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Australian Government Coat of Arms

Budget | 2015-16

Budget 2015-16
Australian Government Coat of Arms, Budget 2015-16

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, the total non‑financial public sector (NFPS) and the public financial corporations (PFC) sector. This is the first Budget that includes financial statement estimates for the PFC sector. 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 Loan Council Allocation.

Table 1: Australian Government general government sector operating statement
    Estimates   Projections
    2014‑15 2015‑16 2016‑17   2017‑18 2018‑19
   Note $m $m $m   $m $m
Revenue              
Taxation revenue 3 359,117 380,074 406,617   433,790 464,205
Sales of goods and services 4 9,277 9,542 11,791   16,331 20,069
Interest income 5 3,653 4,083 4,680   5,159 6,184
Dividend income 5 4,796 3,143 3,561   3,911 3,310
Other 6 7,255 8,508 6,777   6,986 7,519
Total revenue   384,098 405,350 433,427   466,178 501,288
Expenses              
Gross operating expenses              
Wages and salaries(a) 7 18,939 19,801 19,948   19,968 20,098
Superannuation 7 6,803 4,760 4,737   4,755 4,787
Depreciation and amortisation 8 6,804 7,182 7,466   7,719 8,154
Supply of goods and services 9 80,474 85,046 85,729   94,569 98,788
Other operating expenses(a) 7 5,502 5,510 5,499   5,565 5,657
Total gross operating expenses   118,522 122,298 123,380   132,577 137,483
Superannuation interest expense 7 8,989 9,869 10,259   10,648 11,034
Interest expenses 10 15,915 17,270 19,040   19,652 20,141
Current transfers              
Current grants 11 124,435 128,415 136,519   147,698 161,362
Subsidy expenses   12,522 12,654 13,401   13,779 14,517
Personal benefits 12 130,663 133,123 136,821   135,931 146,061
Total current transfers   267,620 274,191 286,741   297,407 321,940
Capital transfers 11            
Mutually agreed write‑downs   2,124 2,199 2,366   2,560 2,713
Other capital grants   7,164 8,641 10,867   8,972 6,116
Total capital transfers   9,288 10,840 13,234   11,532 8,830
Total expenses   420,335 434,469 452,654   471,816 499,428
Net operating balance   ‑36,237 ‑29,118 ‑19,227   ‑5,638 1,860
Other economic flows ‑ included in operating result              
Net write‑downs of assets (including bad and doubtful debts)   ‑6,878 ‑8,638 ‑9,358   ‑10,302 ‑9,842
Assets recognised for the first time   319 335 351   362 380
Liabilities recognised for the first time   0 0 0   0 0
Actuarial revaluations   0 0 0   0 0
Net foreign exchange gains   ‑247 46 33   14 1
Net swap interest received   ‑799 0 0   0 0
Market valuation of debt   ‑14,521 3,625 3,115   2,603 2,398
Other gains/(losses)   20,826 5,604 4,768   7,579 7,143
Total other economic flows ‑ included in operating result   ‑1,300 972 ‑1,090   256 80
Operating result(b)   ‑37,537 ‑28,147 ‑20,317   ‑5,382 1,940
Non‑owner movements in equity              
Revaluation of equity investments   2,681 ‑2,221 29   31 49
Actuarial revaluations   ‑3,383 105 314   353 426
Other economic revaluations   ‑3,554 135 1,019   76 145
Total other economic flows ‑ included in equity   ‑4,256 ‑1,981 1,362   460 620
Comprehensive result ‑ Total change in net worth   ‑41,793 ‑30,128 ‑18,955   ‑4,922 2,560
Net operating balance   ‑36,237 ‑29,118 ‑19,227   ‑5,638 1,860
Net acquisition of non‑financial assets              
Purchases of non‑financial assets   11,622 11,408 11,612   12,606 13,859
less Sales of non‑financial assets   2,348 491 267   1,709 828
less Depreciation   6,804 7,182 7,466   7,719 8,154
plus Change in inventories   494 352 408   377 209
plus Other movements in non‑financial assets   174 ‑234 ‑89   44 4
Total net acquisition of              
non‑financial assets   3,138 3,854 4,198   3,598 5,090
Fiscal balance (Net lending/borrowing)(c)   ‑39,375 ‑32,972 ‑23,425   ‑9,236 ‑3,230

