Australian Government General Government Sector Monthly Financial Statements January 2016
Senator the Hon. Mathias Cormann
Minister for Finance
Key Points
- The underlying cash balance for the 2015-16 financial year to 31 January 2016 was a deficit of $45,294 million.
- The fiscal balance for the 2015-16 financial year to 31 January 2016 was a deficit of $41,526 million.
| AGGREGATES | ACTUAL 2015-2016 January $m | ACTUAL 2015-2016 YTD January $m | MYEFO Profile 2015-2016 YTD January $m | MYEFO ESTIMATE* 2015-2016 Full Year $m |
|---|---|---|---|---|
| Revenue | 25,476 | 209,302 | 208,692 | 400,953 |
| Expenses | 37,709 | 249,706 | 252,357 | 432,234 |
| Net operating balance | -12,234 | -40,404 | -43,666 | -31,281 |
| Net capital investment | 764 | 1,121 | 833 | 4,484 |
| Fiscal balance | -12,997 | -41,526 | -44,499 | -35,765 |
| Receipts(a) | 24,383 | 205,001 | 204,847 | 394,891 |
| less Payments(b) | 33,977 | 248,366 | 249,295 | 428,335 |
| less Net Future Fund earnings | 211 | 1,928 | 2,546 | 3,955 |
| Underlying cash balance(c) | -9,806 | -45,294 | -46,994 | -37,399 |
| Headline cash balance | -10,907 | -50,331 | -53,820 | -48,171 |
| Total assets | 430,654 | 475,317 | ||
| Total liabilities | 784,062 | 730,100 | ||
| Net worth(d) | -353,408 | -254,783 | ||
| Net debt(e) | 288,767 | 278,761 |
*As published in the 2015-16 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 revenues and expenses vary from month to month.
FISCAL OUTCOMES
Underlying Cash Balance
The underlying cash balance for the year to 31 January 2016 was a deficit of $45,294 million, compared to the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $46,994 million. The difference of $1,701 million primarily relates to lower than expected cash payments and higher than expected cash receipts.
Fiscal Balance
The fiscal balance for the year to 31 January 2016 was a deficit of $41,526 million, compared to the MYEFO profile deficit of $44,499 million. The difference of $2,973 million primarily relates to lower than expected expenses and higher than expected revenue.
- Revenues
Total revenue was $610 million higher than the MYEFO profile, primarily due to higher than expected taxation revenue. - Expenses
Total expenses were $2,651 million lower than the MYEFO profile, primarily due to lower than expected grants, wages and salaries, supply of goods and services, and personal benefits expenses.
Assets and Liabilities
As at 31 January 2016:
- Net worth is negative $353,408 million;
- Net debt is $288,767 million; and
- Net financial liabilities are $516,815 million.
| Senator the Hon Mathias Cormann Minister for Finance 26 February 2016 | Jane Halton Secretary Department of Finance 26 February 2016 |
| Contact: Senator the Hon Mathias Cormann's Office: Department of Finance: | Karen Wu (02) 6277 7400 Liz Pash (02) 6215 2222 |
Australian Government general government sector operating statement
| Note | ACTUAL 2015-2016 January $m | ACTUAL 2015-2016 YTD January $m | MYEFO Profile 2015-2016 YTD January $m | MYEFO ESTIMATE* 2015-2016 Full Year $m | |
|---|---|---|---|---|---|
| Revenue | |||||
| Taxation revenue | 1, 2 | 24,139 | 197,698 | 196,913 | 375,923 |
| Sales of goods and services | 549 | 4,418 | 4,436 | 7,956 | |
| Interest income | 278 | 2,012 | 2,044 | 4,519 | |
| Dividend income | 92 | 1,568 | 1,669 | 3,841 | |
| Other | 417 | 3,606 | 3,629 | 8,714 | |
| Total revenue | 25,476 | 209,302 | 208,692 | 400,953 | |
| Expenses | |||||
| Gross operating expenses | |||||
| Wages and salaries(a) | 1,384 | 10,658 | 11,354 | 20,072 | |
| Superannuation | 505 | 3,551 | 3,406 | 5,930 | |
| Depreciation and amortisation | 602 | 4,035 | 4,057 | 7,129 | |
| Supply of goods and services | 6,284 | 46,999 | 47,806 | 82,423 | |
| Other operating expenses(a) | 458 | 3,332 | 3,274 | 5,439 | |
