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MEDIA RELEASE
SENATOR NICK MINCHIN
Minister for Finance and Administration
3 August 2006
45/2006
AUSTRALIAN GOVERNMENT MONTHLY FINANCIAL STATEMENTS
May 2006
KEY POINTS
 The underlying cash balance for the 2005-06 year to 31 May 2006 was a surplus of $18,039 million.

The fiscal balance for the 2005-06 year to 31 May 2006 was a surplus of $17,851 million.

The operating result for the 2005-06 year to 31 May 2006 was a surplus of $16,646 million.

The difference between the fiscal and underlying cash balances is largely attributable to increases in
taxation receivables (see note 4).

As foreshadowed in the 2006-07 Budget forecast, a range of one off payments are scheduled in June
2006 such as the Auslink program and grants to the Murray Darling Commission together with June
having three pension paydays and three public service paydays.
ACTUAL
2005-2006
May
ESTIMATE
2005-2006
FULL YEAR*
$m
ACTUAL
2005-2006
Year to Date
May
$m
Underlying Cash Balance
Fiscal Balance
Headline Cash Balance
1,275
-523
732
18,039
17,851
17,764
14,805
15,966
13,497
Income
Expenses
Operating Result
18,009
17,019
991
206,679
190,033
16,646
225,786
209,388
16,397
204,115
202,422
1,693
204,115
202,422
1,693
204,027
201,478
2,549
AGGREGATES
Assets
Liabilities
Net Assets
$m
* As published in the 2006-07 Budget.
Care needs to be taken when comparing monthly or cumulative data across years and to full year estimates.
Revenues and expenses do vary from month-to-month. Factors such as The New Tax System, and the accrual
framework including 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. The May 2006 monthly financial
statements were produced under the Australian Equivalents to International Financial Reporting Standards
(AEIFRS).
Consistent with the market basis of valuation of assets adopted under AEIFRS, the basis of valuation of the
Government's investment in Telstra Corporation Limited and other Commonwealth entities has changed
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
1
from cost to fair value. The financial effect of this change is recognised in the Statement of Changes in
Equity.
Following advice from the Australian Bureau of Statistics on the recognition of education grants expenses
under Government Finance Statistics, fiscal balance records education grant expenses from April 2006 when
cash flows rather than when the Ministerial determination is signed. Refer to note 4 for the impact of the
different recognition basis between GFS and AEIFRS for education grants expense.
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 May 2006 was a surplus of $18,039 million. This underlying
cash balance is $4,468 million higher than the May pro-rata (a surplus of $13,571 million) of the Revised
Budget estimate for 2005-06 of $14,805 million. The difference reflects a number of individual variations
including the following:
Movements in underlying cash receipts:
Lower receipts from:

Taxation in line with the usual monthly fluctuations in revenue.
Higher receipts from:

Dividends due to:

the receipt of the RBA dividend in August each year; and
Movements in underlying cash payments:
Lower payments for:
 Grants due to:
 likely underspends in some programmes;
 Payments to suppliers due to:
 likely underspends in some defence related programmes;
 Personal benefits due to:
- seasonality and timing of pension payments combined with the one off carers payment to be paid in
June; and
- lower than anticipated demand for Youth Allowance.
 Foreign aid, specifically payments for AusAID's three country and regional programmes (PNG &
Pacific; East Asia; and South Asia, Africa and Other). Also, as the Emergency, Humanitarian and
Refugee Aid and NGO, Volunteer and Community programmes are not incurred on a pro rata basis, due
to timing of activities, requirements of partner Governments and organisations, and the unpredictable
nature of expenditure on emergencies.
Higher payments for:

A number of education grants being paid biannually.
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
2

Personal benefits claimed through the tax system.

Suppliers, due to payment for procurement of the Defence Materiel Organisation’s C17 project.
Fiscal Balance
The fiscal balance for the year to 31 May 2006 was a surplus of $17,851 million. The main components of
the fiscal balance are the GFS net operating balance, which was a surplus of $18,304 million, and a net
capital investment of $453 million for the year to 31 May 2006 (refer to the Reconciliation of the Operating
Result to Fiscal Balance on page 10 for further detail).
FINANCIAL OUTCOMES
Actual expenses are $1,907 million lower when compared with a pro-rata of the revised Budget estimate.
The main reasons for the higher fiscal result, provided by function, are due to:

Education function – higher grant expenses as education grants are expensed in January.
Partially offset by:

Social Security and Welfare function – lower personal benefits expenses due to seasonal variation and
the timing of pension paydays.

