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Australian Government Coat of Arms

Budget | 2014-15

Budget 2014-15
Australian Government Coat of Arms, Budget 2014-15

Statement 9: Australian Government Budget Financial Statements

Consistent with the Charter of Budget Honesty Act 1998 (the Charter), the Government has produced a single set of financial statements for the Australian Government general government sector (GGS), the public non‑financial corporations (PNFC) sector and the total non‑financial public sector (NFPS). The financial statements comply with both Australian Bureau of Statistics' (ABS) accrual Government Finance Statistics (GFS) and Australian Accounting Standards (AAS), with departures disclosed. These statements are:

  • an operating statement, including other economic flows, which shows net operating balance and net lending/borrowing (fiscal balance);
  • a balance sheet, which also shows net worth, net financial worth, net financial liabilities and net debt; and
  • a cash flow statement, which includes the calculation of the underlying cash  balance.

In addition to these general purpose statements, notes to the financial statements are required. These notes include a summary of accounting policies, disaggregated information and other disclosures required by AAS.

The statements reflect the 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
    2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
   Note $m $m $m   $m $m
Revenue              
Taxation revenue 3 350,956 368,814 396,055   422,875 449,509
Sales of goods and services 4 8,853 8,928 9,170   11,347 15,969
Interest income 5 3,445 4,229 4,731   5,128 5,565
Dividend income 5 4,288 2,570 2,520   3,569 2,886
Other 6 6,724 6,807 7,135   6,922 6,465
Total revenue   374,267 391,348 419,612   449,840 480,394
Expenses              
Gross operating expenses              
Wages and salaries(a) 7 19,532 19,638 19,383   19,591 19,928
Superannuation 7 6,235 4,291 4,268   4,226 4,259
Depreciation and amortisation 8 6,474 6,644 6,834   7,126 7,229
Supply of goods and services 9 74,552 79,875 81,769   84,642 88,701
Other operating expenses(a) 7 6,039 6,111 6,187   6,260 6,451
Total gross operating expenses   112,833 116,559 118,441   121,845 126,569
Superannuation interest expense 7 8,320 9,275 9,630   9,979 10,333
Interest expenses 10 14,396 15,551 17,072   18,327 19,011
Current transfers              
Current grants 11 117,437 124,121 128,711   137,663 149,198
Subsidy expenses   15,534 12,184 12,497   13,280 13,779
Personal benefits 12 124,944 126,336 132,086   139,061 146,124
Total current transfers   257,915 262,641 273,294   290,004 309,101
Capital transfers 11            
Mutually agreed write-downs   3,094 2,662 2,796   3,013 3,216
Other capital grants   18,736 8,156 9,884   10,638 7,218
Total capital transfers   21,830 10,818 12,681   13,651 10,434
Total expenses   415,294 414,845 431,118   453,806 475,447
Net operating balance   -41,027 -23,497 -11,506   -3,966 4,946
Other economic flows - included in operating result              
Net write-downs of assets (including bad and doubtful debts)   -5,278 -7,037 -7,714   -8,355 -9,198
Assets recognised for the first time   330 346 363   381 393
Liabilities recognised for the first time   0 0 0   0 0
Actuarial revaluations   0 0 0   0 0
Net foreign exchange gains   -447 63 105   153 18
Net swap interest received   -663 0 0   0 0
Market valuation of debt   2,410 372 157   30 -50
Other gains/(losses)   9,302 6,259 7,796   3,750 4,971
Total other economic flows - included in operating result   5,655 1 708   -4,040 -3,866
Operating result(b)   -35,372 -23,495 -10,798   -8,006 1,081
Non-owner movements in equity              
Revaluation of equity investments   7,185 -2,237 0   0 0
Actuarial revaluations   -6,720 17 211   368 395
Other economic revaluations   704 124 144   1,097 165
Total other economic flows - included in equity   1,168 -2,096 355   1,464 561
Comprehensive result - Total change in net worth   -34,204 -25,591 -10,443   -6,542 1,641
Net operating balance   -41,027 -23,497 -11,506   -3,966 4,946
Net acquisition of non-financial assets              
Purchases of non-financial assets   10,240 10,679 10,215   9,626 11,094
less Sales of non-financial assets   273 2,370 2,767   215 214
less Depreciation   6,474 6,644 6,834   7,126 7,229
plus Change in inventories   430 492 328   457 301
plus Other movements in non-financial assets   105 201 -234   -112 10
Total net acquisition of non-financial assets   4,027 2,359 708   2,630 3,962
Fiscal balance (Net lending/borrowing)(c)   -45,055 -25,855 -12,214   -6,596 984

(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) Operating result under AAS.

