Media Release

Australian Government General Government Sector Monthly Financial Statements November 2017

MC 88/17

Senator the Hon. Mathias Cormann
Minister for Finance
Leader of the Government in the Senate
Senator for Western Australia

22 December 2017

KEY POINTS

  • The underlying cash balance for the 2017-18 financial year to 30 November 2017 was a deficit of $20,820 million.
  • The fiscal balance for the 2017-18 financial year to 30 November 2017 was a deficit of $14,294 million.

AGGREGATES

ACTUAL
2017-2018
November
$m
ACTUAL
2017-2018
YTD November
$m
Budget Profile
2017-2018
YTD November
$m
BUDGET
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue 40,769 175,415 165,978 444,414
Expenses 37,181 190,595 191,246 464,262
Net operating balance 3,588 -15,179 -25,267 -19,848
Net capital investment 702 -885 1,427 484
Fiscal balance 2,887 -14,294 -26,695 -20,331
Receipts(a) 40,248 170,900 162,449 433,494
less Payments(b) 37,498 189,798 191,436 459,684
less Net Future Fund earnings 440 1,922 1,488 3,205
Underlying cash balance(c) 2,310 -20,820 -30,474 -29,396
Headline cash balance 822 -24,599 -36,391 -48,411
Total assets   521,381   533,220
Total liabilities   928,426   851,329
Net worth(d)   -407,045   -318,109
Net debt(e)   350,578   354,931

*As published in the 2017-18 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.

Comparators for the November 2017 monthly financial statements are based on the 2017-18 Budget published in May 2017. From December 2017 monthly financial statements, the comparators will be based on updated estimates from the 2017-18 Mid-Year Economic and Fiscal Outlook.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 30 November 2017 was a deficit of $20,820 million, which is $9,654 million lower than the 2017-18 Budget profile deficit of $30,474 million.

  • Receipts
    Total receipts were $8,451 million higher than the 2017-18 Budget profile.
  • Payments
    Total payments were $1,638 million lower than the 2017-18 Budget profile.

Net Operating Balance

The net operating balance for the year to 30 November 2017 was a deficit of $15,179 million, which is $10,088 million lower than the 2017-18 Budget profile deficit of $25,267 million. The difference primarily results from higher than expected revenue.

Fiscal Balance

The fiscal balance for the year to 30 November 2017 was a deficit of $14,294 million, which is $12,401 million lower than the 2017-18 Budget profile deficit of $26,695 million. As with the net operating balance, the difference primarily results from higher than expected revenue.

Assets and Liabilities

As at 30 November 2017:

  • Net worth is negative $407,045 million;
  • Net debt is $350,578 million; and
  • Net financial liabilities are $598,513 million.
Senator the Hon Mathias Cormann
Minister for Finance
Rosemary Huxtable PSM
Secretary
Department of Finance
Media Contact  
Karen Wu      0428 350 139



Australian Government general government sector operating statement

 NoteACTUAL
2017-2018
November
$m
ACTUAL
2017-2018
YTD November
$m
Budget Profile
2017-2018
YTD November
$m
BUDGET ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 38,015 163,529 155,079 415,428
Sales of goods and services   761 4,050 4,186 11,496
Interest income   391 1,758 1,780 4,397
Dividend income   391 1,714 1,204 3,517
Other   1,212 4,365 3,729 9,578
Total revenue   40,769 175,415 165,978 444,414
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,696 8,102 8,261 19,906
Superannuation   554 3,048 1,917 4,578
Depreciation and amortisation   702 3,578 3,825 9,226
Supply of goods and services   8,910 41,436 41,563 102,477
Other operating expenses(a)   786 2,782 2,688 5,761
Total gross operating expenses   12,648 58,944 58,255 141,948
Superannuation interest expense   760 4,155 4,330 10,392
Interest expenses   1,440 7,353 7,474 18,544
Current transfers          
Current grants   10,318 57,136 57,637 138,221
Subsidy expenses   743 4,816 4,849 12,064
Personal benefits   10,575 55,417 55,806 130,507
Total current transfers   21,636 117,370 118,292 280,792
Capital transfers          
Mutually agreed write-downs   102 1,288 636 1,429
Other capital grants   595 1,485 2,259 11,157
Total capital transfers   697 2,773 2,895 12,586
Total expenses 3 37,181 190,595 191,246 464,262
Net operating balance   3,588 -15,179 -25,267 -19,848
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -422 -3,215 -3,365 -9,310
Assets recognised for the first time   24 122 114 285
Actuarial revaluations   3 3 0 25
Net foreign exchange gains   -389 -551 0 -125
Net swap interest received   -57 204 0 0
Market valuation of debt   -2,057 -1,319 871 1,832
Other gains/(losses)   -2,001 3,454 1,800 7,572
Total other economic flows          
- included in operating result   -4,897 -1,301 -580 281
Operating result (b)   -1,309 -16,481 -25,848 -19,567
Non-owner movements in equity          
Revaluation of equity investments(c)   -105 -121 0 -6,693
Actuarial revaluations   0 0 -1 8
Other economic revaluations(d)   -395 -951 -920 -162
Total other economic flows - included in equity   -500 -1,072 -922 -6,847
Comprehensive result - Total change in net worth   -1,809 -17,553 -26,769 -26,414
Net operating balance   3,588 -15,179 -25,267 -19,848
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,504 4,739 5,178 13,582
less Sales of non-financial assets   -45 1,755 123 4,041
less Depreciation   702 3,578 3,825 9,226
plus Change in inventories   -118 -277 196 177
plus Other movements in non-financial assets   -28 -15 2 -8
Total net acquisition of non-financial assets   702 -885 1,427 484
Fiscal balance (Net lending/borrowing)(e)   2,887 -14,294 -26,695 -20,331

