Australian Government, 2013-14 Budget
Budget

Statement 9: Australian Government Budget Financial Statements

The budget financial statements consist of an operating statement, including other economic flows, a balance sheet, and a cash flow statement for the Australian Government general government sector (GGS), the public non‑financial corporations (PNFC) sector and the total non‑financial public sector (NFPS). This statement also contains notes showing disaggregated information for the GGS.

The Charter of Budget Honesty Act 1998 (the Charter) requires that the budget be based on external reporting standards and for departures from these standards to be disclosed.

The Government has produced a single set of financial statements that comply with both Australian Bureau of Statistics' (ABS) accrual Government Finance Statistics (GFS) and Australian Accounting Standards (AAS), meeting the requirement of the Charter, with departures disclosed. The financial statements reflect the Government's accounting policy that ABS GFS remains the basis of budget accounting policy, except where the Government applies AAS because it provides a better conceptual basis for presenting information of relevance to users of public sector financial reports.

The Australian, State and Territory governments have an agreed framework — the Uniform Presentation Framework (UPF) — for the presentation of government financial information on a basis broadly consistent with the Australian Accounting Standards Board standard AASB 1049. The budget financial statements are consistent with the requirements of the UPF.

In accordance with the UPF requirements, this statement also contains an update of the Australian Government's Loan Council Allocation.

Table 1: Australian Government general government sector operating statement
    Estimates   Projections
    2012‑13 2013‑14 2014‑15   2015‑16 2016‑17
  Note $m $m $m   $m $m
Revenue              
Taxation revenue 3 338,727 366,664 390,606   415,974 445,595
Sales of goods and services 4 8,757 8,577 8,443   8,614 8,776
Interest income 5 3,764 4,313 4,477   4,980 5,448
Dividend income 5 2,429 2,426 2,265   2,476 2,604
Other 6 6,284 5,768 5,820   6,052 6,146
Total revenue   359,961 387,749 411,612   438,097 468,569
Expenses              
Gross operating expenses              
Wages and salaries(a) 7 19,355 19,772 19,800   20,556 21,059
Superannuation 7 8,102 4,039 4,040   4,090 4,196
Depreciation and amortisation 8 6,022 5,813 6,058   6,312 6,480
Supply of goods and services 9 72,019 75,918 78,414   83,298 86,816
Other operating expenses(a) 7 5,411 5,467 5,686   5,893 6,214
Total gross operating expenses   110,910 111,009 113,997   120,149 124,765
Superannuation interest expense 7 6,778 8,462 8,773   9,093 9,423
Interest expenses 10 13,281 14,008 14,289   14,423 14,173
Current transfers              
Current grants 11 109,950 118,137 125,111   130,239 138,621
Subsidy expenses   13,201 14,944 15,358   13,758 15,453
Personal benefits 12 117,397 121,699 128,484   134,528 144,329
Total current transfers   240,548 254,780 268,953   278,525 298,403
Capital transfers 11            
Mutually agreed write-downs   1,997 2,137 2,277   2,453 2,633
Other capital grants   7,926 7,905 7,373   6,372 5,350
Total capital transfers   9,923 10,042 9,650   8,824 7,983
Total expenses   381,439 398,301 415,663   431,015 454,747
Net operating balance   -21,478 -10,552 -4,051   7,082 13,822
Other economic flows - included in operating result(b)              
Net write-downs of assets (including bad and doubtful debts)   -7,092 -7,488 -6,540   -7,807 -8,584
Assets recognised for the first time   535 559 585   611 639
Liabilities recognised for the first time   0 0 0   0 0
Actuarial revaluations   -798 0 0   0 0
Net foreign exchange gains   82 73 100   55 7
Net swap interest received   256 0 0   0 0
Market valuation of debt   3,467 2,924 2,370   1,868 1,549
Other gains/(losses)   12,709 3,655 4,699   5,565 3,407
Total other economic flows - included in operating result   9,159 -278 1,216   293 -2,983
Operating result(c)   -12,319 -10,830 -2,835   7,374 10,840
Non-owner movements in equity(b)              
Revaluation of equity investments   -2,201 -2,223 0   0 0
Actuarial revaluations   -745 140 181   218 252
Other economic revaluations   661 567 252   86 1,121
Total other economic flows - included in equity   -2,284 -1,517 434   304 1,373
Comprehensive result -              
Total change in net worth   -14,604 -12,347 -2,402   7,678 12,213
Net operating balance   -21,478 -10,552 -4,051   7,082 13,822
Net acquisition of non-financial assets              
Purchases of non-financial assets   7,528 8,755 8,613   9,908 9,411
less Sales of non-financial assets   3,661 346 1,156   1,686 220
less Depreciation   6,022 5,813 6,058   6,312 6,480
plus Change in inventories   371 270 233   320 366
plus Other movements in non-financial assets   573 78 573   -1,104 -74
Total net acquisition of non-financial assets   -1,212 2,945 2,204   1,126 3,003
Fiscal balance (Net lending/borrowing)(d)   -20,266 -13,497 -6,255   5,955 10,819

