EX-99 3 budget.htm EXHIBIT E budget.htm
 
EXHIBIT E

 
FINAL BUDGET OUTCOME
 
2009-10
 

 

 
 

 
CIRCULATED BY
 
THE HONOURABLE WAYNE SWAN MP
DEPUTY PRIME MINISTER AND TREASURER
OF THE COMMONWEALTH OF AUSTRALIA
 
AND
 
SENATOR THE HONOURABLE PENNY WONG
MINISTER FOR FINANCE AND DEREGULATION
OF THE COMMONWEALTH OF AUSTRALIA
 
FOR THE INFORMATION OF HONOURABLE MEMBERS
 
 
 
 

 

 
 
© Commonwealth of Australia 2010
 
ISBN 978-0-642-74629-0
 
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Foreword
 
The Final Budget Outcome 2009-10 has been prepared in a manner consistent with the Charter of Budget Honesty Act 1998 (the Charter). The Charter requires that, inter alia, the Government provide a final budget outcome report no later than three months after the end of the financial year. Consistent with these requirements, this report encompasses Australian Government general government sector fiscal outcomes for the 2009-10 financial year and is based on external reporting standards.
 
Part 1 provides the general government sector budget aggregates for 2009-10 together with an analysis of the 2009-10 final budget outcome. This includes summary analysis of revenue, expenses, net capital investment, cash flows and the balance sheet (net debt, net financial worth and net worth).
   
Part 2 presents the Australian Government financial statements for 2009-10 with the Australian Bureau of Statistics’ (ABS) accrual Government Finance Statistics (GFS) as the basis for accounting policy, except for where the Government has decided to depart because Australian Accounting Standards provide a better conceptual treatment for presenting information of relevance to users of public sector financial reports. This data covers the general government sector as well as the Australian Government public corporations sectors.
   
Part 3 provides details for 2009-10 on Australia’s Federal Relations, updated from that contained in the 2010-11 Budget Paper No. 3, Australia’s Federal Relations.
   
Appendix A contains expenses data on a functional and sub-functional basis. Historical fiscal data are presented in Appendix B.

 
 
v

 
 
 
 
 
 
 
 
 
 

 
 
 
Contents
 
Foreword
v
   
Part 1: Australian Government Budget Outcome
1
Overview
1
Revenue
2
Expenses
4
Net capital investment
5
Cash flows
6
Net debt, net financial worth and net worth
9
   
Part 2: Australian Government Financial Statements
11
Australian Government Financial Statements
12
Financial reporting standards and budget concepts
41
Australian Loan Council Allocation
55
   
Part 3: Australia’s Federal Relations
57
Overview of payments to the States
57
Payments for specific purposes
58
General revenue assistance
60
Payments to the States
67
   
Appendix A: Expenses by Function and Sub-function
85
   
Appendix B: Historical Fiscal Data
89
Data sources
89
Comparability of data across years
89
Revisions to previously published data
90
Deflating real spending growth by the consumer price index
91
 

 
vii

 
 

List of tables
 
 
Part 1
 
Table 1:
Australian Government general government sector budget aggregates
1
     
Table 2:
Australian Government general government sector revenue
3
     
Table 3:
Australian Government general government sector expenses by function
5
     
Table 4:
Australian Government general government sector net capital investment by function
6
     
Table 5:
Australian Government general government sector receipts
8
     
Table 6:
Summary of Australian Government general government sector cash flows
9
     
Table 7:
Australian Government general government sector net financial worth, net worth, net debt and net interest payments
10
     
Table 8:
Australian Government general government sector operating statement
12
 
Part 2
 
Table 9:
Australian Government general government sector balance sheet
13
     
Table 10:
Australian Government general government sector cash flow statement
14
     
Table 11:
Australian Government public non-financial corporations sector operating statement
16
     
Table 12:
Australian Government public non-financial corporations sector balance sheet
17
     
Table 13:
Australian Government public non-financial corporations sector cash flow statement
18
     
Table 14:
Australian Government total non-financial public sector operating statement
19
     
Table 15:
Australian Government total non-financial public sector balance sheet
20
     