*As published in the 2017-18 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) Operating result under Australian Accounting Standards.
(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 November 2017
$m
BUDGET ESTIMATE*
as at
30 June 2018
$m
Assets    
Financial assets    
Cash and deposits 7,142 3,411
Advances paid 48,133 72,083
Investments, loans and placements 174,021 170,989
Other receivables 51,410 54,322
Equity investments    
Investments in other public sector entities 52,011 44,323
Equity accounted investments 13 479
Investments - shares 49,194 47,905
Total financial assets 381,925 393,511
Non-financial assets    
Land 11,044 10,215
Buildings 25,447 25,883
Plant, equipment and infrastructure 75,111 74,595
Inventories 8,231 8,349
Intangibles 7,593 8,711
Investment property 125 164
Biological assets 49 49
Heritage and cultural assets 11,618 11,412
Assets held for sale 193 227
Other non-financial assets 45 103
Total non-financial assets 139,456 139,709
Total assets 521,381 533,220
Liabilities    
Interest bearing liabilities    
Deposits held 214 217
Government securities 561,965 584,562
Loans 16,015 15,065
Other borrowing 1,679 1,569
Total interest bearing liabilities 579,874 601,414
Provisions and payables    
Superannuation liability(a) 282,977 181,303
Other employee liabilities 18,510 18,560
Suppliers payable 5,588 5,874
Personal benefits provisions and payable 10,977 13,552
Subsidies provisions and payable 696 439
Grants provisions and payable 10,608 10,589
Other provisions and payables 19,195 19,599
Total provisions and payables 348,553 249,915
Total liabilities 928,426 851,329
Net worth(b) -407,045 -318,109
Net financial worth(c) -546,502 -457,818
Net financial liabilities(d) 598,513 502,141
Net debt(e) 350,578 354,931

*As published in the 2017-18 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, that best matches each individual scheme's liability duration, 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 (a)

