COMMENTARY ON THE FINANCIAL STATEMENTS
Commentary on the financial statements
INTRODUCTION
The 2012-13 Consolidated Financial Statements (CFS) for the Australian Government
are required by section 55 of the Financial Management and Accountability Act 1997
(FMA Act). The CFS presents the whole of government and general government sector
(GGS) financial reports and are prepared in accordance with the Australian
Accounting Standard AASB 1049 — Whole of Government and General Government Sector
Financial Reporting (AASB 1049).
The financial report includes consolidated results for all Australian Government
controlled entities as well as disaggregated information on the various sectors of
government (general government, public non-financial corporations and public
financial corporations). The institutional structure of the public sector is explained in
Note 1. The CFS includes a list of Australian Government controlled reporting entities,
including their sectoral classification, in Note 44.
The Australian Government financial results for 2012-13 were as follows:
• The fiscal balance result for the year to 30 June 2013 was a deficit of $27.9 billion.1
For the year ended 30 June 2012, the Australian Government reported a fiscal
balance deficit of $46.3 billion.
• Total revenue for 2012-13 was $372.0 billion, an increase of $21.5 billion
(6.1 per cent) compared to 2011-12.
• Total expenses for 2012-13 were $395.3 billion, an increase of $5.5 billion
(1.4 per cent) compared to 2011-12.
• Net acquisition of non-financial assets decreased by $2.3 billion (-34.2 per cent)
since 2011-12 to $4.5 billion in 2012-13.
• The Australian Government’s closing net worth position was -$210.5 billion at
30 June 2013, an increase of $46.3 billion since 30 June 2012. The improvement in net
worth was attributable to a net gain of $70.0 billion in amounts reported as ‘other
economic flows’, including an actuarial gain of $50.4 billion from the actuarial
revaluation of the Australian Government’s unfunded superannuation liabilities.
• Total assets increased by $40.3 billion (10.3 per cent) since 30 June 2012 to
$430.8 billion at 30 June 2013.
1
Unless explicitly stated, the financial results reported in this commentary comprise
consolidated amounts for the Australian Government as a whole, inclusive of the general
government sector, public non-financial corporations sector and public financial corporations
sector. The balances and movements detailed in the commentary have been rounded to the
nearest tenth of a billion. Discrepancies between totals and sums of components are due to
rounding.
7
Commentary on the financial statements
• Total liabilities decreased by $6.1 billion (-0.9 per cent) since 30 June 2012 to
$641.4 billion at 30 June 2013.
DISCUSSION AND ANALYSIS
Operating statement
2012-13
$b
372.0
395.3
(23.4)
4.5
(27.9)
Revenue
Expenses
Net operating balance
Less Net acquisitions of non-financial assets
Australian Governm ent fiscal balance
2011-12
$b
350.4
389.8
(39.4)
6.9
(46.3)
Change
$b
21.5
5.5
16.1
(2.3)
18.4
The fiscal balance for the year to 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.
The improvement in the fiscal balance between 2011-12 and 2012-13 reflects an increase
in revenue of $21.5 billion and a reduction in the net acquisition of non-financial assets
of $2.3 billion, partially offset by an increase in expenses of $5.5 billion.
The increase in revenue is primarily due to an increase in taxation revenue flowing
from the modest growth in employment and wages and personal non-wage income
and the introduction of the carbon pricing mechanism.
The modest increase in expenses was largely due to the growth in direct personal
benefits, subsidy expenses and superannuation.
Chart 1 provides a comparison of the Australian Government’s consolidated fiscal
balance since 2007-08.
8
Commentary on the financial statements
Chart 1: Consolidated fiscal balance2
40
$billion
$billion
40
30
30
20
20
10
10
0
0
-10
-10
-20
-20
-30
-30
-40
-40
-50
-50
-60
-60
-70
-70
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Australian Government revenue
The Australian Government’s revenue increased by $21.5 billion (6.1 per cent) in
2012-13 to $372.0 billion.
