Acting Minister for Finance and
Administration
M E D THE
I AHON JOHN
R FAHEY,
E L MP
E A S E
COMMONWEALTH GOVERNMENT MONTHLY FINANCIAL STATEMENTS
FOR THE MONTH OF JANUARY 2001
KEY POINTS

The fiscal balance for the year to date 31 January 2001 was a deficit of $69 million.

The underlying cash balance for the year to date 31 January 2001 was a deficit of $366 million.

The net operating result for the year to date 31 January 2001 was a deficit of $374 million.
TABLE 1
ACTUAL
2000-2001
JAN
ESTIMATE
2000-2001
FULL YEAR*
$m
ACTUAL
2000-2001
CUMULATIVE
YTD
$m
16,809
14,429
2,380
90,887
91,260
-374
162,973
157,039
5,934
125,861
173,325
-47,464
125,861
173,325
-47,464
116,939
166,177
-49,237
2,032
3,159
3,136
-69
-366
3,838
8,407
4,329
10,862
AGGREGATES
Revenue (a)
Expenses (a)
Net Operating Result
Assets
Liabilities
Net Assets (a)
Fiscal Balance
Underlying Cash Balance
Headline Cash Balance
$m
* As published in the Mid Year Economic and Fiscal Outlook 2000-2001 (MYEFO).
(a) Revenue, expenses and net assets are on a AAS31 basis.
Care needs to be taken when comparing monthly or cumulative data across years, and to full year estimates, since
factors such as the introduction of The New Tax System and the accrual framework, and the timing of payments
and policy decisions can have a large impact on fiscal aggregates from one year to the next and on year to date
outcomes.
9 March 2001
1
INTRODUCTION
The Commonwealth, having moved to a full accrual budgeting and reporting framework, is producing cumulative
statements of revenues and expenses, cash flows, assets and liabilities, and revenues and expenses by function.
Also included is a summary of the main fiscal indicators, ie the fiscal balance, and underlying and headline cash
balances.
ACCRUAL OUTCOMES
The fiscal balance for the year to date 31 January 2001 was a deficit of $69 million. The main components of the
fiscal balance are the GFS net operating balance, which was a deficit of $798 million, and net capital investment,
which was $729 million for the year to date 31 January 2001 (refer to Table 2 for further detail). A deficit at this
time is consistent with expected seasonal patterns of revenue, expenses and net capital investment.
COMMONWEALTH GENERAL
REVENUES AND EXPENSES
GOVERNMENT
SECTOR
STATEMENT
OF
REVENUES
Total revenue for the year to date 31 January 2001 was $90,887 million, comprising $83,175 million in taxation
revenue and $7,712 million in non-tax revenue.
The main components in taxation revenue were PAYG(W) ($42,328 million, including residual payments of
$5,165 million and $543 million from the now discontinued PAYE and Prescribed Payments Systems
respectively), companies ($19,901 million) and excise duty ($11,466 million), partly offset by individuals refunds
($8,702 million).
The introduction of The New Tax System affects both the timing and quantity of taxation revenue received by the
Commonwealth compared to previous years.
EXPENSES
Total expenses for the year to date 31 January 2001 were $91,260 million, which is below a pro-rata of the Mid
Year Economic and Fiscal Outlook (MYEFO) estimate ($91,606 million). Expenses for the year to date are not
always directly comparable to full year estimates due to seasonal effects on Commonwealth administered
expenses.
Factors affecting expenses are outlined below (including their impact by Function):

Goods and Services expenses were $22,571 million, which is 4 per cent lower than the pro-rata of the
MYEFO estimate of $23,474 million, mainly due to:
-
Suppliers expenses being low for Defence in the first part of the year as activity levels are expected to
increase later in the financial year and the full extent of inventory consumption will be recognised.
Depreciation expenses are also low in the first part of the year until assets under construction are rolled
out. (These expenses are included in the Defence function).
-
The timing of payments resulting in low suppliers and other goods and services expenses. (These
expenses are predominantly in the General Public Services, Social Security and Welfare and Other
Economic Affairs functions).
9 March 2001
2
Partially offset by:

-
Expenses related to the net write down of assets being high as they do not occur regularly throughout the
year. (The majority of these types of expenses are included in the Defence function).
-
Foreign exchange losses, the majority of which are unrealised, primarily the result of swap transactions
being affected by movements in exchange rates. (These expenses are predominantly in the Public Debt
Interest function).
Total Subsidies, Benefits and Grants expenses of $63,544 million, which is 1 per cent higher than the pro-rata
of the MYEFO estimate of $62,943 million. The differences are mainly due to seasonal factors including:
-
Grant expenses in relation to the upgrade of the Mainline Interstate Rail Track programme and
Federation Fund projects being low due to delays in finalising deeds, in addition to delays in claims for
payments from the States in relation to the National Highway programme. (These grant expenses are in
the Transport and Communication function).
-
Some grant and personal benefit expenses being low due to the cyclical nature of payments or the timing
of agreements. (The large proportion of these grants is in the General Public Services, Social Security and
Welfare, and Agriculture, Forestry and Fishing functions).
-
Lower subsidy expenses in relation to the Diesel Fuel Rebate Scheme due largely to seasonal usage.
(These expenses are in the Fuel and Energy function).
Almost fully offset by:
-
Some grant expenses being higher as the majority of education programmes are recognised on a calendar
year basis with payments occurring at certain points throughout the year. (These grant expenses are in the
Education function).
-
Personal benefit expenses relating to the Aged Persons Savings Bonus and Self-Funded Retirees Bonus
being weighted more heavily toward the early months of the financial year. (These expenses are in the
Social Security and Welfare function).
-
High demand in the early part of the year for Residential Care Subsidies. (These subsidies are in the Social
Security and Welfare function).
COMMONWEALTH GENERAL GOVERNMENT SECTOR BALANCE SHEET
ASSETS AND LIABILITIES
The net asset balance within the General Government sector improved from 30 June 2000 to
31 January 2001 by $5,426 million. The improvement was primarily the result of good cash and debt management
practices.
9 March 2001
3
COMMONWEALTH GENERAL GOVERNMENT SECTOR CASH FLOW STATEMENT
CASH OUTCOMES
The underlying cash balance for the year to date 31 January 2001 was a deficit of $366 million, which is consistent
with historical trends. In particular, it should be noted that:

Historical trends suggest that taxation receipts (net of refunds) will be lower in the first part of the year.

Cash from dividends reflects the receipt of most GBE dividends for 2000-01.

The trend in operating cash payments, particularly as they pertain to suppliers, grant, personal benefit and
subsidy expenses, is broadly consistent with the discussion of expenses in the operating statement under
Accrual Outcomes. However, some cash payments for grants reflect lump sum amounts paid, which will be
expensed in the operating statement progressively throughout the year, or have been expensed in the previous
year.
-

