Media Release

Australian Government General Government Sector Monthly Financial Statements May 2018

MC 39/18

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

27 June 2018

KEY POINTS

  • The underlying cash balance for the 2017-18 financial year to 31 May 2018 was a deficit of $10,016 million.
  • The fiscal balance for the 2017-18 financial year to 31 May 2018 was a surplus of $1,128 million.

AGGREGATES

ACTUAL
2017-2018
May
$m
ACTUAL
2017-2018
YTD May
$m
Revised Budget Profile
2017-2018
YTD May
$m
Revised Budget
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue 49,256 418,751 414,757 456,176
Expenses 38,839 416,899 420,205 468,788
Net operating balance 10,417 1,852 -5,449 -12,612
Net capital investment 976 724 408 748
Fiscal balance 9,442 1,128 -5,856 -13,360
Receipts(a) 45,595 404,212 401,012 445,146
less Payments(b) 40,289 410,295 412,999 459,881
less Net Future Fund earnings 392 3,933 3,791 3,503
Underlying cash balance(c) 4,914 -10,016 -15,778 -18,238
Headline cash balance 3,857 -19,008 -25,250 -37,108
Total assets   559,446   547,295
Total liabilities   945,063   872,527
Net worth(d)   -385,617   -325,232
Net debt(e)   336,554   341,003

*As published in the 2018-19 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 revenue and expenses vary from month to month.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 31 May 2018 was a deficit of $10,016 million, which is $5,762 million lower than the 2017-18 Revised Budget profile deficit of $15,778 million.

  • Receipts
    Total receipts were $3,200 million higher than the 2017-18 Revised Budget profile.
  • Payments
    Total payments were $2,704 million lower than the 2017-18 Revised Budget profile.

Net Operating Balance

The net operating balance for the year to 31 May 2018 was a surplus of $1,852 million, which is $7,301 million better than the 2017-18 Revised Budget profile deficit of $5,449 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 May 2018 was a surplus of $1,128 million, which is $6,984 million better than the 2017-18 Revised Budget profile deficit of $5,856 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 May 2018:
• net worth is negative $385,617 million;
• net debt is $336,554 million; and
• net financial liabilities are $581,858 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
May
$m
ACTUAL
2017-2018
YTD May
$m
Revised Budget Profile
2017-2018
YTD May
$m
Revised Budget
ESTIMATE*
2017-2018
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 46,142 393,364 390,190 428,469
Sales of goods and services   1,165 9,200 9,020 10,095
Interest income   343 3,242 3,253 3,663
Dividend income   497 3,784 3,438 3,797
Other   1,108 9,161 8,855 10,152
Total revenue   49,256 418,751 414,757 456,176
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,729 17,674 17,984 20,019
Superannuation   500 7,060 7,225 7,825
Depreciation and amortisation   638 7,746 7,970 8,861
Supply of goods and services   9,636 91,512 93,318 104,027
Other operating expenses(a)   667 6,033 5,718 6,122
Total gross operating expenses   13,171 130,024 132,215 146,854
Superannuation interest expense   827 9,099 9,099 9,241
Interest expenses   1,486 16,243 16,374 17,931
Current transfers          
Current grants   10,691 125,073 125,690 141,923
Subsidy expenses   960 10,747 10,727 11,719
Personal benefits   10,482 117,433 118,396 128,525
Total current transfers   22,133 253,253 254,813 282,167
Capital transfers          
Mutually agreed write-downs   51 1,877 1,943 2,013
Other capital grants   1,171 6,403 5,761 10,581
Total capital transfers   1,222 8,280 7,704 12,594
Total expenses 3 38,839 416,899 420,205 468,788
Net operating balance   10,417 1,852 -5,449 -12,612
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -702 -7,466 -8,483 -8,907
Assets recognised for the first time   -149 23 185 198
Actuarial revaluations   0 0 123 135
Net foreign exchange gains   270 -605 0 -336
Net swap interest received   -121 115 236 247
Market valuation of debt   -2,829 1,948 8,039 8,137
Other gains/(losses)   -249 6,793 14,707 9,756
Total other economic flows
   - included in operating result
  -3,779 809 14,807 9,230
Operating Result (b)   6,638 2,661 9,359 -3,383
Non-owner movements in equity          
Revaluation of equity investments(c)   69 -115 575 -2,043
Actuarial revaluations   0 0 0 755
Other economic revaluations(d)   1,734 3,426 907 -302
Total other economic flows - included in equity   1,803 3,311 1,482 -1,590
Comprehensive result - Total change in net worth   8,441 5,972 10,841 -4,973
Net operating balance   10,417 1,852 -5,449 -12,612
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,530 11,223 11,054 13,199
less Sales of non-financial assets   5 3,015 2,785 3,658
less Depreciation   638 7,746 7,970 8,861
plus Change in inventories   99 235 83 65
plus Other movements in non-financial assets   -11 27 25 1
Total net acquisition of non-financial assets   976 724 408 748
Fiscal balance (Net lending/borrowing)(e)   9,442 1,128 -5,856 -13,360

