MEDIA RELEASE
SENATOR NICK MINCHIN
Minister for Finance and Administration
2 November 2004
61/2004
AUSTRALIAN GOVERNMENT MONTHLY FINANCIAL STATEMENTS
SEPTEMBER 2004
KEY POINTS

The underlying cash balance for the year to 30 September 2004 was a deficit of $2,895 million in comparison
to a surplus of $2,160 million to 31 August 2004.

The fiscal balance for the year to 30 September 2004 was a surplus of $1,778 million in comparison to a
surplus of $6,822 million to 31 August 2004.

The net operating result for the year to 30 September 2004 was a surplus of $1,109 million.
ACTUAL
2004-2005
September
ESTIMATE
2004-2005
FULL YEAR*
$m
ACTUAL
2004-2005
Year to Date
September
$m
Underlying Cash Balance
Fiscal Balance
Headline Cash Balance
-5,056
-5,044
-4,902
-2,895
1,778
-2,672
2,391
698
1,017
Revenue (a)
Expenses (a)
Operating Result
10,115
15,488
-5,372
45,863
44,753
1,109
196,308
196,663
-355
136,867
178,056
-41,189
136,867
178,056
-41,189
128,979
174,558
-45,579
AGGREGATES
Assets
Liabilities
Net Assets (a)
$m
* As published in the Budget Strategy and Outlook 2004-05.
(a) Revenue, expenses and net assets are on a AAS31 basis, unless otherwise indicated.
Care needs to be taken when comparing monthly or cumulative data across years and to full year estimates.
Revenue and expenses vary month-to-month and factors such as The New Tax System, the accrual framework, the
timing of payments and policy decisions, can also have a large impact on fiscal aggregates from one year to the
next and on year-to-date outcomes.
2 November 2004
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
1
FISCAL OUTCOMES
UNDERLYING CASH BALANCE
The main components of the underlying cash balance are cash from operations and cash movements in the net
investment in non-financial assets.
The underlying cash balance for the year to 30 September 2004 was a deficit of $2,895 million. This underlying
cash balance is $3,493 million lower than the September pro-rata (a surplus of $598 million) of the Budget
annual estimate of $2,391 million. The difference reflects a number of individual variations including the
following:
Movements in underlying cash receipts:

Taxation receipts are lower than a pro-rata of the annual Budget estimate. This is in line with the usual
monthly fluctuations in taxation receipts.

Higher dividends largely due to the receipt of the Reserve Bank of Australia dividend in August 2004.
Movements in underlying cash payments:
Lower payments for:

Grants due to Budget Balancing Assistance as these payments have now ceased because GST receipts
exceed the Guaranteed Minimum Amount from 2004-2005, and National Competition Policy payments
which are scheduled to occur in November 2004.
Higher payments for:

Personal Benefits due to a greater than pro-rata number of personal benefits paydays falling due in
September 2004.

Higher education institutions, including a Higher Education Contributions Scheme (HECS) component:
o
Payments to universities are initially recorded as grant related payments, as HECS funding
information is not known. This has an initial effect on underlying cash, which is reversed when the
HECS funding is known and reclassified as loans in November/December and June each year.
FISCAL BALANCE
The fiscal balance for the year to date 30 September 2004 was a surplus of $1,778 million. The main
components of the fiscal balance are the GFS net operating balance, which was a surplus of $1,464 million, and
a net capital investment of $314 million for the year to 30 September 2004 (refer to the Reconciliation of AAS31
Operating Result to Fiscal Balance on page 8 for further detail).
FINANCIAL OUTCOMES
Actual expenses are $4,413 million lower when compared with a pro-rata of the Budget estimate. The main
reasons for the lower result (including their impact by Function) are due to:

Education function - lower expenses for most education and training grants. In accordance with legislation,
a large proportion of education and training grants are expensed between December and February of each
year when the determinations are signed. These grants are then paid to institutions throughout the calendar
year.
2 November 2004
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
2
ASSETS AND LIABILITIES
The net asset balance within the General Government sector is a negative net asset position of $41,189 million
at 30 September 2004.
Nick Minchin
Minister for Finance
and Administration
2 November 2004
Contact:
IJ Watt
Secretary to the Department of
Finance and Administration
Senator Minchin’s Office:
Department of Finance and Administration:
2 November 2004
Michael Brennan (02) 6277 7400
Anne Hazell
(02) 6215 3158
Chief Finance Officer
Australian Government Reporting
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
3
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
STATEMENT OF FINANCIAL PERFORMANCE
ACTUAL
2004-2005
September
Note
Revenues
Taxation
Income tax
Indirect tax
GST
Fringe Benefits Tax
Other taxes
Total Taxation Revenue
Non-Taxation
Sales of goods and services
Interest and dividends
Net foreign exchange gains
Proceeds from the sale of assets
Other sources of non-tax revenue
Total Non-Tax Revenue
Total Revenues
1
2
1
3
Expenses
Goods and Services
Employees
Suppliers
Depreciation and amortisation
Net write down of assets
Net foreign exchange losses
Value of assets sold
Other goods and services expenses
Total Goods and Services
Subsidies Benefits and Grants
Personal benefits
Subsidies
Grants
Total Subsidies Benefits and Grants
Borrowing costs
Interest
Other borrowing costs
Total Borrowing costs
Total Expenses
Operating Result
Extraordinary items
Operating result after extraordinary items
ESTIMATE
2004-2005
FULL YEAR*
$m
ACTUAL
2004-2005
Year to Date
September
$m
6,412
2,474
0
-39
132
8,978
32,889
7,289
0
647
369
41,194
150,100
27,545
0
3,190
1,642
182,477
384
272
-6
132
355
1,137
10,115
1,105
2,459
0
212
892
4,668
45,863
4,369
5,844
0
915
2,703
13,831
196,308
1,826
1,227
332
146
201
67
606
4,405
5,220
3,604
1,009
451
201
138
1,902
12,525
21,368
16,099
4,300
1,881
0
813
7,533
51,994
8,092
770
1,695
10,557
22,454
2,618
5,575
30,648
88,713
10,386
39,378
138,477
518
8
525
15,488
-5,372
1,571
9
1,580
44,753
1,109
6,170
22
6,192
196,663
-355
0
-5,372
0
1,109
0
-355
$m
This table is prepared on a AAS 31 basis, unless otherwise indicated.
* As published in the Budget Strategy and Outlook 2004-05.
* Reduced depreciation expense reflects a revision to accumulated depreciation following a review of Defence assets.
2 November 2004
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
4
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
STATEMENT OF FINANCIAL POSITION
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
Intangibles
Heritage and cultural
Inventories
Other non-financial assets
Total non-financial assets
Total assets
ACTUAL
2004-2005
September
ESTIMATE
2004-2005
FULL YEAR*
$m
$m
1,428
28,831
33,189
401
519
1
64,369
1,553
31,960
25,075
451
347
24
59,410
19,301
38,772
1,557
6,442
4,845
1,581
72,499
136,867
17,786
39,652
1,527
4,950
4,195
1,460
69,570
128,979
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
Total liabilities
52,213
4,905
168
390
2
1,430
59,108
45,019
3,972
116
325
0
1,106
50,539
95,817
1,745
4,866
505
5,750
10,267
118,949
178,056
97,346
2,262
4,860
344
9,816
9,392
124,019
174,558
Net Assets (a)
-41,189
-45,579
Equity
Accumulated results
Reserves
Capital
Total equity
-76,706
35,517
0
-41,189
-78,759
33,180
0
-45,579
(a) Opening net assets
Operating result after extraordinary items
Asset revaluation reserve
Other movements
Closing net assets
-42,207
1,109
12
-103
-41,189
-45,133
-355
-46
-45
-45,579
This table is prepared on a AAS 31 basis, unless otherwise indicated.
* As published in the Budget Strategy and Outlook 2004-05.
2 November 2004
