Part 2: Government Finance Statistics Statements
Financial tables presented in this Part are prepared in accordance with the Australian Bureau of Statistics (ABS) accrual Government Finance Statistics (GFS) framework.
The tables include an operating statement, balance sheet and cash flow statement for the Australian Government general government, public non-financial corporations, total non-financial public, and public financial corporations sectors. A statement of other economic flows is also included for the Australian Government general government sector and primarily outlines how other economic flows (those economic flows not accounted for in the GFS operating statement, namely changes in assets and liabilities arising from price and volume changes) impact on the net worth of the Australian Government general government sector.
The Australian Government, States and Territories have an agreed framework — the Accrual Uniform Presentation Framework — for the presentation of government financial information on a basis consistent with the ABS GFS publication. This Part presents Australian Government data on an ABS GFS basis, as required by the Uniform Presentation Framework, except for the departures (other than in relation to the treatment of goods and services tax (GST)) detailed in Attachment A to Part 1.
The only difference between the Australian Government general government sector statements in Part 1 and this Part is the treatment of the GST. Under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations, GST is collected by the Australian Taxation Office, as an agent for the States and Territories, and appropriated to the States and Territories. Consequently, it is not shown as Australian Government revenue in other Parts in this document. However, the tables in this Part show GST as taxation revenue and payments to the States as grant expenses.
As a result of the different treatments of GST related transactions, fiscal balance, net operating balance and net worth estimates in this Part differ from those reported elsewhere in this document. This accounting difference is an accrual issue only: it represents the effect of GST revenue accrued but not yet received and, therefore, not yet paid or payable to the States (as GST obligations to the States are on a cash basis).1 The underlying cash balance is not affected and provides identical results under both treatments of GST receipts.
Transactions between the Australian Government public financial corporations sector and the general government and public non-financial corporations sectors are included in the relevant tables. These transactions include income transfers (such as dividends paid to general government), net advances paid by general government to public corporations and taxes paid by public corporations.
Appendix A provides reconciliations between key GFS aggregates and their Australian Accounting Standard No. 31 counterparts.
Table 7: Australian Government general government sector operating statement
(a) The fiscal balance and net operating balance outcomes
in this table differ from those presented elsewhere in the Final Budget
Outcome reflecting the treatment of the GST as an Australian Government
tax.
(b) The term fiscal balance is not used by the
ABS.
Table 8: Australian Government general government sector balance sheet
(a) The 2002-03 Equity and Net worth outcomes include
the Telstra shareholding valued at the closing share price on 30 June
2003.
(b) A separate class of assets, Heritage and
cultural assets, was established for 2002-03 in the Finance Minister's
Orders for the Preparation of Financial Statements. Heritage and cultural
assets were previously included in Plant, equipment and infrastructure.
(c) The net worth outcome in this table differs
from those presented elsewhere in the Final Budget Outcome reflecting
the treatment of the GST as an Australian Government tax.
(d) Net worth is calculated as total assets minus
total liabilities.
(e) Net financial worth equals total financial
assets minus total liabilities. That is, it excludes non-financial assets.
(f) Net debt equals the sum of deposits held,
advances received, government securities, loans and other borrowings,
minus the sum of cash and deposits, advances paid, and investments,
loans and placements.
Table 9: Australian Government general government sector cash flow statement(a)
(a) A positive number denotes a cash inflow; a negative
sign denotes a cash outflow.
(b) Includes GST cash receipts on an Australian
Government tax basis, which is $14 million more than GST cash receipts
measured on a State tax basis (as shown in Part 3, Note 15).
(c) GST flows are excluded from these categories.
(d) Includes GST cash payments on an Australian
Government tax basis.
(e) The acquisition of assets under finance leases
reduces the underlying cash balance. The disposal of assets previously
held under finance leases improves the underlying cash balance.
Table 10: Australian Government general government sector statement of other economic flows (reconciliation of net worth)
(a) Opening net worth adjustments for the 2002-03 outcome
reflect the adoption of the market valuation of debt and the removal
of dividends payable from the measurement of the general government
sector’s equity holding in the public financial corporations sector.
Following advice from the ABS, these changes have been back-dated to
1999-2000.
(b) Revaluations of equity for the 2002-03 outcome
reflect changes in the market valuation of commercial entities, including
a change in the value of the Telstra shareholding due to a change in
the closing share price between 30 June 2002 and 30 June 2003. This
line also reflects any equity revaluations at the point of disposal
or sale.
(c) Defence weapons are treated as expenses rather
than assets under the GFS framework, hence changes in value do not contribute
to net worth and are not included in other economic flows. This component
represents the removal of defence weapons included in net writedowns
and other movements.
(d) Includes the initial recording of a liability
for net unfunded university superannuation in accordance with a new
Australian Accounting Standard. However, the Australian Government has
no legal obligation to meet this liability. The Australian Government
and States and Territories will assess future costs and possible simplified
arrangements. Negotiations on these simplified arrangements with the
States and Territories are continuing. The recording of this as a liability
is also being adopted for GFS.
(e) Largely reflects revaluations of Land and
Buildings.
Table 11: Supplementary table — Australian Government general government sector revenue (accrual basis)
(a) Includes Medicare levy revenue of $5,000 million
in 2002-03.
(b) Previously reported as Pay As You Go (Withholding)
and other withholding. Other withholding, previously reported under
company and other income tax, includes amounts withheld for failure
to quote a Tax File Number or an Australian Business Number; interest,
dividends and royalty payments to non-residents; and payments to aboriginal
groups for the use of land for mineral exploration and mining.
(c) Includes the wine equalisation tax, luxury
car tax and the final wholesale sales tax liability.