| Total gross operating expenses | 9,232 | 68,575 | 69,897 | 120,992 | |
| Superannuation interest expense | 769 | 5,387 | 5,385 | 9,231 | |
| Interest expenses | 1,445 | 9,629 | 9,732 | 17,260 | |
| Current transfers | |||||
| Current grants | 14,182 | 74,484 | 75,229 | 127,737 | |
| Subsidy expenses | 1,048 | 7,249 | 7,425 | 12,944 | |
| Personal benefits | 10,491 | 78,641 | 78,695 | 133,402 | |
| Total current transfers | 25,721 | 160,374 | 161,349 | 274,084 | |
| Capital transfers | |||||
| Mutually agreed write-downs | -159 | 1,023 | 1,137 | 1,887 | |
| Other capital grants | 701 | 4,720 | 4,857 | 8,780 | |
| Total capital transfers | 542 | 5,743 | 5,994 | 10,667 | |
| Total expenses | 3 | 37,709 | 249,706 | 252,357 | 432,234 |
| Net operating balance | -12,234 | -40,404 | -43,666 | -31,281 | |
| Other economic flows | |||||
| - included in operating result(b) | |||||
| Net write-downs of assets (including bad and doubtful debts) | -1,918 | -7,544 | -3,892 | -8,037 | |
| Assets recognised for the first time | 28 | 195 | 266 | 322 | |
| Liabilities recognised for the first time | 0 | 0 | 0 | 0 | |
| Actuarial revaluations | 0 | 0 | 0 | 0 | |
| Net foreign exchange gains | -540 | -1,317 | -520 | -518 | |
| Net swap interest received | -31 | -441 | -410 | -410 | |
| Market valuation of debt | -4,609 | -5,260 | -266 | 832 | |
| Other gains/(losses) | 1,318 | 4,740 | 3,722 | 5,195 | |
| Total other economic flows | |||||
| - included in operating result | -5,752 | -9,627 | -1,099 | -2,616 | |
| Operating result | -17,986 | -50,031 | -44,765 | -33,897 | |
| Non-owner movements in equity(b) | |||||
| Revaluation of equity investments(c) | -1 | 3 | -599 | 846 | |
| Actuarial revaluations | 0 | 0 | 0 | -2,926 | |
| Other economic revaluations(d) | 155 | -1,031 | -535 | 1 | |
| Total other economic flows - included in equity | 154 | -1,028 | -1,134 | -2,079 | |
| Comprehensive result - Total change in net worth | -17,832 | -51,059 | -45,899 | -35,976 | |
| Net operating balance | -12,234 | -40,404 | -43,666 | -31,281 | |
| Net acquisition of non-financial assets | |||||
| Purchases of non-financial assets | 1,263 | 5,244 | 5,027 | 11,661 | |
| less Sales of non-financial assets | 23 | 288 | 314 | 528 | |
| less Depreciation | 602 | 4,035 | 4,057 | 7,129 | |
| plus Change in inventories | 101 | 84 | 125 | 421 | |
| plus Other movements in non-financial assets | 25 | 116 | 52 | 59 | |
| Total net acquisition of non-financial assets | 764 | 1,121 | 833 | 4,484 | |
| Fiscal balance (Net lending/borrowing)(e) | -12,997 | -41,526 | -44,499 | -35,765 |
*As published in the 2015-16 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) 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 January 2016 $m | MYEFO ESTIMATE* as at 30 June 2016 $m | |
|---|---|---|
| Assets | ||
| Financial assets | ||
| Cash and deposits | 2,944 | 3,872 |
| Advances paid | 48,943 | 53,218 |
| Investments, loans and placements | 128,267 | 154,537 |
| Other receivables | 47,999 | 46,594 |
| Equity investments | ||
| Investments in other public sector entities | 44,088 | 49,087 |
| Equity accounted investments | 314 | 315 |
| Investments - shares | 38,780 | 44,939 |
| Total financial assets | 311,336 | 352,560 |
| Non-financial assets | ||
| Land | 9,938 | 9,780 |
| Buildings | 25,482 | 26,198 |
| Plant, equipment and infrastructure | 57,079 | 59,667 |
| Inventories | 8,313 | 8,351 |
| Intangibles | 6,601 | 6,835 |
| Investment property | 203 | 187 |
| Biological assets | 38 | 44 |
| Heritage and cultural assets | 11,269 | 11,344 |
| Assets held for sale | 80 | 87 |
| Other non-financial assets | 314 | 265 |
| Total non-financial assets | 119,318 | 122,757 |
| Total assets | 430,654 | 475,317 |
| Liabilities | ||
| Interest bearing liabilities | ||
| Deposits held | 216 | 218 |