Chart 2: Total revenue
$billion
$billion
$billion
250
250
250
250
200
200
200
200
150
150
150
150
100
100
100
100
50
50
50
0
0
50
0
2012-13
300
2011-12
300
2010-11
300
2009-10
300
2008-09
350
2007-08
350
2006-07
350
2005-06
350
2004-05
400
2003-04
400
400
2
$billion
Chart 3: Composition of revenue
2012-13
Non- tax ation r evenue
400
0
2011-12
Tax ation r evenue
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.
9
Commentary on the financial statements
Taxation revenue increased by $19.2 billion (6.1 per cent) to $335.7 billion. The key
movements in taxation revenue from 2011-12 to 2012-13 were:
• increase of $7.1 billion (4.9 per cent) from individuals’ income tax withholding
(ITW). In both 2010-11 and 2011-12, receipts from ITW grew by over 9 per cent;
• increase of $5.0 billion from the introduction of the carbon pricing mechanism;
• increase of $3.3 billion from other individuals’ income tax, broadly consistent with
growth in personal non-wage income;
• increase of $1.5 billion from company tax, reflecting changes to the research and
development tax incentives, and a decrease in the level of provisions for refunds;
• increase of $1.5 billion from Goods and Services Tax (GST), in line with the growth
in consumption subject to GST;
• increase of $1.3 billion from combined excise and customs duty consistent with
indexation arrangements and a modest increase in volumes of goods subject to
excise and customs duty. Of this, there was a $1.2 billion increase in customs duty
on excise-like goods which largely reflected the movement offshore of the
production of tobacco goods. This is mirrored by an equivalent decrease in tobacco
excise duty; and
• increase of $0.6 billion from resource rent taxes, from the introduction of the
minerals resource rent tax and strong growth in the petroleum resource rent tax.
Total non-taxation revenue increased by $2.4 billion (6.9 per cent) to $36.2 billion. The
key movements in non-taxation revenue from 2011-12 to 2012-13 were as follows:
• increase of $1.9 billion in sales of goods and services revenue mainly associated
with:
– an increase of $1.4 billion in sales revenue from public corporations, including
$0.7 billion in Australia Postal Corporation (Australia Post) revenue driven by
growth in its parcel and express services business, and an increase of $0.3 billion
in Medibank Private Limited (Medibank) health insurance premium revenue;
– an increase of $0.8 billion in revenue from unclaimed monies under the Banking
Act 1959, Life Insurance Act 1995 and Corporations Act 2001, resulting from
changes reducing the period of time that banks and other deposit taking and life
insurance institutions hold unclaimed moneys from seven to three years, as well
as changes to the administrative arrangements for unclaimed monies under the
Corporations Act 2001;
10
Commentary on the financial statements
– an increase of $0.2 billion in housing inventory sales in Defence Housing
Authority; and
– a $0.1 billion increase in immigration visa application fee revenue; partially
offset by:
– a $0.3 billion decrease in fees for the guarantee of large deposits and wholesale
funding as the guarantee schemes wind-down and a $0.2 billion decrease in
wireless licensing proceeds due to the 2011-12 impact of a number of licence
agreements being concluded by Commonwealth Scientific and Industrial
Research Organisation.
• increase of $1.2 billion in other revenue, including a $0.7 billion increase in revenue
from unclaimed superannuation accounts primarily as a result of changes to the
operation of lost superannuation account provisions, and a $0.3 billion increase in
defence revenue from the settlement of damages; and
• increase of $0.7 billion in dividend income primarily in the Future Fund investment
portfolio.
The increase in the above categories of non-taxation revenue was also partially offset
by a decrease of $1.4 billion in interest revenue, including: a $0.4 billion reduction in
interest on foreign investments and Australian dollar securities held by the Reserve
Bank of Australia; a $0.3 billion reduction in revenue from the unwinding of
concessional Higher Education Loan Programme (HELP) loans; a $0.3 billion reduction
in realised gains on the Australian Government Nation Building Funds; and a
$0.2 billion decrease in interest from residential mortgage backed securities
investments held by the Australian Office of Financial Management (AOFM).