(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
    2014‑15 2015‑16 2016‑17   2017‑18 2018‑19
   Note $m $m $m   $m $m
Assets              
Financial assets              
Cash and deposits   3,144 3,435 4,187   4,988 5,709
Advances paid 13 45,874 52,901 63,368   73,722 84,896
Investments, loans and placements 14 131,157 137,947 161,712   162,641 168,306
Other receivables 13 44,828 45,980 48,549   50,623 53,261
Equity investments              
Investments in other public sector entities   39,708 45,471 53,920   53,986 54,012
Equity accounted investments   326 326 323   323 323
Investments ‑ shares   44,847 46,537 48,447   51,873 55,524
Total financial assets   309,884 332,597 380,507   398,156 422,030
Non‑financial assets 15            
Land   9,287 9,144 9,152   9,122 9,218
Buildings   26,043 26,927 27,536   28,427 29,306
Plant, equipment and infrastructure   57,012 59,766 62,622   65,575 69,703
Inventories   8,360 8,211 8,181   8,087 7,808
Intangibles   6,312 6,547 6,686   7,231 7,463
Investment property   195 195 195   195 195
Biological assets   36 36 36   36 36
Heritage and cultural assets   10,843 10,852 10,864   10,877 10,889
Assets held for sale   113 72 72   72 72
Other non‑financial assets   582 348 260   303 308
Total non‑financial assets   118,784 122,098 125,604   129,925 134,998
Total assets   428,668 454,695 506,111   528,081 557,029
Liabilities              
Interest bearing liabilities              
Deposits held   211 211 211   211 211
Government securities   418,307 464,298 527,453   550,072 569,504
Loans 16 10,347 14,148 13,607   13,502 13,400
Other borrowing   1,545 1,428 1,352   1,290 1,242
Total interest bearing liabilities   430,409 480,084 542,624   565,074 584,357
Provisions and payables              
Superannuation liability 17 167,327 173,921 180,532   187,117 193,677
Other employee liabilities 17 16,030 16,105 16,362   16,659 16,971
Suppliers payable 18 4,956 4,914 4,887   5,008 5,012
Personal benefits provisions and payables 18 13,261 12,826 12,446   11,414 11,485
Subsidies provisions and payables 18 4,585 4,854 5,071   5,178 5,367
Grants provisions and payables 18 10,325 8,472 9,162   8,684 8,427
Other provisions and payables 18 13,086 14,959 15,421   14,262 14,488
Total provisions and payables   229,571 236,051 243,882   248,323 255,427
Total liabilities   659,979 716,135 786,505   813,397 839,785
Net worth(a)   ‑231,311 ‑261,440 ‑280,395   ‑285,316 ‑282,756
Net financial worth(b)   ‑350,096 ‑383,538 ‑405,998   ‑415,241 ‑417,754
Net financial liabilities(c)   389,804 429,009 459,919   469,227 471,766
Net debt(d)   250,234 285,802 313,356   323,723 325,447

