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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 (continued)

Notes to the general government sector financial statements

Note 1: External reporting standards and accounting policies

The Charter of Budget Honesty Act 1998 (the Charter) requires that the budget be based on external reporting standards and that departures from applicable external reporting standards be identified.

The external standards used for budget reporting purposes are:

  • the Australian Bureau of Statistics' (ABS) accrual Government Finance Statistics (GFS) publication, Australian System of Government Finance Statistics: Concepts, Sources and Methods, (cat. no. 5514.0), which in turn is based on the International Monetary Fund (IMF) accrual GFS framework; and
  • Australian Accounting Standards (AAS), issued by the Australian Accounting Standards Board (AASB), which includes International Financial Reporting Standards (IFRS) as adopted in Australia and the public sector specific standard AASB 1049 Whole of Government and General Government Sector Financial Reporting.

The financial statements have been prepared on an accrual basis that complies with both ABS GFS and AAS, except for departures disclosed at Note 2. A more detailed description of the AAS and ABS GFS frameworks, in addition to definitions of key terms used in these frameworks, can be found in Appendix A. Detailed accounting policies, as well as a set of notes and other disclosures, as required by AAS, are disclosed in the annual Consolidated Financial Statements.

Fiscal reporting focuses on the general government sector (GGS). The GGS provides public services that are mainly non‑market in nature and for the collective consumption of the community, or involve the transfer or redistribution of income. These services are largely financed through taxes and other compulsory levies, user charging and external funding. This sector comprises all government departments, offices and some other bodies. In preparing financial statements for the GGS, all material transactions and balances between entities within the GGS have been eliminated.

The Government's key fiscal aggregates are based on ABS GFS concepts and definitions, including the ABS GFS cash surplus/deficit and the derivation of the underlying cash balance and net financial worth. AASB 1049 requires the disclosure of other ABS GFS fiscal aggregates, including net operating balance, net lending/borrowing (fiscal balance) and net worth. In addition to these ABS GFS aggregates the Uniform Presentation Framework (UPF) requires disclosure of net debt, net financial worth and net financial liabilities.

AASB 1049 and the UFP also provide a basis for reporting of the public non‑financial corporations (PNFC) and public financial corporations (PFC) sectors and the total non‑financial public sector (NFPS).

AASB 1049 requires disaggregated information, by ABS GFS function, for expenses and total assets to be disclosed where they are reliably attributable. ABS GFS does not require total assets to be attributed to functions. In accordance with ABS GFS, disaggregated information for expenses and net acquisition of non‑financial assets by function is disclosed in Statement 6: Expenses and Net Capital Investment. In accordance with the UPF, purchases of non‑financial assets by function are also disclosed in Statement 6.

AASB 1049 requires major variances between original budget estimates and outcomes to be explained in the financial statements. Explanations of variations in fiscal balance, revenue, expenses, net capital investment, cash flows, net debt, net financial worth and net worth since the Mid‑Year Economic and Fiscal Outlook 2013‑14 (MYEFO) are disclosed in Statement 3: Fiscal Strategy and Outlook, with decisions taken since the MYEFO disclosed in Budget Paper No. 2 Budget Measures 2014. All policy decisions taken between the 2013‑14 Budget and the 2013‑14 MYEFO are disclosed in Appendix A of the MYEFO.

Details of the Australian Government's GGS contingent liabilities are disclosed in Statement 8: Statement of Risks.

Note 2: Departures from external reporting standards

The Charter requires that departures from applicable external reporting standards be identified. The major differences between AAS and the ABS GFS treatments of transactions are outlined in Table 10.

AASB 1049 requires AAS measurement of items to be disclosed on the face of the financial statements with reconciliation to ABS GFS measurement of key fiscal aggregates, where different, in notes to the financial statements. Differences from the AAS measurement of items outline above and reconciliation have not been included as they would effectively create different measures of the same aggregate.

