Media Release

Australian Government General Government Sector Monthly Financial Statements March 2018

MC 25/18

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

27 April 2018

KEY POINTS

  • The underlying cash balance for the 2017-18 financial year to 31 March 2018 was a deficit of $19,666 million.
  • The fiscal balance for the 2017-18 financial year to 31 March 2018 was a deficit of $17,382 million.

AGGREGATES

ACTUAL
2017-2018
March
$m
ACTUAL
2017-2018
YTD March
$m
MYEFO Profile
2017-2018
YTD March
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue 36,003 325,221 319,912 448,702
Expenses 38,052 342,572 346,328 466,937
Net operating balance -2,049 -17,352 -26,417 -18,235
Net capital investment -221 30 38 193
Fiscal balance -1,828 -17,382 -26,455 -18,428
Receipts(a) 36,822 317,355 312,086 437,075
less Payments(b) 36,329 333,671 336,388 457,606
less Net Future Fund earnings 407 3,350 2,603 3,076
Underlying cash balance(c) 86 -19,666 -26,905 -23,608
Headline cash balance -1,529 -26,611 -35,031 -39,573
Total assets   533,137   537,962
Total liabilities   940,479   848,622
Net worth(d)   -407,342   -310,660
Net debt(e)   350,717   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 31 March 2018 was a deficit of $19,666 million, which is $7,239 million lower than the 2017-18 MYEFO profile deficit of $26,905 million.

  • Receipts
    Total receipts were $5,269 million higher than the 2017-18 MYEFO profile.
  • Payments
    Total payments were $2,717 million lower than the 2017-18 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 31 March 2018 was a deficit of $17,352 million, which is $9,065 million lower than the 2017-18 MYEFO profile deficit of $26,417 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 March 2018 was a deficit of $17,382 million, which is $9,073 million lower than the 2017-18 MYEFO profile deficit of $26,455 million. As with the net operating balance, the difference primarily results from higher than expected revenue and lower expenses.

Assets and Liabilities

As at 31 March 2018:

  • net worth is negative $407,342 million;
  • net debt is $350,717 million; and
  • net financial liabilities are $600,741 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
March
$m
ACTUAL
2017-2018
YTD March
$m
MYEFO Profile
2017-2018
YTD March
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 34,025 305,822 301,003 421,508
Sales of goods and services   787 7,114 7,442 10,491
Interest income   299 2,579 2,491 3,580
Dividend income   375 3,112 2,207 3,112
Other   517 6,594 6,769 10,012
Total revenue   36,003 325,221 319,912 448,702
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,708 14,338 14,779 20,083
Superannuation   553 5,528 5,578 7,748
Depreciation and amortisation   763 6,455 7,142 9,507
Supply of goods and services   10,164 75,147 76,239 104,308
Other operating expenses(a)   413 4,661 4,291 5,832
Total gross operating expenses   13,601 106,128 108,029 147,478
Superannuation interest expense   827 7,445 7,061 9,240
Interest expenses   1,548 13,249 13,264 18,027
Current transfers          
Current grants   9,738 103,922 105,283 140,142
Subsidy expenses   1,042 8,834 8,807 11,869
Personal benefits   10,743 96,686 97,231 128,483
Total current transfers   21,523 209,443 211,320 280,495
Capital transfers          
Mutually agreed write-downs   145 1,730 1,630 1,913
Other capital grants   408 4,578 5,023 9,784
Total capital transfers   552 6,308 6,654 11,697
Total expenses 3 38,052 342,572 346,328 466,937
Net operating balance   -2,049 -17,352 -26,417 -18,235
Other economic flows          
 - included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -1,005 -5,821 -5,598 -7,852
Assets recognised for the first time   17 155 153 204
Actuarial revaluations   0 0 6 8
Net foreign exchange gains   -657 -471 0 -64
Net swap interest received   16 262 204 250
Market valuation of debt   -5,489 415 -1,869 -1,303
Other gains/(losses)   939 4,971 2,702 7,443
Total other economic flows
   - included in operating result
  -6,179 -488 -4,403 -1,314
Operating Result (b)   -8,227 -17,840 -30,820 -19,549
Non-owner movements in equity          
Revaluation of equity investments(c)   24 -101 -2,039 -6,231
Actuarial revaluations   0 0 38 -2,274
Other economic revaluations(d)   624 1,433 19 -302
Total other economic flows - included in equity   648 1,331 -1,982 -8,807
Comprehensive result - Total change in net worth   -7,580 -16,509 -32,801 -28,355
Net operating balance   -2,049 -17,352 -26,417 -18,235
Net acquisition of non-financial assets          
Purchases of non-financial assets   790 8,642 8,727 12,993
less Sales of non-financial assets   320 2,262 1,789 3,699
less Depreciation   763 6,455 7,142 9,507
plus Change in inventories   72 65 253 405
plus Other movements in non-financial assets   1 39 -11 1
Total net acquisition of non-financial assets   -221 30 38 193
Fiscal balance (Net lending/borrowing)(e)   -1,828 -17,382 -26,455 -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
31 March 2018
$m
MYEFO ESTIMATE*
as at
30 June 2018
$m
Assets    
Financial assets    
Cash and deposits 6,492 4,400
Advances paid 52,783 63,049
Investments, loans and placements 175,798 186,430
Other receivables 53,090 53,945
Equity investments    
Investments in other public sector entities 52,214 46,725
Equity accounted investments 83 200
Investments - shares 51,491 42,546
Total financial assets 391,951 397,295
Non-financial assets    
Land 11,171 10,882
Buildings 25,753 26,280
Plant, equipment and infrastructure 76,118 74,670
Inventories 8,443 8,538
Intangibles 7,626 8,381
Investment property 159 113
Biological assets 48 54
Heritage and cultural assets 11,675 11,601
Assets held for sale 94 86
Other non-financial assets 99 61
Total non-financial assets 141,186 140,666
Total assets 533,137 537,962
Liabilities    
Interest bearing liabilities    
Deposits held 214 218
Government securities 567,371 580,340
Loans 16,537 15,518
Other borrowing 1,670 1,582
Total interest bearing liabilities 585,791 597,658
Provisions and payables    
Superannuation liability(a) 286,174 181,257
Other employee liabilities 18,831 18,600
Suppliers payables 6,563 8,015
Personal benefits payables 3,081 2,993
Subsidies payables 415 554
Grants payables 2,759 3,350
Other payables 2,874 2,183
Provisions 33,991 34,012
Total provisions and payables 354,688 250,964
Total liabilities 940,479 848,622
Net worth(b) -407,342 -310,660
Net financial worth(c) -548,527 -451,326
Net financial liabilities(d) 600,741 498,052
Net debt(e) 350,717 343,778