11
Commentary on the financial statements
Australian Government expenses
The Australian Government’s expenses grew by $5.5 billion (1.4 per cent) during
2012-13 to $395.3 billion.
Chart 4: Total Expenses
Chart 5: Composition of expenses
400
400
$billion
400
350
350
350
350
300
300
300
300
250
250
250
250
200
200
200
200
150
150
150
150
100
100
100
100
50
50
50
0
0
0
0
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
$billion
2005-06
2004-05
50
2003-04
$billion
$billion
400
2012-13
2011-12
Current and capital transfers
Gross operating expenses
Interest expenses
Overall, there was a $0.4 billion (0.2 per cent) increase in current and capital transfers
during 2012-13 to $249.7 billion. Within this moderate increase, personal benefits grew
by $4.3 billion to $117.2 billion and subsidies grew by $2.2 billion to $12.1 billion, while
current grants fell by $0.6 billion to $110.4 billion and capital transfers fell by
$5.5 billion to $10.1 billion.
• the $4.3 billion increase in personal benefits expense reflected the indexation of
payment rates, customer growth and the impact of new measures. This includes a
$1.6 billion increase in the age pension; a $1.1 billion increase in unemployment
benefits; a $0.5 billion increase in the low income superannuation contribution; a
$0.4 billion increase in both the disability support pension and the carer payment,
and a $0.3 billion increase in the family tax benefit. This was partially offset by a
$0.4 billion decrease in the superannuation co-contribution scheme;
• the $2.2 billion increase in subsidy expenses included: $0.9 billion associated with
the introduction of carbon pricing free permits as part of the carbon pricing
mechanism; a $0.7 billion increase due to the higher take up of the research and
development tax incentive; and an increase in aged care of $0.6 billion. This was
partially offset by a $0.2 billion decrease in subsidies assistance to industry with
smaller changes across a range of programmes;
12
Commentary on the financial statements
• the $5.5 billion reduction in capital transfers was reflected in lower grants to State
and Territory governments than that provided in 2011-12. This included a
$3.7 billion reduction in road grants under the Nation Building Program and the
Building Australia Fund; a $0.8 billion reduction in capital grants for housing and
community amenities; and a $0.4 billion decrease in capital grants in both education
and health; and
• the $0.6 billion decrease in current grants was primarily a result of the 2011-12
$1.0 billion energy security fund payments and a $0.4 billion one-off grant payment
in 2011-12 associated with the National Broadband Network (NBN) payments to
Telstra. These reductions were partially offset by a $0.8 billion increase in grants to
State and Territory Governments and a $0.5 billion increase in grants to
universities.
Gross operating expenses increased by $5.3 billion (4.4 per cent) during 2012-13 to
$124.7 billion. The key movements in gross operating expenses from 2011-12 to 2012-13
were as follows:
• the current service cost of the Australian Government’s unfunded superannuation
provisions increased by $3.9 billion. The current service cost captures the increase
in the superannuation liability that results from employee service in the reporting
period. As the calculation of the amount is based on a present value, it is sensitive
to changes in the discount rate used for the calculation.3 The longer the length of
service, the greater the impact of discount rate changes. Therefore, the increase in
current service cost was largely in the Public Sector Superannuation Scheme (closed
in 2005) and the Military Superannuation and Benefits Scheme;
• the supply of goods and services expense increased by $0.7 billion, including: a
$0.7 billion increase in costs associated with detention centres and settlement; a
$0.5 billion increase in claims processed by Medibank; a $0.7 billion increase in
medicare claims; and a $0.4 billion increase in the cost of Australia Post services.
These increases were offset by savings across a number of entities, in particular the
Department of Defence; and
• depreciation and amortisation expenses grew by $0.8 billion consistent with the
increase in non-financial assets.
3
Under AASB 119, the discount rate used in the calculation of the superannuation liability is
determined by reference to the yield on government bonds (interest rate) at the end of the
reporting period (4.3 per cent at 30 June 2013; 3.1 per cent at 30 June 2012). The expenses
recognised in the Statement of Comprehensive Income, including the current service cost
and the nominal interest on superannuation, are determined with reference to the interest
rate at the start of the reporting period (3.1 per cent in 2012-13; 5.3 per cent in 2011-12), with
the change in interest rates reflected as an actuarial revaluation in ‘Other Economic Flows’.