Table 16:
Australian Government total non-financial public sector cash flow statement
21
     
Table 17:
Australian Government public financial corporations sector operating statement
22
     
Table 18:
Australian Government public financial corporations sector balance sheet
23
     
Table 19:
Australian Government public financial corporations sector cash flow statement
24
 
 
viii

 
 
 
Table 20:
Australian Government general government sector purchase of non-financial assets by function
25
     
Table 21:
Entities within the sectoral classifications
48
     
Table 22:
Major differences between AAS and ABS GFS
54
     
Table 23:
Australian Government Loan Council Allocation
56
 
Part 3
 
Table 24:
Commonwealth payments to the States, 2009-10
57
     
Table 25:
Payments for specific purposes to the States, 2009-10
59
     
Table 26:
Financial assistance grants to local government (cash basis), 2009-10
60
     
Table 27:
General revenue assistance, 2009-10
60
     
Table 28:
GST revenue and GST payable to the States, 2009-10
61
     
Table 29:
GST payable and GST payments to the States, 2009-10
62
     
Table 30:
Summary of the distribution of GST payments among the States
62
     
Table 31:
GST relativities, 2009-10
63
     
Table 32:
Distribution of the 2009-10 estimated GST revenue and balancing adjustment
63
     
Table 33:
Distribution of the 2008-09 GST balancing adjustment amount
64
     
Table 34:
GST administration, 2009-10
64
     
Table 35:
Guaranteed minimum amount, GST payments, budget balancing assistance and residual adjustment
65
     
Table 36:
Payments for specific purposes to support state health services, 2009-10
68
     
Table 37:
Payments for specific purposes to support state education services, 2009-10
71
     
Table 38:
Payments for specific purposes to support community services, 2009-10
73
     
Table 39:
Payments for specific purposes to support housing services, 2009-10
74
     
Table 40:
Payments for specific purposes to support state infrastructure services, 2009-10
75
     
Table 41:
Payments for specific purposes to support state environmental services, 2009-10
77
     
Table 42:
Contingent payments to the States, 2009-10
78
     
Table 43:
Payments to support other state services, 2009-10
79
     
Table 44:
General revenue assistance payments to the States and Territories, 2009-10
80
 
 
ix

 
 
 
Table 45:
Other financial flows — estimated advances, repayment of advances and interest payments, 2009-10
81
     
Table 46:
Total payments to the States by GFS function, 2009-10
83
 
Appendix A
 
Table A1:
Australian Government general government sector expenses by function and sub-function
86
 
Appendix B
 
Table B1:
Australian Government general government sector receipts, payments and underlying cash balance
92
     
Table B2:
Australian Government general government sector taxation receipts, non-taxation receipts and total receipts
93
     
Table B3:
Australian Government general government sector net debt and net interest payments
94
     
Table B4:
Australian Government general government sector revenue, expenses, net capital investment and fiscal balance
95
     
Table B5:
Australian Government general government sector net worth and net financial worth
96
     
Table B6:
Australian Government general government sector taxation revenue, non-taxation revenue and total revenue
96
     
Table B7:
Australian Government cash receipts, payments and cash surplus by institutional sector
97
     
Table B8:
Australian Government revenue, expenses and fiscal balance by institutional sector
98
 

 
x

 
 
Notes
 
(a)
The following definitions are used in this paper:
   
 
‘real’ means adjusted for the effect of inflation;
     
 
real growth in expenses is measured by the Consumer Price Index (CPI); and
     
 
one billion is equal to one thousand million.
     
(b)
Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components are due to rounding:
   
 
estimates under $100,000 are rounded to the nearest thousand;
     
 
estimates $100,000 and over are generally rounded to the nearest tenth of a million;
     
 
estimates midway between rounding points are rounded up; and
     
 
the percentage changes in statistical tables are calculated using unrounded data.
     
(c)
For the budget balance, a negative sign indicates a deficit while no sign indicates a surplus.
   
