Media Release

Australian Government General Government Sector Monthly Financial Statements February 2018

MC 16/18

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

23 March 2018

KEY POINTS

  • The underlying cash balance for the 2017-18 financial year to 28 February 2018 was a deficit of $19,752 million.
  • The fiscal balance for the 2017-18 financial year to 28 February 2018 was a deficit of $15,554 million.

AGGREGATES

ACTUAL
2017-2018
February
$m
ACTUAL
2017-2018
YTD February
$m
MYEFO Profile
2017-2018
YTD February
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue 44,765 289,218 282,723 448,702
Expenses 35,373 304,521 307,821 466,937
Net operating balance 9,392 -15,303 -25,099 -18,235
Net capital investment -33 251 -369 193
Fiscal balance 9,425 -15,554 -24,730 -18,428
Receipts(a) 40,839 280,533 275,026 437,075
less Payments(b) 32,237 297,342 300,335 457,606
less Net Future Fund earnings 275 2,943 2,459 3,076
Underlying cash balance(c) 8,327 -19,752 -27,768 -23,608
Headline cash balance 8,146 -25,082 -34,855 -39,573
Total assets   528,087   537,962
Total liabilities   927,839   848,622
Net worth(d)   -399,752   -310,660
Net debt(e)   344,876   343,778

*As published in the 2017-18 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 revenue and expenses vary from month to month.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 28 February 2018 was a deficit of $19,752 million, which is $8,016 million lower than the 2017-18 MYEFO profile deficit of $27,768 million.

  • Receipts
    Total receipts were $5,507 million higher than the 2017-18 MYEFO profile.
  • Payments
    Total payments were $2,993 million lower than the 2017-18 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 28 February 2018 was a deficit of $15,303 million, which is $9,796 million lower than the 2017-18 MYEFO profile deficit of $25,099 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 28 February 2018 was a deficit of $15,554 million, which is $9,175 million lower than the 2017-18 MYEFO profile deficit of $24,730 million. As with the net operating balance, the difference primarily results from higher than expected revenue and lower expenses.

Assets and Liabilities

As at 28 February 2018:

  • net worth is negative $399,752 million;
  • net debt is $344,876 million; and
  • net financial liabilities are $592,413 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
February
$m
ACTUAL
2017-2018
YTD February
$m
MYEFO Profile
2017-2018
YTD February
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue          
Taxation revenue 1,2 42,803 271,796 265,828 421,508
Sales of goods and services   787 6,328 6,572 10,491
Interest income   135 2,280 2,176 3,580
Dividend income   375 2,737 2,083 3,112
Other   664 6,077 6,063 10,012
Total revenue   44,765 289,218 282,723 448,702
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,543 12,630 13,088 20,083
Superannuation   582 4,975 4,867 7,748
Depreciation and amortisation   753 5,692 6,351 9,507
Supply of goods and services   8,174 64,983 66,238 104,308
Other operating expenses(a)   545 4,248 3,871 5,832
Total gross operating expenses   11,597 92,527 94,415 147,478
Superannuation interest expense   827 6,617 6,334 9,240
Interest expenses   1,364 11,701 11,725 18,027
Current transfers          
Current grants   10,162 94,185 95,144 140,142
Subsidy expenses   1,008 7,791 7,780 11,869
Personal benefits   9,512 85,943 86,419 128,483
Total current transfers   20,682 187,920 189,343 280,495
Capital transfers          
Mutually agreed write-downs   102 1,585 1,530 1,913
Other capital grants   801 4,170 4,473 9,784
Total capital transfers   903 5,755 6,003 11,697
Total expenses 3 35,373 304,521 307,821 466,937
Net operating balance   9,392 -15,303 -25,099 -18,235
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -971 -4,816 -5,047 -7,852
Assets recognised for the first time   17 138 136 204
Actuarial revaluations   -27 0 5 8
Net foreign exchange gains   -1,216 186 0 -64
Net swap interest received   65 247 204 250
Market valuation of debt   -155 5,904 -2,071 -1,303
Other gains/(losses)   1,057 4,032 2,480 7,443
Total other economic flows
   - included in operating result
  -1,230 5,691 -4,292 -1,314
Operating Result (b)   8,162 -9,613 -29,391 -19,549
Non-owner movements in equity          
Revaluation of equity investments(c)   0 -125 -2,047 -6,231
Actuarial revaluations   0 0 38 -2,274
Other economic revaluations(d)   -4 809 14 -302
Total other economic flows - included in equity   -4 684 -1,995 -8,807
Comprehensive result - Total change in net worth   8,158 -8,929 -31,386 -28,355
Net operating balance   9,392 -15,303 -25,099 -18,235
Net acquisition of non-financial assets          
Purchases of non-financial assets   674 7,852 7,463 12,993
less Sales of non-financial assets   5 1,941 1,640 3,699
less Depreciation   753 5,692 6,351 9,507
plus Change in inventories   50 -7 174 405
plus Other movements in non-financial assets   1 39 -15 1
Total net acquisition of non-financial assets   -33 251 -369 193
Fiscal balance (Net lending/borrowing)(e)   9,425 -15,554 -24,730 -18,428