The statement of revenues and expenses includes non-cash expenses such as unrealised foreign exchange
losses, depreciation and net write down of assets, that do not impact on the underlying cash balance.
Net cash from investments in non-financial assets, consistent with expected trends, reflects lower capital sales
in the earlier part of the year.
9 March 2001
4
COMMONWEALTH GENERAL GOVERNMENT SECTOR STATEMENT OF REVENUES AND EXPENSES
ACTUAL
2000-2001
ACTUAL
2000-2001
ESTIMATE
2000-2001
JAN
FULL YEAR*
$m
CUMULATIVE
YTD
$m
12,132
2,679
590
251
15,652
64,211
15,977
1,945
1,042
83,175
116,824
25,880
3,405
1,852
147,961
289
286
59
240
282
1,156
16,809
1,741
3,465
86
476
1,944
7,712
90,887
2,900
5,749
71
2,701
3,591
15,012
162,973
1,485
1,399
220
254
142
3
411
3,914
9,462
6,987
1,532
1,066
1,026
14
2,484
22,571
16,378
13,854
3,045
1,092
810
3
5,060
40,241
7,086
571
2,210
9,868
42,033
3,859
17,652
63,544
69,876
7,114
30,913
107,903
647
647
14,429
2,380
5,146
5,146
91,260
-374
8,895
8,895
157,039
5,934
0
0
Operating result after extraordinary items
2,380
-374
3,732
Transfers to/from reserves
Other movements in accumulated results (b)
Total accumulated results after transfers
2,380
5,411
5,037
25
34
3,792
Note
Revenues
Taxation
Income tax
Indirect tax
Fringe Benefits Tax
Other taxes (a)
Total Taxation Revenue
Non-Taxation
Sales of goods and services
Interest and dividends
Net foreign exchange gains
Net gains from sales of assets
Other sources of non-tax revenue (a)
Total Non-Tax Revenue
Total Revenues
1
2
1
Expenses
Goods and Services
Employees
Suppliers
Depreciation and amortisation
Net write down of assets
Net foreign exchange losses
Net losses from the sale of assets
Other goods and services expenses
Total Goods and Services
Subsidies Benefits and Grants
Personal benefits
Subsidies
Grants
Total Subsidies Benefits and Grants
Interest and Other
Interest and other financing costs
Total Interest and other
Total Expenses
Operating Result
Extraordinary items
*
As published in the Mid Year Economic and Fiscal Outlook 2000-2001 (MYEFO).
(a) Some revenues previously classified as other non-tax revenue are now reported as other taxes.
(b) Represents a change in the methodology for the recognition of non-reciprocal calendar year grants, which are
recognised at the date of agreement for annual reporting, but over the course of the year for monthly reporting.
9 March 2001
5
$m
- 2,202
COMMONWEALTH GENERAL GOVERNMENT SECTOR BALANCE SHEET
Assets
Financial assets
Cash
Receivables
Investments
Accrued revenue
Other financial assets
Total financial assets
Non-financial assets
Land and buildings
Infrastructure
Intangibles
Inventories
Other non-financial assets
Total non-financial assets
Total assets
ACTUAL
31-Jan-01
ACTUAL#
30-Jun-00
ESTIMATE*
30-Jun-01
$m
$m
$m
949
25,794
37,778
380
40
64,942
3,556
28,711
39,825
482
4
72,578
3,498
25,714
28,261
432
14
57,919
16,224
39,318
824
3,060
1,495
60,920
125,861
16,233
38,001
818
3,086
1,365
59,504
132,082
15,051
38,695
982
3,002
1,290
59,020
116,939
Liabilities
Debt
Government securities
Loans
Leases
Deposits
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
67,199
7,701
294
227
4,239
79,661
76,448
6,310
313
233
3,396
86,701
56,722
6,308
347
10
3,954
67,342
82,324
1,472
2,709
326
1,881
4,952
93,664
173,325
81,816
1,343
2,279
354
7,565
4,912
98,271
184,971
82,336
1,484
2,554
335
7,365
4,760
98,834
166,177
Net Assets
-47,464
-52,890
-49,237
Equity
Accumulated results
Reserves
Capital
Total equity
-81,011
33,547
0
-47,464
-86,048
33,159
0
-82,149
32,911
0
-49,237
#
As published in the Final Budget Outcome for the year ended 30 June 2000.
* As published in the Mid Year Economic and Fiscal Outlook 2000-2001 (MYEFO).
9 March 2001
6
-52,890
COMMONWEALTH GENERAL GOVERNMENT SECTOR STATEMENT OF CASH FLOWS
ACTUAL
2000-2001
JAN
ACTUAL
2000-2001
CUMULATIVE
YTD
ESTIMATE
2000-2001
FULL YEAR*
$m
$m
$m
Operating Activities