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

Table 2: Australian Government general government sector balance sheet
    Estimates   Projections
    2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
   Note $m $m $m   $m $m
Assets              
Financial assets              
Cash and deposits 19(a) 3,004 2,480 2,764   2,760 3,080
Advances paid 13 39,737 45,145 52,454   61,294 70,021
Investments, loans and placements 14 117,371 128,753 134,010   149,258 151,884
Other receivables 13 46,051 45,489 48,747   52,772 55,176
Equity investments              
Investments in other public sector entities   35,781 35,506 42,376   49,577 51,983
Equity accounted investments   300 303 306   307 308
Investments - shares   37,549 39,715 41,910   45,173 48,306
Total financial assets   279,792 297,392 322,567   361,142 380,758
Non-financial assets 15            
Land   8,929 8,875 8,825   8,838 8,802
Buildings   24,335 25,425 25,468   25,506 25,951
Plant, equipment and infrastructure   54,875 57,347 60,330   62,405 64,921
Inventories   7,942 7,987 7,865   7,841 7,635
Intangibles   5,810 5,988 6,083   6,184 6,702
Investment property   196 211 226   231 236
Biological assets   35 35 35   35 35
Heritage and cultural assets   10,573 10,588 10,600   10,613 10,625
Assets held for sale   136 174 136   136 136
Other non-financial assets   397 598 364   252 261
Total non-financial assets   113,228 117,229 119,932   122,041 125,305
Total assets   393,020 414,620 442,499   483,184 506,063
Liabilities              
Interest bearing liabilities              
Deposits held   182 182 182   182 182
Government securities   346,648 387,772 421,424   460,519 475,214
Loans 16 9,608 13,436 12,707   12,717 12,640
Other borrowing   1,524 1,376 1,276   1,175 1,149
Total interest bearing liabilities   357,963 402,766 435,590   474,593 489,185
Provisions and payables              
Superannuation liability 17 157,067 163,228 169,320   175,263 181,126
Other employee liabilities 17 15,102 15,291 15,401   15,680 16,038
Suppliers payable 18 4,632 4,705 4,768   4,855 5,103
Personal benefits provisions and payable 18 12,384 11,659 11,196   11,499 11,856
Subsidies provisions and payable 18 4,242 3,937 4,146   4,321 4,411
Grants provisions and payable 18 14,170 11,154 10,187   11,209 10,775
Other provisions and payables 18 13,879 13,891 14,344   14,758 14,923
Total provisions and payables   221,477 223,865 229,363   237,586 244,231
Total liabilities   579,439 626,631 664,953   712,179 733,417
Net worth(a)   -186,419 -212,010 -222,454   -228,995 -227,354
Net financial worth(b)   -299,647 -329,239 -342,385   -351,036 -352,659
Net financial liabilities(c)   335,428 364,745 384,761   400,614 404,642
Net debt(d)   197,851 226,388 246,362   261,280 264,200

(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
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Cash receipts from operating activities            
Taxes received 341,643 360,372 385,286   411,691 437,562
Receipts from sales of goods and services 8,764 8,910 9,121   11,279 15,893
Interest receipts 3,210 3,657 3,893   3,977 4,088
Dividends and income tax equivalents 3,040 4,257 2,461   2,675 3,751
Other receipts 6,376 6,339 6,963   7,012 6,476
Total operating receipts 363,032 383,534 407,725   436,634 467,771
Cash payments for operating activities            
Payments for employees -26,587 -27,022 -27,151   -27,498 -28,251
Payments for goods and services -74,438 -79,807 -81,515   -84,612 -88,415
Grants and subsidies paid -152,953 -147,617 -151,670   -161,318 -170,327
Interest paid -13,935 -14,174 -15,442   -16,188 -17,011
Personal benefit payments -126,398 -127,221 -132,752   -139,026 -146,064
Other payments -6,056 -5,890 -5,881   -5,898 -6,025
Total operating payments -400,366 -401,730 -414,410   -434,539 -456,094
Net cash flows from operating activities -37,334 -18,196 -6,685   2,095 11,677
Cash flows from investments in non-financial assets            
Sales of non-financial assets 464 2,244 2,702   215 214
Purchases of non-financial assets -9,827 -10,753 -9,839   -9,374 -10,966
Net cash flows from investments in non-financial assets -9,363 -8,509 -7,137   -9,159 -10,752
Net cash flows from investments in financial assets for policy purposes -6,575 -6,819 -12,787   -15,592 -12,358
Cash flows from investments in financial assets for liquidity purposes            
Increase in investments -8,592 -7,017 -5,217   -14,654 -1,263
Net cash flows from investments in financial assets for liquidity purposes -8,592 -7,017 -5,217   -14,654 -1,263
Cash receipts from financing activities            
Borrowing 64,689 42,308 34,624   40,250 15,965
Other financing 17 0 0   0 0
Total cash receipts from financing activities 64,706 42,308 34,624   40,250 15,965
Cash payments for financing activities            
Borrowing 0 0 0   0 0
Other financing -1,914 -2,289 -2,514   -2,944 -2,950
Total cash payments for financing activities -1,914 -2,289 -2,514   -2,944 -2,950
Net cash flows from financing activities 62,792 40,018 32,110   37,306 13,015
Net increase/(decrease) in cash held 928 -523 284   -4 319
Net cash flows from operating activities and investments in non-financial assets (Surplus(+)/deficit(-)) -46,698 -26,705 -13,822   -7,063 925
Finance leases and similar arrangements(b) -469 0 0   0 0
GFS cash surplus(+)/deficit(-) -47,166 -26,705 -13,822   -7,063 925
less Net Future Fund earnings 2,689 3,068 3,262   3,499 3,750
Equals underlying cash balance(c) -49,855 -29,773 -17,084   -10,562 -2,825
plus Net cash flows from investments in financial assets for policy purposes -6,575 -6,819 -12,787   -15,592 -12,358
plus Net Future Fund earnings 2,689 3,068 3,262   3,499 3,750
Equals headline cash balance -53,741 -33,524 -26,609   -22,656 -11,432