(a) Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.

(b) The presentation of other economic flows has changed to align more closely with AASB 1049. The AASB 1049 version of other economic flows previously published as Note 13 is no longer presented.

(c) Operating result under AEIFRS accounting standards.

(d) The term fiscal balance is not used by the ABS.

Table 2: Australian Government general government sector balance sheet
    Estimates   Projections
    2012‑13 2013‑14 2014‑15   2015‑16 2016‑17
  Note $m $m $m   $m $m
Assets              
Financial assets              
Cash and deposits 19(a) 2,470 2,679 3,085   3,630 3,877
Advances paid 13 35,409 41,017 47,452   54,008 61,975
Investments, loans and placements 14 103,278 112,965 116,226   120,520 131,325
Other receivables 13 44,464 46,756 49,310   52,111 58,880
Equity investments              
Investments in other public sector entities   22,803 26,208 32,845   38,553 43,600
Equity accounted investments   330 331 334   337 340
Investments - shares   33,431 34,026 36,782   39,664 43,046
Total financial assets   242,184 263,982 286,035   308,824 343,044
Non-financial assets 15            
Land   8,680 8,719 8,663   8,634 8,602
Buildings   23,433 24,454 24,613   25,592 25,784
Plant, equipment and infrastructure   53,705 54,888 56,776   58,825 60,805
Inventories   7,317 7,206 7,039   6,966 6,920
Intangibles   5,602 5,712 5,719   5,788 5,948
Investment property   182 182 182   182 182
Biological assets   37 37 37   37 37
Heritage and cultural assets   10,451 10,465 10,477   10,488 10,501
Assets held for sale   83 83 121   83 83
Other non-financial assets   795 873 1,446   342 268
Total non-financial assets   110,284 112,619 115,073   116,937 119,130
Total assets   352,469 376,601 401,108   425,761 462,174
Liabilities              
Interest bearing liabilities              
Deposits held   192 192 192   192 192
Government securities   292,845 321,252 345,421   356,674 370,335
Loans 16 8,588 11,851 11,347   11,161 11,088
Other borrowing   1,134 1,470 1,354   1,303 1,224
Total interest bearing liabilities   302,760 334,765 358,314   369,330 382,839
Provisions and payables              
Superannuation liability 17 143,509 148,710 154,001   159,356 164,806
Other employee liabilities 17 14,600 14,829 14,984   14,974 15,391
Suppliers payable 18 4,264 4,259 4,320   4,380 4,340
Personal benefits provisions and payable 18 14,240 13,952 14,273   14,585 15,071
Subsidies provisions and payable 18 3,216 3,475 3,460   3,845 5,092
Grants provisions and payable 18 17,030 15,892 13,162   11,942 12,555
Other provisions and payables 18 13,961 14,178 14,454   15,531 18,049
Total provisions and payables   210,820 215,294 218,654   224,613 235,305
Total liabilities   513,580 550,059 576,968   593,943 618,144
Net worth(a)   -161,112 -173,458 -175,860   -168,182 -155,969
Net financial worth(b)   -271,396 -286,077 -290,933   -285,119 -275,099
Net financial liabilities(c)   294,198 312,285 323,779   323,673 318,700
Net debt(d)   161,603 178,104 191,552   191,172 185,662

(a) Net worth is calculated as total assets minus total liabilities.

(b) Net financial worth equals total financial assets minus total liabilities.

(c) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.

(d) Net debt equals the sum of deposits held, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.