Further information on the differences between the two systems is provided in the ABS publication Australian System of Government Finance Statistics: Concepts, Sources and Methods, 2005 (cat. no. 5514.0).

Table 10: Major differences between AAS and ABS GFS
Issue AAS treatment ABS GFS treatment Treatment adopted
Acquisition of defence weapons platforms (DWP) Treated as capital expenditure. DWP appear as a non‑financial asset on the balance sheet. Depreciation expense on assets is recorded in the operating statement. AASB 1049 requires cost to be used where fair value of the assets cannot be reliably measured. ABS has updated its treatment in its GFS reports to record DWP as a non‑financial asset on a market value basis using the perpetual inventory method from September quarter 2009. This represents an early adoption of changes to the System of National Accounts. AAS
Circulating coins — seigniorage The profit between the cost and sale of circulating coins (seigniorage) is treated as revenue. Circulating coins is treated as a liability, and the cost of producing the coins is treated as an expense. AAS
Provisions for bad and doubtful debts Reported in the balance sheet as an offset to assets. Under AASB 1049, it is included in the operating statement as other economic flows. Creating provisions for bad and doubtful debts is not considered an economic event and is therefore not considered to be an expense or reflected in the balance sheet. AAS
Advances to the International Development Association and Asian Development Fund Recorded at fair value in the balance sheet. Recorded at nominal value in balance sheet. ABS GFS
Concessional loans Discounts concessional loans by a market rate of a similar instrument. Does not discount concessional loans as no secondary market is considered to exist. AAS
Investment in other public sector entities Valued at fair value in the balance sheet as long as it can be reliably measured, otherwise net assets is permissible. Unlisted entities valued based on their net assets in the balance sheet. AAS
Provision for restoration, decommis‑ sioning and make‑good Included in the fiscal balance capital adjustment. Excluded from the calculation of net lending capital adjustment. AAS
Renewable Energy Certificates (RECs) The issuance and registration of RECs is considered to be an administrative function and does not result in the recognition of an asset or liability and therefore no revenue or expense is recognised. The issuance and registration of RECs is considered to be government financial transactions resulting in the recognition of assets, liabilities, revenue and expenses. AAS
Carbon tax The issuance and surrender of free carbon units and Australian Carbon Credit Units (ACCUs) used in the settlement of emissions liabilities are not recognised. The issuance and surrender of free carbon units and ACCUs used in the settlement of emissions' liabilities are treated as expenses and revenues respectively. ABS GFS
Dividends paid by public corporations Treated as an equity distribution. Equity distributions are treated as a distribution of profits, as opposed to an expense. Dividends are treated as an expense. ABS GFS
Commercial tax effect accounting assets and liabilities Corporations in the PNFC and PFC sectors record tax expenses on a commercial basis. Deferred tax assets and liabilities are reversed so that corporations record tax expenses on a consistent basis to the Australian Taxation Office. ABS GFS