 ACTUAL
2017-2018
November
$m
ACTUAL
2017-2018
YTD November
$m
Budget Profile
2017-2018
YTD November
$m
BUDGET ESTIMATE*
2017-2018
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 37,957 158,541 150,753 404,302
Receipts from sales of goods and services 839 3,899 4,376 11,497
Interest receipts 404 1,611 1,316 3,233
Dividends and income tax equivalents 297 2,873 2,302 3,996
Other receipts 716 3,932 3,635 9,104
Total operating receipts 40,213 170,856 162,382 432,133
Cash payments for operating activities        
Payments for employees -3,141 -11,821 -11,980 -28,553
Payments for goods and services -8,028 -41,473 -41,679 -101,003
Grants and subsidies paid -12,037 -64,904 -64,697 -161,202
Interest paid -1,512 -7,747 -7,791 -16,589
Personal benefit payments -11,652 -56,947 -57,507 -133,463
Other payments -372 -2,503 -2,593 -5,369
Total operating payments -36,741 -185,395 -186,246 -446,179
Net cash flows from operating activities 3,472 -14,539 -23,864 -14,046
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 35 44 67 1,361
Purchases of non-financial assets -757 -4,312 -5,189 -13,506
Net cash flows from investments in
   non-financial assets
-721 -4,268 -5,122 -12,145
Net cash flows from investments in
financial assets for policy purposes
-1,928 -5,701 -7,405 -22,221
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -7,709 14,552 21,313 10,475
Net cash flows from investments in
   financial assets for liquidity purposes
-7,709 14,552 21,313 10,475
Cash flows from financing activities        
Borrowing (net) 7,849 12,806 16,283 41,366
Other financing (net) 404 -845 11 0
Net cash flows from financing activities 8,253 11,961 16,294 41,366
Net increase/(decrease) in cash held 1,366 2,005 1,216 3,430
GFS cash surplus(+)/deficit(-)(b)(c) 2,750 -18,807 -28,986 -26,191
less Finance leases and similar arrangements(d) 0 91 0 0
less Net Future Fund earnings 440 1,922 1,488 3,205
Equals underlying cash balance(e) 2,310 -20,820 -30,474 -29,396
plus Net cash flows from investments in
   financial assets for policy purposes
-1,928 -5,701 -7,405 -22,221
plus Net Future Fund earnings 440 1,922 1,488 3,205
Equals headline cash balance 822 -24,599 -36,391 -48,411

*As published in the 2017-18 Budget.
(a) A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b) Due to the implementation of the 2015 ABS GFS Manual in the 2017-18 Budget, finance leases are no longer deducted in the derivation of the GFS cash surplus/deficit.
(c) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(d) The acquisition of assets under finance leases worsens the underlying cash balance. The disposal of assets previously held under finance leases improves the underlying cash balance.
(e) The term underlying cash balance is not used by the Australian Bureau of Statistics.



Note 1: Income Tax

 ACTUAL
2017-2018
November
$m
ACTUAL
2017-2018
YTD November
$m
Budget Profile
2017-2018
YTD November
$m
BUDGET ESTIMATE*
2017-2018
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 17,651 80,024 78,705 188,750
Gross other individuals 3,217 17,947 18,460 49,860
less Refunds 2,348 20,794 20,634 29,000
Total individuals and other withholding taxation 18,520 77,178 76,531 209,610
Fringe benefits tax 65 1,901 2,029 4,430
Company tax 7,290 30,895 25,816 79,400
Superannuation funds 1,402 5,388 3,911 8,540
Resource rent taxes 1 575 564 990
Total income taxation revenue 27,279 115,937 108,851 302,970

*As published in the 2017-18 Budget.



Note 2: Indirect Tax

 ACTUAL
2017-2018
November
$m
ACTUAL
2017-2018
YTD November
$m
Budget Profile
2017-2018
YTD November
$m
BUDGET ESTIMATE*
2017-2018
FULL YEAR
$m
Goods and services tax 6,964 29,182 28,633 65,710
Wine equalisation tax 89 329 320 900
Luxury car tax 62 294 263 650
Excise duty 1,859 9,544 9,337 22,190
Customs duty 992 5,262 5,189 14,730
Other indirect tax 771 2,981 2,487 8,278
Total indirect taxation revenue 10,736 47,592 46,229 112,458

*As published in the 2017-18 Budget.



Note 3: Total expenses by function

 ACTUAL
2017-2018
November
$m
ACTUAL
2017-2018
YTD November
$m
BUDGET ESTIMATE*
2017-2018
FULL YEAR
$m
Expenses by function      
General public services 1,252 9,534 20,703
Defence 2,634 12,035 30,051
Public order and safety 617 2,147 5,042
Education 1,662 14,360 33,800
Health 6,932 32,000 75,277
Social security and welfare 12,811 68,374 164,059
Housing and community amenities 384 1,754 5,351
Recreation and culture 347 1,438 3,632
Fuel and energy 535 2,765 6,940
Agriculture, Forestry and Fishing 216 964 2,972
Mining, manufacturing and construction 297 1,478 3,825
Transport and communication 421 1,541 10,420
Other economic affairs 779 4,272 9,411
Other purposes      
Public debt interest 1,372 6,991 17,154
Nominal superannuation interest 760 4,155 10,392
General purpose inter-government transactions 6,162 26,787 64,274
Natural disaster relief 0 0 9
Contingency reserve 0 0 951
Total expenses 37,181 190,595 464,262

*As published in the 2017-18 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 Special Data Dissemination Standards

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 (SDDS). 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/.

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