Table 3: Australian Government general government sector cash flow statement(a)
  Estimates   Projections
  2012‑13 2013‑14 2014‑15   2015‑16 2016‑17
  $m $m $m   $m $m
Cash receipts from operating activities            
Taxes received 326,297 354,854 377,751   405,809 431,494
Receipts from sales of goods and services 9,043 8,639 8,409   8,562 8,726
Interest receipts 3,674 4,074 4,055   4,575 4,837
Dividends and income tax equivalents 3,186 2,526 2,317   2,520 2,571
Other receipts 6,574 5,496 5,518   5,778 5,795
Total operating receipts 348,773 375,589 398,050   427,245 453,423
Cash payments for operating activities            
Payments for employees -26,156 -26,909 -27,116   -28,357 -28,947
Payments for goods and services -72,855 -76,293 -78,496   -83,534 -87,006
Grants and subsidies paid -126,872 -139,740 -147,934   -149,752 -156,210
Interest paid -11,912 -11,909 -12,460   -14,328 -12,563
Personal benefit payments -116,257 -122,319 -128,470   -134,549 -143,991
Other payments -5,288 -5,271 -5,560   -5,727 -5,776
Total operating payments -359,339 -382,442 -400,037   -416,247 -434,493
Net cash flows from operating activities -10,566 -6,853 -1,986   10,999 18,930
Cash flows from investments in non-financial assets            
Sales of non-financial assets 1,637 405 3,121   1,686 220
Purchases of non-financial assets -7,542 -8,288 -9,112   -8,723 -9,255
Net cash flows from investments in non-financial assets -5,905 -7,883 -5,992   -7,037 -9,036
Net cash flows from investments in financial assets for policy purposes -5,288 -10,073 -13,061   -12,595 -13,171
Cash flows from investments in financial assets for liquidity purposes            
Increase in investments -3,733 -4,919 -3,959   -4,445 -10,587
Net cash flows from investments in financial assets for liquidity purposes -3,733 -4,919 -3,959   -4,445 -10,587
Cash receipts from financing activities            
Borrowing 27,022 31,996 27,804   16,132 17,333
Other financing 0 0 0   0 0
Total cash receipts from financing activities 27,022 31,996 27,804   16,132 17,333
Cash payments for financing activities            
Borrowing 0 0 0   0 0
Other financing -1,583 -2,059 -2,400   -2,509 -3,223
Total cash payments for financing activities -1,583 -2,059 -2,400   -2,509 -3,223
Net cash flows from financing activities 25,439 29,937 25,404   13,624 14,110
Net increase/(decrease) in cash held -54 209 406   545 247
Net cash flows from operating activities and investments in non-financial assets (Surplus(+)/deficit(-)) -16,471 -14,736 -7,978   3,962 9,894
Finance leases and similar arrangements(b) -404 -469 0   0 0
GFS cash surplus(+)/deficit(-) -16,876 -15,205 -7,978   3,962 9,894
less Net Future Fund earnings 2,501 2,838 2,910   3,112 3,304
Equals underlying cash balance(c) -19,377 -18,043 -10,888   849 6,591
plus Net cash flows from investments in financial assets for policy purposes -5,288 -10,073 -13,061   -12,595 -13,171
plus Net Future Fund earnings 2,501 2,838 2,910   3,112 3,304
Equals headline cash balance -22,163 -25,278 -21,039   -8,633 -3,276

(a) A positive number denotes a cash inflow; a negative number denotes a cash outflow.

(b) 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.

(c) The term underlying cash balance is not used by the ABS.

Table 4: Australian Government public non‑financial corporations sector operating statement
  Estimates
  2012‑13 2013‑14
  $m $m
Revenue    
Current grants and subsidies 28 26
Sales of goods and services 8,951 9,878
Interest income 75 68
Other 1 0
Total revenue 9,055 9,973
Expenses    
Gross operating expenses    
Wages and salaries(a) 3,378 3,978
Superannuation 275 470
Depreciation and amortisation 714 1,193
Supply of goods and services 4,403 4,912
Other operating expenses(a) 472 543
Total gross operating expenses 9,241 11,096
Interest expenses 168 316
Other property expenses 284 206
Current transfers    
Tax expenses 135 59
Total current transfers 135 59
Total expenses 9,828 11,677
Net operating balance -773 -1,704
Other economic flows -540 111
Comprehensive result - Total change in net worth excluding contribution from owners -1,314 -1,593
Net acquisition of non-financial assets    
Purchases of non-financial assets 2,485 4,448
less Sales of non-financial assets 33 87
less Depreciation 714 1,193
plus Change in inventories 15 0
plus Other movements in non-financial assets 617 346
Total net acquisition of non-financial assets 2,370 3,514
Fiscal balance (Net lending/borrowing)(b) -3,143 -5,218

(a) Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.