13
Commentary on the financial statements
Interest expenses decreased by $0.2 billion (1.1 per cent) during 2012-13 to $20.9 billion.
This was largely attributable to the lower nominal interest on superannuation, based
on a lower discount rate at the beginning of 2012-13 compared to 2011-12.
Australian Government other economic flows
Net w rite-dow ns of assets
Revaluation of equity investments
Net foreign exchange gains/(losses)
Actuarial revaluation of superannuation
Amoritisation of non-produced assets
Revaluations of equity, non-financial assets and other
Total other econom ic flow s
2012-13
$b
(7.4)
(0.6)
1.7
50.4
(0.1)
26.0
70.0
2011-12
$b
(6.9)
0.4
0.8
(85.9)
(0.1)
(22.3)
(114.0)
Change
$b
(0.5)
(1.0)
0.9
136.3
(0.0)
48.3
184.0
The Australian Government reported a net gain of $70.0 billion in other economic
flows in 2012-13, a $184.0 billion change from 2011-12. The change primarily relates to
the actuarial revaluation of the superannuation liability. Under the accounting
standards, the superannuation liability is calculated using a discount rate based on
current long-term government bond rates. Movement in the discount rate can cause
significant movements in the valuation of the liability. In 2012-13, the discount rate
increased from 3.1 per cent to 4.3 per cent while in 2011-12, the discount rate decreased
from 5.3 per cent to 3.1 per cent. The actuarial assumptions applied in the calculation
of the Australian Government’s liability are detailed in Note 37.
The other key contributors to the change included a $11.5 billion unrealised fair value
gain in the Commonwealth Government securities; a $9.4 billion fair value gain in the
Future Fund investments portfolio; $3.7 billion foreign currency gains in RBA; and a
$1.5 billion gain on the sale of spectrum licences. These gains have been partially offset
by a $1.2 billion increase in write-downs associated with taxation receivables.
Australian Government net acquisition of non-financial assets
Purchases of non-financial assets
less Sale of non-financial assets
less Depreciation
plus Change in inventories and other movements
plus Other movements in non-financial assets
Total net acquisition of non-financial assets
2012-13
$b
11.9
1.8
7.2
1.0
0.6
4.5
2011-12
$b
12.5
0.5
6.4
0.9
0.4
6.9
Change
$b
(0.7)
1.3
0.8
0.1
0.3
(2.3)
The Australian Government’s net acquisition of non-financial assets showed a decrease
of $2.3 billion to $4.5 billion in 2012-13. This change was reflected in reduced
purchases, consistent with savings across government, and in the increase in the sale of
non-financial assets. The increase in sales was largely due to the Digital Dividend
auction of spectrum licences of $1.5 billion conducted by the Australian
Communications and Media Authority. The proceeds of the auctions included in
14
Commentary on the financial statements
2012-13 represent only a portion of the spectrum licence revenue. Some of the auction
proceeds will not be within the Australian Government’s control until later years and
hence have not been included in 2012-13 revenue.
Balance sheet
2012-13
$b
303.0
127.8
430.8
315.4
326.0
641.4
(210.5)
Financial assets
Non-financial assets
Total assets
Interest bearing liabilities
Provisions and payables
Total liabilities
Net w orth
2011-12
$b
268.2
122.4
390.6
287.7
359.8
647.5
(256.9)
Change
$b
34.8
5.4
40.3
27.7
(33.8)
(6.1)
46.3
The Australian Government’s net worth increased by $46.3 billion in 2012-13 to
produce a closing net worth of -$210.5 billion. The improvement in net worth was
reflected in a $34.8 billion increase in financial assets, a $5.4 billion increase in
non-financial assets and a $33.8 billion reduction in provisions and payables, primarily
superannuation. These improvements were partially offset by a $27.7 billion increase
in interest bearing liabilities.
