MEDIA RELEASE
SENATOR NICK MINCHIN
Minister for Finance and Administration
2 November 2004
59/2004
AUSTRALIAN GOVERNMENT MONTHLY FINANCIAL STATEMENTS
JULY/AUGUST 2004
KEY POINTS

The underlying cash balance for the year to 31 August 2004 was a surplus of $2,160 million.

The fiscal balance for the year to 31 August 2004 was a surplus of $6,822 million.

The net operating result for the year to 31 August 2004 was a surplus of $6,481 million.
AGGREGATES
ACTUAL
2004-2005
July
ACTUAL
2004-2005
August
$m
Underlying Cash Balance
Fiscal Balance
Headline Cash Balance
Revenue (a)
Expenses (a)
Operating Result
Assets
Liabilities
Net Assets (a)
ESTIMATE
2004-2005
FULL YEAR*
$m
ACTUAL
2004-2005
Year to Date
August
$m
5,078
9,001
5,049
-2,917
-2,179
-2,819
2,160
6,822
2,229
2,391
698
1,017
22,613
13,832
8,781
13,135
15,436
-2,300
35,748
29,266
6,481
196,308
196,663
-355
149,779
183,304
-33,526
147,428
183,185
-35,757
147,428
183,185
-35,757
128,979
174,558
-45,579
$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.
As is always the case with this publication, comparisons for the current financial year are made with the last
published Government estimate of the budget balance – in this case the 2004-05 Budget estimate.
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 31 August 2004 was a surplus of $2,160 million. This underlying
cash balance is $1,761 million higher than the August pro-rata (a surplus of $399 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 higher than the pro-rata amount expected at Budget.

Higher dividends due to the receipt of the Reserve Bank of Australia dividend in August 2004.
Movements in underlying cash payments:
Lower payments for:

Budget Balancing Assistance as these payments have now ceased because GST receipts exceed the
Guaranteed Minimum Amount from 2004-2005.
Higher payments for:

Non-government schools, vocational education and training and higher education institutions, including a
Higher Education Contributions Scheme (HECS) component:
o
Non-government schools and vocational education and training institutions were paid
approximately 25% of their full 2004-2005 entitlement in July and August; and
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 31 August 2004 was a surplus of $6,822 million. The main components of the
fiscal balance are the GFS net operating balance, which was a surplus of $6,659 million, and a net capital
investment of $163 million for the year to 31 August 2004 (refer to the Reconciliation of AAS31 Operating
Result to Fiscal Balance on page 8 for further detail).
FINANCIAL OUTCOMES
Actual expenses are $3,511 million lower when compared with a pro-rata of the budget annual estimate. The
main reasons for the lower result are due to:

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 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 $35,757 million
at 31 August 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
July
ACTUAL
2004-2005
August
$m
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
August
$m
18,589
2,367
0
679
92
21,727
7,889
2,448
0
8
144
10,489
26,478
4,815
0
686
237
32,216
150,100
27,545
0
3,190
1,642
182,477
359
256
8
34
229
886
22,613
361
1,931
-1
47
308
2,646
13,135
720
2,187
6
80
537
3,532
35,748
4,369
5,844
0
915
2,703
13,831
196,308
1,480
1,163
345
116
0
50
787
3,941
1,913
1,214
332
190
0
21
508
4,179
3,394
2,377
677
306
0
71
1,296
8,120
21,368
16,099
4,300
1,881
0
813
7,533
51,994
6,909
949
1,517
9,375
7,453
900
2,364
10,717
14,362
1,849
3,880
20,091
88,713
10,386
39,378
138,477
515
1
516
13,832
8,781
538
1
539
15,436
-2,300
1,054
2
1,055
29,266
6,481
6,170
22
6,192
196,663
-355
0
8,781
0
-2,300
0
6,481
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
July
ACTUAL
2004-2005
August
ESTIMATE*
2004-2005
FULL YEAR*
$m
$m
$m
1,512
29,351
45,312
401
506
2
77,084
852
29,580
43,472
401
582
1
74,888
1,553
31,960
25,075
451
347
24
59,410
19,294
38,766
1,520
6,440
4,828
1,847
72,695
149,779
19,341
38,792
1,551
6,434
4,815
1,607
72,540
147,428
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
56,375
4,909
178
340
0
1,475
63,277
56,734
4,928
176
376
0
1,408
63,622
45,019
3,972
116
325
0
1,106
50,539
95,134
1,577
4,771
522
7,282
10,740
120,027
183,304
95,568
1,671
5,023
554
6,429
10,318
119,563
183,185
97,346
2,262
4,860
344
9,816
9,392
124,019
174,558
Net Assets (a)
-33,526
-35,757
-45,579
Equity
Accumulated results
Reserves
Capital
Total equity
-68,706
35,181
0
-33,526
-71,019
35,262
0
-35,757
-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
8,781
-97
-3
-33,526
-42,207
6,481
9
-40
-35,757
-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
July
ACTUAL
2004-2005
August
$m
$m
ACTUAL
2004-2005
Year to Date
August
$m
ESTIMATE
2004-2005
FULL YEAR*
Operating Activities
Cash received
Taxes
Sales of goods and services
Interest
Dividends
GST receipts
Other
Total operating cash received
20,887
486
182
19
267
266
22,107
9,829
392
280
1,339
292
309
12,441
30,716
878
462
1,357
559
576
34,548
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
1,532
2,012
825
7,785
3,730
282
4
698
16,868
5,239
1,504
1,577
820
7,179
2,830
607
18
538
15,073
-2,632
3,036
3,589
1,645
14,964
6,560
889
22
1,236
31,941
2,607
18,868
18,752
9,849
88,973
38,164
6,126
131
7,570
188,433
7,173
0
25
0
46
0
71
0
810
$m
Investing Activities
Net Cash received/(used)
Proceeds from asset sales program
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
17
-251
121
-361
138
-612
-1,192
-5,792
-4,900
-5,109
4,675
4,481
-225
-628
-41
-6,216
Financing Activities
Net Cash received/(used)
Net repayments of borrowings
Other financing cash receipts/(payments)
Net cash from Financing Activities
1,023
-1,232
-209
-2,521
14
-2,507
-1,498
-1,218
-2,716
315
-1,327
-1,012
-79
-658
-737
-54
Net increase / (decrease) in cash held
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
July
ACTUAL
2004-2005
August
$m
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
August
$m
21,727
886
22,613
10,489
2,646
13,135
32,216
3,532
35,748
182,477
13,831
196,308
839
919
220
128
2,973
6,457
156
204
401
154
925
1,063
194
296
3,102
6,872
130
177
342
120
1,764
1,982
414
424
6,076
13,329
286
381
743
274
13,130
14,254
2,733
14,690
34,988
82,911
2,072
2,383
3,922
2,402
104
48
423
163
223
363
267
271
786
1,832
2,552
4,574
502
256
510
507
1,012
763
5,922
4,702
46
0
0
1
13,832
446
0
0
0
15,436
492
0
0
1
29,266
3,269
97
222
8
196,663
8,781
-2,300
6,481
-355
$m
This table is prepared on a AAS 31 basis, unless otherwise indicated.
* Data in this table are consistent with that 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
July
ACTUAL
2004-2005
August
$m
8,781
5
0
116
20
-8
-18
-16
187
148
8,901
236
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
-2,300
3
0
190
87
2
-22
25
177
174
-2,242
356
ACTUAL
2004-2005
Year to Date
August
$m
6,481
8
0
306
107
-6
-40
9
364
322
6,659
592
0
0
-5
25
0
9
-53
46
0
9
-58
71
7
71
-42
810
148
158
9,001
174
155
-2,179
322
313
6,822
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 CASH BALANCE
ACTUAL
2004-2005
July
ACTUAL
2004-2005
August
$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
ESTIMATE
2004-2005
FULL YEAR*
$m
ACTUAL
2004-2005
Year to Date
August
$m
5,239
65
-2,632
30
2,607
95
25
46
71
7,173
208
0
810
251
0
361
0
612
0
5,792
7
5,078
-2,917
2,160
2,391
0
-29
5,049
0
98
-2,819
0
69
2,229
0
-1,374
1,017
$m
* 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
July
ACTUAL
2004-2005
August
$m
$m
ACTUAL
2004-2005
Year to Date
August
$m
INDIVIDUALS AND OTHER WITHHOLDING TAX
Gross income tax withholding (a)
Gross other individuals
Less refunds
Total individuals and other withholding tax
8,504
2,587
1,802
9,288
8,096
1,607
2,671
7,033
16,600
4,194
4,473
16,320
95,150
20,390
12,850
102,690
OTHER SOURCES
Companies
Superannuation funds (b)
Petroleum Resource Rent Tax
Total income tax from other sources
7,966
1,334
9,301
511
304
41
857
8,477
1,639
41
10,157
39,400
6,910
1,100
47,410
18,589
7,889
26,478
150,100
679
8
686
3,190
Total income tax
Fringe Benefits tax
ESTIMATE
2004-2005
FULL YEAR*
$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) Includes superannuation contributions surcharge.
NOTE 2: INDIRECT TAX
Excise duty
Customs duty
Other indirect tax
Total indirect tax revenue
ACTUAL
2004-2005
July
ACTUAL
2004-2005
August
ACTUAL
2004-2005
Year to Date
August
ESTIMATE
2004-2005
FULL YEAR*
$m
$m
$m
$m
1,780
479
109
2,367
1,828
532
88
2,448
3,608
1,011
197
4,815
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.
GST Revenue (a)
(collected on behalf of the States)
ACTUAL
2004-2005
July
ACTUAL
2004-2005
August
ESTIMATE
2004-2005
FULL YEAR*
$m
ACTUAL
2004-2005
Year to Date
August
$m
$m
4,303
2,588
6,891
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
ACTUAL
2004-2005
Year to Date
July
Year to Date
August
Opening grants payable for DEST and ANTA
$m
5,870
$m
5,870
less closing grants payable for DEST and ANTA
4,543
3,654
41
176
1,368
2,393
plus grant expenses for DEST and ANTA
Cash payments for grants attributable to the Education function.
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