(b) The term fiscal balance is not used by the ABS.

Table 5: Australian Government public non‑financial corporations sector balance sheet
  Estimates
  2012‑13 2013‑14
  $m $m
Assets    
Financial assets    
Cash and deposits 1,409 1,624
Investments, loans and placements 98 85
Other receivables 1,869 2,003
Equity investments 11 11
Total financial assets 3,386 3,722
Non-financial assets    
Land and fixed assets 12,553 17,845
Other non-financial assets(a) 1,629 1,953
Total non-financial assets 14,182 19,798
Total assets 17,568 23,520
Liabilities    
Interest bearing liabilities    
Borrowing 3,694 6,096
Total interest bearing liabilities 3,694 6,096
Provisions and payables    
Other employee liabilities 1,795 1,680
Other provisions and payables(a) 2,462 2,599
Total provisions and payables 4,257 4,279
Total liabilities 7,951 10,375
Shares and other contributed capital 9,617 13,145
Net worth(b) 9,617 13,145
Net financial worth(c) -4,565 -6,653
Net debt(d) 2,187 4,388

(a) Excludes the impact of commercial taxation adjustments.

(b) Under AASB 1049, net worth is calculated as total assets minus total liabilities. Under ABS GFS, net worth is calculated as total assets minus total liabilities minus shares and other contributed capital. The AASB 1049 method is used in this table.

(c) Under AASB 1049, net financial worth equals total financial assets minus total liabilities. Under ABS GFS, net financial worth equals total financial assets minus total liabilities minus shares and other contributed capital. The AASB 1049 method is used in this table.

(d) Net debt equals the sum of interest bearing liabilities (deposits held, advances received and borrowing), minus the sum of cash and deposits and investments, loans and placements.

Table 6: Australian Government public non‑financial corporations sector cash flow statement(a)
  Estimates
  2012‑13 2013‑14
  $m $m
Cash receipts from operating activities    
Receipts from sales of goods and services 9,901 10,414
GST input credit receipts 235 233
Other receipts 77 71
Total operating receipts 10,213 10,718
Cash payments for operating activities    
Payments to employees -4,040 -4,434
Payment for goods and services -5,053 -5,564
Interest paid -60 -70
GST payments to taxation authority -501 -513
Other payments -93 -112
Total operating payments -9,746 -10,694
Net cash flows from operating activities 467 24
Cash flows from investments in non-financial assets    
Sales of non-financial assets 34 87
Purchases of non-financial assets -3,099 -4,781
Net cash flows from investments in non-financial assets -3,065 -4,694
Cash flows from investments in financial assets for liquidity purposes    
Increase in investments -1,044 -105
Net cash flows from investments in financial assets for liquidity purposes -1,044 -105
Net cash flows from financing activities    
Borrowing (net) 462 97
Other financing (net) 2,913 5,086
Distributions paid (net) -294 -192
Net cash flows from financing activities 3,081 4,990
Net increase/(decrease) in cash held -424 215
Cash at the beginning of the year 1,832 1,409
Cash at the end of the year 1,409 1,624
Net cash from operating activities and investments in non-financial assets -2,599 -4,670
Distributions paid -294 -192
Equals surplus(+)/deficit(-) -2,892 -4,862
Finance leases and similar arrangements(b) 0 0
GFS cash surplus(+)/deficit(-) -2,892 -4,862

(a) A positive number denotes a cash inflow; a negative number denotes a cash outflow.

(b) 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 7: Australian Government total non‑financial public sector operating statement
  Estimates
  2012‑13 2013‑14
  $m $m
Revenue    
Taxation revenue 338,591 366,605
Sales of goods and services 16,391 17,261
Interest income 3,820 4,350
Dividend income 2,146 2,221
Other 6,285 5,769
Total revenue 367,233 396,205
Expenses    
Gross operating expenses    
Wages and salaries(a) 22,733 23,750
Superannuation 8,377 4,510
Depreciation and amortisation 6,736 7,006
Supply of goods and services 75,105 79,635
Other operating expenses(a) 5,883 6,010
Total gross operating expenses 118,834 120,911
Superannuation interest expense 6,778 8,462
Interest expenses 13,428 14,293
Current transfers    
Current grants 109,950 118,137
Subsidy expenses 13,174 14,918
Personal benefits 117,397 121,699
Total current transfers 240,521 254,754
Capital transfers 9,923 10,042
Total expenses 389,484 408,462
Net operating balance -22,251 -12,256
Other economic flows 7,485 102
Comprehensive result - Total change in net worth -14,766 -12,154
Net acquisition of non-financial assets    
Purchases of non-financial assets 10,013 13,203
less Sales of non-financial assets 3,694 433
less Depreciation 6,736 7,006
plus Change in inventories 386 270
plus Other movements in non-financial assets 1,190 425
Total net acquisition of non-financial assets 1,158 6,459
Fiscal balance (Net lending/borrowing)(b) -23,409 -18,716

