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Australian Government General Government Sector Monthly Financial Statements December 2015



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Australian Government General Government Sector Monthly Financial Statements December 2015

MEDIA RELEASE

MC 1/16 Senator the Hon. Mathias Cormann Minister for Finance

22 January 2016 Key Points

 The underlying cash balance for the 2015-16 financial year to 31 December 2015 was a deficit of $35,488 million.  The fiscal balance for the 2015-16 financial year to 31 December 2015 was a deficit of $28,529 million.

AGGREGATES

ACTUAL 2015-2016 December $m

ACTUAL 2015-2016

YTD December $m

MYEFO Profile 2015-2016 YTD December $m

MYEFO

ESTIMATE* 2015-2016 Full Year $m

Revenue 30,737 183,826 182,069 400,953

Expenses 35,341 211,997 213,225 432,234

Net operating balance -4,605 -28,171 -31,156 -31,281

Net capital investment 524 358 359 4,484

Fiscal balance -5,129 -28,529 -31,515 -35,765

Receipts(a) 30,496 180,619 179,353 394,891

less Payments(b) 38,108 214,389 211,845 428,335

less Net Future Fund earnings 290 1,718 2,232 3,955

Underlying cash balance(c) -7,903 -35,488 -34,752 -37,399

Headline cash balance -8,745 -39,424 -38,118 -48,171

Total assets 431,847 475,317

Total liabilities 767,424 730,100

Net worth(d) -335,577 -254,783

Net debt(e) 274,133 278,761

*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 December 2015 was a deficit of $35,488 million, compared to the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $34,725 million. The difference of $763 million primarily relates to higher than expected cash payments, partially offset by higher than expected cash receipts.

Fiscal Balance

The fiscal balance for the year to 31 December 2015 was a deficit of $28,529 million, compared to the MYEFO profile deficit of $31,515 million. The difference of $2,986 million relates to higher than expected revenue and lower than expected expenses.

 Revenues

Total revenue was $1,758 million higher than the MYEFO profile, primarily due to higher than expected taxation revenue.  Expenses

Total expenses were $1,228 million lower than the MYEFO profile, primarily due to lower supply of goods and services, and wages and salaries expenses.

Assets and Liabilities

As at 31 December 2015:

 Net worth is negative $335,577 million;  Net debt is $274,133 million; and

 Net financial liabilities are $497,890 million.

Senator the Hon Mathias Cormann Minister for Finance

22 January 2015

Jane Halton Secretary Department of Finance 22 January 2015

Contact: Senator the Hon Mathias Cormann's Office: Department of Finance: Karen Wu (02) 6277 7400 Amelia Gard (02) 6215 2222

Australian Government general government sector operating statement

Note

ACTUAL 2015-2016 December $m

ACTUAL 2015-2016 YTD December

$m

MYEFO Profile 2015-2016 YTD December

$m

MYEFO ESTIMATE* 2015-2016 Full Year

$m

Revenue

Taxation revenue 1, 2 30,026 173,560 172,052 375,923

Sales of goods and services -245 3,869 3,769 7,956

Interest income 289 1,734 1,749 4,519

Dividend income 283 1,476 1,358 3,841

Other 383 3,188 3,141 8,714

Total revenue 30,737 183,826 182,069 400,953

Expenses

Gross operating expenses

Wages and salaries(a) 1,462 9,274 9,820 20,072

Superannuation 491 3,047 2,932 5,930

Depreciation and amortisation 551 3,433 3,462 7,129

Supply of goods and services 6,740 40,715 41,390 82,423

Other operating expenses(a) 355 2,874 2,823 5,439

Total gross operating expenses 9,598 59,343 60,428 120,992

Superannuation interest expense 770 4,617 4,616 9,231

Interest expenses 1,421 8,183 8,271 17,260

Current transfers

Current grants 10,124 60,302 60,331 127,737

Subsidy expenses 1,123 6,201 6,308 12,944

Personal benefits 11,423 68,150 68,318 133,402

Total current transfers 22,671 134,653 134,957 274,084

Capital transfers

Mutually agreed write-downs 237 1,182 1,023 1,887

Other capital grants 645 4,019 3,931 8,780

Total capital transfers 882 5,201 4,954 10,667

Total expenses 3 35,341 211,997 213,225 432,234

Net operating balance -4,605 -28,171 -31,156 -31,281

Other economic flows

- included in operating result(b)

