APPENDIX C: AAS FINANCIAL STATEMENTS
This Appendix presents financial statements that have been prepared on an accrual
basis in accordance with applicable Australian Accounting Standards, including
Australian Accounting Standard No. 31 Financial Reporting by Governments (AAS31),
except where departures from the standard are identified in Note 1.
A reconciliation between the Australian Government’s general government AAS31
and Government Finance Statistics (GFS) revenue, expenses and operating results is
provided in Appendix E.
149
Appendix C: AAS Financial Statements
Table C1: Statement of financial performance for the Australian Government
general government sector — AAS31
Note
Revenues
Taxation
Income tax
Indirect tax
Fringe benefits tax
Other taxes
Total taxation revenue
Non-taxation
Sales of goods and services
Interest and dividends
Net foreign exchange gains
Proceeds from the sale of assets
Other sources of non-tax revenue
Total non-tax revenue
Total revenue
Expenses
Goods and services
Employees
Suppliers
Depreciation and amortisation
Net write down of assets
Net foreign exchange losses
Value of assets sold
Other goods and services expenses
Total goods and services
Subsidies benefits and grants
Personal benefits
Subsidies
Grants
Total subsidies benefits and grants
3
4
5
6
7
8
9
10
Borrowing costs
Interest
Other borrowing costs
Total interest and other borrowing costs
Total expenses
Operating result
Extraordinary items
Operating result after extraordinary
items
150
Estimates
2003-04 2004-05
$m
$m
Projections
2005-06
2006-07
$m
$m
138,360 146,060
27,585 27,645
3,150
3,090
1,491
1,514
170,586 178,309
155,680
28,029
3,180
1,533
188,422
165,310
28,523
3,280
1,541
198,655
4,106
4,241
7,104
5,598
237
0
1,313
921
3,017
2,703
15,777 13,464
186,364 191,773
4,378
5,843
0
11,709
2,756
24,686
213,109
4,531
5,953
0
11,614
2,811
24,909
223,564
21,712
14,426
4,270
1,693
0
785
7,239
50,125
22,112
14,005
4,089
2,348
0
2,244
7,834
52,631
22,688
14,273
4,216
2,072
0
2,138
8,228
53,615
81,117 86,477
9,566
9,978
36,042 38,889
126,726 135,344
92,182
10,394
39,769
142,345
98,193
10,879
40,300
149,372
5,726
5,765
31
36
5,758
5,801
182,320 191,271
5,240
36
5,275
200,251
4,815
35
4,850
207,838
20,722
14,523
4,061
2,538
0
958
7,035
49,837
4,044
0
502
0
12,858
0
15,726
0
4,044
502
12,858
15,726
Appendix C: AAS Financial Statements
Table C2: Statement of financial position for the Australian Government general
government sector — AAS31
Note
Assets
Financial assets
Cash
Receivables
Investments
Equity accounted investments
Accrued revenue
Other financial assets
Total financial assets
Non-financial assets
Land and buildings (excluding heritage)
Infrastructure(a)
Heritage and cultural assets(a)
Intangibles
Inventories
Other non-financial assets
Total non-financial assets
Estimates
2003-04
2004-05
$m
$m
Projections
2005-06
2006-07
$m
$m
3,022
29,714
25,536
451
386
32
59,141
3,058
29,931
25,465
451
410
36
59,351
3,021
30,755
23,837
451
464
38
58,567
3,031
32,665
22,237
451
538
38
58,960
18,045
40,070
4,761
1,432
4,023
1,528
69,859
17,827
40,685
4,761
1,404
3,969
1,482
70,127
17,943
42,022
4,763
1,372
3,910
1,323
71,334
17,936
43,346
4,766
1,311
3,958
1,335
72,653
129,001
129,479
129,900
131,613
11
43,209
4,562
160
325
0
1,136
49,393
40,568
4,330
134
325
0
1,135
46,492
25,737
4,150
96
325
0
1,125
31,432
8,105
3,973
87
325
0
1,124
13,615
13
99,570
2,232
3,097
381
8,910
9,266
123,455
102,116
2,194
2,554
354
9,657
9,366
126,240
104,969
2,174
2,581
277
9,976
8,770
128,747
107,752
2,230
2,946
249
10,237
9,028
132,442
172,848
172,732
160,179
146,057
-43,847
-43,253
-30,279
-14,443
Equity
Accumulated results
-77,084
-76,491
Reserves
33,237
33,238
Capital
0
0
Total equity
-43,847
-43,253
(a) Heritage and cultural assets were previously included in infrastructure.