*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
March
$m
ACTUAL
2017-2018
YTD March
$m
MYEFO Profile
2017-2018
YTD March
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 34,726 295,766 291,193 409,350
Receipts from sales of goods and services 533 7,279 7,849 10,609
Interest receipts 187 2,421 2,198 3,249
Dividends and income tax equivalents 406 4,197 3,379 4,174
Other receipts 621 6,424 6,610 8,305
Total operating receipts 36,473 316,087 311,229 435,686
Cash payments for operating activities        
Payments for employees -2,497 -20,553 -20,645 -28,917
Payments for goods and services -9,536 -74,407 -73,745 -101,030
Grants and subsidies paid -11,211 -118,178 -119,840 -162,144
Interest paid -612 -9,889 -9,960 -16,623
Personal benefit payments -10,618 -97,716 -99,184 -130,231
Other payments -798 -4,819 -4,371 -5,498
Total operating payments -35,272 -325,562 -327,745 -444,443
Net cash flows from operating activities 1,201 -9,475 -16,516 -8,757
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 349 1,268 857 1,389
Purchases of non-financial assets -1,057 -8,018 -8,643 -13,163
Net cash flows from investments in
   non-financial assets
-708 -6,750 -7,786 -11,774
Net cash flows from investments in
   financial assets for policy purposes
-2,022 -10,295 -10,729 -19,042
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -5,341 10,350 23,634 8,165
Net cash flows from investments in
   financial assets for liquidity purposes
-5,341 10,350 23,634 8,165
Cash flows from financing activities        
Borrowing (net) 5,001 19,080 19,527 33,746
Other financing (net) 123 -1,509 -1,386 -3,076
Net cash flows from financing activities 5,124 17,571 18,141 30,669
Net increase/(decrease) in cash held -1,746 1,401 6,744 -739
GFS cash surplus(+)/deficit(-)(b)(c) 493 -16,225 -24,302 -20,531
less Finance leases and similar arrangements(d) 0 91 0 0
less Net Future Fund earnings 407 3,350 2,603 3,076
Equals underlying cash balance(e) 86 -19,666 -26,905 -23,608
plus Net cash flows from investments in
   financial assets for policy purposes
-2,022 -10,295 -10,729 -19,042
plus Net Future Fund earnings 407 3,350 2,603 3,076
Equals headline cash balance -1,529 -26,611 -35,031 -39,573

*As published in the 2017-18 MYEFO.
(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
March
$m
ACTUAL
2017-2018
YTD March
$m
MYEFO Profile
2017-2018
YTD March
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 17,378 144,699 142,872 190,600
Gross other individuals 3,739 28,997 29,197 47,800
less Refunds 1,071 25,183 25,379 29,200
Total individuals and other withholding taxation 20,046 148,514 146,689 209,200
Fringe benefits tax 35 2,944 2,847 4,080
Company tax 6,049 60,292 59,372 83,800
Superannuation fund taxes 490 9,025 8,652 10,570
Petroleum resource rent tax 0 840 809 1,030
Total income taxation revenue 26,621 221,615 218,369 308,680

*As published in the 2017-18 MYEFO.



Note 2: Indirect Tax

 ACTUAL
2017-2018
March
$m
ACTUAL
2017-2018
YTD March
$m
MYEFO Profile
2017-2018
YTD March
$m
MYEFO ESTIMATE*
2017-2018
FULL YEAR
$m
Goods and services tax 3,779 49,028 48,333 65,560
Wine equalisation tax 49 662 677 920
Luxury car tax 55 553 507 680
Excise duty 1,827 17,011 16,841 22,350
Customs duty 1,117 10,885 10,358 14,800
Other indirect tax 577 6,069 5,917 8,518
Total indirect taxation revenue 7,405 84,207 82,633 112,828

*As published in the 2017-18 MYEFO.



Note 3: Total expenses by function

 ACTUAL
2017-2018
March
$m
ACTUAL
2017-2018
YTD March
$m
MYEFO
ESTIMATE*
2017-2018
FULL YEAR
$m
Expenses by function      
General public services 1,814 17,494 24,371
Defence 2,664 21,201 31,022
Public order and safety 450 3,838 5,249
Education 1,842 27,538 33,793
Health 6,404 56,183 75,942
Social security and welfare 14,307 121,069 163,953
Housing and community amenities 366 3,304 5,383
Recreation and culture 169 2,169 3,731
Fuel and energy 655 5,260 7,393
Agriculture, forestry and fishing 192 1,670 3,027
Mining, manufacturing and construction 253 2,513 3,557
Transport and communication 577 4,785 9,389
Other economic affairs 788 7,273 10,106
Other purposes      
Public debt interest 1,479 12,671 16,959
Nominal superannuation interest 827 7,445 9,240
General purpose inter-government transactions 5,267 48,159 64,347
Natural disaster relief 0 0 12
Contingency reserve 0 0 -538
Total expenses 38,052 342,572 466,937

*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