| Government securities | 455,465 | 472,416 |
| Loans | 11,560 | 16,191 |
| Other borrowing | 1,680 | 1,562 |
| Total interest bearing liabilities | 468,921 | 490,387 |
| Provisions and payables | ||
| Superannuation liability(a) | 252,732 | 173,958 |
| Other employee liabilities | 16,489 | 17,059 |
| Suppliers payable | 5,204 | 5,972 |
| Personal benefits provisions and payable | 11,052 | 13,304 |
| Subsidies provisions and payable | 4,711 | 5,035 |
| Grants provisions and payable | 10,489 | 9,397 |
| Other provisions and payables | 14,466 | 14,990 |
| Total provisions and payables | 315,142 | 239,714 |
| Total liabilities | 784,062 | 730,100 |
| Net worth(b) | -353,408 | -254,783 |
| Net financial worth(c) | -472,726 | -377,540 |
| Net financial liabilities(d) | 516,815 | 426,627 |
| Net debt(e) | 288,767 | 278,761 |
*As published in the 2015-16 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 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 2015-2016 January $m | ACTUAL 2015-2016 YTD January $m | MYEFO Profile 2015-2016 YTD January $m | MYEFO ESTIMATE* 2015-2016 Full Year $m | |
|---|---|---|---|---|
| Cash receipts from operating activities | ||||
| Taxes received | 23,016 | 192,037 | 191,488 | 368,230 |
| Receipts from sales of goods and services | 546 | 3,989 | 4,364 | 7,870 |
| Interest receipts | 239 | 1,628 | 1,645 | 3,874 |
| Dividends and income tax equivalents | 101 | 3,244 | 3,157 | 4,516 |
| Other receipts | 464 | 3,913 | 3,716 | 8,505 |
| Total operating receipts | 24,366 | 204,812 | 204,370 | 392,995 |
| Cash payments for operating activities | ||||
| Payments for employees | -1,911 | -15,619 | -15,825 | -28,130 |
| Payments for goods and services | -4,709 | -47,220 | -47,950 | -82,104 |
| Grants and subsidies paid | -15,385 | -87,260 | -87,199 | -150,706 |
| Interest paid | -1,162 | -8,444 | -8,452 | -15,040 |
| Personal benefit payments | -8,997 | -81,552 | -81,326 | -135,228 |
| Other payments | -633 | -3,373 | -3,406 | -5,313 |
| Total operating payments | -32,797 | -243,468 | -244,159 | -416,521 |
| Net cash flows from operating activities | -8,432 | -38,656 | -39,789 | -23,526 |
| Cash flows from investments in non-financial assets | ||||
| Sales of non-financial assets | 17 | 189 | 477 | 1,896 |
| Purchases of non-financial assets | -1,180 | -4,840 | -5,136 | -11,812 |
| Net cash flows from investments in non-financial assets | -1,163 | -4,651 | -4,659 | -9,917 |
| Net cash flows from investments in financial assets for policy purposes | -1,312 | -6,966 | -9,371 | -14,727 |
| Cash flows from investments in financial assets for liquidity purposes | ||||
| Increase in investments | 2 | 10,412 | 7,841 | -13,132 |
| Net cash flows from investments in financial assets for liquidity purposes | 2 | 10,412 | 7,841 | -13,132 |
| Cash flows from financing activities | ||||
| Borrowing (net) | 8,900 | 41,305 | 48,584 | 64,552 |
| Other financing (net) | -357 | -1,655 | -1,632 | -2,535 |
| Net cash flows from financing activities | 8,544 | 39,650 | 46,952 | 62,017 |
| Net increase/(decrease) in cash held | -2,361 | -212 | 973 | 716 |
| Net cash flows from operating activities and investments in non-financial assets (Surplus(+)/deficit(-)) | -9,595 | -43,307 | -44,448 | -33,443 |
| Finance leases and similar arrangements(b) | 0 | -58 | -1 | -2 |
| GFS cash surplus(+)/deficit(-) | -9,595 | -43,365 | -44,449 | -33,444 |
| less Net Future Fund earnings | 211 | 1,928 | 2,546 | 3,955 |
| Equals underlying cash balance(c) | -9,806 | -45,294 | -46,994 | -37,399 |
| plus Net cash flows from investments in financial assets for policy purposes | -1,312 | -6,966 | -9,371 | -14,727 |
| plus Net Future Fund earnings | 211 | 1,928 | 2,546 | 3,955 |
| Equals headline cash balance | -10,907 | -50,331 | -53,820 | -48,171 |
*As published in the 2015-16 MYEFO.
