Media Release

Australian Government General Government Sector Monthly Financial Statements October 2015

MC 58/15

Senator the Hon. Mathias Cormann
Minister for Finance

20 November 2015

Key Points 

  • The underlying cash balance for the 2015-16 financial year to 31 October 2015 was a deficit of $25,882 million.
  • The fiscal balance for the 2015-16 financial year to 31 October 2015 was a deficit of $20,068 million.
AGGREGATES
ACTUAL
2015-2016
October
$m

ACTUAL
2015-2016
YTD October
$m
Budget Profile
2015-2016
YTD October
$m
BUDGET
ESTIMATE*
2015-2016 
Full Year
$m
Revenue  37,295 121,900 123,194 405,350
Expenses 35,810 142,496 144,076 434,469
Net operating balance  1,485 -20,596 -20,882 -29,118
Net capital investment  145 -528 791 3,854
Fiscal balance  1,339 -20,068 -21,673 -32,972
Receipts(a) 33,960 118,923 118,839 397,980
less Payments(b) 38,042 143,430 145,044 429,836
less Net Future Fund earnings 488 1,375 1,299 3,258
Underlying cash balance(c) -4,569 -25,882 -27,504 -35,115
Headline cash balance  -4,991 -27,889 -29,238 -44,764
Total assets   437,032   454,695
Total liabilities   766,961   716,135
Net worth(d)   -329,929   -261,440
Net debt(e)   267,822   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 31 October 2015 was a deficit of $25,882 million, compared to the 2015-16 Budget profile deficit of $27,504 million. The difference of $1,622 million primarily relates to lower than expected cash payments.

Fiscal Balance

The fiscal balance for the year to 31 October 2015 was a deficit of $20,068 million, compared to the Budget profile deficit of $21,673 million. The difference of $1,605 million relates to lower than expected expenses and net capital investment, partially offset by lower than expected revenue.

  • Revenues 
    Total revenue was $1,294 million lower than the Budget profile, primarily due to lower than expected taxation revenue, partially offset by higher dividend income.
  • Expenses
    Total expenses were $1,580 million lower than the Budget profile, primarily due to lower than expected grants, supply of goods and services, and wages and salaries expenses, partially offset by higher than expected superannuation expenses.

Assets and Liabilities

As at 31 October 2015:

  • Net worth is negative $329,929 million;
  • Net debt is $267,822 million; and
  • Net financial liabilities are $490,255 million. 

 

Senator the Hon Mathias Cormann
Minister for Finance 

20 November 2015
Jane Halton 
Secretary 
Department of Finance 
20 November 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
October
$m