15
Commentary on the financial statements
Australian Government assets
The Australian Government’s total assets increased by $40.3 billion (10.3 per cent) to
$430.8 billion at 30 June 2013.
Chart 6: Total assets
$billion
Chart 7: Composition of assets
$billion
$billion
$billion
300
300
300
300
250
250
250
250
200
200
200
200
150
150
150
150
100
100
100
100
50
50
50
0
0
50
0
2012-13
350
2011-12
350
2010-11
350
2009-10
350
2008-09
400
2007-08
400
2006-07
400
2005-06
400
2004-05
450
2003-04
450
450
2012-13
Financial assets
450
0
2011-12
Non-financial assets
This included a $34.8 billion (13.0 per cent) increase in financial assets to $303.0 billion
at 30 June 2013, and a $5.4 billion (4.4 per cent) increase in non-financial assets to
$127.8 billion at 30 June 2013. This reflects a trend in recent years to a greater
proportion of the Australian Government’s assets being comprised of financial assets.
The key movements in financial assets between 30 June 2012 and 30 June 2013 included
the following:
• an increase of $24.1 billion in investments, loans and placements. This included a
$17.2 billion increase in Australian dollar securities and foreign exchange holdings
of the RBA. Furthermore, the Future Fund generated a return of 15.4 per cent in
2012-13, which contributed to a growth in investments, loans and placements of
$10.2 billion, including a $4.7 billion increase in the value of collective investment
vehicles, a $3.5 billion increase in interest bearing securities and a $2.0 billion
increase in other investments held by the Future Fund. This was partially offset by
a $0.7 billion decrease in the value of gold and a $0.2 billion reduction in
debentures;
• an increase of $4.8 billion in equity investments. The increase mainly relates to an
increased allocation in listed equities and listed managed investment schemes held
by the Future Fund driven by improved market conditions;
16
Commentary on the financial statements
• an increase of $2.6 billion in advances paid. This increase was mainly due to a
$2.2 billion increase in the value of student loans under the HELP, the revaluation
of the International Development Association/Asian Development Fund
subscription investment and the provision of funds to the International Monetary
Fund under the New Arrangements to Borrow arrangements; and
• an increase of $3.3 billion in other receivables and accrued revenue, primarily
relating to an increase in net tax receivables of $1.8 billion and a $1.5 billion increase
in receivables associated with unsettled trades by the Future Fund.
The key movements in non-financial assets between 30 June 2012 and 30 June 2013
included the following:
• an increase of $2.8 billion in the non-financial assets of NBN Co Limited associated
with the roll-out of the NBN;
• an increase of $0.8 billion in the intangible assets of Australia Post, primarily as a
result of taking full ownership of its joint venture company StarTrack; and
• an increase of $0.6 billion in inventory held mainly in Defence’s consumable stores
and explosive ordnance.
17
Commentary on the financial statements
Australian Government liabilities
The Australian Government’s liabilities have decreased by $6.1 billion (0.9 per cent) to
$641.4 billion at 30 June 2013.
Chart 8: Total liabilities
$billion
Chart 9: Composition of liabilities
$billion
$billion
$billion
400
400
400
400
300
300
300
300
200
200
200
200
100
100
100
100
0
2012-13
500
2011-12
500
2010-11
500
2009-10
500
2008-09
600
2007-08
600
2006-07
600
2005-06
600
2004-05
700
2003-04
700
700
0
0
700
0
2012-13
2011-12
Interest bearing liabilities
Provisions and payables
This included a $33.8 billion (9.4 per cent) reduction in provisions and payables to
$326.0 billion at 30 June 2013, largely offset by a $27.7 billion (9.6 per cent) increase in
interest bearing liabilities to $315.4 billion at 30 June 2013.
