Part 1: Australian Government Budget Outcome

Overview

In 2005-06, the Australian Government general government sector recorded an underlying cash surplus of $15.8 billion, or 1.6 per cent of gross domestic product (GDP). The fiscal balance was in surplus by $14.8 billion (1.5 per cent of GDP).

Table 1: Australian Government general government sector budget aggregates^(a)

1. All figures are based on Government Finance Statistics (GFS) standards, but with goods and services tax (GST) revenue collected on behalf of the States and Territories netted off revenue and expenses.
2. Excludes Future Fund earnings.

Australian Government general government sector net worth improved by $7.2 billion in 2005-06 to around -$23.1 billion, largely reflecting the strong budget surplus. Net debt was eliminated in 2005-06, falling by $17.7 billion over the financial year.

In cash terms the outcome was $1.0 billion higher than estimated at the time of the 2006-07 Budget, with cash payments $1.5 billion lower than expected, partially offset by cash receipts $566 million lower than expected. The cash payments outcome was largely due to lower than expected payments for assistance to those affected by Cyclone Larry, lower than anticipated payments to childcare providers as a result of a change in the expected timing of payments during 2005-06 and a range of small underspends across other Government programmes. The cash receipts outcome was largely due to lower than expected company tax receipts.