ACTUAL
2015-2016
YTD October
$m
Budget Profile
2015-2016
YTD October
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Revenue          
Taxation revenue 1, 2 35,051 112,557 114,831 380,074
Sales of goods and services   883 3,393 3,160 9,542
Interest income   311 1,175 1,463 4,083
Dividend income   418 2,745 1,538 3,143
Other   631 2,031 2,201 8,508
Total revenue   37,295 121,900 123,194 405,350
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,563 6,262 6,618 19,801
Superannuation   526 2,040 1,573 4,760
Depreciation and amortisation   545 2,348 2,373 7,182
Supply of goods and services   6,726 27,392 27,911 85,046
Other operating expenses(a)   521 2,008 1,864 5,510
Total gross operating expenses   9,880 40,050 40,339 122,298
Superannuation interest expense   767 3,078 3,290 9,869
Interest expenses   1,400 5,407 5,544 17,270
Current transfers          
Current grants   11,435 40,611 40,911 128,415
Subsidy expenses   1,011 4,085 4,140 12,654
Personal benefits   10,540 46,160 46,416 133,123
Total current transfers   22,986 90,856 91,466 274,191
Capital transfers          
Mutually agreed write-downs   139 606 683 2,199
Other capital grants   639 2,499 2,755 8,641
Total capital transfers   778 3,105 3,438 10,840
Total expenses 3 35,810 142,496 144,076 434,469
Net operating balance   1,485 -20,596 -20,882 -29,118
Other economic flows           
 - included in operating result(b)          
Net write-downs of assets (including bad and doubtful debts)   -397 -2,012 -3,721 -8,638
Assets recognised for the first time   -12 112 111 335
Liabilities recognised for the first time    0 0 0 0
Actuarial revaluations   0 0 0 0
Net foreign exchange gains   621 -1,582 46 46
Net swap interest received   -29 -410 0 0
Market valuation of debt   161 -6,383 1,251 3,625
Other gains/(losses)   1,238 3,914 2,576 5,604
Total other economic flows           
 - included in operating result   1,582 -6,362 263 972
Operating result   3,066 -26,958 -20,619 -28,147
Non-owner movements in equity(b)          
Revaluation of equity investments(c)   -3 13 643 -2,221
Actuarial revaluations   0 0 36 105
Other economic revaluations(d)   -825 -634 -118 135
Total other economic flows - included in equity   -828 -621 562 -1,981
Comprehensive result - Total change in net worth   2,239 -27,579 -20,057 -30,128
Net operating balance   1,485 -20,596 -20,882 -29,118
Net acquisition of non-financial assets          
Purchases of non-financial assets   606 2,000 3,270 11,408
less Sales of non-financial assets   6 126 178 491
less Depreciation   545 2,348 2,373 7,182
plus Change in inventories   84 -114 80 352
plus Other movements in non-financial assets   6 60 -8 -234
Total net acquisition of non-financial assets   145 -528 791 3,854
Fiscal balance (Net lending/borrowing)(e)   1,339 -20,068 -21,673 -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
31 October 2015
$m
BUDGET ESTIMATE*
as at
30 June 2016
$m
Assets    
Financial assets    
Cash and deposits 3,173 3,435
Advances paid 47,963 52,901
Investments, loans and placements 133,001 137,947
Other receivables 49,702 45,980
Equity investments    
Investments in other public sector entities 42,097 45,471
Equity accounted investments 306 326
Investments - shares 42,563 46,537
Total financial assets 318,803 332,597
Non-financial assets    
Land 9,944 9,144
Buildings 25,524 26,927
Plant, equipment and infrastructure  56,091 59,766
Inventories 8,198 8,211
Intangibles 6,577 6,547
Investment property 188 195
Biological assets 40 36
Heritage and cultural assets 11,298 10,852
Assets held for sale 111 72
Other non-financial assets 257 348
Total non-financial assets 118,229 122,098
Total assets 437,032 454,695
Liabilities    
Interest bearing liabilities    
Deposits held 217 211
Government securities 438,154 464,298
Loans 11,945 14,148
Other borrowing 1,642 1,428
Total interest bearing liabilities 451,958 480,084
Provisions and payables    
Superannuation liability(a) 250,749 173,921
Other employee liabilities  17,046 16,105
Suppliers payable 5,285 4,914
Personal benefits provisions and payable 11,982 12,826
Subsidies provisions and payable 4,606 4,854
Grants provisions and payable 10,485 8,472
Other provisions and payables 14,850 14,959
Total provisions and payables 315,003 236,051
Total liabilities 766,961 716,135
Net worth(b) -329,929 -261,440
Net financial worth(c) -448,157 -383,538
Net financial liabilities(d)  490,255 429,009
Net debt(e) 267,822 285,802

*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
October
$m

ACTUAL
2015-2016
YTD October
$m
Budget Profile
2015-2016
YTD October
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Cash receipts from operating activities        
Taxes received 31,582 109,323 109,343 370,140
Receipts from sales of goods and services 703 2,994 3,222 9,475
Interest receipts 304 1,019 1,234 3,334
Dividends and income tax equivalents 516 3,007 2,961 4,623
Other receipts 833 2,464 1,527 8,549
Total operating receipts 33,938 118,807 118,287 396,121
Cash payments for operating activities        
Payments for employees -2,054 -8,976 -9,407 -27,891
Payments for goods and services -7,252 -28,245 -27,597 -85,076
Grants and subsidies paid -13,241 -48,232 -49,439 -150,792
Interest paid -3,367 -5,917 -5,981 -14,953
Personal benefit payments -11,238 -48,154 -47,799 -134,744
Other payments  -529 -1,822 -1,541 -5,218
Total operating payments -37,681 -141,347 -141,763 -418,674
Net cash flows from operating activities -3,743 -22,540 -23,476 -22,553
Cash flows from investments in
non-financial assets
       