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

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

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

(b) 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
  2014‑15 2015‑16 2016‑17   2017‑18 2018‑19
  $m $m $m   $m $m
Cash receipts from operating activities            
Taxes received 351,452 370,140 396,422   422,762 452,469
Receipts from sales of goods and services 9,218 9,475 11,735   16,274 20,008
Interest receipts 3,131 3,334 3,537   3,692 4,069
Dividends and income tax equivalents 4,121 4,623 3,305   3,745 4,054
Other receipts 7,164 8,549 7,196   6,846 6,804
Total operating receipts 375,087 396,121 422,194   453,319 487,405
Cash payments for operating activities            
Payments for employees ‑26,061 ‑27,891 ‑28,021   ‑28,421 ‑28,924
Payments for goods and services ‑80,293 ‑85,076 ‑85,811   ‑94,409 ‑98,631
Grants and subsidies paid ‑146,048 ‑150,792 ‑160,611   ‑169,991 ‑180,713
Interest paid ‑14,037 ‑14,953 ‑15,464   ‑16,028 ‑17,070
Personal benefit payments ‑131,520 ‑134,744 ‑138,405   ‑137,731 ‑146,707
Other payments ‑5,247 ‑5,218 ‑5,110   ‑5,116 ‑5,244
Total operating payments ‑403,206 ‑418,674 ‑433,423   ‑451,697 ‑477,288
Net cash flows from operating activities ‑28,119 ‑22,553 ‑11,229   1,622 10,117
Cash flows from investments in non‑financial assets            
Sales of non‑financial assets 2,222 1,859 267   276 828
Purchases of non‑financial assets ‑11,795 ‑11,161 ‑11,495   ‑12,596 ‑13,813
Net cash flows from investments in non‑financial assets ‑9,572 ‑9,302 ‑11,228   ‑12,320 ‑12,985
Net cash flows from investments in financial assets for policy purposes ‑5,500 ‑12,908 ‑21,397   ‑13,983 ‑14,452
Cash flows from investments in financial assets for liquidity purposes            
Increase in investments ‑9,021 ‑3,129 ‑20,044   1,721 ‑2,886
Net cash flows from investments in financial assets for liquidity purposes ‑9,021 ‑3,129 ‑20,044   1,721 ‑2,886
Cash receipts from financing activities            
Borrowing 53,695 50,790 67,956   27,405 24,294
Other financing 48 11 0   0 0
Total cash receipts from financing activities 53,743 50,801 67,956   27,405 24,294
Cash payments for financing activities            
Borrowing 0 0 0   0 0
Other financing ‑2,231 ‑2,620 ‑3,304   ‑3,645 ‑3,368
Total cash payments for financing activities ‑2,231 ‑2,620 ‑3,304   ‑3,645 ‑3,368
Net cash flows from financing activities 51,512 48,182 64,652   23,760 20,926
Net increase/(decrease) in cash held ‑701 291 753   801 721
Net cash flows from operating activities and investments in non‑financial assets (Surplus(+)/deficit(‑)) ‑37,691 ‑31,855 ‑22,457   ‑10,697 ‑2,868
Finance leases and similar arrangements(b) 0 ‑2 ‑5   0 0
GFS cash surplus(+)/deficit(‑) ‑37,691 ‑31,856 ‑22,462   ‑10,697 ‑2,868
less Net Future Fund earnings 3,429 3,258 3,375   3,699 4,037
Equals underlying cash balance(c) ‑41,121 ‑35,115 ‑25,836   ‑14,396 ‑6,905
plus Net cash flows from investments in financial assets for policy purposes ‑5,500 ‑12,908 ‑21,397   ‑13,983 ‑14,452
plus Net Future Fund earnings 3,429 3,258 3,375   3,699 4,037
Equals headline cash balance ‑43,191 ‑44,764 ‑43,859   ‑24,681 ‑17,320

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

(a) 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.

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

Table 4: Australian Government public non‑financial corporations sector operating statement
  Estimates
  2014‑15 2015‑16
  $m $m
Revenue    
Current grants and subsidies 73 31
Sales of goods and services 9,640 9,627
Interest income 41 44
Other 10 27
Total revenue 9,764 9,729
Expenses    
Gross operating expenses    
Wages and salaries(a) 3,793 3,889
Superannuation 381 386
Depreciation and amortisation 1,256 1,705
Supply of goods and services 5,271 5,985
Other operating expenses(a) 543 400
Total gross operating expenses 11,244 12,366
Interest expenses 445 519
Other property expenses 65 118
Current transfers    
Tax expenses 70 22
Total current transfers 70 22
Total expenses 11,825 13,025
Net operating balance ‑2,061 ‑3,295
Other economic flows ‑410 134
Comprehensive result ‑ Total change in net worth excluding contribution from owners ‑2,471 ‑3,161
Net acquisition of non‑financial assets    
Purchases of non‑financial assets 2,678 6,089
less Sales of non‑financial assets 77 20
less Depreciation 1,256 1,705
plus Change in inventories 7 14
plus Other movements in non‑financial assets 1,200 869
Total net acquisition of non‑financial assets 2,552 5,247
Fiscal balance (Net lending/borrowing)(b) ‑4,613 ‑8,543

(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.