*As published in the 2018-19 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
31 May 2018
$m
Revised Budget ESTIMATE*
as at
30 June 2018
$m
Assets    
Financial assets    
Cash and deposits 6,288 5,363
Advances paid 55,081 60,228
Investments, loans and placements 190,852 180,232
Other receivables 58,121 52,870
Equity investments    
Investments in other public sector entities 52,211 56,636
Equity accounted investments 83 185
Investments - shares 52,781 50,713
Total financial assets 415,416 406,226
Non-financial assets    
Land 11,332 10,708
Buildings 25,860 26,091
Plant, equipment and infrastructure 78,346 75,460
Inventories 8,641 8,204
Intangibles 7,728 8,577
Investment property 159 159
Biological assets 44 54
Heritage and cultural assets 11,598 11,669
Assets held for sale 234 86
Other non-financial assets 87 61
Total non-financial assets 144,030 141,069
Total assets 559,446 547,295
Liabilities    
Interest bearing liabilities    
Deposits held 215 218
Government securities 570,672 568,924
Loans 16,223 16,095
Other borrowing 1,664 1,588
Total interest bearing liabilities 588,775 586,825
Provisions and payables    
Superannuation liability(a) 287,655 216,287
Other employee liabilities 18,593 18,533
Suppliers payables 8,057 8,138
Personal benefits payables 2,519 2,952
Subsidies payables 467 548
Grants payables 2,606 3,312
Other payables 2,285 2,279
Provisions 34,106 33,652
Total provisions and payables 356,288 285,701
Total liabilities 945,063 872,527
Net worth(b) -385,617 -325,232
Net financial worth(c) -529,647 -466,301
Net financial liabilities(d) 581,858 522,937
Net debt(e) 336,554 341,003

