PREFACE
I am pleased to present the Consolidated Financial Statements (CFS) for the Australian
Government for the financial year ended 30 June 2013. The CFS presents the whole of
government and general government sector (GGS) financial reports.
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 2013 and the Australian Government’s financial position as at
30 June 2013. 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 2013 was a deficit
of $27.9 billion. For the year ended 30 June 2012, the Australian Government reported
a fiscal balance deficit of $46.3 billion.
Consolidated fiscal balance1
40
$billion
$billion
30
30
20
20
10
10
0
0
-10
-10
-20
-20
-30
-30
-40
-40
-50
-50
-60
-60
-70
-70
2007-08
1
40
2008-09
2009-10
2010-11
2011-12
2012-13
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.
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Preface
Australian Government taxation revenue increased by $19.2 billion (6.1 per cent) in
2012-13, reflecting an increase in taxes from individuals and companies, Goods and
Services Tax, combined excise and custom duty and the introduction of the carbon
pricing mechanism. Non-taxation revenue increased by $2.4 billion (6.9 per cent).
Australian Government expenses increased by $5.5 billion (1.4 per cent) in 2012-13.
This was driven by a $0.4 billion increase overall in current and capital transfers, a
$5.3 billion increase in operating expenses, partially offset by a $0.2 billion decrease in
interest expenses (including borrowing costs and superannuation interest expenses).
The modest increase in current and capital transfers was due to a growth of $4.3 billion
in personal benefits and $2.2 billion increase in subsidy expenses partially offset by a
reduction in capital transfers of $5.5 billion and $0.6 billion in current grants.
Within operating expenses, supply of goods and services grew by $0.7 billion,
superannuation by $3.9 billion and depreciation by $0.8 billion.
In addition, the Australian Government’s net acquisition of non-financial assets
decreased by $2.3 billion.
Balance sheet
The Australian Government’s net worth was -$210.5 billion at 30 June 2013. For the
year ended 30 June 2012, the Australian Government’s net worth was -$256.9 billion.
Australian Government net worth position
$billion
$billion
40
40
-10
-10
-60
-60
-110
-110
-160
-160
-210
-210
-260
-260
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
The Australian Government’s financial assets increased by $34.8 billion (13.0 per cent)
in 2012-13. Total non-financial assets increased by $5.4 billion (4.4 per cent).
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Preface
The Australian Government’s liabilities decreased by $6.1 billion (-0.9 per cent),
primarily driven by a decrease in provisions and payables of $33.8 billion from a
decrease in the superannuation liability of $42.4 billion due to a change in the discount
rate. This was offset by an increase in interest bearing liabilities of $27.7 billion
(9.6 per cent) mainly relating to a $16.0 billion increase in the value of Commonwealth
Government Securities.
Cash flow
The Australian Government recorded a cash deficit of $19.5 billion in 2012-13 from
operating activities and investing activities in non-financial assets. The closing cash
position was $4.0 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 35. 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 36.
I would like to thank the many Australian Government employees whose efforts have
contributed to the completion of the 2012-13 CFS.
Senator the Hon Mathias Cormann
Minister for Finance
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