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

Table 5: Australian Government public non‑financial corporations sector balance sheet
  Estimates
  2014‑15 2015‑16
  $m $m
Assets    
Financial assets    
Cash and deposits 1,703 2,073
Investments, loans and placements 106 287
Other receivables 1,681 1,653
Equity investments 3 3
Total financial assets 3,492 4,016
Non‑financial assets    
Land and other fixed assets 18,773 23,355
Other non‑financial assets(a) 3,626 4,496
Total non‑financial assets 22,400 27,850
Total assets 25,892 31,866
Liabilities    
Interest bearing liabilities    
Advances received 319 188
Loans 2,242 2,497
Other borrowing 3,766 4,030
Total interest bearing liabilities 6,327 6,715
Provisions and payables    
Superannuation liability 5 5
Other employee liabilities 1,463 1,357
Other provisions and payables(a) 3,510 4,009
Total provisions and payables 4,977 5,371
Total liabilities 11,304 12,086
Shares and other contributed capital 14,588 19,780
Net worth(b) 14,588 19,780
Net financial worth(c) ‑7,812 ‑8,070
Net debt(d) 4,518 4,355

(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 (deposit held, advances received, loans and other 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
  2014‑15 2015‑16
  $m $m
Cash receipts from operating activities    
Receipts from sales of goods and services 10,257 10,397
GST input credit receipts 428 633
Other receipts 65 42
Total operating receipts 10,750 11,072
Cash payments for operating activities    
Payments to employees ‑4,510 ‑4,682
Payment for goods and services ‑7,016 ‑7,175
Interest paid ‑67 ‑62
GST payments to taxation authority ‑43 ‑69
Other payments ‑48 ‑60
Total operating payments ‑11,683 ‑12,048
Net cash flows from operating activities ‑933 ‑977
Cash flows from investments in non‑financial assets    
Sales of non‑financial assets 71 26
Purchases of non‑financial assets ‑3,851 ‑6,959
Net cash flows from investments in non‑financial assets ‑3,781 ‑6,933
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 72 ‑12
Net cash flows from investments in financial assets for liquidity purposes 72 ‑12
Net cash flows from financing activities    
Borrowing (net) ‑86 106
Other financing (net) 5,150 8,303
Distributions paid (net) ‑100 ‑117
Net cash flows from financing activities 4,965 8,292
Net increase/(decrease) in cash held 323 370
Cash at the beginning of the year 1,380 1,703
Cash at the end of the year 1,703 2,073
Net cash from operating activities and investments in non‑financial assets ‑4,714 ‑7,910
Distributions paid ‑100 ‑117
Equals surplus(+)/deficit(‑) ‑4,814 ‑8,026
Finance leases and similar arrangements(b) 0 0
GFS cash surplus(+)/deficit(‑) ‑4,814 ‑8,026

(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
  2014‑15 2015‑16
  $m $m
Revenue    
Taxation revenue 359,046 380,052
Sales of goods and services 17,533 18,170
Interest income 3,676 4,108
Dividend income 4,731 3,025
Other 7,265 8,535
Total revenue 392,250 413,891
Expenses    
Gross operating expenses    
Wages and salaries(a) 22,732 23,690
Superannuation 7,184 5,146
Depreciation and amortisation 8,060 8,887
Supply of goods and services 84,362 90,031
Other operating expenses(a) 6,045 5,910
Total gross operating expenses 128,382 133,664
Superannuation interest expense 8,989 9,869
Interest expenses 16,341 17,770
Current transfers    
Current grants 124,435 128,415
Subsidy expenses 12,449 12,623
Personal benefits 130,663 133,123
Total current transfers 267,547 274,160
Capital transfers 9,288 10,840
Total expenses 430,548 446,304
Net operating balance ‑38,298 ‑32,414
Other economic flows ‑3,775 2,409
Comprehensive result ‑ Total change in net worth ‑42,073 ‑30,005
Net acquisition of non‑financial assets    
Purchases of non‑financial assets 14,300 17,498
less Sales of non‑financial assets 2,425 511
less Depreciation 8,060 8,887
plus Change in inventories 501 366
plus Other movements in non‑financial assets 1,373 635
Total net acquisition of non‑financial assets 5,690 9,101
Fiscal balance (Net lending/borrowing)(b) ‑43,988 ‑41,515

