PART 3: AUSTRALIAN ACCOUNTING STANDARDS
FINANCIAL STATEMENTS
This part presents financial statements prepared in accordance with applicable
Australian Accounting Standards (AAS), being the Australian Equivalents to
International Financial Reporting Standards (AEIFRS) and AAS 31 Financial Reporting
by Governments, except where departures from the standard are identified in Note 1.
This part also provides notes showing disaggregated information and month of June
figures.
A reconciliation between the Australian Government’s general government AAS and
Government Finance Statistics (GFS) revenue, expenses and operating result is
provided in Appendix A.
39
Part 3: Australian Accounting Standards Financial Statements
Table 27: Australian Government general government sector income statement
Note
Revenues
Taxation
Income taxation
Indirect taxation
Other taxes
Total taxation revenue
3
4
Non-taxation
Sales of goods and services
Interest and dividends
Other sources of non-taxation revenue
Total non-taxation revenue
Total revenue
5
6
Gains
Net foreign exchange gains
Net gains from sale of assets
Other gains
Total gains
Income
Expenses
Goods and services
Employee
Suppliers
Depreciation and amortisation
Net write-down and impairment of
assets and fair value losses
Net foreign exchange losses
Net losses from sale of assets
Other goods and services expenses
Total goods and services
7
8
9
10
Subsidies, benefits and grants
Personal benefits
Subsidies
Grants
Total subsidies, benefits and grants
11
Borrowing costs
Interest
Other borrowing costs
Total interest and other borrowing
costs
Total expenses
Operating result
2006-07
Estimate at
2007-08
Budget
$m
Month of
June 2007(a)
2006-07
Outcome
$m
$m
188,530
29,510
2,227
220,267
13,837
2,379
341
16,557
189,378
29,656
2,273
221,308
5,070
8,428
3,586
17,084
237,351
393
894
195
1,482
18,039
5,064
8,583
3,796
17,443
238,750
0
0
14,941
14,941
252,293
89
0
2,661
2,750
20,789
0
0
16,011
16,011
254,761
25,105
19,614
4,899
2,127
2,484
608
25,602
19,905
5,140
3,812
52
1,040
7,947
62,469
876
0
239
654
6,988
4,110
170
958
7,600
63,484
99,959
11,904
44,492
156,355
10,177
812
1,411
12,400
98,894
11,850
44,065
154,810
5,730
31
486
533
5,684
602
5,761
224,584
1,019
20,408
6,286
224,579
27,708
381
30,182
(a) The month of June is derived by deducting May year-to-date published data from the annual outcome.
Statistically, June movements in some series relate to earlier published months that are not reissued,
this can result in negative movements.
40
Part 3: Australian Accounting Standards Financial Statements
Table 28: Australian Government general government sector balance sheet
Note
Assets
Financial assets
Cash
Receivables
Investments
Equity accounted investments
Accrued revenue
Other financial assets
Total financial assets
Non-financial assets
Land and buildings
Infrastructure
Heritage and cultural assets
Intangibles
Investment property
Biological assets
Assets held for sale
Inventories
Other non-financial assets
Total non-financial assets
Total assets
12
2006-07
Estimate at
2007-08
Budget
$m
2006-07
Outcome
2,008
39,962
98,637
616
2,908
23
144,155
1,154
39,912
104,634
185
2,391
37
148,313
21,374
43,404
8,074
2,148
262
2
370
5,532
4,212
85,378
229,533
23,432
41,809
8,212
2,102
129
2
210
5,880
4,552
86,328
234,642
57,275
4,743
344
300
0
1,184
63,846
56,526
4,839
320
261
0
1,645
63,590
110,960
2,873
8,108
1,383
9,562
13,064
145,948
111,144
3,912
7,270
1,373
9,509
13,118
146,326
0
209,795
0
209,916
19,738
24,725
-37,173
56,911
0
19,738
-3,212
27,937
0
24,725
$m
13
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
15
Liabilities associated with assets
held for sale
Total liabilities
Net assets
Equity
Accumulated results
Reserves
Capital
Total equity
41
Accumulated results
Asset revaluation
reserve
2006-07 2006-07 2006-07 2006-07
Estimate Outcome Estimate Outcome
at
at
2007-08
2007-08
Budget
Budget
$m
$m
$m
$m
Opening balance
Balance carried forward from previous period
Adjustment for errors/entity adjustments
Adjustment for changes in accounting policy
Adjusted opening balance
42
Income and expense
Revenues and expenses recognised directly
in equity
Currency translation gain (loss)
Financial asset revaluations
Non-financial asset revaluations
Total revenues and expenses recognised
directly in equity
Net operating result
Total income and expenses
Transfers between reserves
Dividends
Other movements(a)
Other reserves
