest received   -149 -381 0 0
Market valuation of debt   -37 -6,544 942 3,625
Other gains/(losses)   -955 2,676 2,197 5,604
Total other economic flows           
 - included in operating result   -1,694 -7,943 1,126 972
Operating result   -11,393 -30,024 -20,847 -28,147
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   4 16 643 -2,221
Actuarial revaluations   0 0 19 105
Other economic revaluations(d)   -224 190 -155 135
Total other economic flows - included in equity   -220 207 507 -1,981
Comprehensive result - Total change in net worth   -11,614 -29,818 -20,340 -30,128
Net operating balance   -9,700 -22,081 -21,974 -29,118
Net acquisition of non-financial assets          
Purchases of non-financial assets   618 1,394 2,535 11,408
less Sales of non-financial assets   10 120 166 491
less Depreciation   550 1,803 1,780 7,182
plus Change in inventories   -9 -198 66 352
plus Other movements in non-financial assets   16 53 -10 -234
Total net acquisition of non-financial assets   65 -673 644 3,854
Fiscal balance (Net lending/borrowing)(e)   -9,765 -21,408 -22,618 -32,972

*As published 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
30 September 2015
$m
BUDGET ESTIMATE*
as at
30 June 2016
$m
Assets    
Financial assets    
Cash and deposits 3,277 3,435
Advances paid 47,782 52,901
Investments, loans and placements 141,274 137,947
Other receivables 45,955 45,980
Equity investments    
Investments in other public sector entities 41,513 45,471
Equity accounted investments 306 326
Investments - shares 40,687 46,537
Total financial assets 320,794 332,597
Non-financial assets    
Land 9,963 9,144
Buildings 25,559 26,927
Plant, equipment and infrastructure  55,793 59,766
Inventories 8,142 8,211
Intangibles 6,529 6,547
Investment property 189 195
Biological assets 41 36
Heritage and cultural assets 11,301 10,852
Assets held for sale 92 72
Other non-financial assets 251 348
Total non-financial assets 117,862 122,098
Total assets 438,656 454,695
Liabilities    
Interest bearing liabilities    
Deposits held 218 211
Government securities 443,195 464,298
Loans 12,062 14,148
Other borrowing 1,645 1,428
Total interest bearing liabilities 457,120 480,084
Provisions and payables    
Superannuation liability(a) 250,085 173,921
Other employee liabilities  16,895 16,105
Suppliers payable 4,500 4,914
Personal benefits provisions and payable 12,577 12,826
Subsidies provisions and payable 4,589 4,854
Grants provisions and payable 10,462 8,472
Other provisions and payables 14,596 14,959
Total provisions and payables 313,703 236,051
Total liabilities 770,823 716,135
Net worth(b) -332,168 -261,440
Net financial worth(c) -450,029 -383,538
Net financial liabilities(d)  491,542 429,009
Net debt(e) 264,787 285,802

*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
2015-2016
September
$m

ACTUAL
2015-2016
YTD September
$m
Budget Profile
2015-2016
YTD September
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Cash receipts from operating activities        
Taxes received 21,300 77,741 76,881 370,140
Receipts from sales of goods and services 721 2,291 2,353 9,475
Interest receipts 216 715 986 3,334
Dividends and income tax equivalents 2,034 2,491 2,736 4,623
Other receipts 302 1,631 997 8,549
Total operating receipts 24,574 84,870 83,953 396,121
Cash payments for operating activities        
Payments for employees -2,240 -6,922 -7,178 -27,891
Payments for goods and services -7,447 -20,994 -21,002 -85,076
Grants and subsidies paid -10,030 -34,990 -36,537 -150,792
Interest paid -800 -2,550 -2,691 -14,953
Personal benefit payments -11,456 -36,916 -36,452 -134,744
Other payments  149 -1,293 -924 -5,218
Total operating payments -31,823 -103,666 -104,785 -418,674
Net cash flows from operating activities -7,250 -18,796 -20,832 -22,553
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 30 94 409 1,859
Purchases of non-financial assets -176 -1,720 -2,544 -11,161
Net cash flows from investments in non-financial assets -145 -1,626 -2,135 -9,302
Net cash flows from investments in financial assets for policy purposes -652 -2,473 -2,659 -12,908
Cash flows from investments in 
financial assets for liquidity purposes
       