(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
  2014‑15 2015‑16
  $m $m
Assets    
Financial assets    
Cash and deposits 4,846 5,508
Advances paid 45,555 52,713
Investments, loans and placements 131,263 138,234
Other receivables 46,360 47,546
Equity investments 69,487 71,872
Total financial assets 297,512 315,873
Non‑financial assets    
Land and other fixed assets 130,319 138,255
Other non‑financial assets 10,864 11,694
Total non‑financial assets 141,184 149,948
Total assets 438,696 465,821
Liabilities    
Interest bearing liabilities    
Deposits held 211 211
Advances received 0 0
Government securities 418,307 464,298
Loans 12,589 16,645
Other borrowing 5,311 5,458
Total interest bearing liabilities 436,417 486,611
Provisions and payables    
Superannuation liability 167,332 173,926
Other employee liabilities 17,493 17,462
Other provisions and payables 49,575 49,948
Total provisions and payables 234,400 241,336
Total liabilities 670,817 727,947
Shares and other contributed capital 14,588 19,780
Net worth(a) ‑232,121 ‑262,126
Net financial worth(b) ‑373,305 ‑412,074
Net debt(c) 254,752 290,156

(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, advances received, 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 corporations sector cash flow statement(a)
  Estimates
  2014‑15 2015‑16
  $m $m
Cash receipts from operating activities    
Taxes received 351,409 370,081
Receipts from sales of goods and services 17,913 18,713
Interest receipts 3,151 3,347
Dividends and income tax equivalents 4,021 4,506
Other receipts 7,190 8,559
Total operating receipts 383,684 405,206
Cash payments for operating activities    
Payments to employees ‑30,571 ‑32,573
Payments for goods and services ‑85,362 ‑90,528
Grants and subsidies paid ‑146,048 ‑150,792
Interest paid ‑14,085 ‑14,996
Personal benefit payments ‑131,520 ‑134,744
Other payments ‑5,251 ‑5,218
Total operating payments ‑412,836 ‑428,852
Net cash flows from operating activities ‑29,152 ‑23,646
Cash flows from investments in non‑financial assets    
Sales of non‑financial assets 2,293 1,885
Purchases of non‑financial assets ‑15,646 ‑18,120
Net cash flows from investments in non‑financial assets ‑13,353 ‑16,235
Net cash flows from investments in financial assets    
for policy purposes ‑362 ‑4,555
Cash flows from investments in financial assets for liquidity purposes    
Increase in investments ‑8,949 ‑3,141
Net cash flows from investments in financial assets for liquidity purposes ‑8,949 ‑3,141
Net cash flows from financing activities    
Borrowing (net) 53,609 50,896
Other financing (net) ‑2,171 ‑2,658
Net cash flows from financing activities 51,439 48,238
Net increase/(decrease) in cash held ‑378 661
Cash at the beginning of the year 5,225 4,846
Cash at the end of the year 4,846 5,508
Net cash from operating activities and investments in non‑financial assets ‑42,505 ‑39,881
Distributions paid 0 0
Equals surplus(+)/deficit(‑) ‑42,505 ‑39,881
Finance leases and similar arrangements(b) 0 ‑2
GFS cash surplus(+)/deficit(‑) ‑42,505 ‑39,882

(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 10: Australian Government public financial corporations sector operating statement
  Estimates
  2014‑15 2015‑16
  $m $m
Revenue    
Current grants and subsidies 150 154
Sales of goods and services(a) 3,233 727
Interest income 2,290 2,478
Other 99 78
Total revenue 5,772 3,437
Expenses    
Gross operating expenses    
Wages and salaries(a)(b) 269 151
Superannuation 67 33
Depreciation and amortisation 44 34
Supply of goods and services(a)(c) 2,818 441
Other operating expenses(a)(b)(c) 425 382
Total gross operating expenses 3,623 1,042
Interest expenses 1,331 1,307
Other property expenses 1,478 468
Current transfers    
Tax expenses 47 6
Total current transfers 47 6
Total expenses 6,479 2,822
Net operating balance ‑707 615
Other economic flows 3,983 45
Comprehensive result ‑ Total change in net worth excluding contribution from owners 3,276 660
Net acquisition of non‑financial assets    
Purchases of non‑financial assets 11 1
less Sales of non‑financial assets 80 0
less Depreciation 44 34
plus Change in inventories ‑11 0
plus Other movements in non‑financial assets ‑2 0
Total net acquisition of non‑financial assets ‑127 ‑34
Fiscal balance (Net lending/borrowing)(d) ‑579 649