2006-07 2006-07
Estimate Outcome
at
2007-08
Budget
$m
$m
Contributed
equity/capital
2006-07 2006-07
Estimate Outcome
at
2007-08
Budget
$m
$m
Total equity
2006-07 2006-07
Estimate Outcome
at
2007-08
Budget
$m
$m
-37,466
-34,057
4,880
-66,643
-33,258
-174
745
-32,687
17,883
4
0
17,886
17,870
-37
0
17,833
19,870
34,052
0
53,922
19,870
85
0
19,955
0
0
0
0
0
36
0
36
286
-1
4,880
5,164
4,483
-91
745
5,137
na
na
na
na
na
na
na
1,364
462
na
25
1,956
0
129
na
0
na
na
na
na
na
na
na
na
0
1,493
462
0
25
1,956
0
27,708
0
30,182
1,825
na
1,981
na
129
na
0
na
0
na
0
na
1,954
27,708
1,981
30,182
-8
0
1,770
59
0
-766
-8
0
7
-41
0
-448
17
0
-16,867
-18
0
-11,325
0
0
0
na
na
-36
0
0
-15,089
0
0
-12,575
Closing balance
-37,173
-3,212
19,711
19,325
37,201
8,612
0
0
19,738
24,725
(a) Other reserves includes the removal of Telstra following its sale. Under AEIFRS, fair value gains (and losses) are recorded in equity until the investment is sold at
which point all accumulated fair value gains/losses are transferred into the income statement.
Part 3: Australian Accounting Standards Financial Statements
Table 29: Australian Government general government sector statement of changes in equity
Part 3: Australian Accounting Standards Financial Statements
Table 30: Australian Government general government sector cash flow
statement
Note
Operating activities
Cash received
Taxation
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
Investing activities
Cash received
Proceeds from asset sales program
Proceeds from sales of property,
plant and equipment and intangibles
Net loans, advances and HELP
Other net investing cash received
Total investing cash received
Cash used
Purchase of property, plant and
equipment and intangibles
Net loans, advances and HELP
Other net investing cash paid
Total investing cash used
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
Net cash from financing activities
Net increase/decrease in cash held
2
2006-07
Estimate at
2007-08
Budget
$m
Month of
June 2007(a)
2006-07
Outcome
$m
$m
216,321
5,221
5,528
3,120
3,027
3,011
236,227
19,701
151
377
80
367
-228
20,448
217,764
5,025
5,523
3,197
3,413
3,374
238,297
21,285
23,192
11,486
98,732
44,397
5,587
79
7,441
212,200
2,505
2,882
953
9,833
2,514
148
-25
-628
18,184
21,336
24,004
11,429
98,405
44,096
5,606
64
6,968
211,908
24,027
2,265
26,389
8,801
86
8,908
184
0
289
9,274
62
0
5,141
5,290
213
0
5,156
14,277
8,085
1,152
22,982
32,218
968
1,880
4,471
7,320
7,084
1,316
32,265
40,665
-22,944
-2,030
-26,388
0
339
339
0
-683
-683
0
190
190
1,312
48
1,359
-214
90
-124
889
90
980
-1,020
-559
-790
63
-325
-789
(a) The month of June is derived by deducting May year-to-date published data from the annual outcome.
Statistically, June movements in some series relate to earlier published months that are not reissued,
this can result in negative movements.
43
Part 3: Australian Accounting Standards Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
Note 1: External reporting standards and accounting policies
The Charter of Budget Honesty Act 1998 requires that the final budget outcome be based
on external reporting standards and that departures from applicable external reporting
standards be identified.
The financial statements included in this section of the final budget outcome have been
prepared on an accrual basis in accordance with applicable Australian Accounting
Standards (AAS), being the Australian Equivalents to International Financial
Reporting Standards (AEIFRS) and AAS 31 Financial Reporting by Governments
(AAS 31).
AAS requires governments to prepare accrual based general purpose financial reports.
This means that assets, liabilities, income and expenses are recorded in financial
statements when transactions have an economic impact on the government, rather
than when the cash flow associated with these transactions occurs. Consistent with
AAS, an income statement, a balance sheet, a statement of changes in equity and a cash
flow statement have been prepared for the year ended 30 June 2007.
The accounting policies in this part are generally consistent with the accounting
policies in AAS. While the scope for financial reporting recommended in AAS 31 is the
whole of government (that is, the Australian Government public sector), in accordance
with the Charter of Budget Honesty Act 1998, the presentation of financial outcomes in
Part 3 covers the general government sector only.