-61,928
31,649
0
-30,279
-44,577
30,133
0
-14,443
11
12
Total assets
Liabilities
Debt
Government securities
Loans
Leases
Deposits
Overdrafts
Other debt
Total debt
Provisions and payables
Employees
Suppliers
Personal benefits payable
Subsidies payable
Grants payable
Other provisions and payables
Total provisions and payables
14
Total liabilities
Net assets
15
151
Appendix C: AAS Financial Statements
Table C3: Statement of cash flows for the Australian Government general
government sector — AAS31
Note
Operating activities
Cash received
Taxes
Sales of goods and services
Interest
Dividends
GST input credit receipts
Other
Total operating cash received
16
Cash used
Payments to employees
Payments to suppliers
Subsidies paid
Personal benefits
Grant payments
Interest and other financing costs
GST payments to taxation authority
Other
Total operating cash used
Net cash from operating activities
Estimates
2003-04
2004-05
$m
$m
Projections
2005-06
2006-07
$m
$m
168,123
4,224
2,961
3,139
2,449
2,599
183,495
176,194
4,387
3,092
3,350
2,482
2,573
192,077
186,133
4,524
3,357
2,313
2,509
2,588
201,424
195,901
4,673
3,879
1,828
2,592
2,641
211,515
18,440
17,048
9,034
81,079
35,423
5,745
138
7,069
173,976
19,165
16,922
9,440
87,134
38,074
5,703
140
7,235
183,813
19,259
16,512
9,861
92,200
39,451
5,898
143
7,805
191,130
19,905
16,887
10,333
97,818
40,040
4,629
146
8,199
197,957
9,519
8,264
10,294
13,558
Investing activities
Cash received
Proceeds from asset sales program
Proceeds from sales of property,
plant and equipment and intangibles
Other net investing cash received
Total investing cash received
220
91
11,280
11,280
1,113
198
1,531
830
41
962
429
0
11,709
334
0
11,614
Cash used
Purchase of property, plant and
equipment and intangibles
Net loans, advances and HECS
Other net investing cash paid
Total investing cash used
5,994
663
202
6,860
5,422
861
0
6,283
5,736
1,065
172
6,973
5,860
1,278
197
7,336
-5,329
-5,321
4,736
4,278
0
0
0
0
0
0
0
0
0
0
0
0
2,969
537
3,506
2,873
34
2,907
15,011
56
15,067
17,808
17
17,826
-3,506
-2,907
-15,067
-17,826
684
36
-37
10
11
Net cash from investing activities
Financing activities
Cash received
Net cash received from currency issues
Other
Total financing cash received
Cash used
Net repayments of borrowings
Other
Total financing cash used
11
Net cash from financing activities
Net increase/decrease in cash held
152
Appendix C: AAS Financial Statements
NOTES TO THE AAS31 FINANCIAL S TATEMENTS
Note 1: External reporting standards
The Charter of Budget Honesty Act 1998 requires that the budget be based on external
reporting standards and that departures from applicable external reporting standards
be identified.
The financial statements included in this Appendix have been prepared on an accrual
basis in accordance with applicable Australian Accounting Standards, including
Australian Accounting Standard No. 31 Financial Reporting by Governments (AAS31).
AAS31 requires governments to prepare accrual based general purpose financial
reports. This means that assets, liabilities, revenues and expenses are recorded in
financial statements when they have their economic impact on the government, rather
than when the cash flow associated with these transactions occurs. Consistent with
AAS31, a statement of financial performance, a statement of financial position and a
statement of cash flows have been prepared for the budget year and the three forward
years.
The accounting policies in this Appendix are generally consistent with the accounting
policies in AAS31. While the scope for financial reporting recommended in AAS31 is
the Whole of Government (that is, the Australian Government public sector), in
accordance with the Charter of Budget Honesty Act 1998, the budget presentation of
financial estimates covers the general government sector only.