(a) The reduction in 2015‑16 largely reflects the sale of Medibank Private.

(b) Consistent with ABS GFS classification and PNFC presentation, from the 2015‑16 Budget, other employee related expenses, such as employee entitlements, are reclassified from wages and salaries to other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.

(c) Consistent with ABS GFS classification and PNFC presentation, from the 2015‑16 Budget, supply of goods and services has been separated from other operating expenses.

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

Table 11: Australian Government public financial corporations sector balance sheet(a)
  Estimates
  2014‑15 2015‑16
  $m $m
Assets    
Financial assets    
Cash and deposits 369 358
Investments, loans and placements 160,736 161,894
Other receivables 324 279
Equity investments 376 376
Total financial assets 161,805 162,907
Non‑financial assets    
Land and other fixed assets 615 612
Other non‑financial assets(b) 41 41
Total non‑financial assets 656 652
Total assets 162,461 163,560
Liabilities    
Interest bearing liabilities    
Deposits held 121,805 121,805
Borrowing 12,821 12,677
Total interest bearing liabilities 134,626 134,482
Provisions and payables    
Superannuation liability 197 197
Other employee liabilities 1,547 1,718
Other provisions and payables(b) 1,978 2,390
Total provisions and payables 3,722 4,305
Total liabilities 138,348 138,787
Shares and other contributed capital 24,113 24,773
Net worth(c) 24,113 24,773
Net financial worth(d) 23,457 24,120
Net debt(e) ‑26,479 ‑27,771

(a) Assumes no valuation or currency movement.

(b) Excludes the impact of commercial taxation adjustments.

(c) 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.

(d) 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.

(e) Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.

Table 12: Australian Government public financial corporations sector cash flow statement(a)
  Estimates
  2014‑15 2015‑16
  $m $m
Cash receipts from operating activities    
Receipts from sales of goods and services(b) 2,939 718
Grants and subsidies received 0 0
GST input credit receipts 15 0
Interest receipts 1,719 2,532
Other receipts 410 392
Total operating receipts 5,083 3,642
Cash payments for operating activities    
Payments to employees(b) ‑513 ‑429
Payment for goods and services(b) ‑2,714 ‑439
Interest paid ‑1,021 ‑1,344
GST payments to taxation authority 0 ‑1
Other payments(b) ‑7,518 ‑1,227
Total operating payments ‑11,767 ‑3,440
Net cash flows from operating activities ‑6,683 202
Cash flows from investments in non‑financial assets    
Sales of non‑financial assets 80 0
Purchases of non‑financial assets ‑18 0
Net cash flows from investments in non‑financial assets 62 0
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 ‑114 ‑4
Net cash flows from investments in financial assets for liquidity purposes ‑114 ‑4
Net cash flows from financing activities    
Borrowing (net) 2,438 ‑157
Deposits received (net) 0 0
Other financing (net) 4,569 15
Distributions paid (net) ‑932 ‑67
Net cash flows from financing activities 6,075 ‑209
Net increase/(decrease) in cash held ‑661 ‑10
Cash at the beginning of the year 1,030 369
Cash at the end of the year 369 358
Net cash from operating activities and investments in non‑financial assets ‑6,622 202
Distributions paid ‑932 ‑67
Equals surplus(+)/deficit(‑) ‑7,554 135
Finance leases and similar arrangements(c) 0 0
GFS cash surplus(+)/deficit(‑) ‑7,554 135

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

(b) The reduction in 2015‑16 largely reflects the sale of Medibank Private.

(c) 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.