Increase in investments -2,168 -2,515 5,111 -3,129
Net cash flows from investments in 
financial assets for liquidity purposes
-2,168 -2,515 5,111 -3,129
Cash flows from financing activities        
Borrowing (net) 10,661 26,027 20,335 50,790
Other financing (net) -30 -495 -495 -2,608
Net cash flows from financing activities 10,630 25,532 19,840 48,182
Net increase/(decrease) in cash held 416 121 -674 291
Net cash flows from operating activities and investments in non-financial assets
(Surplus(+)/deficit(-))
-7,395 -20,422 -22,967 -31,855
Finance leases and similar arrangements(b) -3 -3 0 -2
GFS cash surplus(+)/deficit(-) -7,398 -20,425 -22,967 -31,856
less Net Future Fund earnings 380 887 1,377 3,258
Equals underlying cash balance(c) -7,778 -21,312 -24,344 -35,115
plus Net cash flows from investments in financial assets for policy purposes -652 -2,473 -2,659 -12,908
plus Net Future Fund earnings 380 887 1,377 3,258
Equals headline cash balance -8,050 -22,898 -25,626 -44,764

*As published 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
2015-2016
September
$m

ACTUAL
2015-2016
YTD September
$m
Budget Profile
2015-2016
YTD September
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  14,239 43,588 44,355 178,460
Gross other individuals 1,251 8,637 8,843 43,800
less Refunds 3,792 14,332 14,220 28,000
Total individuals and other withholding taxation 11,699 37,894 38,978 194,260
Company tax 1,948 12,924 13,516 69,800
Superannuation funds -162 1,631 2,113 9,180
Resource rent taxes -60 126 401 1,420
Fringe benefits tax -14 956 1,056 5,020
Total income taxation revenue 13,412 53,531 56,064 279,680

*As published in the 2015-16 Budget.

 

Note 2: Indirect Tax

 
ACTUAL
2015-2016
September
$m

ACTUAL
2015-2016
YTD September
$m
Budget Profile
2015-2016
YTD September
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Goods and services tax 3,632 14,057 13,743 60,330
Wine equalisation tax 63 194 166 840
Luxury car tax 42 143 120 450
Excise duty 1,657 5,459 6,156 24,920
Customs duty 775 3,240 2,077 9,480
Other indirect tax 258 882 867 4,374
Total indirect taxation revenue 6,426 23,975 23,129 100,394

*As published in the 2015-16 Budget.

 

Note 3: Total expenses by function

 
ACTUAL
2015-2016
September
$m
ACTUAL
2015-2016
YTD September
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Expenses by function      
General public services 1,521 4,891 22,162
Defence 2,156 6,853 26,348
Public order and safety 411 1,261 4,885
Education  1,691 7,875 31,854
Health  5,532 17,066 69,381
Social security and welfare  12,472 40,870 154,000
Housing and community amenities 313 927 5,329
Recreation and culture 258 775 3,530
Fuel and energy 545 1,639 6,706
Agriculture, Forestry and Fishing 168 438 3,063
Mining, manufacturing and construction 289 741 3,142
Transport and communication 221 673 8,575
Other economic affairs 806 2,392 9,792
Other purposes      
Public debt interest 1,210 3,691 15,561
Nominal superannuation interest 771 2,312 9,869
General purpose inter-government transactions 4,829 14,283 60,038
Natural disaster relief 0 0 33
Contingency reserve 0 0 201
Total expenses 33,192 106,686 434,469

*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 Calendar http://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://aofm.gov.au/cgs-quarterly/quarterly-data-september-2015/ 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