Cash received
Taxes fees and fines (a)
Sales of goods and services
Interest
Dividends
Other (a)
Total operating cash received
14,941
261
310
8
-62
15,458
80,895
1,611
1,935
2,328
1,395
88,164
142,862
2,708
3,575
2,982
3,205
155,332
Cash used
Payments to employees
Payments to suppliers
Subsidies paid
Personal benefits
Grant payments
Interest and other financing costs
Other (b)
Total operating cash used
Net Cash from Operating Activities
1,245
732
570
6,798
1,904
639
199
12,087
3,371
8,946
6,278
3,887
41,607
18,275
5,000
2,563
86,556
1,608
15,878
13,436
7,394
69,550
30,826
8,815
5,163
151,062
4,270
10
6,308
6,305
257
-14
668
-1,967
4,388
464
-519
2,987
2,721
-2,921
1,801
3,889
-4,748
9,351
15,759
-5,180
28
-5,152
-7,859
-245
-8,104
-19,773
-315
-20,088
940
-2,607
-58
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
Financing Activities
Net Cash received/(used)
Net repayments of borrowings (c)
Other financing cash receipts/(payments) (c)
Net cash from Financing Activities
Net increase / (decrease) in cash held
* As published in the Mid Year Economic and Fiscal Outlook 2000-2001 (MYEFO).
(a) Some receipts previously classified as other are now reported in taxes, fees and fines.
(b) Includes GST receipts/payments related to purchase/sales.
(c) Transactions relating to swaps have been reallocated from Net Repayment of Borrowings to Other Financing
Cash Receipts/(Payments) since October 2000.
9 March 2001
7
STATEMENT OF REVENUES AND EXPENSES BY FUNCTION
ACTUAL
2000-2001
JAN
ACTUAL
2000-2001
CUMULATIVE
YTD
ESTIMATE
2000-2001
FULL YEAR*
$m
$m
$m
15,652
1,156
16,809
83,175
7,712
90,887
147,961
15,012
162,973
1,211
1,369
124
1,705
2,165
5,644
7,480
6,665
686
7,538
14,932
38,508
14,817
10,979
1,215
11,056
25,485
66,455
65
43
56
228
1,074
934
1,348
979
1,943
1,748
2,900
2,027
198
157
350
590
1,001
1,812
952
2,157
3,575
784
6,015
9,386
299
30
2
14,429
1,607
77
13
91,260
2,783
64
-551
48
157,039
2,380
-374
5,934
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
General Purpose InterGovernment Transactions
Natural Disaster Relief
Contingency Reserve
Asset Sales
Total Expenses
Operating Result
* As published in the Mid Year Economic and Fiscal Outlook 2000-2001 (MYEFO).
9 March 2001
8
TABLE 2: COMMONWEALTH GENERAL GOVERNMENT SECTOR
- RECONCILIATION OF AAS31 OPERATING RESULT TO FISCAL BALANCE
AAS31 Operating result
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
less cost of asset sales
plus Defence weapons platform depreciation
less Defence weapons platform investment
GFS Net Operating Balance
less purchase of property plant and equipment and
intangibles
less 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)
ACTUAL
2000-2001
ACTUAL
2000-2001
ESTIMATE
2000-2001
JAN
FULL YEAR*
$m
CUMULATIVE
YTD
$m
2,380
-374
5,934
0
254
18
83
-328
238
0
128
193
0
1,066
125
940
-164
463
0
855
2,534
447
1,092
200
740
469
2,697
0
1,653
2,676
2,068
-798
4,761
644
na
-75
-41
3,046
na
81
-27
4,748
0
-63
125
207
193
91
2,032
618
2,534
677
-69
4,388
2,676
1,392
8,407
$m
* As published in the Mid Year Economic and Fiscal Outlook 2000-2001 (MYEFO).
(a) Net repurchase premia (accruals basis), net losses/gains on swap transactions and assets re-recognised or
recognised for the first time.
TABLE 3: COMMONWEALTH GENERAL GOVERNMENT SECTOR
- DERIVATION OF UNDERLYING AND HEADLINE BALANCE
ACTUAL
2000-2001
JAN
ESTIMATE
2000-2001
FULL YEAR*
$m
ACTUAL
2000-2001
CUMULATIVE
YTD
$m
3,371
1,608
4,270
50
279
418
257
668
4,388
519
na
2,921
na
4,748
na
Equals Underlying Cash Balance
Plus: Net Advances
Proceeds from asset sales program
Net advance receipts/(payments) (a)
3,159
-366
4,329
10
-34
6,308
-2,104
6,305
229
Equals Headline Cash Balance
3,136
3,838
10,862
$m
Calculation of Underlying and Headline Balances
Net Cash from Operating Activities
Plus: Payments classified as GFS Adjustments
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
