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.

The Australian, state and territory governments 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 Accrual 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. The clear policy intent of the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations is that GST is collected by the Australian Taxation Office, as an agent for the States and Territories (the States), and appropriated to the States. Consequently, it is not shown as Australian Government revenue in other parts of 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 difference 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). The GFS cash surplus/deficit is not affected and provides identical results under both treatments of GST receipts.

Transactions between the Australian Government general government sector, public financial corporations sector and the public non-financial corporations sectors are included in the relevant tables, but removed from the total non-financial public sector tables as they are transactions internal to that sector.

Public access communication assets, computer software and other intangibles are recorded at historic cost, as market value information, or suitable proxies for market value, are not readily observable. This affects the public non-financial corporations sector balance sheet, but does not affect the general government sector balance sheet.

Table A2 of Appendix A provides reconciliations between key GFS aggregates and their Australian Accounting Standards counterparts.

In accordance with Accrual Uniform Presentation Framework requirements, this part also contains an update of the Australian Government’s Loan Council Allocation.

Table 11: Australian Government general government sector operating statement

1. 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.
2. The term fiscal balance is not used by the ABS.

Table 12: Australian Government general government sector balance sheet

1. The 2004-05 equity and net worth outcomes include the Telstra shareholding valued at the closing share price on 30 June 2005.
2. 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.
3. Net worth is calculated as total assets minus total liabilities.
4. Net financial worth equals total financial assets minus total liabilities. That is, it excludes non-financial assets.
5. Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.

Table 13: Australian Government general government sector cash flow statement^(a)

1. A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
2. Includes GST cash receipts on an Australian Government tax basis, which are $75 million higher in 2004-05 than GST cash receipts measured by the Australian Government on a State tax basis (as shown in Part 3, Note 18).
3. GST flows are excluded from these categories.
4. Includes GST cash payments on an Australian Government tax basis.
5. The acquisition of assets under finance leases decreases the surplus or increases the deficit. The disposal of assets previously held under finance leases increases the surplus or decreases the deficit.

Table 14: Australian Government general government sector statement of other economic flows (reconciliation of net worth)

1. Decrease in net worth arising from a change in recognition of family tax benefits and other expenses from a cash to an accrual basis.
2. The 2004-05 equity and net worth outcomes include the change in the value of Telstra shareholding between the closing share price on 30 June 2004 and 30 June 2005.
3. Largely reflects revaluation of assets and liabilities mainly by the Department of Defence.

Table 15: Supplementary table — Australian Government general government sector revenue (accrual basis)

1. Includes Medicare levy revenue of $6,105 million in 2004-05.
2. Consistent with GFS reporting standards, excludes fringe benefits tax collected from Australian Government agencies ($387 million in 2004-05).

Table 16: Supplementary table — Australian Government general government sector indirect tax (accrual basis)

1. Includes unleaded petrol and lead replacement petrol.
2. Includes aviation gasoline, aviation turbine fuel, heating oil and kerosene.
3. Excise-like component of Customs duty includes duties imposed on imported petroleum products, tobacco, beer and spirits, which are analogous to excise duty on these items.

Table 17: Australian Government public non-financial corporations sector operating statement

1. The term fiscal balance is not used by the ABS.

Table 18: Australian Government public non-financial corporations sector balance sheet

1. Includes the elimination of commercial taxation adjustments for future income tax benefits and deferred income tax.
2. 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.
3. Net financial worth equals total financial assets minus total liabilities minus shares and other contributed capital. That is, it excludes non-financial assets.
4. 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 19: Australian Government public non-financial corporations sector cash flow statement^(a)

1. A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
2. Estimates for other payments for operating activities include the cash flow to the general government sector from public financial corporations while for outcomes distributions paid includes all dividends paid to the general government sector.
3. The acquisition of assets under finance leases decreases the surplus or increases the deficit. The disposal of assets previously held under finance leases increases the surplus or decreases the deficit.

Table 20: Australian Government total non-financial public sector operating statement

1. The term fiscal balance is not used by the ABS.

Table 21: Australian Government total non-financial public sector balance sheet

1. Net worth is calculated as total assets minus total liabilities minus shares and other contributed capital. The negative net worth recorded for this sector partly reflects a higher valuation of listed Australian Government corporations by the sharemarket than the value of net assets recorded by these corporations.
2. Net financial worth equals total financial assets minus total liabilities minus shares and other contributed capital. That is, it excludes non-financial assets.
3. Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.

Table 22: Australian Government total non-financial public sector cash flow statement^(a)

1. A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
2. GST flows are excluded from these categories.
3. Distributions paid comprise public non-financial corporations dividends to non-general government shareholders.
4. The acquisition of assets under finance leases decreases the surplus or increases the deficit. The disposal of assets previously held under finance leases increases the surplus or decreases the deficit.

Table 23: Australian Government public financial corporations sector operating statement

1. The term fiscal balance is not used by the ABS.

Table 24: Australian Government public financial corporations sector balance sheet

1. Includes the elimination of commercial taxation adjustments for future income tax benefits and deferred income tax.
2. Net worth is calculated as total assets minus total liabilities minus shares and other contributed capital.
3. Net financial worth equals total financial assets minus total liabilities minus shares and other contributed capital. That is, it excludes non-financial assets.
4. 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 25: Australian Government public financial corporations sector cash flow statement^(a)

1. A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
2. The acquisition of assets under finance leases decreases the surplus or increases the deficit. The disposal of assets previously held under finance leases increases the surplus or decreases the deficit.

Table 26: Australian Government general government sector purchases of non-financial assets by function

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