AAS 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 (the States), and appropriated to the States. Therefore, GST cash flows and
any accrued GST revenues and associated payments to the States are not recorded in
the financial statements.
The new AEIFRS standard relating to superannuation is AASB 119 Employee Benefits.
The standard requires the government bond rate at balance date to be referenced when
valuing the superannuation liability, with the relevant bond yield to match the term of
the liability. However, the longest maturing government bond is only 10 years,
significantly shorter than the term of the superannuation liability. Therefore, in
applying this standard for budgets and outcomes, a longer term rate of 6 per cent as
determined by actuaries has been adopted to discount the liability rather than the
10 year government bond rate (6.4 per cent at 30 June 2007). Guidance has been sought
from the Australian Accounting Standards Board to clarify the differing interpretations
in applying AASB 119 for outcomes.
44
Part 3: Australian Accounting Standards Financial Statements
Note 2: Reconciliation of cash
2006-07
Estimate at
2007-08
Budget
$m
27,708
2006-07
Outcome
less Revenues not providing cash
Foreign exchange gains
Gains from asset sales programme
Gains from sale of assets
Other
Total revenues not providing cash
0
0
6
15,310
15,316
0
0
0
16,978
16,978
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
3,856
4,899
450
291
1,040
0
52
7
10,596
4,179
5,140
11
670
949
-12
170
1,644
12,751
0
347
0
0
0
598
213
0
1,049
0
469
1,865
616
981
0
2,407
214
0
283
42
661
0
0
320
260
0
28
826
361
631
0
1,973
24,027
-22,944
26,389
-26,388
1,083
1
-1,020
-790
63
-789
Operating result (revenues less expenses)
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
plus Net cash from/(to) investing activities
Net cash from operating activities and
investment
plus Net cash from/(to) financing activities
equals Net (decrease)/increase in cash
45
$m
30,182
Part 3: Australian Accounting Standards Financial Statements
Note 2(a): Consolidated Revenue Fund
The cash balance reflected in the balance sheet for the Australian Government general
government sector (Table 28) includes 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 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 general government sector 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
below.
Total general government sector
cash (Statement 10)
less CAC Agency cash balances
plus Special public monies
Balance of Consolidated Revenue Fund
at 30 June
46
2006-07
Estimate at
2007-08
Budget
$m
2006-07
Outcome
2,008
978
105
1,154
1,000
127
1,135
281
$m
Part 3: Australian Accounting Standards Financial Statements
Note 3: Income taxation revenue
Individuals and other withholding taxation
Gross income tax withholding
Gross other individuals
less: Refunds
Total individuals and other withholding taxation
Fringe benefits tax
Superannuation funds
Contributions and earnings
Surcharge
Total superannuation taxation
Company tax
Petroleum resource rent tax
Total income taxation revenue
2006-07
Estimate at
2007-08
Budget
$m
2006-07
Outcome
107,710
26,820
17,140
117,390
3,850
107,809
26,952
17,147
117,614
3,754
7,190
270
7,460
58,270
1,560
188,530
7,577
302
7,879
58,538
1,594
189,378
2006-07
Estimate at
2007-08
Budget
$m
2006-07
Outcome
14,150
530
8,050
5,600
1,180
40,720
40,720
0
353
353
0
29,510
14,128
525
8,082
5,644
1,278
41,006
41,006
0
355
355
0
29,656
$m
Note 4: Indirect taxation revenue
Excise duty
Petroleum and other fuel products
Crude oil
Other excise
Customs duty
Other indirect taxation
GST
less transfers to States in relation to GST revenue
GST revenue
Mirror taxes
less transfers to States in relation to mirror tax revenue
Mirror tax revenue
Total indirect taxation revenue
47
$m
Part 3: Australian Accounting Standards Financial Statements
Note 5: Interest and dividend revenue
Interest
Interest from other governments
State and Territory debt
Housing agreements
Total interest from other governments
Interest from other sources
Swap interest
Advances
Deposits
Bills receivable
Bank deposits
Indexation of HELP receivable and other
student loans(a)
Other
Total interest from other sources
Total interest
2006-07
Estimate at
2007-08
Budget
$m
2006-07
Outcome
15
192
207
14
192
206
1,813
59
0
10
249
1,813
27
0
11
323
357
2,959
5,447
0
3,204
5,378
5,654
5,584
$m
Dividends
Dividends from controlled entities
2,171
2,549
Other dividends
604
450
Total dividends
2,774
2,999
Total interest and dividend revenue
8,428
8,583
(a) Under AEIFRS HELP and other student loans are now reported at fair value. Any changes in fair value
are reported under other gains.
