Senator the Hon Mathias Cormann

KEY POINTS

• The underlying cash balance for the 2016-17 financial year to 31 May 2017 was a deficit of $30,427 million.
• The fiscal balance for the 2016-17 financial year to 31 May 2017 was a deficit of $23,901 million.

*As published in the 2017-18 Budget.
^Based on the previous profile, adjusted for significant changes 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.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 31 May 2017 was a deficit of $30,427 million, which is $8,028 million lower than the Revised Budget profile deficit of $38,454 million.

• Receipts
  Total receipts were $6,342 million higher than the Revised Budget profile. This reflects higher than expected tax receipts of $3,969 million, partly from early tax receipts that were expected in June.

• Payments
  Total payments were $2,339 million lower than the Revised Budget profile.

Fiscal Balance

The fiscal balance for the year to 31 May 2017 was a deficit of $23,901 million, which is $8,004 million lower than the Revised Budget profile deficit of $31,905 million. The difference results from higher than expected revenue and lower than expected expenses.

Net Operating Balance

The net operating balance for the year to 31 May 2017 was a deficit of $22,392 million, which is $9,339 million lower than the Revised Budget profile deficit of $31,732 million. As with the fiscal balance, the difference results from higher than expected revenue and lower than expected expenses.

Assets and Liabilities

As at 31 May 2017:

• Net worth is negative $425,934 million;
• Net debt is $323,363 million; and
• Net financial liabilities are $616,921 million.

Australian Government general government sector operating statement

*As published in the 2017-18 Budget.
^Based on the previous profile, adjusted for significant changes 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

*As published in the 2017-18 Budget.
(a) Due to the implementation of the 2015 ABS GFS Manual in the 2017-18 Budget, Australia’s subscriptions to the International Development Association and Asian Development Fund have been reclassified from ‘advances paid’ to ‘equity investments’ in the balance sheet. The implementation of the 2015 ABS GFS Manual also resulted in these subscriptions being recognised at fair value rather than nominal value.
(b) 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.
(c) Net worth is calculated as total assets minus total liabilities.
(d) Net financial worth equals total financial assets minus total liabilities.
(e) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(f) 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)

*As published in the 2017-18 Budget.
^Based on the previous profile, adjusted for significant changes 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 decreases the underlying cash balance.The disposal of assets previously held under finance leases increases the underlying cash.
(e) The term underlying cash balance is not used by the Australian Bureau of Statistics.

Note 1: Income Tax

*As published in the 2017-18 Budget.
^Based on the previous profile, adjusted for significant changes in the 2017-18 Budget.

Note 2: Indirect Tax

*As published in the 2017-18 Budget.
^Based on the previous profile, adjusted for significant changes in the 2017-18 Budget.

Note 3: Total expenses by function

*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/quarterly-data-march-2017/.

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.