(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
  2013‑14 2014‑15
  $m $m
Revenue    
Current grants and subsidies 34 27
Sales of goods and services 9,426 9,805
Interest income 55 29
Other 5 10
Total revenue 9,520 9,871
Expenses    
Gross operating expenses    
Wages and salaries(a) 3,827 3,765
Superannuation 472 512
Depreciation and amortisation 966 1,456
Supply of goods and services 4,637 5,094
Other operating expenses(a) 432 401
Total gross operating expenses 10,334 11,227
Interest expenses 288 322
Other property expenses 215 101
Current transfers    
Tax expenses 147 109
Total current transfers 147 109
Total expenses 10,984 11,759
Net operating balance -1,464 -1,887
Other economic flows 4 -5
Comprehensive result - Total change in net worth excluding contribution from owners -1,460 -1,892
Net acquisition of non-financial assets    
Purchases of non-financial assets 2,892 3,797
less Sales of non-financial assets 185 16
less Depreciation 966 1,456
plus Change in inventories 10 18
plus Other movements in non-financial assets 628 1,232
Total net acquisition of non-financial assets 2,379 3,575
Fiscal balance (Net lending/borrowing)(b) -3,843 -5,463

(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
  2013‑14 2014‑15
  $m $m
Assets    
Financial assets    
Cash and deposits 1,897 1,713
Investments, loans and placements 239 295
Other receivables 1,434 1,442
Equity investments 30 30
Total financial assets 3,600 3,480
Non-financial assets    
Land and fixed assets 16,559 19,439
Other non-financial assets(a) 2,208 3,437
Total non-financial assets 18,767 22,876
Total assets 22,367 26,356
Liabilities    
Interest bearing liabilities    
Loans 2,947 2,858
Other borrowing 3,468 3,945
Total interest bearing liabilities 6,415 6,803
Provisions and payables    
Superannuation liability 57 58
Other employee liabilities 1,318 1,430
Other provisions and payables(a) 2,693 2,764
Total provisions and payables 4,068 4,251
Total liabilities 10,483 11,054
Shares and other contributed capital 11,884 15,301
Net worth(b) 11,884 15,301
Net financial worth(c) -6,883 -7,574
Net debt(d) 4,279 4,795

(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
  2013‑14 2014‑15
  $m $m
Cash receipts from operating activities    
Receipts from sales of goods and services 10,732 10,841
GST input credit receipts 266 277
Other receipts 61 31
Total operating receipts 11,059 11,149
Cash payments for operating activities    
Payments to employees -4,533 -4,495
Payment for goods and services -5,746 -5,888
Interest paid -68 -59
GST payments to taxation authority -618 -639
Other payments -130 -111
Total operating payments -11,095 -11,192
Net cash flows from operating activities -36 -43
Cash flows from investments in non-financial assets    
Sales of non-financial assets 245 16
Purchases of non-financial assets -3,524 -5,033
Net cash flows from investments in non-financial assets -3,279 -5,017
Net cash flows from investments in financial assets for policy purposes 0 0
Cash flows from investments in financial assets for liquidity purposes    
Increase in investments 892 -2
Net cash flows from investments in financial assets for liquidity purposes 892 -2
Net cash flows from financing activities    
Borrowing (net) -106 -277
Other financing (net) 3,746 5,256
Distributions paid (net) -212 -101
Net cash flows from financing activities 3,429 4,878
Net increase/(decrease) in cash held 1,006 -184
Cash at the beginning of the year 891 1,897
Cash at the end of the year 1,897 1,713
Net cash from operating activities and investments in non-financial assets -3,315 -5,060
Distributions paid -212 -101
Equals surplus(+)/deficit(-) -3,527 -5,162
Finance leases and similar arrangements(b) 0 0
GFS cash surplus(+)/deficit(-) -3,527 -5,162