Plus: Finance Leases and similar arrangements
* As published in the Mid Year Economic and Fiscal Outlook 2000-2001 (MYEFO).
(a) Includes transactions classified as net advances for GFS purposes.
9 March 2001
9
NOTES:
With the introduction of Business Activity Statements and Instalment Activity Statements this financial year,
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: Other withholding tax, 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.
NOTE 1: INCOME TAX
ACTUAL
2000-2001
JAN
Revisions to
prior periods
$m
INDIVIDUALS
Gross PAYG withholding (a)(b)
Gross other individuals (c)
Less refunds
Total income tax on individuals
OTHER SOURCES
Companies
Superannuation funds (d)
Other withholding tax
Petroleum Resource Rent Tax
Total income tax from other sources
100
100
100
Revenue
accrued in
month
$m
ACTUAL
2000-2001
CUMULATIVE
YTD
ESTIMATE
2000-2001
FULL YEAR*
$m
$m
5,209
829
587
5,450
42,328
5,105
8,702
38,731
73,026
13,558
11,230
75,354
19,901
3,025
769
1,785
25,480
33,197
5,087
1,426
1,760
41,470
100
4,676
756
196
854
6,482
Total income tax
200
11,932
64,211
116,824
Fringe Benefits tax
-
590
1,945
3,405
* As published in Appendix C of the Mid Year Economic and Fiscal Outlook 2000-2001 (MYEFO).
(a) The Pay As You Go (PAYG) system was introduced generally from 1 July 2000. It includes revenue from taxpayers
who were previously subject to PAYE withholding arrangements, or who were in the PPS and will now be subject to
PAYG withholding arrangements from 1 July 2000.
(b) Amounts withheld for failure to quote a Tax File Number (TFN) or an Australian Business Number (ABN) are
included in Gross PAYG withholding.
(c) Includes individuals making PAYG instalment payments.
(d) Includes superannuation contributions surcharge.
9 March 2001
10
NOTE 2: INDIRECT TAX
ACTUAL
2000-2001
JAN
Revisions to
prior periods
$m
Excise duty
Customs duty
Other indirect tax
Total indirect tax revenue
ACTUAL
2000-2001
CUMULATIVE
YTD
ESTIMATE
2000-2001
FULL YEAR*
$m
$m
Revenue
accrued in
month
$m
2,044
531
104
2,679
-
11,466
2,813
1,698
15,977
19,383
4,541
1,956
25,880
* As published in Appendix C of the Mid Year Economic and Fiscal Outlook 2000-2001 (MYEFO).
In regard to GST revenue, AAS31 and other relevant accounting standards would suggest the gross amount of
GST be included in the Commonwealth’s Financial Statements. However, the clear policy intent of the
Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations is that the GST is a
State tax collected by the Commonwealth in an agency capacity. Therefore, accrued GST revenues and
associated payments to the States and Territories are not disclosed in these statements.
NOTE 3: GOODS AND SERVICES TAX
ACTUAL
2000-2001
JAN
Revisions to
prior periods
$m
GST Revenue
(collected on behalf of the States)
- 200
Revenue
accrued in
month
$m
1,699
ACTUAL
2000-2001
CUMULATIVE
YTD
ESTIMATE
2000-2001
FULL YEAR*
$m
$m
13,251
* As published in the Mid Year Economic and Fiscal Outlook 2000-2001 (MYEFO).
Peter J Boxall
Secretary to the Department of
Finance and Administration
9 March 2001
Rod Kemp
Acting Minister for Finance
and Administration
For further information contact the Department of Finance and Administration,
Commonwealth Financial Reporting Unit (02) 6215 3916
9 March 2001
11
26,303
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 Commonwealth Financial Statements, is given on the IMF's Data Dissemination
Bulletin Board at http//dsbb.imf.org.
(2) Quarterly data on debt guaranteed by the Commonwealth (central) government that meet the coverage and timeliness
requirements of the SDDS are published on the Treasury website at http://www.Treasury.gov.au. In accordance with
the IMF SDDS, quarter ahead notice of the approximate date of release of the data on debt guaranteed by the
Commonwealth (central) government, is given on the IMF's Data Dissemination Bulletin Board at
http://dsbb.imf.org.
9 March 2001
12