(d)
The following notations are used:
 
 
NEC/nec
not elsewhere classified
     
 
AEST
Australian Eastern Standard Time
     
 
-
not available
     
 
..
not zero, but rounded to zero
     
 
na
not applicable (unless otherwise specified)
     
 
nfp
not for publication
     
 
$m
$ million
     
 
$b
$ billion
 
 
xi

 

 
(e)
References to the ‘States’ or ‘each State’ include the Territories. The Australian Capital Territory and the Northern Territory are referred to as ‘the Territories’. The following abbreviations are used for the names of the States, where appropriate:

 
 
NSW
New South Wales
     
 
VIC/Vic
Victoria
     
 
QLD/Qld
Queensland
     
 
WA
Western Australia
     
 
SA
South Australia
     
 
TAS/Tas
Tasmania
     
 
ACT
Australian Capital Territory
     
 
NT
Northern Territory

 
 
xii

 

 
 
Part 1: Australian Government Budget Outcome
 
 
Overview
 
In 2009-10, the Australian Government general government sector recorded an underlying cash deficit of $54.8 billion (4.2 per cent of gross domestic product (GDP)). The fiscal balance was in deficit by $52.9 billion (4.1 per cent of GDP).
 
These outcomes show the full impact of the global financial crisis on the Australian Government’s budget in 2009-10. Unlike many countries, Australia avoided recession in 2009, but the economy still slowed markedly and commodity prices and business profits fell sharply.
 
This meant that tax receipts in 2009-10 came in almost $50 billion below the level that was forecast before the crisis (in the 2008-09 Budget), a loss of almost one-sixth of forecast tax receipts.
 
Economic growth in Australia is now strengthening and tax receipts are recovering. Combined with continued spending restraint from the Government’s fiscal strategy, this is expected to see the budget return to surplus in 2012-13, well ahead of any major advanced economy.
 
In cash terms, the deficit was $2.3 billion lower than estimated at the time of the 2010-11 Budget, with total cash receipts (excluding Future Fund earnings) $249 million lower than expected and total cash payments $2.6 billion lower than expected.
 
Table 1: Australian Government general government sector budget aggregates
   
2008-09
Outcome
   
2009-10
Estimate at
2010-11
Budget
   
2009-10
Outcome
 
Revenue ($b)
    298.9       294.2       292.8  
Per cent of GDP
    23.8       22.7       22.5  
Expenses ($b)
    324.6       343.1       339.2  
Per cent of GDP
    25.9       26.5       26.1  
Net operating balance ($b)
    -25.6       -48.9       -46.5  
Net capital investment ($b)
    4.1       5.8       6.4  
Fiscal balance ($b)
    -29.7       -54.8       -52.9  
Per cent of GDP
    -2.4       -4.2       -4.1  
Underlying cash balance ($b)(a)
    -27.1       -57.1       -54.8  
Per cent of GDP
    -2.2       -4.4       -4.2  
Memorandum item:
                       
Headline cash balance ($b)
    -31.3       -59.2       -56.5  
(a)
Excludes Future Fund earnings.
 
 
1

 
Part 1: Australian Government Budget Outcome

 
At the end of 2009-10, the level of Australian Government net debt was $42.3 billion (3.3 per cent of GDP) which was $445 million higher than expected at the time of the 2010-11 Budget. Australian Government general government sector net financial worth decreased from -$73.8 billion in 2008-09 to -$146.1 billion at the end of 2009-10. Net worth decreased from $19.7 billion in 2008-09 to -$44.8 billion at the end of 2009-10.
 
 
Revenue
 
Total accrual revenue was $292.8 billion in 2009-10, which is $1.4 billion below the estimate in the 2010-11 Budget. This largely reflects lower than expected taxation revenue of $1.5 billion. Non-taxation revenues were broadly in line with estimates.
 