Sales of non-financial assets 22 116 552 1,859
Purchases of non-financial assets -360 -2,080 -3,280 -11,161
Net cash flows from investments in non-financial assets -338 -1,964 -2,728 -9,302
Net cash flows from investments in financial assets for policy purposes -909 -3,382 -3,033 -12,908
Cash flows from investments in 
financial assets for liquidity purposes
       
Increase in investments 7,734 5,219 16,125 -3,129
Net cash flows from investments in 
financial assets for liquidity purposes
7,734 5,219 16,125 -3,129
Cash flows from financing activities        
Borrowing (net) -2,296 23,731 13,807 50,790
Other financing (net) -552 -1,047 -1,053 -2,608
Net cash flows from financing activities -2,847 22,684 12,754 48,182
Net increase/(decrease) in cash held -104 17 -358 291
Net cash flows from operating activities and investments in non-financial assets
(Surplus(+)/deficit(-))
-4,082 -24,504 -26,204 -31,855
Finance leases and similar arrangements(b) 0 -3 -1 -2
GFS cash surplus(+)/deficit(-) -4,082 -24,507 -26,205 -31,856
less Net Future Fund earnings 488 1,375 1,299 3,258
Equals underlying cash balance(c) -4,569 -25,882 -27,504 -35,115
plus Net cash flows from investments in financial assets for policy purposes -909 -3,382 -3,033 -12,908
plus Net Future Fund earnings 488 1,375 1,299 3,258
Equals headline cash balance -4,991 -27,889 -29,238 -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
October
$m

ACTUAL
2015-2016
YTD October
$m
Budget Profile
2015-2016
YTD October
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding  14,325 57,914 58,976 178,460
Gross other individuals 5,018 13,656 14,094 43,800
less Refunds 3,021 17,352 17,370 28,000
Total individuals and other withholding taxation 16,323 54,217 55,700 194,260
Fringe benefits tax 1,068 2,023 2,150 5,020
Company tax 6,612 19,537 19,376 69,800
Superanuation funds 1,176 2,807 3,706 9,180
Resource rent taxes 301 427 829 1,420
Total income taxation revenue 25,481 79,012 81,761 279,680

*As published in the 2015-16 Budget.

 

Note 2: Indirect Tax

 
ACTUAL
2015-2016
October
$m

ACTUAL
2015-2016
YTD October
$m
Budget Profile
2015-2016
YTD October
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Goods and services tax 6,413 20,469 20,376 60,330
Wine equalisation tax 53 247 209 840
Luxury car tax 52 195 159 450
Excise duty 1,845 7,304 8,027 24,920
Customs duty 866 4,107 2,867 9,480
Other indirect tax 340 1,222 1,432 4,374
Total indirect taxation revenue 9,570 33,545 33,070 100,394

*As published in the 2015-16 Budget.

 

Note 3: Total expenses by function

 
ACTUAL
2015-2016
October
$m
ACTUAL
2015-2016
YTD October
$m
BUDGET ESTIMATE*
2015-2016
Full Year
$m
Expenses by function      
General public services 1,877 6,768 22,162
Defence 2,201 9,053 26,348
Public order and safety 352 1,613 4,885
Education  4,231 12,106 31,854
Health  5,672 22,738 69,381
Social security and welfare  11,797 52,667 154,000
Housing and community amenities 608 1,535 5,329
Recreation and culture 338 1,113 3,530
Fuel and energy 537 2,176 6,706
Agriculture, Forestry and Fishing 158 596 3,063
Mining, manufacturing and construction 234 975 3,142
Transport and communication 262 934 8,575
Other economic affairs 656 3,048 9,792
Other purposes      
Public debt interest 1,294 4,985 15,561
Nominal superannuation interest 767 3,078 9,869
General purpose inter-government transactions 4,828 19,111 60,038
Natural disaster relief 0 0 33
Contingency reserve 0 0 201
Total expenses 35,810 142,496 434,469

*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 . 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/ .

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]

Media Contact(s): 

Karen Wu - 0428 350 139

Senator the Hon Mathias Cormann, Minister for Finance, Perth