The Charter of Budget Honesty Act 1998 requires that the Mid-Year Economic and Fiscal Outlook (MYEFO) be based on external reporting standards. Accordingly, the major external standards used in the MYEFO are the Australian Bureau of Statistics' (ABS) accrual Government Finance Statistics (GFS) framework and Australian Accounting Standards (AAS), being the Australian Equivalents to International Financial Reporting Standards (AEIFRS) and AAS 31 Financial Reporting by Governments. The major fiscal aggregates (including the fiscal and underlying cash balances) are based on the accrual GFS framework.
The Charter also requires that departures from applicable external reporting standards be identified. These are disclosed in Attachment A to Part 4, the opening text of Appendix B and Note 1 in Appendix C.
The next section provides a brief overview of the GFS and AAS reporting frameworks.