AAS31 and other relevant accounting standards would suggest the gross amount of
goods and services tax (GST) be included in the Australian Government’s financial
statements. However, under the Intergovernmental Agreement on the Reform of
Commonwealth-State Financial Relations, GST is collected by the Australian Taxation
Office as an agent for the States and Territories, and appropriated to the States and
Territories. Therefore, accrued GST revenues and associated payments to the States
and Territories are not recorded in the financial statements.
In relation to taxation revenue, AAS31 suggests revenue be recognised at the time the
underlying economic activity giving rise to a tax liability occurs, where this can be
measured reliably. At this stage, the Australian Government does not consider its
taxation revenues can be reliably measured on this basis for budget reporting
purposes. Under AAS31, an inability to reliably measure tax revenues when the
underlying transactions or events occur means, in some cases, they may need to be
recognised at a later time. Taxation revenue in this Appendix is, therefore, recognised
the earlier of when an assessment of a tax liability is made or cash payment is received
by the Australian Taxation Office or the Australian Customs Service.
153
Appendix C: AAS Financial Statements
Note 2: Reconciliation of cash
Estimates
2003-04
2004-05
$m
$m
4,044
502
Operating result (revenues less expenses)
Projections
2005-06
2006-07
$m
$m
12,858
15,726
less Revenues not providing cash
Foreign exchange gains
Gains from asset sales programme
Gains from sale of assets
Other
Total revenues not providing cash
237
140
215
554
1,145
0
38
99
275
412
0
9,444
21
314
9,780
0
9,454
21
380
9,855
plus Expenses not requiring cash
Increase/(decrease) in employee entitlements
Depreciation/amortisation expense
Provision for bad and doubtful debts
Provision for diminution in value of assets
Losses from asset sales programme
Losses from sale of assets
Foreign exchange losses
Other
Total expenses not requiring cash
2,282
4,061
279
434
0
0
0
-9
7,047
2,546
4,270
244
128
0
0
0
-20
7,168
2,853
4,089
882
124
0
0
0
-36
7,912
2,783
4,216
555
183
0
0
0
-30
7,706
20
0
122
493
54
667
0
75
60
0
0
0
0
0
0
6
350
0
0
986
747
0
100
1,643
346
0
0
405
626
56
258
946
0
1,207
0
0
0
0
28
0
0
354
56
0
49
815
74
0
33
114
59
1,413
570
0
38
637
76
596
19
1,102
28
0
0
965
9,519
-5,329
8,264
-5,321
10,294
4,736
13,558
4,278
plus Cash provided by working capital items
Decrease in inventories
Decrease in receivables
Decrease in other financial assets
Decrease in other non-financial assets
Increase in benefits subsidies and grants
payable
Increase in suppliers' liabilities
Increase in other provisions and payables
Total cash provided by working capital items
less Cash used by working capital items
Increase in inventories
Increase in receivables
Increase in other financial assets
Increase in other non-financial assets
Decrease in benefits subsidies and grants
payable
Decrease in other provisions and payables
Decrease in suppliers' liabilities
Total cash used by working capital items
equals Net cash from/(to) operating activities
Net cash from/(to) investing activities
Net cash from operating activities and
investment
Net cash from/(to) financing activities
equals Net increase/(decrease) in cash
154
4,190
2,943
15,030
17,836
-3,506
-2,907
-15,067
-17,826
684
36
-37
10
Appendix C: AAS Financial Statements
Note 2(a): Consolidated Revenue Fund
The estimated and projected cash balances reflected in the statement of financial
position for the Australian Government general government sector (Table C2) include
the reported cash balances controlled and administered by Australian Government
agencies subject to the Financial Management and Accountability Act 1997 and the
reported cash balances controlled and administered by entities, subject to the
Commonwealth Authorities and Companies Act 1997 (CAC Act), that implement public
policy through the provision of primarily non-market services.
Revenues or moneys 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 general government sector cash,
less cash controlled and administered 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
below.