The downward revision in taxation revenue is largely due to:
 
lower than forecast total individuals’ and other withholding tax of $530 million (0.4 per cent). Revenue from other individuals’ income tax was $1.2 billion (4.3 per cent) lower than estimated, but this was partly offset by weaker individuals’ refunds of $0.7 billion (2.9 per cent). The lower than estimated other individuals’ income tax reflects weaker than anticipated capital gains outcomes. The weaker individuals’ refunds reflect lower than expected lodgements of individual tax returns in the June quarter 2010;
   
lower than forecast company taxation revenue of $457 million (0.9 per cent), partly reflecting slightly softer than expected profits and higher provision for tax refund liabilities;
   
lower than expected excise and customs duty taxation revenue of $425 million (1.4 per cent), largely owing to reduced consumption of tobacco and fuel products;
   
lower than forecast GST revenue of $277 million (0.6 per cent) mainly owing to unanticipated softness in consumption related to GST; and
   
lower than estimated Petroleum Resource Rent Tax revenue of $183 million (12.3 per cent) reflecting lower than assumed oil prices.
 
The downwards variations were partially offset by higher than expected superannuation taxation revenue of $192 million (3.2 per cent), owing to stronger than anticipated instalment rates applying to payments for the March quarter.
 
 
2

 
Part 1: Australian Government Budget Outcome
 
Table 2: Australian Government general government sector revenue
 
 
2009-10
Estimate at
2010-11
Budget
$m
   
2009-10
Outcome
$m
   
Change on
2010-11
Budget
$m
 
Individuals and other withholding taxes
                 
Gross income tax withholding
    119,970       119,922       -48  
Gross other individuals
    28,500       27,287       -1,213  
less: Refunds
    25,120       24,390       -730  
Total individuals and other withholding taxation
    123,350       122,820       -530  
Fringe benefits tax
    3,670       3,523       -147  
Company tax
    53,650       53,193       -457  
Superannuation funds
    5,990       6,182       192  
Petroleum resource rent tax
    1,480       1,297       -183  
Income taxation revenue
    188,140       187,016       -1,124  
Sales taxes
                       
Goods and services tax
    46,830       46,553       -277  
Wine equalisation tax
    730       748       18  
Luxury car tax
    490       499       9  
Total sales taxes
    48,050       47,800       -250  
Excise duty
                       
Petrol
    6,390       6,339       -51  
Diesel
    6,840       6,886       46  
Beer
    2,030       2,006       -24  
Tobacco
    5,920       5,652       -268  
Other excisable products
    3,710       3,665       -45  
Of which: Other excisable beverages(a)
    860       880       20  
Total excise duty revenue
    24,890       24,547       -343  
Customs duty
                       
Textiles, clothing and footwear
    830       767       -63  
Passenger motor vehicles
    1,150       1,226       76  
Excise-like goods
    2,960       2,826       -134  
Other imports
    1,130       1,248       118  
less: Refunds and drawbacks
    240       319       79  
Total customs duty revenue
    5,830       5,748       -82  
Other indirect taxation
                       
Agricultural levies
    371       395       24  
Other taxes
    2,248       2,494       247  
Total other indirect taxation revenue
    2,619       2,889       270  
Indirect taxation revenue
    81,389       80,984       -405  
Taxation revenue
    269,529       268,000       -1,529  
Sales of goods and services
    7,699       7,599       -100  
Interest
    4,569       4,430       -139  
Dividends
    7,426       7,658       232  
Other non-taxation revenue
    4,993       5,081       88  
Non-taxation revenue(b)
    24,686       24,767       81  
Total revenue(b)
    294,215       292,767       -1,448  
Memorandum:
                       
Medicare levy revenue
    8,200       8,013       -187  
(a)
Other excisable beverages are those not exceeding 10 per cent by volume of alcohol.
(b)
Includes Future Fund earnings.

 
 
3

 
Part 1: Australian Government Budget Outcome
 
Expenses
 
Total accrual expenses were $339.2 billion in 2009-10, $3.9 billion lower than estimated in the 2010-11 Budget. The downwards revision in expenses is largely due to:
 
lower than forecast expenses of $437 million in general revenue assistance to the States and Territories, primarily reflecting lower than expected GST revenue collected;
   
a decrease in expenses of $272 million in the Higher Education Loan Program arising from an increase in the expected repayment profile, as determined by the Australian Government Actuary, leading to a reduction in deferral costs;
   
lower than forecast expenses of $265 million as a result of fewer than expected natural disaster relief claims for reimbursement from the States and Territories;
   