Transport function – lower expenses mainly attributable to AusLink and other transport programmes as
the level of these expenses does not occur equally each month but when State and/or Local
Governments make claims for payment.

Health function – lower grant expenses due to underspends in a range of health programmes.
Assets and Liabilities
The net asset balance within the General Government sector is a positive net asset position of
$1,693 million at 31 May 2006, including the impact of a change in accounting policy under AEIFRS to
recognise investments in Telstra and other Australian Government entities at fair value.
Nick Minchin
Minister for Finance
and Administration
3 August 2006
I J Watt
Secretary to the Department of
Finance and Administration
3 August 2006
Contact: Senator Minchin’s Office:
Department of Finance and Administration:
Michael Brennan
(02) 6277 7400
Anne Hazell
(02) 6215 3650
Chief Financial Officer
Australian Government Reporting
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
3
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
INCOME STATEMENT
ACTUAL
ACTUAL
2005-2006
2005-2006
May Year to Date
May
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
Other sources of non-tax revenue
Total Non-Tax Revenue
Total Revenue
1
2
1
3
Gains
Net foreign exchange gains
Net gains from sale of assets
Other gains
Total Gains
Income
Expenses
Goods and Services
Employees
Suppliers
Depreciation and amortisation
Net write-down and impairment of assets and fair
value losses
Net foreign exchange losses
Net losses from 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
Borrowing costs
Interest
Other borrowing costs
Total Borrowing costs
Total Expenses
Operating Result
ESTIMATE
2005-2006
FULL
YEAR*
$m
$m
$m
14,121
2,178
0
345
202
16,846
158,445
25,610
0
3,417
2,117
189,588
173,760
28,231
0
3,300
2,242
207,533
454
377
331
1,162
18,008
4,336
7,942
3,506
15,784
205,373
4,898
8,691
3,502
17,092
224,625
-2
-70
73
1
18,009
78
21
1,208
1,307
206,679
85
99
977
1,161
225,786
2,240
1,925
337
21,111
15,675
3,879
22,789
18,487
4,554
-107
0
0
717
5,113
2,444
0
0
6,643
49,752
3,085
0
0
7,649
56,564
8,410
960
2,075
11,445
84,980
9,895
39,997
134,872
93,371
11,004
42,501
146,876
460
1
461
17,019
991
5,371
37
5,409
190,033
16,646
5,932
17
5,949
209,388
16,397
* As published in the 2006-07 Budget.
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
4
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
BALANCE SHEET
ACTUAL
2005-2006
May
$m
ESTIMATE
2005-2006
FULL
YEAR*
$m
910
32,843
92,786
399
506
-2
127,442
1,785
32,069
89,829
399
563
17
124,663
20,109
40,447
1,865
7,615
110
0
3,937
1,769
822
76,673
204,115
19,558
40,031
1,916
7,723
851
0
4,625
4,596
62
79,364
204,027
58,884
4,224
142
128
0
1,442
64,820
59,547
4,224
233
405
0
1,099
65,508
103,313
2,677
1,977
1,466
11,169
17,000
137,602
0
202,422
103,948
2,680
6,290
1,313
10,209
11,529
135,970
0
201,478
1,693
2,549
-27,446
29,138
0
1,693
-55,956
58,505
0
2,549
-36,831
16,646
-8,895
30,772
1,693
-36,490
16,397
-198
22,840
2,549
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
Investment Property
Biological Assets
Inventories
Other non-financial assets
Assets held for sale
Total non-financial assets
Total assets
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
Liabilities associated with assets held for sale
Total liabilities
Net Assets
Equity
Accumulated results
Reserves
Capital
Total equity
Opening net assets **
Operating Result
Asset revaluation reserve
Other movements
Closing net assets
* As published in the 2006-07 Budget.
** For May, FBO 2004-05 net asset position adjusted for AEIFRS impacts as disclosed in the
FBO 2004-05 notes.
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
5
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR STATEMENT OF CHANGES IN EQUITY
Accumulated Results
ACTUAL
2005-2006
Year to Date May
Asset Revaluation Reserve
ESTIMATE
ACTUAL
2005-2006
2005-2006
FULL YEAR* Year to Date May
Other Reserves
ESTIMATE
ACTUAL
2005-2006
2005-2006
FULL YEAR* Year to Date May
Contributed equity/capital
ESTIMATE
ACTUAL
2005-2006
2005-2006
FULL YEAR* Year to Date May
Total Equity
ESTIMATE
ACTUAL
2005-2006
2005-2006
FULL YEAR* Year to Date May
ESTIMATE
2005-2006