Note 6: Other sources of non-taxation revenue
2006-07
Estimate at
2007-08
Budget
$m
224
10
1,180
101
2,071
3,586
Industry contributions
International Monetary Fund related revenue
Royalties
Seigniorage
Other
Total other sources of non-taxation revenue
48
2006-07
Outcome
$m
245
10
1,157
61
2,323
3,796
Part 3: Australian Accounting Standards Financial Statements
Note 7: Employees expenses
2006-07
Estimate at
2007-08
Budget
$m
13,854
1,442
57
2
9,750
25,105
2006-07
Outcome
2006-07
Estimate at
2007-08
Budget
$m
17,356
1,795
463
19,614
2006-07
Outcome
2006-07
Estimate at
2007-08
Budget
$m
2006-07
Outcome
Depreciation
Specialist military equipment
Buildings
Other infrastructure, plant and equipment
Heritage and cultural assets
Investment property
2,683
685
1,091
45
0
2,766
797
1,081
40
0
Total depreciation
4,504
4,684
Total amortisation
395
456
4,899
5,140
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.
$m
13,253
1,869
58
0
10,422
25,602
Note 8: Suppliers expenses
Supply of goods and services
Operating lease rental expenses
Other
Total suppliers expenses
$m
17,213
2,044
649
19,905
Note 9: Depreciation and amortisation expenses
Total depreciation and amortisation
expenses
49
$m
Part 3: Australian Accounting Standards Financial Statements
Note 10: Other goods and services expenses
Health care payments
Development Cooperation Program
Other
Total other goods and services expenses
2006-07
Estimate at
2007-08
Budget
$m
4,458
1,470
2,020
7,947
2006-07
Outcome
2006-07
Estimate at
2007-08
Budget
$m
27,876
1,616
601
1,698
374
5,935
6,391
44,492
2006-07
Outcome
2006-07
Estimate at
2007-08
Budget
$m
10,566
19,126
10,271
39,962
2006-07
Outcome
$m
4,391
1,429
1,780
7,600
Note 11: Grants expenses
State and Territory governments
Non-profit organisations
Overseas
Private sector
Local governments
Multi-jurisdictional sector
Other
Total grant expenses
$m
28,166
4,460
651
1,780
381
5,950
2,677
44,065
Note 12: Receivables
Taxes receivable
Advances and loans
Other receivables
Total receivables
50
$m
10,356
18,988
10,568
39,912
Part 3: Australian Accounting Standards Financial Statements
Note 13: Total non-financial assets
2006-07
Estimate at
2007-08
Budget
$m
2006-07
Outcome
Land and buildings
Land
Buildings
Total land and buildings
6,181
15,193
21,374
6,842
16,589
23,432
Infrastructure
Specialist military equipment
Other
Total infrastructure
33,922
9,481
43,404
32,388
9,421
41,809
Intangibles
Computer software
Other
Total intangibles
2,016
132
2,148
2,002
101
2,102
Total heritage and cultural assets
8,074
8,212
262
129
Total investment properties
Total biological assets
$m
2
2
370
210
Total inventories
5,532
5,880
Other non-financial assets
Prepayments
Other
Total other non-financial assets
3,607
605
4,212
4,280
272
4,552
85,378
86,328
2006-07
Estimate at
2007-08
Budget
$m
102,166
4,411
209
1,483
43
1,618
1,029
110,960
2006-07
Outcome
Total assets held for sale
Total non-financial assets
Note 14: Employee and superannuation liabilities
Superannuation
Leave and other entitlements
Accrued salaries and wages
Workers compensation claims
Separations and redundancies
Workers compensation premiums
Other
Total employee and superannuation liabilities
51
$m
102,379
4,554
207
1,486
34
1,542
942
111,144
Part 3: Australian Accounting Standards Financial Statements
Note 15: Grants payable
State and Territory governments
Non-profit organisations
Private sector
Overseas
Local governments
Other
Total grants payable
2006-07
Estimate at
2007-08
Budget
$m
4,581
111
433
309
11
4,117
9,562
2006-07
Outcome
2006-07
Estimate at
2007-08
Budget
$m
2006-07
Outcome
256,254
257,680
39,580
39,560
353
216,321
355
217,764
$m
4,483
115
444
331
4
4,132
9,509
Note 16: Taxation receipts — cash
Total taxation receipts
less payments to States and Territories
in relation to GST receipts
less payments to States and Territories
in relation to mirror tax receipts
Taxation receipts
52
$m