Net write-downs of assets (including bad and doubtful debts) -2,245 -5,626 -3,181 -8,037

Assets recognised for the first time -77 167 255 322

Liabilities recognised for the first time 0 0 0 0

Actuarial revaluations 0 0 0 0

Net foreign exchange gains -88 -777 -519 -518

Net swap interest received 43 -410 -410 -410

Market valuation of debt -202 -651 -494 832

Other gains/(losses) 693 3,422 3,124 5,195

Total other economic flows

- included in operating result -1,876 -3,875 -1,226 -2,616

Operating result -6,481 -32,045 -32,382 -33,897

Non-owner movements in equity(b)

Revaluation of equity investments(c) -11 4 -599 846

Actuarial revaluations 0 0 47,075 -2,926

Other economic revaluations(d) -1,003 -1,186 -71,849 1

Total other economic flows - included in equity -1,014 -1,182 -25,373 -2,079

Comprehensive result - Total change in net worth -7,495 -33,228 -57,754 -35,976

Net operating balance -4,605 -28,171 -31,156 -31,281

Net acquisition of non-financial assets

Purchases of non-financial assets 1,209 3,982 3,969 11,661

less Sales of non-financial assets 79 266 276 528

less Depreciation 551 3,433 3,462 7,129

plus Change in inventories -71 -17 81 421

plus Other movements in non-financial assets 16 92 47 59

Total net acquisition of non-financial assets 524 358 359 4,484

Fiscal balance (Net lending/borrowing)(e)

-5,129 -28,529 -31,515 -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 December 2015 $m

MYEFO ESTIMATE* as at 30 June 2016 $m

Assets

Financial assets

Cash and deposits 5,305 3,872

Advances paid 48,384 53,218

Investments, loans and placements 127,720 154,537

Other receivables 47,914 46,594

Equity investments

Investments in other public sector entities 43,325 49,087

Equity accounted investments 314 315

Investments - shares 39,896 44,939

Total financial assets 312,858 352,560

Non-financial assets

Land 9,935 9,780

Buildings 25,430 26,198

Plant, equipment and infrastructure 56,879 59,667

Inventories 8,241 8,351

Intangibles 6,605 6,835

Investment property 203 187

Biological assets 39 44

Heritage and cultural assets 11,276 11,344

Assets held for sale 92 87

Other non-financial assets 289 265

Total non-financial assets 118,989 122,757

Total assets 431,847 475,317

Liabilities

Interest bearing liabilities

Deposits held 217 218

Government securities 442,128 472,416

Loans 11,515 16,191

Other borrowing 1,682 1,562

Total interest bearing liabilities 455,542 490,387

Provisions and payables

Superannuation liability(a) 252,043 173,958

Other employee liabilities 16,487 17,059

Suppliers payable 3,881 5,972

Personal benefits provisions and payable 10,304 13,304

Subsidies provisions and payable 4,441 5,035

Grants provisions and payable 11,015 9,397

Other provisions and payables 13,710 14,990

Total provisions and payables 311,881 239,714

Total liabilities 767,424 730,100

Net worth(b) -335,577 -254,783

Net financial worth(c) -454,565 -377,540

Net financial liabilities(d) 497,890 426,627

Net debt(e) 274,133 278,761

*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

MYEFO MYEFO

ACTUAL 2015-2016 December $m

ACTUAL 2015-2016 YTD December

$m

Profile 2015-2016 YTD December

$m

ESTIMATE* 2015-2016 Full Year $m

Cash receipts from operating activities

Taxes received 29,970 169,021 168,177 368,230

Receipts from sales of goods and services -220 3,443 3,681 7,870

Interest receipts 188 1,389 1,396 3,874

Dividends and income tax equivalents 217 3,144 2,849 4,516

Other receipts 323 3,449 2,847 8,505

Total operating receipts 30,477 180,446 178,950 392,995

Cash payments for operating activities

Payments for employees -2,581 -13,708 -13,698 -28,130

Payments for goods and services -7,756 -42,511 -41,960 -82,104

Grants and subsidies paid -11,995 -71,874 -71,075 -150,706

Interest paid -667 -7,282 -7,289 -15,040

Personal benefit payments -13,411 -72,555 -70,841 -135,228

Other payments -617 -2,740 -2,917 -5,313

Total operating payments -37,027 -210,671 -207,780 -416,521

Net cash flows from operating activities -6,550 -30,225 -28,830 -23,526

Cash flows from investments in non-financial assets

Sales of non-financial assets 20 172 403 1,896

Purchases of non-financial assets -1,082 -3,660 -4,065 -11,812

Net cash flows from investments in non-financial assets -1,062 -3,488 -3,662 -9,917