Estimates
2003-04
2004-05
$m
$m
Projections
2005-06
2006-07
$m
$m
Total general government sector cash
3,022
3,058
3,021
3,031
less CAC Agency cash balances
plus Special public monies
1,515
81
1,502
72
1,413
69
1,417
94
Balance of Consolidated Revenue Fund
at 30 June
1,588
1,628
1,678
1,708
Note 3: Income tax revenue — accrual AAS31
Estimates
2003-04
2004-05
$m
$m
Individuals and other withholding
Gross income tax withholding
Gross other individuals
less Refunds
Total individuals and other withholding
Companies
Superannuation funds
Contributions and earnings
Superannuation surcharge
Total superannuation funds
Petroleum resource rent tax
Total income tax revenue
155
Projections
2005-06
2006-07
$m
$m
88,750
19,410
12,300
95,860
94,430
20,220
12,930
101,720
101,080
21,230
13,720
108,590
107,980
22,350
14,790
115,540
35,650
37,630
40,060
42,450
4,400
1,170
5,570
1,280
138,360
4,590
1,200
5,790
920
146,060
4,970
1,250
6,220
810
155,680
5,290
1,300
6,590
730
165,310
Appendix C: AAS Financial Statements
Note 4: Indirect tax revenue — accrual AAS31
Estimates
2003-04
2004-05
$m
$m
Excise duty
Petroleum and other fuel products and crude oil
Other excise
Total excise duty
Projections
2005-06
2006-07
$m
$m
13,390
7,360
20,750
13,390
7,430
20,820
13,570
7,480
21,050
13,850
7,600
21,450
5,915
5,825
5,899
5,923
920
1,000
1,080
1,150
GST
less transfers to States and Territories
in relation to GST revenue
GST revenue
33,050
34,630
36,600
38,710
33,050
0
34,630
0
36,600
0
38,710
0
Mirror taxes
less transfers to States and Territories
in relation to mirror tax revenue
Mirror tax revenue
269
270
284
299
269
0
270
0
284
0
299
0
27,585
27,645
28,029
28,523
Customs duty
Other indirect taxes
Indirect tax revenue
Note 5: Interest and dividend revenue
Estimates
2003-04
2004-05
$m
$m
Interest
Interest from other governments
State and Territory debt
Housing agreements
Total interest from other governments
Projections
2005-06
2006-07
$m
$m
38
178
215
28
174
202
17
170
187
15
166
181
1,855
21
3
6
171
2,016
21
3
6
164
1,824
21
3
6
170
1,463
21
3
6
169
272
458
2,785
273
527
3,011
313
1,007
3,344
378
1,903
3,943
Total interest
3,001
3,213
3,531
4,125
Dividends
Dividends from associated entities
Other dividends
Total dividends
4,047
57
4,103
2,351
35
2,386
2,271
42
2,313
1,757
71
1,828
Total interest and dividends
7,104
5,598
5,843
5,953
Interest from other sources
Swap interest
Advances
Deposits
Bills receivable
Bank deposits
Indexation of HECS receivable and other
student loans
Other
Total interest from other sources
156
Appendix C: AAS Financial Statements
Note 6: Other sources of non-taxation revenue
Estimates
2003-04
2004-05
$m
$m
121
107
41
40
2,855
2,557
Industry contributions
International Monetary Fund related revenue
Other
Total other sources of non-taxation revenue
3,017
2,703
Projections
2005-06
2006-07
$m
$m
101
95
40
40
2,616
2,676
2,756
2,811
Note 7: Employee expenses
Estimates
2003-04
2004-05
$m
$m
11,607
12,175
1,446
1,472
72
72
0
0
7,598
7,993
Salaries and wages(a)
Leave and other entitlements
Separations and redundancies
Workers compensation premiums
Other (including superannuation)
Total employee expenses
(a) Salaries and wages do not include superannuation.