18
Commentary on the financial statements
Chart 10: Total payables
$billion
Chart 11: Composition of payables
$billion
35
35
30
30
25
25
20
20
Subsidies
15
15
Personal benefits
10
10
Other
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
5
2003-04
Grants
0
Suppliers
5
0
4
6
8
$billion
2012-13
2011-12
0
Chart 12: Total provisions
350
$billion
$billion
2
10
Chart 13: Composition of provisions
350
Other provisions
300
300
250
250
200
200
150
150
Currency on
issue
Employees
0
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
50
100
2003-04
100
0
50
50 100 150 200 250
$billion
2012-13
0
2011-12
The increase in the bond rate was the main contributor to the overall decrease in
provisions and payables. A number of Australian Government provisions are
long-term in nature and, as such, subject to variations if the discount rate used in
calculating the present value of these liabilities changes. The bond rate change was the
key determinant of the $42.4 billion reduction in the Australian Government’s
unfunded superannuation liabilities.
This reduction was partially offset by increases in other provisions and payables,
including:
• an increase of $3.3 billion in Australian currency (notes) on issue;
19
Commentary on the financial statements
• an increase of $1.8 billion in the provision for amounts payable under the Natural
Disaster Relief and Recovery Arrangements, as a result of the January 2013 floods
and Tropical Cyclone Oswald;
• an increase of $0.9 billion in the provision for the payment of unclaimed
superannuation accounts and the provision for unclaimed monies under the
Banking Act 1959, Life Insurance Act 1995 and Corporation Act 2001; and
• an increase of $0.6 billion in unsettled investment purchases and other accrued
expenses of the Future Fund.
The above increases in provisions and payables other than superannuation were
partially offset by a decrease in the unearned revenue of $0.9 billion relating to the
winding up of the large deposit and wholesale funding guarantee schemes.
Chart 14: Total interest bearing
liabilities
350
$billion
$billion
Chart 15: Composition of interest
bearing liabilities
350
300
300
250
250
200
200
150
150
100
100
Other debt
Deposits
0
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
50
2003-04
Loans
Government
securities
50
0
0
50 100 150 200 250 300
$billion
2012-13
2011-12
The increase in interest bearing liabilities was largely attributable to a $16.0 billion
increase in the value of Commonwealth Government Securities (CGS). The change in
CGS and other debt held by the AOFM included a net $27.9 billion increase in
proceeds from borrowings, partially offset by a $11.5 billion unrealised gain in the fair
value of CGS due to the change in interest rates.
Other movements in the value of interest bearing liabilities between 30 June 2012 and
30 June 2013 included:
• a $4.0 billion increase in derivative liabilities entered into by the Future Fund to
manage its investment portfolio;
20
Commentary on the financial statements
• a $2.5 billion increase in amounts purchased under repurchase agreements and
purchases not yet settled by the RBA;
• a $2.9 billion increase in bank exchange settlement balances and deposits held by
foreign governments, foreign institutions and international organisations in the
RBA; and
• a $1.1 billion increase in finance leases and right of use licences entered into by
NBN Co Limited for its infrastructure assets and premises.
Statement of cash flows
2012-13
$b
2011-12
$b
Change
$b
Cash receipts
Operating activities
Investing activities in non-financial assets
Financing activities
Total cash receipts
362.9
1.8
38.3
403.0
343.7
0.6
49.9
394.2
19.2
1.2
(11.6)
8.8
Cash payments
Operating activities
Investing activities in non-financial assets
Investing activities in financial assets
Financing activities
Total cash paym ents
373.2
11.0
13.7
5.1
403.0
373.3
13.0
6.9
2.4
395.6
(0.1)
(2.0)
6.8
2.7
7.4
0.0
4.0
4.0
(1.4)
5.4
4.0
1.4
(1.4)
0.0
(10.3)
(9.2)
(19.5)
(29.6)
(12.5)
(42.1)
19.3
3.3
22.6
Net m ovem ent in cash
Cash at beginning of the year
Cash at end of year
Key fiscal aggregate
Operating activities
Investing activities in non-financial assets
Cash surplus/(deficit)
The Australian Government’s cash balance was $4.0 billion at 30 June 2013. In 2012-13
the Australian Government recorded a cash deficit of $19.5 billion, an improvement of
$22.6 billion compared to a cash deficit of $42.1 billion in 2011-12.4
Australian Government cash receipts and payments
The following charts provide a detailed break-down of Australian Government
receipts and payments for 2012-13, showing the relative composition of each dollar
received and each dollar paid.