*As published in the 2017-18 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) 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
28 February 2018
$m
MYEFO ESTIMATE*
as at
30 June 2018
$m
Assets    
Financial assets    
Cash and deposits 7,680 4,400
Advances paid 51,549 63,049
Investments, loans and placements 169,826 186,430
Other receivables 55,159 53,945
Equity investments    
Investments in other public sector entities 52,164 46,725
Equity accounted investments 84 200
Investments - shares 51,130 42,546
Total financial assets 387,590 397,295
Non-financial assets    
Land 11,062 10,882
Buildings 25,444 26,280
Plant, equipment and infrastructure 75,836 74,670
Inventories 8,397 8,538
Intangibles 7,585 8,381
Investment property 159 113
Biological assets 48 54
Heritage and cultural assets 11,671 11,601
Assets held for sale 196 86
Other non-financial assets 98 61
Total non-financial assets 140,497 140,666
Total assets 528,087 537,962
Liabilities    
Interest bearing liabilities    
Deposits held 214 218
Government securities 556,041 580,340
Loans 16,003 15,518
Other borrowing 1,672 1,582
Total interest bearing liabilities 573,930 597,658
Provisions and payables    
Superannuation liability(a) 285,328 181,257
Other employee liabilities 18,647 18,600
Suppliers payables 6,357 8,015
Personal benefits payables 2,984 2,993
Subsidies payables 393 554
Grants payables 2,920 3,350
Other payables 3,143 2,183
Provisions 34,138 34,012
Total provisions and payables 353,909 250,964
Total liabilities 927,839 848,622
Net worth(b) -399,752 -310,660
Net financial worth(c) -540,249 -451,326
Net financial liabilities(d) 592,413 498,052
Net debt(e) 344,876 343,778