FULL YEAR*
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
-74,934
418
30,469
-74,934
-1,014
23,127
16,586
-113
16,939
-222
21,518
7
21,505
-9
0
0
0
0
-36,831
312
30,469
-36,490
-1,246
23,127
-44,048
-52,822
16,473
16,717
21,525
21,496
0
0
-6,050
-14,609
0
0
-8,733
-28
-15
68
0
-8,733
-28
0
-15
68
-8,761
53
0
0
-8,761
53
16,646
16,397
0
7,885
16,451
0
0
707
2,549
Opening Balance
Balance carried forward from previous period **
Adjustment for errors / Entity Adjustments
Adjustment for changes in accounting policy
Adjusted Opening Balance
Income and Expense
Revenues and Expenses Recognised Directly in Equity
Currency Translation gain (loss)
Financial Asset Revaluations
Non-Financial Asset Revaluations
Total Revenues and Expenses Recognised Directly in Equity
0
0
Net Operating Result
16,646
16,397
Total Income and Expenses
16,646
16,397
-8,761
53
0
0
5
0
-50
-19,978
0
446
-1
0
-21
224
0
-253
-5
0
-73
19,754
0
514
0
0
0
0
-144
-27,446
-55,956
7,691
16,741
21,447
41,764
0
0
1,693
Transfers between reserves
Dividends
Other movements
Closing balance
* As published in the 2006-07 Budget.
** For May, FBO 2004-05 closing balance adjusted to reflect AEIFRS impacts as disclosed in the FBO 2004-05 notes.
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
6
0
0
0
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
CASH FLOW STATEMENT
ACTUAL
ACTUAL
2005-2006
2005-2006
May Year to Date
May
$m
$m
ESTIMATE
2005-2006
FULL
YEAR*
$m
Operating Activities
Cash received
Taxes
Sales of goods and services
Interest
Dividends
GST receipts
Other (a)
Total operating cash received
17,528
448
365
2
178
460
18,982
185,107
4,565
3,777
4,338
2,619
3,215
203,621
204,012
5,204
4,308
4,341
2,973
3,026
223,865
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 (used by) Operating Activities
1,845
1,656
938
7,736
3,304
584
6
607
16,676
2,306
17,402
18,053
9,372
83,492
39,130
6,192
94
6,557
180,292
23,329
19,953
21,643
10,451
92,382
44,559
6,744
86
7,144
202,963
20,901
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 (used by) Investing Activities
0
1
-543
-1,011
-3,670
-5,223
0
220
-119
-5,449
-17,683
-23,031
0
224
-1,238
-6,188
-12,418
-19,620
217
490
707
647
-1,833
-1,186
0
-1,296
-1,296
-2,210
-888
-14
Financing Activities
Net Cash received/(used)
Net repayments of borrowings
Other financing cash receipts/(payments)
Net cash from (used by) Financing Activities
Net increase / (decrease) in cash held
* As published in the 2006-07 Budget.
(a) Negative movement due to reclassifcation of receipts by a number of agencies.
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
7
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
INCOME STATEMENT BY FUNCTION
Note
Income by Source
Taxation
Non-taxation
Gains
Income
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
ACTUAL
ACTUAL ESTIMATE
2005-2006
2005-2006
2005-2006
May Year to Date FULL YEAR
May
$m
$m
$m
16,846
1,162
1
18,009
189,588
15,784
1,307
206,679
207,533
17,092
1,161
225,786
869
1,530
254
-634
3,879
7,761
290
246
338
-117
12,624
12,499
2,462
16,996
34,314
78,642
2,061
2,312
3,616
1,699
14,561
15,209
2,807
16,228
37,623
86,268
2,322
2,695
4,018
2,415
212
400
577
1,509
2,316
5,171
1,851
3,102
5,174
451
452
5,037
4,975
5,475
5,583
470
38
0
4
17,019
3,595
166
0
38
190,033
3,655
359
33
8
209,388
991
16,646
16,397
This table is prepared on an AEIFRS basis.
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
8
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
RECONCILIATION OF THE OPERATING RESULT TO FISCAL BALANCE
ACTUAL
ACTUAL ESTIMATE
2005-2006
2005-2006
2005-2006
May Year to Date FULL YEAR*
May
$m
$m
$m
16,646
991
16,397
0
164
258
0
1
184
-107
2,444
3,085
-221
514
713
2
-78
-85
-1,080
1,313
-833
-71
24
122
175
1,969
2,513
767
3,290
3,321
-494
18,303
16,847
Operating result
less assets recognised for the first time
plus actuarial revaluations
plus writedown of assets/bad and doubtful debts
less mutually agreed writedowns
plus net foreign exchange losses
plus other economic revaluations (a)(b)
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)
1,037
1
-13
-66
5,442
16
101
315
6,169
12
138
148
1
767
162
-523
220
3,290
1,910
17,850
224
3,321
2,041
15,966