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
5
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
STATEMENT OF CASH FLOWS
ACTUAL
2004-2005
September
$m
ACTUAL
2004-2005
Year to Date
September
$m
Operating Activities
Cash received
Taxes
Sales of goods and services
Interest
Dividends
GST receipts
Other
Total operating cash received
9,364
324
415
16
70
330
10,519
40,079
1,202
877
1,373
629
906
45,067
179,561
4,536
3,138
3,214
2,653
2,504
195,606
Cash used
Payments to employees
Payments to suppliers
Subsidies paid
Personal benefits
Grant payments
Interest and other financing costs
GST payments
Other
Total operating cash used
Net Cash from Operating Activities
1,530
1,098
771
8,291
2,351
640
2
594
15,277
-4,758
4,566
4,687
2,416
23,255
8,911
1,529
24
1,830
47,218
-2,151
18,868
18,752
9,849
88,973
38,164
6,126
131
7,570
188,433
7,173
-2
136
156
-431
-90
-231
-2
207
294
-1,043
-315
-859
0
810
-1,192
-5,792
-41
-6,216
5,507
54
5,561
4,009
-1,164
2,845
315
-1,327
-1,012
572
-165
-54
Investing Activities
Net Cash received/(used)
Proceeds from asset sales programme
Proceeds from sales of property, plant and equipment and intangibles
Net loans, advances and HECS
Purchase of property, plant and equipment and intangibles
Other investing cash receipts/(payments)
Net Cash from Investing Activities
Financing Activities
Net Cash received/(used)
Net repayments of borrowings
Other financing cash receipts/(payments)
Net cash from Financing Activities
Net increase / (decrease) in cash held
ESTIMATE
2004-2005
FULL YEAR*
$m
This table is prepared on a AAS 31 basis, unless otherwise indicated.
* As published in the Budget Strategy and Outlook 2004-05.
2 November 2004
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
6
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
STATEMENT OF FINANCIAL PERFORMANCE BY FUNCTION
ACTUAL
2004-2005
September
Note
Revenues by Source
Taxation
Non-taxation
Total revenues
Expenses by Purpose
General Public Services
Defence
Public Order and Safety
Education
Health
Social Security and Welfare
Housing and Community Amenities
Recreation and Culture
Fuel and Energy
Agriculture, Forestry and Fishing
Mining and Mineral Resources
(other than fuels); Manufacturing
and Construction
Transport and Communication
Other Economic Affairs
Other Purposes
Public Debt Interest
Nominal Superannuation Interest
General Purpose InterGovernment Transactions
Natural Disaster Relief
Contingency Reserve
Asset Sales
Total Expenses
4
Operating Result
ESTIMATE
2004-2005
FULL YEAR*
$m
ACTUAL
2004-2005
Year to Date
September
$m
8,978
1,137
10,115
41,194
4,668
45,863
182,477
13,831
196,308
1,234
1,043
223
170
2,822
7,694
151
193
280
128
2,999
3,025
638
595
8,898
21,024
437
574
1,023
402
13,130
14,254
2,733
14,690
34,988
82,911
2,072
2,383
3,922
2,402
68
124
427
335
394
1,213
1,832
2,552
4,574
481
382
1,494
1,145
5,922
4,702
64
1
0
1
15,488
557
1
0
3
44,753
3,269
97
222
8
196,663
-5,372
1,109
-355
$m
This table is prepared on a AAS 31 basis, unless otherwise indicated.
* As published in the Budget Strategy and Outlook 2004-05.
2 November 2004
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
7
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
RECONCILIATION OF AAS31 OPERATING RESULT TO FISCAL BALANCE
ACTUAL
2004-2005
September
AAS31 Operating result
less assets recognised for the first time
plus revaluations / writedowns from superannuation
plus writedown of assets/bad and doubtful debts
less mutually agreed writedowns
plus net foreign exchange losses
plus other economic revaluations (a)
less profit (loss) on the sale of assets
plus Defence weapons platform depreciation
less Defence weapons platform investment
GFS Net Operating Balance
less purchase of property plant and equipment and intangibles
less net assets acquired under finance leases
less other non-financial assets
less increase in inventories
plus proceeds from sales of property, plant and equipment
plus Defence weapons platform investment