4
The cash deficit reported above differs to the deficit reported in the 2012-13 Final Budget
Outcome (2012-13 FBO) as the above result is for the ‘whole of government’, including public
corporations whereas the Final Budget Outcome focuses on the outcome for the GGS. In
addition, the 2012-13 FBO excludes Future Fund earnings and includes the net acquisition of
assets acquired under finance leases and similar arrangements.
21
Commentary on the financial statements
Chart 16: Composition of each dollar of cash received in 2012-13
Taxes
Investing and
financing
Other
Sales of
goods and
services
Interest
and
dividends
Taxes:
$326.3 billion (2011-12: $309.7 billion)
(81 cents of every dollar received in 2012-13, 79 cents in 2011-12)
Investing and financing:
(excluding non-financial)
$38.3 billion (2011-12: $49.9 billion)
(9 cents of every dollar received in 2012-13, 13 cents in 2011-12)
Sales of goods and
services:
$23.1 billion (2011-12: $20.8 billion)
(6 cents of every dollar received in 2012-13, 5 cents in 2011-12)
Interest and dividends:
$6.7 billion (2011-12: $7.4 billion)
(2 cents of every dollar received in 2012-13 and 2011-12)
Other:
$8.6 billion (2011-12: $6.3 billion)
(2 cents of every dollar received in 2012-13, 1 cent in 2011-12)
Taxation receipts remain the predominant source of Australian Government receipts
with 81 cents of every dollar that the Australian Government receives resulting from
tax collections in 2012-13.
22
Commentary on the financial statements
Chart 17: Composition of each dollar of cash paid in 2012-13
Personal
benefits
Grants and
subsidies paid
Investing
and financing
Purchases of
non-financial
assets
Payments for
employees
and other
Payments for
goods and
Interest paid services
Grants and subsidies:
$127.6 billion (2011-12: $135.6 billion)
(32 cents of every dollar paid in 2012-13, 34 cents in 2011-12)
Personal benefits:
$116.6 billion (2011-12: $112.9 billion)
(29 cents of every dollar paid in 2012-13 and 2011-12)
Payments for goods and
services:
$81.7 billion (2011-12: $78.9 billion)
(20 cents of every dollar paid in 2012-13 and 2011-12)
Payments for employees
and other:
$35.5 billion (2011-12: $34.6 billion)
(9 cents of every dollar paid in 2012-13 and 2011-12)
Purchases of non-financial
assets:
$11.0 billion (2011-12: $13.0 billion)
(3 cents of every dollar paid in 2012-13 and 2011-12)
Interest paid:
$11.8 billion (2011-12: $11.3 billion)
(3 cents of every dollar paid in 2012-13 and 2011-12)
Investing and financing:
$18.8 billion (2011-12: $8.2 billion)
(5 cents of every dollar paid in 2012-13, 2 cents in 2011-12)
Grants and subsidies, personal benefits and payments for the supply of goods and
services are the main items of expenditure for the government, comprising more than
80 per cent of all payments.