20,722
21,712
Projections
2005-06
2006-07
$m
$m
12,163
12,613
1,494
1,506
81
81
0
0
8,374
8,488
22,112
22,688
Note 8: Suppliers expenses
Estimates
2003-04
2004-05
$m
$m
12,940
12,834
1,543
1,552
40
40
Supply of goods and services
Operating lease rental expenses
Other
Total suppliers
14,523
14,426
Projections
2005-06
2006-07
$m
$m
12,382
12,633
1,587
1,602
36
39
14,005
14,273
Note 9: Depreciation and amortisation expenses
Estimates
2003-04
2004-05
$m
$m
Projections
2005-06
2006-07
$m
$m
Depreciation
Specialist military equipment
Buildings
Other infrastructure, plant and equipment
Heritage and cultural assets
2,179
529
979
34
2,367
507
990
34
2,029
576
1,083
35
2,098
593
1,112
35
Total depreciation
3,721
3,898
3,723
3,838
Total amortisation
Total depreciation and amortisation
157
340
372
366
378
4,061
4,270
4,089
4,216
Appendix C: AAS Financial Statements
Note 10: Grants expenses
Estimates
2003-04
2004-05
$m
$m
24,107
24,994
1,681
1,741
300
943
1,408
1,403
394
344
8,153
9,464
State and Territory governments
Non-profit organisations
Overseas
Private sector
Local governments
Other
Total grants
36,042
38,889
Projections
2005-06
2006-07
$m
$m
25,729
26,394
1,806
1,836
395
295
1,431
897
98
102
10,310
10,776
39,769
40,300
Note 11: Government securities
For 2003-04 and the forward years, transactions relating to debt management activities
have been netted in the statement of financial position and cash flows. In the statement
of financial position, the financial assets — investments category excludes financial assets
acquired for debt management purposes, while the debt — government securities
category is shown net of financial assets acquired for debt management purposes. In
the statement of cash flows, the investing activities — cash used/received — other
categories exclude cash used to acquire/redeem financial assets for debt management
purposes, while the financing activities — cash used — net repayments of borrowings
category is shown net of these amounts.
This netting treatment has been applied because of the uncertainty associated with the
actual split between government securities and financial assets acquired for debt
management purposes.
158
Appendix C: AAS Financial Statements
Note 12: Total non-financial assets
Estimates
2003-04
$m
2004-05
$m
Projections
2005-06
$m
2006-07
$m
Land and buildings
Land
Buildings
Total land and buildings
4,609
13,436
18,045
4,461
13,366
17,827
4,531
13,413
17,943
4,655
13,281
17,936
Infrastructure
Specialist military equipment
Other
Total infrastructure
32,301
7,768
40,070
32,797
7,887
40,685
33,983
8,040
42,022
35,451
7,895
43,346
Intangibles
Computer software
Other
Total intangibles
1,353
79
1,432
1,354
49
1,404
1,347
26
1,372
1,309
1
1,311
Heitage and cultural assets
Total heritage and cultural assets
4,761
4,761
4,761
4,761
4,763
4,763
4,766
4,766
Inventories
Total inventories
4,023
4,023
3,969
3,969
3,910
3,910
3,958
3,958
Other non-financial assets
Prepayments
Other
Total other non-financial assets
1,195
333
1,528
1,121
361
1,482
1,120
203
1,323
1,114
222
1,335
69,859
70,127
71,334
72,653
Total non-financial assets
Note 13: Employee liabilities
Estimates
2003-04
2004-05
$m
$m
91,597
94,004
3,769
3,924
317
179
1,377
1,365
39
39
1,692
1,790
779
814
Superannuation
Leave and other entitlements
Accrued salaries and wages
Workers compensation claims
Separations and redundancies
Workers compensation premiums
Other
Total employee entitlements
99,570
159
102,116
Projections
2005-06
2006-07
$m
$m
96,740
99,404
3,931
4,021
262
318
1,356
1,351
40
40
1,814
1,778
827
840
104,969
107,752
Appendix C: AAS Financial Statements
Note 14: Grants payable
Estimates
2003-04
2004-05
$m
$m
3,693
3,914
31
32
46
45
828
1,223
1
1
4,311
4,441
State and Territory governments
Non-profit organisations
Private sector
Overseas
Local governments
Other
Total grants payable
8,910
9,657
Projections
2005-06
2006-07
$m
$m
4,156
4,401
32
32
36
35
1,116
897
1
1
4,635
4,872
9,976
10,237
Note 15: Net asset movements
Opening net assets
Operating result after extraordinary items
Asset revaluation reserve
Other movements
Estimates
2003-04
2004-05
$m
$m
-48,075
-43,847
4,044
502
190
112
-6
-20
Projections
2005-06
2006-07
$m
$m
-43,253
-30,279
12,858
15,726
172
136
-56
-26
Closing net assets
-43,847
-30,279
-43,253
-14,443
Note 16: Tax receipts — cash AAS31
Estimates
2003-04
2004-05
$m
$m
200,792
210,584
Total tax receipts
less payments to States and Territories
in relation to GST revenue
less payments to States and Territories
in relation to mirror tax revenue
Tax receipts
160
Projections
2005-06
2006-07
$m
$m
222,487
234,351
32,400
34,120
36,070
38,150
269
168,123
270
176,194
284
186,133
299
195,901