plus depreciation and amortisation excl weapons
Fiscal Balance (GFS Net Lending)
ESTIMATE
2004-2005
FULL YEAR*
$m
-5,372
5
0
145
11
207
-22
65
173
245
-5,195
406
ACTUAL
2004-2005
Year to Date
September
$m
1,109
13
0
451
118
201
-62
74
537
567
1,464
998
0
35
-52
136
245
159
-5,044
0
44
-110
207
567
472
1,778
7
71
-42
810
2,869
1,933
698
$m
-355
1
0
1,881
434
0
364
107
2,367
2,869
846
5,723
* Data in this table are consistent with that published in the Budget Strategy and Outlook 2004-05.
(a) Net repurchase premia (accruals basis), net losses/gains on swap transactions, cost of asset sales, International Development
Association/Asian Development Fund payments and public non-financial corporations superannuation revenue are included in this item.
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
DERIVATION OF UNDERLYING AND HEADLINE BALANCE
ACTUAL
2004-2005
September
$m
Net cash from operating activities
Plus: Payments classified as GFS adjustments (a)
Plus: Net cash from investments in non-financial assets
Proceeds from sales of property, plant and equipment and intangibles
Less: Purchase of property, plant and equipment and intangibles
Less: Finance leases and similar arrangements
Underlying Cash Balance
Plus: Net Advances
Proceeds from asset sales program
Net advance receipts/(payments) (b)
Equals Headline Cash Balance
ACTUAL ESTIMATE
2004-2005
2004-2005
Year to Date FULL YEAR*
September
$m
$m
-4,758
-3
-2,151
92
136
431
0
207
1,043
0
7,173
208
0
810
5,792
7
-5,056
-2,895
2,391
-2
156
-4,902
-2
225
-2,672
0
-1,374
1,017
* Data in this table are consistent with that published in the Budget Strategy and Outlook 2004-05.
(a) Includes public non-financial corporations principal repayments, cost of asset sales, swap transactions, International
Development Association/Asian Development Fund and public debt interest adjustments.
(b) Includes transactions classified as net advances for GFS purposes such as Higher Education Contribution Scheme loans
and loans to other levels of Government (State, Local and Multi-jurisdictional) for policy purposes.
2 November 2004
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
8
NOTES:
The accounting policies in this part are generally consistent with the requirements of 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, this presentation covers the general
government sector only. This publication does not include full note disclosures.
With the introduction of Business Activity Statements and Instalment Activity Statements in 2000-2001,
taxpayers provide information on payments associated with several types of tax when lodging the statement and
paying the aggregate net tax amount. Thus, while total tax collections are known with certainty at the end of each
month, the distribution across the relevant heads of revenue cannot be finalised until all statements are received
and processed. The outcomes for some revenue items provided in this statement are thus estimates, in
accordance with the best judgement of the Taxation Commissioner, and subject to revision. The taxation
revenue items not affected are: Petroleum Resource Rent Tax, Excise duty, Customs duty, Other Taxes and
Individuals Refunds.
The sum of the revenue accrued in the month and the revisions to prior periods equals the revenue reported in
the Statement of Revenue and Expenses.
All taxation items in these notes are reported on an AAS31 basis, unless otherwise indicated.
NOTE 1: INCOME TAX
ACTUAL
2004-2005
September
INDIVIDUALS AND OTHER WITHHOLDING TAX
Gross income tax withholding (a)
Gross other individuals
Less refunds
Total individuals and other withholding tax
OTHER SOURCES
Companies (b)
Superannuation funds (c)
Petroleum Resource Rent Tax
Total income tax from other sources (b)
Total income tax
Fringe Benefits tax (b)
ESTIMATE
2004-2005
FULL YEAR*
$m
ACTUAL
2004-2005
Year to Date
September
$m
7,895
790
2,083
6,602
24,495
4,984
6,556
22,923
95,150
20,390
12,850
102,690