23
Commentary on the financial statements
APPENDIX A: HISTORICAL INFORMATION
The following table presents the key financial results for the Australian Government
for the last six years.5
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
$b
$b
$b
$b
$b
$b
Operating statem ent
Taxation revenue
Non-taxation revenue
Total revenue
Expenses from transactions
Gross operating expenses
Current and capital transfers
Superannuation interest expense
Interest expenses
Total expenses
Net operating balance
Net acquisition of non-financial assets
Fiscal balance
Balance sheet
Financial assets
Non-financial assets
Total assets
Interest bearings liabilities
Payables
Provisions
Total liabilities
Net w orth
Cash flow
Operating activities
Investing activities in non-financial assets
Investing activities in financial assets
Financing activities
Net m ovem ent in cash
5
286.0
29.1
315.1
278.3
31.5
309.8
268.0
30.9
298.9
288.8
33.5
322.3
316.5
33.9
350.4
335.7
36.2
372.0
88.3
189.3
6.0
5.9
289.5
95.9
225.7
6.7
6.4
334.8
103.6
232.5
6.7
7.9
350.7
110.9
238.4
7.0
11.7
368.0
119.4
249.3
7.4
13.8
389.8
124.7
249.7
6.7
14.2
395.3
25.6
(25.0)
(51.8)
(45.7)
(39.4)
(23.4)
3.3
5.0
7.6
6.7
6.9
4.5
22.3
(30.0)
(59.4)
(52.4)
(46.3)
(27.9)
244.1
95.2
339.2
266.9
100.3
367.2
268.3
109.0
377.2
261.8
115.3
377.1
268.2
122.4
390.6
303.0
127.8
430.8
86.2
19.3
166.1
271.5
124.2
25.9
201.6
351.7
183.8
24.0
223.4
431.2
222.0
24.3
234.4
480.7
287.7
22.6
337.2
647.5
315.4
24.9
301.0
641.4
67.7
15.5
(53.9)
(103.6)
(256.9)
(210.5)
32.6
(8.0)
(43.8)
18.9
(0.3)
(12.7)
(10.2)
(26.7)
49.4
(0.2)
(44.3)
(12.5)
6.4
51.9
1.6
(33.7)
(11.5)
(0.9)
46.0
(0.1)
(29.6)
(12.5)
(6.9)
47.5
(1.4)
(10.3)
(9.2)
(13.7)
33.2
0.0
Key financial results have been presented from 2007-08 following the introduction of the
AASB 1049. The 2007-08 outcome was restated consistent with this standard in the 2008-09
CFS.
24
Commentary on the financial statements
APPENDIX B: LINKS TO OTHER PUBLICATIONS PUBLISHED BY
THE AUSTRALIAN GOVERNMENT ABOUT ITS PROJECTED AND
ACTUAL FINANCIAL POSITION FOR THE 2012-13 FINANCIAL
YEAR
The Australian Government publishes a range of information about its projected and
actual financial position. Links to some of these documents are set out below. The
information in the following documents has been prepared for different purposes and
therefore does not form part of the Consolidated Financial Statements. Further, the
documents listed below are not subject to audit.
2012-13 Final Budget Outcome
The Final Budget Outcome 2012-13 (FBO) has been prepared in a manner consistent with
the Charter of Budget Honesty Act 1998 (the Charter). The Charter requires that, inter
alia, the Government provide a final budget outcome report no later than three months
after the end of the financial year. Consistent with these requirements, the FBO
encompasses Australian Government general government sector fiscal outcomes for
the 2012-13 financial year and is based on external reporting standards.
The FBO is available on the Australian Government website at: http://www.budget.
gov.au/2012-13/content/fbo/html/index.htm.
Australian Government Monthly Financial Statements
The Australian Government Monthly Financial Statements have been prepared on a
basis consistent with the Budget as required under section 54 of the Financial
Management and Accountability Act 1997. The statements are prepared in accordance
with the Australian Accounting Standards Board 1049 — Whole of Government and
General Government Sector Financial Reporting (AASB 1049).
The Australian Monthly Financial Statements are available on the Department of
Finance website and the Minister for Finance website at: http://www.finance.gov.au/
publications/commonwealth-monthly-financial-statements/index.html and http://
www.financeminister.gov.au/media/2013/index.html.
Budget Strategy and Outlook and Mid-Year Economic and Fiscal Outlook
The Budget Strategy and Outlook — Budget Paper — 2012-13, the Mid-Year Economic and
Fiscal Outlook 2013-14 and the Budget Strategy and Outlook — Budget Paper — 2013-14
have been prepared in accordance with the Charter of Budget Honesty Act 1998.
The aforementioned Budget Papers are available on the Australian Government
website at http://www.budget.gov.au/.
25
Commentary on the financial statements
Tax Expenditures Statement 2012
The Tax Expenditures Statement (TES) provides details of concessions, benefits,
incentives and charges provided through the tax system (tax expenditures) to
taxpayers by the Australian Government. The publication of information is on The
Treasury
website
at
http://www.treasury.gov.au/PublicationsAndMedia/
Publications/2013/TES%202012.
26