Payment to the Reserve Bank of Australia Treated as a grant. Treated as an equity injection. AAS
Fiscal aggregates differences
Finance leases Does not deduct finance leases in the derivation of the cash surplus/deficit. Deducts finance leases in the derivation of the cash surplus/deficit. Both are disclosed
Net worth of PNFC and PFC sectors Calculated as assets less liabilities. Calculated as assets less liabilities less shares and other contributed capital. AAS
Net financial worth of PNFC and PFC Calculated as financial assets less total liabilities. Calculated as financial assets less total liabilities less shares and contributed capital. AAS
Classification difference
Prepayments Treated as a non‑financial asset. Treated as a financial asset. ABS GFS
Spectrum sales Recognise non‑financial asset sales for fiscal balance when licences are transferred, which may be after the auction of licences, as this is regarded as the point control is transferred. Recognise cash at the time of receipt. Recognise non‑financial asset sales for fiscal balance at time of auction as this is regarded as the point control is transferred. Recognise cash at the time of receipt. AAS
Note 3: Taxation revenue by type
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Individuals and other withholding taxes            
Gross income tax withholding 158,300 171,170 183,390   195,370 208,820
Gross other individuals 37,180 40,120 43,980   48,290 52,690
less Refunds 27,100 27,700 28,600   29,800 31,800
Total individuals and other withholding taxation 168,380 183,590 198,770   213,860 229,710
Fringe benefits tax 4,140 4,440 5,010   5,290 5,180
Company tax 69,400 73,230 77,170   81,850 86,610
Superannuation fund taxes 6,580 7,870 10,610   11,550 12,110
Minerals resource rent tax(a) 170 0 0   0 0
Petroleum resource rent tax 1,470 2,060 1,910   1,900 1,900
Income taxation revenue 250,140 271,190 293,470   314,450 335,510
Goods and services tax 54,321 56,970 60,370   63,740 67,300
Wine equalisation tax 810 790 820   860 890
Luxury car tax 430 360 310   340 370
Excise and customs duty            
Petrol 5,890 5,970 6,170   6,450 6,850
Diesel 8,820 9,280 9,640   10,020 10,490
Other fuel products 3,600 3,730 3,530   3,690 3,930
Tobacco 7,770 8,730 9,660   10,680 10,980
Beer 2,330 2,410 2,480   2,590 2,730
Spirits 1,890 1,930 1,980   2,080 2,190
Other alcoholic beverages(b) 960 980 1,010   1,060 1,120
Other customs duty            
Textiles, clothing and footwear 770 600 430   450 480
Passenger motor vehicles 920 820 610   630 660
Other imports 1,660 1,650 1,680   1,790 1,880
less: Refunds and drawbacks 360 360 360   360 360
Total excise and customs duty 34,250 35,740 36,830   39,080 40,950
Carbon pricing mechanism(c) 7,340 0 0   0 0
Agricultural levies 476 469 474   486 496
Other taxes 3,190 3,295 3,781   3,919 3,994
Mirror taxes 508 524 560   593 616
less Transfers to States in relation to mirror tax revenue 508 524 560   593 616
Mirror tax revenue 0 0 0   0 0
Indirect taxation revenue 100,817 97,624 102,585   108,424 114,000
Taxation revenue 350,956 368,814 396,055   422,875 449,509
Memorandum:            
Total excise 25,230 26,470 27,400   28,850 30,270
Total customs duty 9,020 9,270 9,430   10,230 10,680
Capital gains tax(d) 7,500 9,000 12,000   14,400 16,700
Medicare and DisabilityCare Australia levy(e) 10,480 14,160 15,160   15,890 16,650
Temporary Budget Repair Levy(f) - 600 780   850 190