- 342
79
72
- 190
6,412
- 39
8,136
1,718
113
9,967
39,400
6,910
1,100
47,410
32,889
150,100
647
3,190
$m
* As published in the Budget Strategy and Outlook 2004-05.
(a) Previously reported as Pay As You Go (Withholding) and other withholding. Other withholding was previously reported
under other sources of income tax, and includes amounts withheld for failure to quote a Tax File Number or an
Australian Business Number, interest, dividends and royalty payments to non-residents, and payments to aboriginal groups
for the use of land for mineral exploration and mining.
(b) Negative collections indicate refunds exceed collections.
(c) Includes superannuation contributions surcharge.
NOTE 2: INDIRECT TAX
Excise duty
Customs duty
Other indirect tax
Total indirect tax revenue
ACTUAL
2004-2005
September
ACTUAL
2004-2005
Year to Date
September
ESTIMATE
2004-2005
FULL YEAR*
$m
$m
$m
1,910
498
65
2,474
5,518
1,509
262
7,289
21,220
5,335
990
27,545
* As published in the Budget Strategy and Outlook 2004-05.
2 November 2004
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
9
NOTE 3: GOODS AND SERVICES TAX
In regard to GST revenue, AAS31 and other relevant accounting standards would suggest the gross amount of
GST be included in the Australian Government’s Financial Statements. However, the clear policy intent of the
Intergovernmental Agreement on the Reform of Australian Government-State Financial Relations is that the
GST is a State tax collected by the Australian Government in an agency capacity. Therefore, accrued GST
revenues and associated payments to the States and Territories are not disclosed in these statements.
ACTUAL
2004-2005
September
GST Revenue (a)
(collected on behalf of the States)
ESTIMATE
2004-2005
FULL YEAR*
$m
ACTUAL
2004-2005
Year to Date
September
$m
1,716
8,607
35,190
$m
* As published in the Budget Strategy and Outlook 2004-05.
(a) GST revenue is presented in this note on an accrual basis. This differs from GST cash receipts, on
which payments to the States and Territories are based.
NOTE 4: ADJUSTMENT FOR EDUCATION GRANT EXPENDITURE
In regard to education grant expenditure, adherence to AAS31 and other relevant accounting standards results in
few education expenses being reported until the signing of the Ministerial determination, which normally occurs
between December and February each year. This produces a bunching of expenses such that the full year's
expense is recognised at that time and remains relatively constant until June. The table below provides details of
the cash paid by DEST and ANTA and attributable to the Education function for the year to date.
ACTUAL
2004-2005
Year to Date
September
Opening grants payable for DEST and ANTA
$m
5,870
less closing grants payable for DEST and ANTA
3,047
plus grant expenses for DEST and ANTA
220
Cash payments for grants attributable to the Education function.
3,044
NOTE:
Style Conventions
(1) Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components
are due to rounding.
International Monetary Fund (IMF) Special Data Dissemination Standards (SDDS)
(1) In accordance with the IMF's SDDS, quarter ahead notice of the date of release of the data on central government operations,
which is contained in the Australian Government Financial Statements, is given on the IMF's Data Dissemination Bulletin Board
at http//dsbb.imf.org.
(2) Monthly and quarterly data on debt guaranteed by the Australian Government (central) government that meet the coverage and
timeliness requirements of the SDDS are published on the AOFM website at
http://www.aofm.gov.au/borrowing_programme/Australian GovernmentGovernmentSecurities.htm. In accordance with the IMF
SDDS, quarter ahead notice of the approximate date of release of the data on debt guaranteed by the Australian Government
(central) government, is given on the IMF's Data Dissemination Bulletin Board at http://dsbb.imf.org.
2 November 2004
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
10