*As published in the 2018-19 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
May
$m
ACTUAL
2017-2018
YTD May
$m
Revised Budget Profile
2017-2018
YTD May
$m
Revised Budget ESTIMATE*
2017-2018
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 43,012 377,885 375,282 416,354
Receipts from sales of goods and services 1,005 9,083 9,049 10,283
Interest receipts 289 2,947 2,969 3,458
Dividends and income tax equivalents 422 4,848 4,631 4,565
Other receipts 864 8,217 7,799 9,138
Total operating receipts 45,592 402,980 399,730 443,798
Cash payments for operating activities        
Payments for employees -2,920 -25,661 -25,733 -28,843
Payments for goods and services -9,328 -90,310 -90,966 -100,530
Grants and subsidies paid -12,832 -142,957 -143,215 -164,524
Interest paid -2,151 -16,046 -16,028 -16,586
Personal benefit payments -11,384 -119,009 -119,927 -129,461
Other payments -518 -5,938 -5,558 -5,840
Total operating payments -39,133 -399,921 -401,427 -445,783
Net cash flows from operating activities 6,459 3,059 -1,697 -1,985
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 3 1,232 1,282 1,348
Purchases of non-financial assets -1,157 -10,284 -11,527 -14,098
Net cash flows from investments in
   non-financial assets
-1,154 -9,052 -10,245 -12,751
Net cash flows from investments in
   financial assets for policy purposes
-1,449 -12,925 -13,263 -22,373
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -10,651 -4,958 323 8,636
Net cash flows from investments in
   financial assets for liquidity purposes
-10,651 -4,958 323 8,636
Cash flows from financing activities        
Borrowing (net) 6,027 28,212 26,915 31,639
Other financing (net) -480 -3,176 -3,041 -2,943
Net cash flows from financing activities 5,547 25,036 23,874 28,696
Net increase/(decrease) in cash held -1,248 1,160 -1,008 224
GFS cash surplus(+)/deficit(-)(b)(c) 5,305 -5,993 -11,942 -14,735
less Finance leases and similar arrangements(d) -1 90 45 0
less Net Future Fund earnings 392 3,933 3,791 3,503
Equals underlying cash balance(e) 4,914 -10,016 -15,778 -18,238
plus Net cash flows from investments in
   financial assets for policy purposes
-1,449 -12,925 -13,263 -22,373
plus Net Future Fund earnings 392 3,933 3,791 3,503
Equals headline cash balance 3,857 -19,008 -25,250 -37,108

*As published in the 2018-19 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
May
$m
ACTUAL
2017-2018
YTD May
$m
Revised Budget Profile
2017-2018
YTD May
$m
Revised Budget ESTIMATE*
2017-2018
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 18,349 178,501 177,492 192,800
Gross other individuals 7,742 43,623 42,447 46,800
less Refunds 1,718 28,071 28,057 29,100
Total individuals and other withholding taxation 24,373 194,052 191,882 210,500
Fringe benefits tax 233 4,074 4,106 4,140
Company tax 10,000 77,587 76,521 86,700
Superannuation fund taxes 585 10,511 10,558 11,060
Petroleum resource rent tax 72 1,152 1,088 1,170
Total income taxation revenue 35,263 287,377 284,155 313,570

*As published in the 2018-19 Budget.



Note 2: Indirect Tax

 ACTUAL
2017-2018
May
$m
ACTUAL
2017-2018
YTD May
$m
Revised Budget Profile
2017-2018
YTD May
$m
Revised Budget ESTIMATE*
2017-2018
FULL YEAR
$m
Goods and services tax 6,380 62,033 62,440 66,700
Wine equalisation tax 83 811 828 930
Luxury car tax 60 672 676 730
Excise duty 1,809 20,954 20,735 22,510
Customs duty 1,543 13,824 13,805 15,330
Other indirect tax 1,004 7,692 7,549 8,699
Total indirect taxation revenue 10,879 105,987 106,035 114,899

*As published in the 2018-19 Budget.



Note 3: Total expenses by function

 ACTUAL
2017-2018
May
$m
ACTUAL
2017-2018
YTD May
$m
Revised Budget
ESTIMATE*
2017-2018
FULL YEAR
$m
Expenses by function      
General public services 1,972 21,820 24,975
Defence 2,828 26,609 30,982
Public order and safety 476 4,740 5,251
Education 1,803 31,114 33,746
Health 6,699 68,358 77,603
Social security and welfare 13,104 146,123 162,621
Housing and community amenities 346 4,019 5,435
Recreation and culture 233 2,663 3,793
Fuel and energy 791 6,631 7,515
Agriculture, forestry and fishing 303 2,165 3,019
Mining, manufacturing and construction 43 2,816 2,979
Transport and communication 1,072 6,703 9,252
Other economic affairs 765 8,915 10,212
Other purposes      
Public debt interest 1,484 15,596 17,047
Nominal superannuation interest 827 9,099 9,241
General purpose inter-government transactions 6,090 59,526 66,925
Natural disaster relief 0 0 109
Contingency reserve 0 0 -1,916
Total expenses 38,839 416,899 468,788

*As published in the 2018-19 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 and the Public Service, Perth