(a) Net revenue from MRRT is expected to be $100 million in 2013‑14 and zero in 2014‑15 which represent the net revenue impact across different revenue heads. These include the offsetting reductions in company tax (through deductibility) and interactions with other taxes. The Government has announced the MRRT will not apply beyond 30 June 2014.

(b) Other alcoholic beverages are those not exceeding 10 per cent by volume of alcohol (excluding beer, brandy and wine).

(c) Tax revenue includes carbon accrual revenue measured at legislated price, with details of the accounting treatment of carbon revenue set out in Note 2 to the General Government Sector Financial Statements.

(d) Capital gains tax is part of gross other individuals, company tax and superannuation fund taxes.

(e) At the 2013‑14 MYEFO, the Medicare and DisabilityCare Australia levy estimates were based on when the liability to the levy is assessed. From the 2014‑15 Budget estimates are based on when collections relating to the levy are received.

(f) This represents the net impact of the Temporary Budget Repair Levy on individuals and other withholding taxes. An additional $680 million is expected to be raised over the forward estimates through the temporary increase in the FBT rate that was announced as part of the temporary levy.

Note 3(a): Taxation revenue by source
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Taxes on income, profits and capital gains            
Income and capital gains levied on individuals 172,530 188,050 203,800   219,180 234,900
Income and capital gains levied on enterprises 77,610 83,140 89,670   95,270 100,610
Total taxes on income, profits and capital gains 250,140 271,190 293,470   314,450 335,510
Taxes on employers' payroll and labour force 700 738 760   781 785
Taxes on the provision of goods and services            
Sales/goods and services tax 55,561 58,120 61,500   64,940 68,560
Excises and levies 25,706 26,939 27,874   29,336 30,766
Taxes on international trade 9,020 9,270 9,430   10,230 10,680
Total taxes on the provision of goods and services 90,287 94,329 98,804   104,506 110,006
Other sale of goods and services 9,830 2,557 3,021   3,138 3,209
Total taxation revenue 350,956 368,814 396,055   422,875 449,509
Memorandum:            
Medicare and DisabilityCare Australia levy(a) 10,480 14,160 15,160   15,890 16,650

(a) At the 2013‑14 MYEFO, the Medicare and DisabilityCare Australia levy estimates were based on when the liability to the levy is assessed. From the 2014‑15 Budget estimates are based on when collections relating to the levy are received.

Note 4: Sales of goods and services revenue
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Sales of goods 1,520 1,522 1,618   1,803 1,885
Rendering of services 3,994 3,931 3,976   5,883 10,351
Operating lease rental 63 62 58   59 59
Fees from regulatory services 3,276 3,413 3,517   3,603 3,674
Total sales of goods and services revenue 8,853 8,928 9,170   11,347 15,969
Note 5: Interest and dividend revenue
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Interest from other governments            
State and Territory debt 9 12 14   13 13