lower than expected expenses of $254 million in the Medicare Services Program, due to a smaller than estimated number of Medicare Benefits Schedule eligible services delivered in 2009-10;
   
lower than estimated expenses of $226 million in the Improving Australia’s Energy Efficiency Program, mainly due to lower than forecast expenditure under the home insulation safety programs (following the termination of the Home Insulation Program), and under the now discontinued Solar Homes and Communities Plan and Green Loans program;
   
a reduction in expenses of $222 million in the Water Reform Program including as a result of lengthy due diligence processes as part of negotiating multi-party funding agreements for program elements under the Sustainable Rural Water Use and Infrastructure component;
   
lower than expected public debt interest expenses of $211 million reflecting revisions to the issuance pattern of Treasury Notes, the timing of Treasury Indexed Bonds issuance and changes in the composition of that issuance;
   
a decrease in expenses of $190 million in the Resources Related Initiatives and Management Program due to a lower than anticipated take up rate in Ethanol Production Grants, and as a result of negotiations associated with funding agreements for Carbon Capture and Storage Flagships and the National Low Emission Coal Initiative;
   
lower than expected expenses of $166 million, reflecting the finalisation of agreements with the States and Territories to the Improving Public Hospitals Services National Partnership; and

 
 
4

 
Part 1: Australian Government Budget Outcome

 
a reduction in expenses of $138 million reflecting the finalisation of implementation arrangements for some projects funded from the Health and Hospitals Fund.
 
Estimated expenses for 2009-10, published in the 2010-11 Budget, also included a provision for underspends in the contingency reserve.
 
Table 3: Australian Government general government sector expenses by function
   
2009-10
Estimate at
2010-11
Budget
$m
   
2009-10
Outcome
$m
 
General public services
           
Legislative and executive affairs
    882       840  
Financial and fiscal affairs
    6,581       6,845  
Foreign affairs and economic aid
    4,848       4,869  
General research
    2,535       2,358  
General services
    730       818  
Government superannuation benefits
    3,288       3,472  
Defence
    20,620       20,150  
Public order and safety
    3,936       3,593  
Education
    34,895       34,889  
Health
    52,786       51,426  
Social security and welfare
    109,675       109,197  
Housing and community amenities
    9,270       9,029  
Recreation and culture
    3,208       3,280  
Fuel and energy
    8,971       8,473  
Agriculture, forestry and fishing
    3,330       2,816  
Mining, manufacturing and construction
    1,690       1,630  
Transport and communication
    6,837       6,641  
Other economic affairs
               
Tourism and area promotion
    172       162  
Total labour and employment affairs
    4,706       4,694  
Immigration
    1,632       1,571  
Other economic affairs nec
    2,286       2,200  
Other purposes
               
Public debt interest
    6,514       6,303  
Nominal superannuation interest
    6,695       6,687  
General purpose inter-governmental transactions
    47,632       47,157  
Natural disaster relief
    402       136  
Contingency reserve
    -999       0  
Total expenses
    343,122       339,239  
 
Net capital investment
 
Total net capital investment for 2009-10 was $6.4 billion, which is $586 million higher than estimated in the 2010-11 Budget. This increase predominantly relates to the acquisition by Defence of additional military equipment and the construction of Defence support facilities.
 
 
5

 
Part 1: Australian Government Budget Outcome
 
Table 4: Australian Government general government sector net capital investment by function
   
2009-10
Estimate at
2010-11
Budget
$m
   
2009-10
Outcome
$m
 
General public services
    206       590  
Defence
    3,361       4,136  
Public order and safety
    233       103  
Education
    41       26  
Health
    332       249  
Social security and welfare
    119       60  
Housing and community amenities
    266       219  
Recreation and culture
    249       110  
Fuel and energy
    1       2  
Agriculture, forestry and fishing
    814       748  
Mining, manufacturing and construction
    2       0  
Transport and communication
    33       35  
Other economic affairs
    202       154  
Other purposes
    -13       0  
Total net capital investment
    5,847       6,433  
 
Cash flows
 
The 2009-10 underlying cash deficit was $54.8 billion, $2.3 billion lower than estimated at the 2010-11 Budget. This was the result of lower cash receipts (excluding Future Fund earnings) of $249 million and lower cash payments of $2.6 billion.1
 
Total cash receipts (including Future Fund earnings) were $284.7 billion in 2009-10, around $538 million lower than estimated in the 2010-11 Budget. This mainly reflects lower than expected non-taxation receipts of $552 million.
 
