PREFACE
I am pleased to present the Consolidated Financial Statements (CFS) for the Australian
Government for the financial year ended 30 June 2012. 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. The CFS shows the
results of the Australian Government’s operations and cash flows for the year ended
30 June 2012 and the Australian Government’s financial position as at 30 June 2012.
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 2012 was a deficit
of $46.2 billion. For the year ended 30 June 2011, the Australian Government reported
a fiscal balance deficit of $52.4 billion.
Australian Government revenue increased by $28.1 billion (8.7 per cent) in 2011-12,
reflecting an increase in taxes from individuals and companies.
Australian Government expenses increased by $21.9 billion (5.9 per cent) in 2011-12.
This was driven by a $10.9 billion increase in current and capital transfers, a
$6.1 billion increase in the supply of goods and services, a $2.2 billion increase in
interest expenses (including borrowing costs and superannuation interest expenses)
and a $1.7 billion increase in other operating expenses.
In addition, the Australian Government’s net acquisition of non-financial assets
increased by $0.1 billion.
Balance sheet
The Australian Government’s net worth was -$256.3 billion at 30 June 2012. For the
year ended 30 June 2011, the Australian Government’s net worth was -$103.1 billion.
The Australian Government’s financial assets increased by $6.5 billion (2.5 per cent) in
2011-12. Total non-financial assets increased by $7.1 billion (6.1 per cent).
The Australian Government’s liabilities increased by $166.7 billion (34.7 per cent),
primarily driven by a $66.9 billion increase in Commonwealth Government Securities
(CGS) and $100.9 billion increase in provisions and payables liability. The increase in
CGS was driven by both an increase in securities issued and an increase in market
value of existing stock on issue, owing to lower yields. The increase in provisions and
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Preface
payables was primarily a result of the increase in the superannuation liability due to a
change in the long term bond rate and an increase in service and interest costs.
Cash flow
The Australian Government recorded a cash deficit of $42.1 billion in 2011-12 from
operating activities and investing activities in non-financial assets. The closing cash
position was $4.6 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 2011-12 CFS.
Senator The Hon Penny Wong
Minister for Finance and Deregulation
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