(d) Consistent with GFS reporting standards,
excludes fringe benefits tax collected from Australian Government agencies
($323 million in 2002-03).
Table 12: Supplementary table — Australian Government general government sector indirect tax (accrual basis)
(a) Includes unleaded petrol and lead replacement petrol.
(b) Includes aviation gasoline, aviation turbine
fuel, fuel oil, heating oil and kerosene.
(c) Customs duty includes duties imposed on imported
petroleum products, tobacco, beer and spirits, which are analogous to
excise duty on these items.
(d) Estimates of WET revenue include the offsetting
revenue effects of the WET rebate for cellar door and other sales.
(e) WST was abolished on 1 July 2000; however,
final liabilities, net of refunds, continue to be recognised.
Table 13: Australian Government public non-financial corporations sector operating statement
(a) The term fiscal balance is not used by the ABS.
Table 14: Australian Government public non-financial corporations sector balance sheet
(a) Net worth is calculated as total assets minus total
liabilities minus shares and other contributed capital. The negative
net worth recorded for this sector reflects a higher valuation of listed
Australian Government corporations by the sharemarket than the value
of net assets recorded by these corporations.
(b) Net financial worth equals total financial
assets minus total liabilities minus shares and other contributed capital.
That is, it excludes non-financial assets.
(c) Net debt equals the sum of deposits held,
advances received and borrowing, minus the sum of cash and deposits,
advances paid, and investments, loans and placements.
Table 15: Australian Government public non-financial corporations sector cash flow statement(a)
(a) A positive number denotes a cash inflow; a negative
sign denotes a cash outflow.
(b) The acquisition of assets under finance leases
reduces the underlying cash balance. The disposal of assets previously
held under finance leases improves the underlying cash balance.
Table 16: Australian Government total non-financial public sector operating statement
(a) The fiscal balance and net operating balance outcomes
differ from those presented elsewhere in the Final Budget Outcome reflecting
the treatment of the GST as an Australian Government tax.
(b) The term fiscal balance is not used by the
ABS.
(c) The fiscal balance for the non-financial
public sector does not equal the sum of the general government and public
non-financial corporations sectors due to the elimination of commercial
taxation adjustments for future income tax benefits and deferred income
tax.
Table 17: Australian Government total non-financial public sector balance sheet
(a) Net worth is calculated as total assets minus total
liabilities minus shares and other contributed capital.
(b) Net worth and net financial worth for the
non-financial public sector do not equal the sum of the general government
and public non-financial corporations sectors due to the elimination
of commercial taxation adjustments for future income tax benefits and
deferred income tax.
(c) Net financial worth equals total financial
assets minus total liabilities minus shares and other contributed capital.
That is, it excludes non-financial assets.
(d) Net debt equals the sum of deposits held,
advances received, government securities, loans and other borrowings,
minus the sum of cash and deposits, advances paid, and investments,
loans and placements.
Table 18: Australian Government total non-financial public sector cash flow statement(a)
(a) A positive number denotes a cash inflow; a negative
sign denotes a cash outflow.
(b) GST flows are excluded from these categories.
(c) Distributions paid comprise non-financial
public sector dividends to external shareholders.
(d) The acquisition of assets under finance leases
reduces the underlying cash balance. The disposal of assets previously
held under finance leases improves the underlying cash balance.
Table 19: Australian Government public financial corporations sector operating statement
(a) The term fiscal balance is not used by the ABS.
Table 20: Australian Government public financial corporations sector balance sheet
(a) Net worth is calculated as total assets minus total
liabilities minus shares and other contributed capital.
(b) Net financial worth equals total financial
assets minus total liabilities minus shares and other contributed capital.
That is, it excludes non-financial assets.
(c) Net debt equals the sum of deposits held,
advances received and borrowing, minus the sum of cash and deposits,
advances paid, and investments, loans and placements.
Table 21: Australian Government public financial corporations sector cash flow statement(a)
(a) A positive number denotes a cash inflow; a negative
sign denotes a cash outflow.
(b) The acquisition of assets under finance leases
reduces the underlying cash balance. The disposal of assets previously
held under finance leases improves the underlying cash balance.
Table 22: Australian Government general government sector purchases of non-financial assets by function
Loan Council Allocation
Under the Loan Council arrangements, every year the Australian Government and each State and Territory Government nominate Loan Council Allocations. A jurisdiction’s Loan Council Allocation incorporates:
- the non-financial public sector underlying cash balance (made up from the general government and public non-financial corporations sector balances);
- net cash flows from investment in financial assets for policy purposes; and
- memorandum items, which involves transactions that are not formally borrowings but nevertheless have many of the characteristics of borrowing.
Loan Council Allocation nominations are considered by the Loan Council, having regard to each jurisdiction’s fiscal position and reasonable infrastructure requirements, as well as the macroeconomic implications of the aggregate figure.
As set out in Table 23, the Australian Government’s 2002-03 Loan Council Allocation outcome is a $6,828 million surplus. This compares with the Australian Government’s 2002-03 Budget estimate of a $6,034 million surplus.
Table 23: Australian Government Loan Council Allocation
(a) Such transactions involve the transfer or exchange
of a financial asset and are not included within the cash deficit. However,
the cash flow from investments in financial assets for policy purposes
has implications for a government’s call on financial markets.
(b) For the Australian Government, memorandum
items comprise the change in net present value (NPV) of operating leases
(with NPV greater than $5 million), university borrowings, overfunding
of superannuation and an adjustment to exclude the net financing requirements
of statutory marketing authorities and Telstra from the Loan Council
Allocation.
1 Table A2 in Appendix A shows the difference in the net operating and fiscal balance estimates resulting from the two treatments. The change in expenses when moving between the two GFS presentations of the estimates is less than the change in revenue.
