Cash flows

The 2006-07 underlying cash surplus was $17.2 billion, $3.6 billion higher than estimated at the 2007-08 Budget. The higher than anticipated outcome was the result of lower cash payments of $1.5 billion and higher cash receipts of $2.1 billion.

Total cash receipts, excluding Future Fund earnings, of $234.6 billion were $2.1 billion higher than estimated at the 2007-08 Budget. This largely reflects higher than expected receipts from company tax of $1.0 billion, superannuation funds tax of $381 million and non-taxation sources of income (excluding Future Fund earnings) of $606 million.

The additional company tax cash receipts were significantly above the additional accrual revenue mainly because of changes in the amount of disputed tax debt and associated provisions (which had a negative impact on accrual revenue but no impact on 2006-07 cash receipts).

Table 5: Australian Government general government sector receipts

1. Includes Medicare levy receipts of $7,235 million.

Total cash payments were $217.3 billion in 2006-07, $1.5 billion lower than estimated at the 2007‑08 Budget.

The difference between the lower cash payments of $1.5 billion and the $2.1 billion decrease in accrual expenses and net capital investment reflects the impact of:

• the decrease in accrual expenses discussed earlier in this part that does not affect cash payments relating to Family Tax Benefit expenses of $291 million due to a revision in the level of payments recognised as overpayments; and
• an increase in cash payments without a corresponding increase in accrual expenses (due to cash payments being made earlier than anticipated) for the Pharmaceutical Benefits Scheme by $109 million.

Table 6: Summary of Australian Government general government sector cash flows^(a)

1. Cash flows are derived from the accrual GFS framework excluding GST.
2. Equivalent to cash receipts from the sale of non-financial assets in the GFS cash flow statement.
3. Equivalent to cash payments for purchases of new and second-hand non-financial assets in the GFS cash flow statement.
4. 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 balance.
5. Excludes Future Fund earnings.
6. Under the cash budgeting framework, these cash flows were referred to as net advances.