Total taxation receipts were $14 million higher than the estimate in the 2010-11 Budget while the total accrual taxation revenue was $1.5 billion lower than the estimate in the 2010-11 Budget. The difference between the cash and accrual results was primarily due to company tax receipts increasing by $719 million relative to the budget estimate, compared with a $457 million decrease for its accrual equivalent. This difference is due to earlier than expected payments of tax liabilities relating to previous income years.
 
The difference between the cash and accrual results for non-taxation revenue of $633 million primarily reflects dividends earned but not yet received and an increase in receivables across entities.
 
__________________
 
1
Cash payments are equal to payments for operating activities, purchases of non-financial assets and the net acquisition of assets under finance leases.
 
 
6

 
Part 1: Australian Government Budget Outcome
 
Total cash payments (including finance leases) were $336.9 billion in 2009-10, $2.6 billion lower than estimated at the 2010-11 Budget.
 
The difference between the lower than expected cash payments of $2.6 billion and the lower than expected net outcome for expenses and net capital investment of $3.3 billion is predominantly due to GST cash payments advanced to the States and Territories in 2009-10 which will not be expensed until 2010-11.
 
 
7

 
Part 1: Australian Government Budget Outcome
 
Table 5: Australian Government general government sector receipts
   
2009-10
Estimate at
2010-11
Budget
$m
   
2009-10
Outcome
$m
   
Change on
2010-11
Budget
$m
 
Individuals and other withholding taxes
                 
Gross income tax withholding
    118,580       118,532       -48  
Gross other individuals
    26,640       25,928       -712  
less: Refunds
    25,120       24,390       -730  
Total individuals and other withholding taxation
    120,100       120,070       -30  
Fringe benefits tax
    3,680       3,504       -176  
Company tax
    51,490       52,209       719  
Superannuation funds
    5,910       6,099       189  
Petroleum resource rent tax
    1,250       1,251       1  
Income taxation receipts
    182,430       183,132       702  
Sales taxes
                       
Goods and services tax
    44,597       43,967       -629  
Wine equalisation tax
    720       733       13  
Luxury car tax
    490       472       -18  
Total sales taxes
    45,807       45,173       -634  
Excise duty
                       
Petrol
    6,330       6,301       -29  
Diesel
    6,860       6,844       -16  
Beer
    2,030       1,994       -36  
Tobacco
    5,920       5,653       -267  
Other excisable products
    3,720       3,647       -73  
Of which: Other excisable beverages(a)
    860       875       15  
Total excise duty receipts
    24,860       24,439       -421  
Customs duty
                       
Textiles, clothing and footwear
    830       763       -67  
Passenger motor vehicles
    820       917       97  
Excise-like goods
    2,960       2,826       -134  
Other imports
    1,120       1,246       126  
less: Refunds and drawbacks                                                                                
    380       411       31  
Total customs duty receipts                                                                                
    5,350       5,341       -9  
Other indirect taxation
                       
Agricultural levies                                                                                
    371       395       24  
Other taxes                                                                                
    2,141       2,494       352  
Total other indirect taxation receipts                                                                                
    2,512       2,888       376  
Indirect taxation receipts                                                                                
    78,529       77,841       -688  
Taxation receipts                                                                                
    260,959       260,973       14  
Sales of goods and services                                                                                
    7,657       7,706       48  
Interest received                                                                               
     4,507       4,025       -482  
Dividends                                                                             
     6,927       6,999       72  
Other non-taxation receipts                                                                            
     5,151       4,960       -191  
Non-taxation receipts(b)                                                                                
    24,242       23,689       -552  
Total receipts(b)                                                                                
    285,201       284,662       -538  
Memorandum:
                       
Medicare levy receipts                                                                               
     8,200       8,013       -187  
(a)
Other excisable beverages are those not exceeding 10 per cent by volume of alcohol.
(b)
Includes Future Fund earnings.