*As published in the 2017-18 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, 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
February
$m
ACTUAL
2017-2018
YTD February
$m
MYEFO Profile
2017-2018
YTD February
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 39,866 261,040 256,246 409,350
Receipts from sales of goods and services 987 6,746 7,008 10,609
Interest receipts 130 2,234 1,979 3,249
Dividends and income tax equivalents 276 3,791 3,259 4,174
Other receipts 329 5,803 5,826 8,305
Total operating receipts 41,588 279,614 274,318 435,686
Cash payments for operating activities        
Payments for employees -2,579 -18,056 -18,531 -28,917
Payments for goods and services -7,125 -64,871 -65,184 -101,030
Grants and subsidies paid -11,848 -106,967 -108,143 -162,144
Interest paid -332 -9,277 -9,305 -16,623
Personal benefit payments -9,556 -87,098 -87,929 -130,231
Other payments -26 -4,021 -3,693 -5,498
Total operating payments -31,466 -290,290 -292,785 -444,443
Net cash flows from operating activities 10,122 -10,676 -18,467 -8,757
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets^ -749 919 708 1,389
Purchases of non-financial assets -680 -6,961 -7,550 -13,163
Net cash flows from investments in
   non-financial assets
-1,429 -6,042 -6,842 -11,774
Net cash flows from investments in
   financial assets for policy purposes
-456 -8,273 -9,546 -19,042
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -9,941 15,691 26,322 8,165
Net cash flows from investments in
   financial assets for liquidity purposes
-9,941 15,691 26,322 8,165
Cash flows from financing activities        
Borrowing (net) 2,370 14,079 15,001 33,746
Other financing (net) -1,632 -1,632 -1,352 -3,076
Total cash receipts from financing activities 738 12,447 13,649 33,746
Net cash flows from financing activities 738 12,447 13,649 33,746
Net increase/(decrease) in cash held -966 3,147 5,116 2,337
GFS cash surplus(+)/deficit(-)(b)(c) 8,693 -16,718 -25,309 -20,531
less Finance leases and similar arrangements(d) 91 91 0 0
less Net Future Fund earnings 275 2,943 2,459 3,076
Equals underlying cash balance(e) 8,327 -19,752 -27,768 -23,608
plus Net cash flows from investments in
   financial assets for policy purposes
-456 -8,273 -9,546 -19,042
plus Net Future Fund earnings 275 2,943 2,459 3,076
Equals headline cash balance 8,146 -25,082 -34,855 -39,573

*As published in the 2017-18 MYEFO.
^ This movement in February relates to an adjustment to year-to-date sales of non-financial assets from that previously reported in January 2018.
(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
February
$m
ACTUAL
2017-2018
YTD February
$m
MYEFO Profile
2017-2018
YTD February
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 17,624 127,321 126,368 190,600
Gross other individuals 4,339 25,258 25,126 47,800
less Refunds 1,007 24,112 24,272 29,200
Total individuals and other withholding taxation 20,957 128,468 127,222 209,200
Fringe benefits tax 200 2,908 2,842 4,080
Company tax 7,202 54,243 51,219 83,800
Superannuation fund taxes 755 8,535 8,269 10,570
Petroleum resource rent tax 1 840 809 1,030
Total income taxation revenue 29,115 194,994 190,362 308,680

*As published in the 2017-18 MYEFO.



Note 2: Indirect Tax

 ACTUAL
2017-2018
February
$m
ACTUAL
2017-2018
YTD February
$m
MYEFO Profile
2017-2018
YTD February
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Goods and services tax 8,849 45,249 44,779 65,560
Wine equalisation tax 94 612 617 920
Luxury car tax 58 498 453 680
Excise duty 1,740 15,184 15,044 22,350
Customs duty 1,565 9,768 9,252 14,800
Other indirect tax 1,382 5,491 5,321 8,518
Total indirect taxation revenue 13,688 76,802 75,466 112,828

*As published in the 2017-18 MYEFO.



Note 3: Total expenses by function

 ACTUAL
2017-2018
February
$m
ACTUAL
2017-2018
YTD February
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Expenses by function      
General public services 1,775 15,680 24,371
Defence 2,392 18,537 31,022
Public order and safety 294 3,388 5,249
Education 1,820 25,696 33,793
Health 6,134 49,779 75,942
Social security and welfare 12,011 106,763 163,953
Housing and community amenities 346 2,938 5,383
Recreation and culture 204 2,001 3,731
Fuel and energy 601 4,605 7,393
Agriculture, forestry and fishing 138 1,478 3,027
Mining, manufacturing and construction 254 2,260 3,557
Transport and communication 913 4,209 9,389
Other economic affairs 788 6,485 10,106
Other purposes      
Public debt interest 1,306 11,192 16,959
Nominal superannuation interest 827 6,617 9,240
General purpose inter-government transactions 5,570 42,891 64,347
Natural disaster relief 0 0 12
Contingency reserve 0 0 -538
Total expenses 35,373 304,521 466,937

*As published in the 2017-18 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 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 and the Public Service, Perth