PREFACE
I am pleased to present the Consolidated Financial Statements (CFS) for the Australian
Government for the financial year ended 30 June 2014. The CFS presents the whole of
government and general government sector (GGS) financial reports. It consolidates the
audited accounts of 205 entities across the public sector.
The CFS has been prepared in accordance with the regulations of the Financial
Management and Accountability Act 1997 (FMA Act) and applicable Australian
Accounting Standards (AAS), including the requirements of AASB 1049 Whole of
Government and General Government Sector Financial Reporting (AASB 1049). The CFS
shows the results of the Australian Government’s operations and cash flows for the
year ended 30 June 2014 and the Australian Government’s financial position as at
30 June 2014.
The Preface and the Commentary on the Financial Statements should be read in light
of the information and explanations provided in the Statement of Compliance and the
CFS.
FISCAL BALANCE
The Australian Government fiscal balance for the year ended 30 June 2014 was a deficit
of $42.2 billion. For the year ended 30 June 2013, the Australian Government reported
a fiscal balance deficit of $28.0 billion.
Consolidated fiscal balance1
$billion
$billion
30
30
10
10
-10
-10
-30
-30
-50
-50
-70
-70
2007-08
1
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
The reporting of consolidated fiscal balance commenced in 2008-09 when the consolidated
financial statements were prepared in accordance with the whole of government
requirements of AASB 1049 for the first time. The 2007-08 results were restated consistent
with this standard in the 2008-09 CFS.
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Preface
Australian Government taxation revenue increased by $14.7 billion (4.4 per cent) in
2013-14, reflecting an increase in taxes from individuals, goods and services tax,
company and excise-like customs duty. Non-taxation revenue increased by $1.1 billion
(3.0 per cent).
Australian Government expenses increased by $25.5 billion (6.5 per cent) in 2013-14.
This was mainly driven by an $18.1 billion increase overall in current and capital
transfers, a $4.2 billion increase in operating expenses, a $1.7 billion increase in interest
expenses and a $1.5 billion increase in superannuation interest expenses.
The increase in current and capital transfers was due to a growth of $8.0 billion in
personal benefits; $9.0 billion in current and capital grants; and $1.1 billion in subsidy
expenses.
Within operating expenses, supply of goods and services grew by $4.8 billion, wages
and salaries grew by $0.7 billion, partially offset by a decrease in superannuation
expense of $1.8 billion, and smaller movements in other line items.
In addition, the Australian Government’s net acquisition of non-financial assets
increased by $4.5 billion.
BALANCE SHEET
The Australian Government’s net worth was negative $264.3 billion at 30 June 2014. As
at 30 June 2013, the Australian Government’s net worth was negative $210.5 billion.
Australian Government net worth position
$billion
$billion
100
100
50
50
0
0
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
-50
-50
-100
-100
-150
-150
-200
-200
-250
-250
-300
-300
The Australian Government’s financial assets increased by $49.5 billion (16.3 per cent)
in 2013-14. Total non-financial assets increased by $9.5 billion (7.4 per cent).
The Australian Government’s liabilities increased by $112.8 billion (17.6 per cent) to
$754.1 billion. The increase is primarily as a result of an increase in interest bearing
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Preface
liabilities of $82.2 billion (26.1 per cent) which includes a $62.5 billion increase in the
value of Commonwealth Government Securities and an increase in interest bearing
deposits of $18.4 billion. Provisions and payables increased by $30.6 billion
(9.4 per cent) mainly due to an increase in the superannuation liability of $28.3 billion.
CASH FLOW
The Australian Government recorded a cash deficit of $40.1 billion in 2013-14 from
operating activities and investing activities in non-financial assets. The closing cash
position was $4.5 billion.
CONTINGENT LIABILITIES, CONTINGENT ASSETS AND RISKS
Contingent liabilities and contingent assets for the Australian Government are not
disclosed in the balance sheet but are set out in detail in Note 36. Analysis of interest
rate, foreign currency, default and other risks that could potentially impact on the
Australian Government’s financial position is included in Note 37.
I would like to thank the many Australian Government employees whose efforts have
contributed to the completion of the 2013-14 CFS.
Senator the Hon Mathias Cormann
Minister for Finance
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