 
8

 
Part 1: Australian Government Budget Outcome
 
Table 6: Summary of Australian Government general government sector cash flows
   
2009-10
Estimate at
2010-11
Budget
$b
   
2009-10
Outcome
$b
 
Cash receipts
           
Operating cash receipts excluding Future Fund earnings
    282.1       281.9  
Future Fund earnings
    2.8       2.5  
Total operating receipts
    284.9       284.4  
Capital cash receipts(a)
    0.3       0.2  
Total cash receipts
    285.2       284.7  
Cash payments
               
Operating cash payments
    328.7       325.7  
Capital cash payments(b)
    10.8       11.1  
Total cash payments
    339.5       336.9  
Finance leases and similar arrangements(c)
    0.0       0.0  
GFS cash surplus(+)/deficit(-)
    -54.3       -52.2  
Per cent of GDP
    -4.2       -4.0  
less Future Fund earnings
    2.8       2.5  
Underlying cash balance(d)
    -57.1       -54.8  
Per cent of GDP
    -4.4       -4.2  
Memorandum items:
               
Net cash flows from investments in financial assets for policy purposes
    -4.9       -4.3  
plus Future Fund earnings
    2.8       2.5  
Headline cash balance
    -59.2       -56.5  
(a)
Equivalent to cash receipts from the sale of non-financial assets in the cash flow statement.
(b)
Equivalent to cash payments for purchases of non-financial assets in the cash flow statement.
(c)
The acquisition of assets under finance leases decreases the underlying cash balance. The disposal of assets previously held under finance leases increases the underlying cash balance.
(d)
Excludes Future Fund earnings.
 
Net debt, net financial worth and net worth
 
At the end of 2009-10, the level of Australian Government net debt was $42.3 billion (3.3 per cent of GDP) which was $445 million higher than estimated at the time of the 2010-11 Budget. This reflects the higher than expected market value of government securities as a result of lower interest rates, which is partially offset by the higher than expected value of investments and advances held by the Government.
 
Net financial worth was -$146.1 billion at the end of 2009-10, which was $27.6 billion lower than estimated at the 2010-11 Budget. The largest changes since the Budget are an increase in the Government’s superannuation liability of $18.1 billion owing to the lower than estimated discount rate at 30 June, the lower than expected value of equity investments in other public sector entities and the higher than expected market value
 
 
9

 
Part 1: Australian Government Budget Outcome
 
of government securities on issue. These movements were partly offset by the higher than expected value of investments and advances held by the Government.
 
Net worth was -$44.8 billion at the end of 2009-10, which was $24.7 billion lower than estimated at the 2010-11 Budget. Partly offsetting the decrease in net financial worth since Budget outlined above, was the higher than expected value of the Government’s buildings and plant, equipment and infrastructure.
 
Table 7: Australian Government general government sector net financial worth, net worth, net debt and net interest payments
   
2009-10
Estimate at
2010-11
Budget
$b
   
2009-10
Outcome
$b
 
Financial assets
    219.2       218.5  
Non-financial assets
    98.4       101.2  
Total assets
    317.6       319.8  
Total liabilities
    337.7       364.6  
Net worth
    -20.1       -44.8  
Net financial worth(a)
    -118.5       -146.1  
Per cent of GDP
    -9.2       -11.2  
Net debt(b)
    41.8       42.3  
Per cent of GDP
    3.2       3.3  
Net interest payments
    2.0       2.4  
Per cent of GDP
    0.2       0.2  
(a)
Net financial worth equals total financial assets minus total liabilities. That is, it excludes non-financial assets.
(b)
Net debt equals the sum of deposits held, advances received, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.
 
 
10

 
 
 
Part 2: Australian Government Financial Statements
 
The financial statements consist of an operating statement, including other economic flows, a balance sheet, and a cash flow statement for the Australian Government general government sector (GGS), the public non financial corporations sector (PNFC), the total non financial public sector (NFPS) and the public financial corporations sector (PFC). This statement also contains notes showing disaggregated information for the GGS.
 