(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
  2013‑14 2014‑15
  $m $m
Revenue    
Taxation revenue 350,809 368,706
Sales of goods and services 16,946 17,671
Interest income 3,468 4,240
Dividend income 4,073 2,469
Other 6,730 6,817
Total revenue 382,026 399,903
Expenses    
Gross operating expenses    
Wages and salaries(a) 23,359 23,403
Superannuation 6,707 4,803
Depreciation and amortisation 7,440 8,100
Supply of goods and services 77,856 83,907
Other operating expenses(a) 6,471 6,512
Total gross operating expenses 121,833 126,725
Superannuation interest expense 8,320 9,275
Interest expenses 14,653 15,854
Current transfers    
Current grants 117,437 124,121
Subsidy expenses 15,499 12,158
Personal benefits 124,944 126,336
Total current transfers 257,880 262,614
Capital transfers 21,830 10,818
Total expenses 424,517 425,287
Net operating balance -42,491 -25,384
Other economic flows 8,436 -217
Comprehensive result - Total change in net worth -34,056 -25,601
Net acquisition of non-financial assets    
Purchases of non-financial assets 13,132 14,476
less Sales of non-financial assets 458 2,386
less Depreciation 7,440 8,100
plus Change in inventories 439 510
plus Other movements in non-financial assets 733 1,433
Total net acquisition of non-financial assets 6,406 5,934
Fiscal balance (Net lending/borrowing)(b) -48,898 -31,318

(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
  2013‑14 2014‑15
  $m $m
Assets    
Financial assets    
Cash and deposits 4,901 4,194
Advances paid 39,737 45,145
Investments, loans and placements 117,307 128,745
Other receivables 47,354 46,811
Equity investments 61,437 59,905
Total financial assets 270,736 284,800
Non-financial assets    
Land and fixed assets 123,212 129,662
Other non-financial assets 8,783 10,442
Total non-financial assets 131,995 140,104
Total assets 402,731 424,904
Liabilities    
Interest bearing liabilities    
Deposits held 182 182
Government securities 346,648 387,772
Loans 12,252 15,991
Other borrowing 4,992 5,321
Total interest bearing liabilities 364,074 409,266
Provisions and payables    
Superannuation liability 157,124 163,286
Other employee liabilities 16,420 16,720
Other provisions and payables 51,869 47,990
Total provisions and payables 225,414 227,997
Total liabilities 589,489 637,262
Shares and other contributed capital 11,884 15,301
Net worth(a) -186,757 -212,358
Net financial worth(b) -318,752 -352,462
Net debt(c) 202,130 231,182

(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
  2013‑14 2014‑15
  $m $m
Cash receipts from operating activities    
Taxes received 341,512 360,260
Receipts from sales of goods and services 17,750 18,689
Interest receipts 3,239 3,668
Dividends and income tax equivalents 2,828 4,156
Other receipts 6,377 6,341
Total operating receipts 371,706 393,114
Cash payments for operating activities    
Payments to employees -31,120 -31,517
Payments for goods and services -78,790 -84,996
Grants and subsidies paid -152,953 -147,617
Interest paid -13,972 -14,214
Personal benefit payments -126,398 -127,221
Other payments -6,056 -5,890
Total operating payments -409,288 -411,454
Net cash flows from operating activities -37,583 -18,341
Cash flows from investments in non-financial assets    
Sales of non-financial assets 709 2,260
Purchases of non-financial assets -13,351 -15,787
Net cash flows from investments in non-financial assets -12,642 -13,526
Net cash flows from investments in financial assets for policy purposes -3,154 -1,509
Cash flows from investments in financial assets for liquidity purposes    
Increase in investments -7,699 -7,019
Net cash flows from investments in financial assets for liquidity purposes -7,699 -7,019
Net cash flows from financing activities    
Borrowing (net) 64,584 42,031
Other financing (net) -1,571 -2,343
Net cash flows from financing activities 63,013 39,688
Net increase/(decrease) in cash held 1,934 -707
Cash at the beginning of the year 2,966 4,901
Cash at the end of the year 4,901 4,194
Net cash from operating activities and investments in non-financial assets -50,225 -31,867
Distributions paid 0 0
Equals surplus(+)/deficit(-) -50,225 -31,867
Finance leases and similar arrangements(b) -469 0
GFS cash surplus(+)/deficit(-) -50,693 -31,867

(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.