(a) Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.

(b) The term fiscal balance is not used by the ABS.

Table 8: Australian Government total non‑financial public sector balance sheet
  Estimates
  2012‑13 2013‑14
  $m $m
Assets    
Financial assets    
Cash and deposits 3,879 4,303
Advances paid 35,409 41,017
Investments, loans and placements 103,092 112,765
Other receivables 46,206 48,634
Equity investments 44,622 45,287
Total financial assets 233,207 252,007
Non-financial assets    
Land and fixed assets 116,139 123,577
Other non-financial assets 8,327 8,840
Total non-financial assets 124,466 132,417
Total assets 357,673 384,424
Liabilities    
Interest bearing liabilities    
Deposits held 192 192
Government securities 292,845 321,252
Loans 8,304 11,567
Other borrowing 4,828 7,566
Total interest bearing liabilities 306,170 340,577
Provisions and payables    
Superannuation liability 143,509 148,710
Other employee liabilities 16,395 16,509
Other provisions and payables 55,047 54,230
Total provisions and payables 214,951 219,449
Total liabilities 521,121 560,026
Shares and other contributed capital 9,617 13,145
Net worth(a) -163,448 -175,602
Net financial worth(b) -287,913 -308,019
Net debt(c) 163,790 182,492

(a) Under AASB 1049, net worth is calculated as total assets minus total liabilities. Under ABS GFS, net worth is calculated as total assets minus total liabilities minus shares and other contributed capital. The AASB 1049 method is used in this table.

(b) Under AASB 1049, net financial worth equals total financial assets minus total liabilities. Under ABS GFS, net financial worth equals total financial assets minus total liabilities, minus shares and other contributed capital. The AASB 1049 method is used in this table.

(c) Net debt equals the sum of deposits held, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.

Table 9: Australian Government total non‑financial public sector cash flow statement(a)
  Estimates
  2012‑13 2013‑14
  $m $m
Cash receipts from operating activities    
Taxes received 326,206 354,742
Receipts from sales of goods and services 17,292 17,852
Interest receipts 3,729 4,113
Dividends and income tax equivalents 2,892 2,334
Other receipts 6,575 5,497
Total operating receipts 356,694 384,537
Cash payments for operating activities    
Payments to employees -30,196 -31,343
Payments for goods and services -76,522 -80,937
Grants and subsidies paid -126,872 -139,740
Interest paid -11,952 -11,948
Personal benefit payments -116,257 -122,319
Other payments -5,289 -5,271
Total operating payments -367,087 -391,559
Net cash flows from operating activities -10,393 -7,022
Cash flows from investments in non-financial assets    
Sales of non-financial assets 1,672 492
Purchases of non-financial assets -10,642 -13,069
Net cash flows from investments in non-financial assets -8,970 -12,577
Net cash flows from investments in financial assets for policy purposes -2,286 -4,951
Cash flows from investments in financial assets for liquidity purposes    
Increase in investments -4,777 -5,024
Net cash flows from investments in financial assets for liquidity purposes -4,777 -5,024
Net cash flows from financing activities    
Borrowing (net) 27,483 32,092
Other financing (net) -1,534 -2,095
Net cash flows from financing activities 25,949 29,998
Net increase/(decrease) in cash held -477 424
Cash at the beginning of the year 4,356 3,879
Cash at the end of the year 3,879 4,303
Net cash from operating activities and investments in non-financial assets -19,363 -19,599
Distributions paid 0 0
Equals surplus(+)/deficit(-) -19,363 -19,599
Finance leases and similar arrangements(b) -404 -469
GFS cash surplus(+)/deficit(-) -19,768 -20,067

(a) A positive number denotes a cash inflow; a negative number denotes a cash outflow.

(b) 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.

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