* Data in this table are consistent with that published in the 2006-07 Budget.
(a) Net repurchase premia (accruals basis), net losses/gains on swap transactions, cost of asset sales and International
Development Association/Asian Development Fund payments.
(b) Includes the change in expense recognition for education grants, see page 1 for more details.
AUSTRALIAN GOVERNMENT GENERAL GOVERNMENT SECTOR –
DERIVATION OF UNDERLYING AND HEADLINE BALANCE
ACTUAL
ACTUAL
2005-2006
2005-2006
May Year to Date
May
$m
$m
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
Less: Finance leases and similar arrangements
GFS cash surplus/deficit
Less: Future Fund Earnings
Underlying Cash Balance
Plus: Net Advances
Proceeds from asset sales program
Net advance receipts/(payments) (a)
Plus: Future Fund Earnings
Equals Headline Cash Balance
ESTIMATE
2005-2006
FULL
YEAR*
$m
2,306
-20
23,329
-45
20,901
-38
1
1,011
1
1,275
0
220
5,449
16
18,039
0
224
6,188
12
14,888
83
1,275
0
0
-543
0
732
18,039
0
0
-275
0
17,764
14,805
0
0
-1,390
83
13,497
* Data in this table are consistent with that published in the 2006-07 Budget.
(a) 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.
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
9
NOTES:
The accounting policies in this part are generally consistent with the requirements of AEIFRS. While the
scope for financial reporting recommended by AEIFRS and AAS 31 is the whole of government (that is, the
Australian Government public sector), the Financial Management and Accountability Act 1997 requires
monthly financial statements to be consistent with the budget estimates. Accordingly and pursuant to 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 AEIFRS basis, unless otherwise indicated.
NOTE 1: INCOME TAX
ACTUAL
ACTUAL
2005-2006
2005-2006
May Year to Date
May
$m
$m
INDIVIDUALS AND OTHER WITHHOLDING TAX
Gross income tax withholding
Gross other individuals
Less refunds
Total individuals and other withholding tax
OTHER SOURCES
Companies
Superannuation funds (a)
Petroleum Resource Rent Tax (b)
Total income tax from other sources
Total income tax
Fringe Benefits tax
ESTIMATE
2005-2006
FULL
YEAR*
$m
8,721
3,748
810
11,659
95,179
24,299
14,659
104,819
103,830
26,410
15,350
114,890
2,142
327
-6
2,462
-
45,420
6,298
1,908
53,626
50,480
6,420
1,970
58,870
14,121
345
158,445
173,760
3,417
3,300
ACTUAL
ACTUAL
2005-2006
2005-2006
May Year to Date
May
$m
$m
ESTIMATE
2005-2006
FULL
YEAR*
$m
* As published in the 2006-07 Budget.
(a) Includes superannuation contributions surcharge.
(b) Negative collections indicate refunds exceed collections.
NOTE 2: INDIRECT TAX
Excise duty
Customs duty
Other indirect tax
Total indirect tax revenue
1,677
431
71
2,178
20,088
4,537
984
25,610
21,900
5,171
1,160
28,231
* As published in the 2006-07 Budget.
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
10
NOTE 3: GOODS AND SERVICES TAX
In regard to GST revenue, AAS 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 recognised in these statements.
ACTUAL
ACTUAL
2005-2006
2005-2006
May Year to Date
May
$m
$m
GST Revenue (a)
(collected on behalf of the States)
2,791
ESTIMATE
2005-2006
FULL
YEAR*
$m
36,589
37,860
* As published in the 2006-07 Budget.
(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 AAS results in fewer education expenses being
reported until the signing of the Ministerial determination, which normally occurs between December and
March 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 attributable to the Education function for the year to date.
ACTUAL
2005-2006
Year to Date
May
$m
Opening grants payable for DEST
7,145
less closing grants payable for DEST
8,532
plus grant expenses for DEST
15,416
Cash payments for grants attributable to the Education function
14,029
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)
(2) 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.
(3) 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/content/borrowing/commonwealth.asp?NavID=32. In accordance with the IMF SDDS, 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 Advance Release Calender http://dsbb.imf.org.
3 August 2006
Contact: Office of the Minister for Finance and Administration (02) 6277 7400
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