Housing agreements 138 134 129   124 119
Total interest from other governments 148 146 143   138 132
Interest from other sources            
Advances 47 50 56   62 102
Deposits 91 90 90   91 91
Bank deposits 158 136 138   144 152
Indexation of HELP receivable and other student loans 536 671 1,366   1,640 2,012
Other 2,465 3,137 2,939   3,054 3,075
Total interest from other sources 3,297 4,083 4,589   4,990 5,432
Total interest 3,445 4,229 4,731   5,128 5,565
Dividends            
Dividends from other public sector entities 2,154 400 212   1,104 245
Other dividends 2,134 2,170 2,308   2,465 2,641
Total dividends 4,288 2,570 2,520   3,569 2,886
Total interest and dividend revenue 7,733 6,799 7,252   8,697 8,451
Note 6: Other sources of non‑taxation revenue
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Industry contributions 42 55 54   54 54
Royalties 1,852 1,637 1,681   1,689 1,591
Seigniorage 135 114 111   108 104
Other 4,695 5,001 5,289   5,071 4,717
Total other sources of non-taxation revenue 6,724 6,807 7,135   6,922 6,465
Note 7: Employee and superannuation expense
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Wages and salaries expenses 19,532 19,638 19,383   19,591 19,928
Other operating expenses            
Leave and other entitlements 2,449 2,430 2,417   2,405 2,453
Separations and redundancies 273 105 57   49 48
Workers compensation premiums and claims 741 873 909   969 1,013
Other 2,577 2,702 2,805   2,838 2,937
Total other operating expenses 6,039 6,111 6,187   6,260 6,451
Superannuation expenses            
Superannuation 6,235 4,291 4,268   4,226 4,259
Superannuation interest cost 8,320 9,275 9,630   9,979 10,333
Total superannuation expenses 14,555 13,567 13,898   14,206 14,592
Total employee and superannuation expense 40,127 39,315 39,469   40,057 40,971
Note 8: Depreciation and amortisation expense
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Depreciation            
Specialist military equipment 2,815 2,988 3,161   3,472 3,609
Buildings 1,329 1,321 1,319   1,329 1,344
Other infrastructure, plant and equipment 1,401 1,436 1,456   1,447 1,459
Heritage and cultural assets 37 38 38   38 37
Total depreciation 5,583 5,783 5,974   6,285 6,449
Total amortisation 891 861 860   841 780
Total depreciation and amortisation expense 6,474 6,644 6,834   7,126 7,229
Note 9: Supply of goods and services expense
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Supply of goods and services 23,904 25,959 25,040   24,531 25,679
Operating lease rental expenses 2,650 2,693 2,701   2,738 2,744
Personal benefits — indirect 40,906 43,836 46,392   49,351 52,064
Health care payments 5,336 5,448 5,474   5,608 5,785
Other 1,757 1,939 2,161   2,416 2,429
Total supply of goods and services expense 74,552 79,875 81,769   84,642 88,701
Note 10: Interest expense
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Interest on debt            
Government securities(a) 13,429 14,707 16,133   17,156 17,875
Loans 10 10 9   12 11
Other 283 532 529   525 526
Total interest on debt 13,723 15,248 16,672   17,692 18,412
Other financing costs 674 303 400   635 598
Total interest expense 14,396 15,551 17,072   18,327 19,011