Net cash flows from investments in financial assets for policy purposes -1,133 -5,654 -5,626 -14,727

Cash flows from investments in financial assets for liquidity purposes

Increase in investments 11,792 10,411 -1,276 -13,132

Net cash flows from investments in financial assets for liquidity purposes 11,792 10,411 -1,276 -13,132

Cash flows from financing activities

Borrowing (net) -1,263 32,404 41,001 64,552

Other financing (net) -93 -1,298 -1,252 -2,535

Net cash flows from financing activities -1,356 31,106 39,749 62,017

Net increase/(decrease) in cash held 1,690 2,150 353 716

Net cash flows from operating activities and investments in non-financial assets (Surplus(+)/deficit(-)) -7,612 -33,713 -32,492 -33,443

Finance leases and similar arrangements(b) 0 -58 -1 -2

GFS cash surplus(+)/deficit(-) -7,612 -33,770 -32,493 -33,444

less Net Future Fund earnings 290 1,718 2,232 3,955

Equals underlying cash balance(c) -7,903 -35,488 -34,725 -37,399

plus Net cash flows from investments in financial assets for policy purposes -1,133 -5,654 -5,626 -14,727

plus Net Future Fund earnings 290 1,718 2,232 3,955

Equals headline cash balance -8,745 -39,424 -38,118 -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 December $m

ACTUAL 2015-2016 YTD December

$m

MYEFO Profile 2015-2016 YTD December

$m

MYEFO ESTIMATE* 2015-2016 Full Year

$m

Individuals and other withholding taxes

Gross income tax withholding 15,058 87,612 88,099 176,550

Gross other individuals 1,497 18,141 17,735 44,310

less Refunds 1,323 20,998 20,940 27,500

Total individuals and other withholding taxation 15,233 84,754 84,894 193,360

Fringe benefits tax 20 2,079 2,086 4,610

Company tax 6,226 30,820 30,075 67,996

Superannuation funds 447 3,950 4,057 7,780

Resource rent taxes 0 416 416 960

Total income taxation revenue 21,926 122,019 121,529 274,706

*As published in the 2015-16 MYEFO.

Note 2: Indirect Tax

ACTUAL 2015-2016 December $m

ACTUAL 2015-2016 YTD December

$m

MYEFO Profile 2015-2016 YTD December

$m

MYEFO ESTIMATE* 2015-2016 Full Year

$m

Goods and services tax 3,101 29,754 29,686 59,790

Wine equalisation tax 95 422 395 850

Luxury car tax 48 293 294 520

Excise duty 1,774 11,019 10,867 21,393

Customs duty 1,577 6,818 6,390 12,910

Other indirect tax 1,505 3,233 2,891 5,754

Total indirect taxation revenue 8,100 51,541 50,523 101,217

*As published in the 2015-16 MYEFO.

Note 3: Total expenses by function

ACTUAL 2015-2016 December $m

ACTUAL 2015-2016 YTD December

$m

MYEFO ESTIMATE* 2015-2016 Full Year

$m

Expenses by function

General public services 1,686 10,174 22,639

Defence 2,099 13,230 26,559

Public order and safety 426 2,446 4,958

Education 2,815 16,457 32,478

Health 4,844 33,185 68,686

Social security and welfare 13,404 78,381 152,782

Housing and community amenities 349 2,233 5,434

Recreation and culture 285 1,579 3,440

Fuel and energy 574 3,286 6,773

Agriculture, Forestry and Fishing 170 962 3,119

Mining, manufacturing and construction 353 1,555 3,619

Transport and communication 655 2,462 8,882

Other economic affairs 739 4,482 10,131

Other purposes

Public debt interest 1,352 7,585 15,680

Nominal superannuation interest 770 4,617 9,231

General purpose inter-government transactions 4,822 29,364 59,239

Natural disaster relief 0 0 40

Contingency reserve 0 0 -1,456

Total expenses 35,341 211,997 432,234

*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(link is external) . 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-december-2015/(link is external) .

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(link is external).

[ENDS]

Media Contact(s): Karen Wu - 0428 350 139