(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 January $m | ACTUAL 2015-2016 YTD January $m | MYEFO Profile 2015-2016 YTD January $m | MYEFO ESTIMATE* 2015-2016 Full Year $m | ||
|---|---|---|---|---|---|
| Individuals and other withholding taxes | |||||
| Gross income tax withholding | 11,855 | 99,467 | 99,638 | 176,550 | |
| Gross other individuals | 1,410 | 19,551 | 19,147 | 44,310 | |
| less Refunds | 1,072 | 22,070 | 21,916 | 27,500 | |
| Total individuals and other withholding taxation | 12,193 | 96,947 | 96,869 | 193,360 | |
| Fringe benefits tax | 853 | 2,932 | 2,882 | 4,610 | |
| Company tax | 4,181 | 35,000 | 35,198 | 67,996 | |
| Superannuation funds | 732 | 4,682 | 4,901 | 7,780 | |
| Resource rent taxes | 142 | 558 | 760 | 960 | |
| Total income taxation revenue | 18,100 | 140,119 | 140,610 | 274,706 |
*As published in the 2015-16 MYEFO.
Note 2: Indirect Tax
| ACTUAL 2015-2016 January $m | ACTUAL 2015-2016 YTD January $m | MYEFO Profile 2015-2016 YTD January $m | MYEFO ESTIMATE* 2015-2016 Full Year $m | ||
|---|---|---|---|---|---|
| Goods and services tax | 3,115 | 32,870 | 32,248 | 59,790 | |
| Wine equalisation tax | 101 | 524 | 487 | 850 | |
| Luxury car tax | 53 | 346 | 332 | 520 | |
| Excise duty | 1,553 | 12,572 | 12,495 | 21,393 | |
| Customs duty | 1,069 | 7,887 | 7,466 | 12,910 | |
| Other indirect tax | 147 | 3,380 | 3,275 | 5,754 | |
| Total indirect taxation revenue | 6,039 | 57,579 | 56,303 | 101,217 |
*As published in the 2015-16 MYEFO.
Note 3: Total expenses by function
| ACTUAL 2015-2016 January $m | ACTUAL 2015-2016 YTD January $m | MYEFO ESTIMATE* 2015-2016 Full Year $m | |
|---|---|---|---|
| Expenses by function | |||
| General public services | 1,851 | 12,025 | 22,639 |
| Defence | 2,127 | 15,358 | 26,559 |
| Public order and safety | 414 | 2,860 | 4,958 |
| Education | 5,938 | 22,395 | 32,478 |
| Health | 5,326 | 38,511 | 68,686 |
| Social security and welfare | 12,446 | 90,827 | 152,782 |
| Housing and community amenities | 300 | 2,533 | 5,434 |
| Recreation and culture | 270 | 1,849 | 3,440 |
| Fuel and energy | 546 | 3,833 | 6,773 |
| Agriculture, Forestry and Fishing | 139 | 1,101 | 3,119 |
| Mining, manufacturing and construction | 294 | 1,849 | 3,619 |
| Transport and communication | 420 | 2,882 | 8,882 |
| Other economic affairs | 699 | 5,181 | 10,131 |
| Other purposes | |||
| Public debt interest | 1,324 | 8,909 | 15,680 |
| Nominal superannuation interest | 769 | 5,387 | 9,231 |
| General purpose inter-government transactions | 4,843 | 34,207 | 59,239 |
| Natural disaster relief | 0 | 0 | 40 |
| Contingency reserve | 0 | 0 | -1,456 |
| Total expenses | 37,709 | 249,706 | 432,234 |
*As published in the 2015-16 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/quarterley-data-January-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:
Karen Wu - 0428 350 139