(a) Public debt interest estimates are calculated using the contract interest rates incurred on existing Commonwealth Government Securities (CGS) when issued and on technical assumptions, based on prevailing market interest rates across the yield curve, for yields on future CGS issuance.

Note 11: Current and capital grants expense
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Current grants expense            
State and Territory governments 88,473 93,602 98,776   105,445 110,428
Local governments 17 6 2   0 0
Private sector 2,358 1,782 1,408   1,139 1,082
Overseas 4,218 4,590 4,495   5,070 5,032
Non-profit organisations 1,600 1,675 2,140   1,843 2,154
Multi-jurisdictional sector 9,755 10,049 10,077   9,877 10,089
Other 11,015 12,417 11,813   14,291 20,412
Total current grants expense 117,437 124,121 128,711   137,663 149,198
Capital grants expense            
Mutually agreed write-downs 3,094 2,662 2,796   3,013 3,216
Other capital grants            
State and Territory governments 8,616 7,029 8,567   9,553 5,876
Local governments 728 510 725   392 392
Private sector 34 1 1   1 1
Multi-jurisdictional sector 99 102 102   100 102
Other 9,260 515 490   593 848
Total capital grants expense 21,830 10,818 12,681   13,651 10,434
Total grants expense 139,267 134,939 141,391   151,314 159,632
Note 12: Personal benefits expense
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Social welfare - assistance to the aged 40,279 42,601 45,103   47,968 50,008
Assistance to veterans and dependants 6,226 6,115 5,964   5,783 5,537
Assistance to people with disabilities 23,237 24,522 25,620   26,940 28,270
Assistance to families with children 32,805 31,337 30,019   30,373 29,933
Assistance to the unemployed 10,226 10,233 10,571   10,687 10,610
Student assistance 3,602 3,251 3,076   3,230 3,394
Other welfare programmes 335 399 411   447 483
Financial and fiscal affairs 468 473 508   517 507
Vocational and industry training 295 151 84   90 95
Other 7,470 7,253 10,730   13,027 17,287
Total personal benefits expense 124,944 126,336 132,086   139,061 146,124
Note 13: Advances paid and other receivables
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Advances paid            
Loans to State and Territory governments 2,510 2,487 2,421   2,326 2,226
Higher Education Loan Program 25,183 29,908 36,796   43,599 51,436
Student Financial Supplement Scheme 624 573 525   480 430
Other 11,444 12,202 12,737   14,914 15,953
less Provision for doubtful debts 24 24 24   24 24
Total advances paid 39,737 45,145 52,454   61,294 70,021
Other receivables            
Goods and services receivable 829 771 736   736 745
Recoveries of benefit payments 3,398 3,544 3,677   3,817 3,960
Taxes receivable 22,700 23,255 25,793   28,300 30,899
Prepayments 2,511 2,409 2,365   2,346 2,284
Other 18,013 16,978 17,698   19,160 18,942
less Provision for doubtful debts 1,400 1,468 1,522   1,588 1,653
Total other receivables 46,051 45,489 48,747   52,772 55,176
Note 14: Investments, loans and placements
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Investments - deposits 36,823 33,286 27,983   33,964 28,037
IMF quota 5,339 11,054 11,224   11,451 11,451
Other 75,209 84,414 94,802   103,843 112,396
Total investments, loans and placements 117,371 128,753 134,010   149,258 151,884
Note 15: Total non‑financial assets
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Land and buildings            
Land 8,929 8,875 8,825   8,838 8,802
Buildings 24,335 25,425 25,468   25,506 25,951
Total land and buildings 33,264 34,300 34,293   34,345 34,754
Plant, equipment and infrastructure            
Specialist military equipment 41,384 43,795 46,940   49,553 52,411
Other 13,490 13,551 13,391   12,851 12,510
Total plant, equipment and infrastructure 54,875 57,347 60,330   62,405 64,921
Inventories            
Inventories held for sale 1,280 1,433 1,435   1,547 1,494
Inventories not held for sale 6,662 6,554 6,430   6,294 6,141
Total inventories 7,942 7,987 7,865   7,841 7,635
Intangibles            
Computer software 3,535 3,503 3,382   3,198 3,096
Other 2,275 2,485 2,701   2,986 3,607
Total intangibles 5,810 5,988 6,083   6,184 6,702
Total investment properties 196 211 226   231 236
Total biological assets 35 35 35   35 35
Total heritage and cultural assets 10,573 10,588 10,600   10,613 10,625
Total assets held for sale 136 174 136   136 136
Total other non-financial assets 397 598 364   252 261
Total non-financial assets 113,228 117,229 119,932   122,041 125,305
Note 16: Loans
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Promissory notes 3,709 7,671 7,107   7,108 7,109
Special drawing rights 5,086 5,086 5,166   5,272 5,272
Other 813 680 434   337 259
Total loans 9,608 13,436 12,707   12,717 12,640
Note 17: Employee and superannuation liabilities
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Total superannuation liability(a) 157,067 163,228 169,320   175,263 181,126
Other employee liabilities            
Leave and other entitlements 7,496 7,504 7,560   7,614 7,702
Accrued salaries and wages 686 690 518   506 517
Workers compensation claims 3,166 3,249 3,333   3,428 3,535
Separations and redundancies 110 59 59   59 59
Other 3,644 3,788 3,931   4,073 4,225
Total other employee liabilities 15,102 15,291 15,401   15,680 16,038
Total employee and superannuation liabilities 172,169 178,519 184,722   190,943 197,164

(a) For budget reporting purposes, a discount rate applied by actuaries in preparing Long‑Term Cost Reports is used to value the superannuation liability. This reduces the volatility in reported liabilities that would occur from year to year if the long‑term government bond rate were used. Consistent with AAS, the long‑term government bond rate as at 30 June is used to calculate the superannuation liability for the purpose of actuals reporting.

Note 18: Provisions and payables
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Suppliers payable            
Trade creditors 3,913 3,981 4,041   4,069 4,283
Operating lease rental payable 222 228 231   231 229
Other creditors 497 496 497   556 591
Total suppliers payable 4,632 4,705 4,768   4,855 5,103
Total personal benefits provisions and payable 12,384 11,659 11,196   11,499 11,856
Total subsidies provisions and payable 4,242 3,937 4,146   4,321 4,411
Grants provisions and payable            
State and Territory governments 149 115 117   116 110
Non-profit organisations 90 81 81   81 81
Private sector 365 364 364   364 364
Overseas 2,076 1,914 1,602   2,688 2,331
Local governments 7 7 7   7 7
Other 11,484 8,674 8,017   7,953 7,883
Total grants provisions and payable 14,170 11,154 10,187   11,209 10,775
Other provisions and payables            
Provisions for tax refunds 3,406 3,430 3,470   3,477 3,458
Other 10,473 10,461 10,874   11,281 11,465
Total other provisions and payables 13,879 13,891 14,344   14,758 14,923
Note 19: Reconciliation of cash
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Operating balance (revenues less expenses) -41,027 -23,497 -11,506   -3,966 4,946
less Revenues not providing cash            
Other 876 1,330 1,674   1,859 2,122
Total revenues not providing cash 876 1,330 1,674   1,859 2,122
plus Expenses not requiring cash            
Increase/(decrease) in employee entitlements 7,776 6,367 6,413   6,599 6,616
Depreciation/amortisation expense 6,474 6,644 6,834   7,126 7,229
Mutually agreed write-downs 3,094 2,662 2,796   3,013 3,216
Other 719 170 261   -472 432
Total expenses not requiring cash 18,063 15,844 16,305   16,266 17,494
plus Cash provided/(used) by working capital items            
Decrease/(increase) in inventories -227 -278 -102   -218 -48
Decrease/(increase) in receivables -9,970 -5,745 -9,725   -11,063 -9,992
Decrease/(increase) in other financial assets 1,630 1,457 1,653   2,192 2,271
Decrease/(increase) in other non-financial assets -64 29 -27   -51 -12
grants payable -2,962 -3,799 -968   1,626 272
Increase/(decrease) in suppliers' liabilities 345 52 39   102 232
Increase/(decrease) in other provisions and payables -2,245 -929 -679   -934 -1,363
Net cash provided/(used) by working capital -13,493 -9,213 -9,810   -8,346 -8,641
equals (Net cash from/(to) operating activities) -37,334 -18,196 -6,685   2,095 11,677
plus (Net cash from/(to) investing activities) -24,530 -22,345 -25,141   -39,405 -24,373
Net cash from operating activities andinvestment -61,864 -40,541 -31,826   -37,310 -12,695
plus (Net cash from/(to) financing activities) 62,792 40,018 32,110   37,306 13,015
equals Net increase/(decrease) in cash 928 -523 284   -4 319
Cash at the beginning of the year 2,075 3,004 2,480   2,764 2,760
Net increase/(decrease) in cash 928 -523 284   -4 319
Cash at the end of the year 3,004 2,480 2,764   2,760 3,080
Note 19(a): Consolidated Revenue Fund
  Estimates   Projections
  2013‑14 2014‑15 2015‑16   2016‑17 2017‑18
  $m $m $m   $m $m
Total general government sector cash 3,004 2,480 2,764   2,760 3,080
less CAC Agency cash balances 1,907 1,406 1,613   1,753 2,115
plus Special public monies 294 294 294   294 294
Balance of Consolidated Revenue Fund at 30 June 1,391 1,368 1,445   1,301 1,259

The estimated and projected cash balances reflected in the balance sheet for the Australian Government GGS (Table 2) include the reported cash balances controlled and administered by Australian Government agencies and entities subject to the Financial Management and Accountability Act 1997 and the Commonwealth Authorities and Companies Act 1997 (CAC Act), that implement public policy through the provision of primarily non‑market services. From 1 July 2014, these agencies and entities will be subject to equivalent provisions under the Public Governance, Performance and Accountability Act 2013.

Revenues or monies raised by the Executive Government automatically form part of the Consolidated Revenue Fund by force of section 81 of the Australian Constitution. For practical purposes, total Australian Government GGS cash, less cash controlled and administered by CAC Act entities, plus special public monies, represents the Consolidated Revenue Fund referred to in section 81 of the Australian Constitution. On this basis, the balance of the Consolidated Revenue Fund is shown above.

Further information on the Consolidated Revenue Fund is included in Budget Paper No. 4, Agency Resourcing 2014‑15.