The Charter of Budget Honesty Act 1998 (the Charter) requires the final budget outcome be based on external reporting standards and for departures from these standards to be disclosed.
 
The Government has produced a single set of financial statements that comply with both Australian Bureau of Statistics’ (ABS) accrual Government Finance Statistics (GFS) and Australian Accounting Standards (AAS), meeting the requirement of the Charter, with departures disclosed. The financial statements for the Final Budget Outcome 2009-10 have been prepared on a basis consistent with the 2010-11 Budget. This enables comparison of the 2009-10 revised estimates published at the 2010-11 Budget and the outcome. The statements reflect the Government’s accounting policy that ABS GFS remains the basis of budget accounting policy, except where the Government applies AAS because it provides a better conceptual basis for presenting information of relevance to users of public sector financial reports.
 
The Australian, State and Territory governments have an agreed framework — the Accrual Uniform Presentation Framework (UPF) — for the presentation of government financial information on a basis broadly consistent with AASB 1049 Whole of Government and General Government Sector Financial Reporting (AASB 1049). The financial statements are consistent with the requirements of the UPF.
 
In accordance with the UPF requirements, this statement also contains an update of the Australian Government’s Loan Council Allocation.
 
 
11

 
Part 2: Australian Government Financial Statements
 
Australian Government Financial Statements
 
 
Table 8: Australian Government general government sector operating statement
   
Note
   
2009-10
Estimate at
2010-11
Budget
$m
   
Month of
June 2010(e)
$m
   
2009-10
Outcome
$m
 
Revenue
                       
Taxation revenue
    3       269,529       17,956       268,000  
Sales of goods and services
    4       7,699       553       7,599  
Interest income
    5       4,569       359       4,430  
Dividend income
    5       7,426       159       7,658  
Other
    6       4,993       415       5,081  
Total revenue
            294,215       19,441       292,767  
Expenses
                               
Gross operating expenses
                               
Wages and salaries(a)
    7       17,691       2,180       17,108  
Superannuation
    7       3,586       696       3,859  
Depreciation and amortisation
    8       5,529       651       5,641  
Supply of goods and services
    9       63,119       6,855       61,917  
Other operating expenses(a)
    7       4,353       155       4,471  
Total gross operating expenses
            94,279       10,537       92,997  
Superannuation interest expense
    7       6,695       588       6,687  
Interest expenses
    10       7,985       755       7,607  
Current transfers
                               
Current grants
    11       102,152       12,994       101,169  
Subsidy expenses
            8,432       694       8,413  
Personal benefits
    12       99,235       7,340       98,490  
Total current transfers
            209,820       21,028       208,072  
Capital transfers
    11                          
Mutually agreed write-downs
            2,287       54       2,127  
Other capital grants
            22,055       2,532       21,749  
Total capital transfers
            24,342       2,586       23,876  
Total expenses
            343,122       35,494       339,239  
Net operating balance
            -48,907       -16,054       -46,472  
Other economic flows
                               
Gain/loss on equity and on sale of assets(b)
            5,790       -4,143       -904  
Net write-downs of assets (including bad and doubtful debts)
            -5,190       -3,483       -7,986  
Assets recognised for the first time
            603       179       717  
Actuarial revaluations
            1,253       -11,785       -11,785  
Net foreign exchange gains
            482       1,267       1,902  
Net swap interest received
            41       0       41  
Market valuation of debt
            633       -2,154       -2,773  
Other economic revaluations(c)
            37       2,014       2,690  
Total other economic flows
            3,649       -18,106       -18,097  
Comprehensive result - Total change in net worth
    13       -45,258       -34,159       -64,569  
Net operating balance
less Net acquisition of non-financial assets
            -48,907       -16,054       -46,472  
Purchases of non-financial assets
            10,838       2,545       11,610  
less Sales of non-financial assets
            269       103       245  
less Depreciation
            5,529       651       5,641  
plus Change in inventories
            678       82       661  
plus Other movements in non-financial assets
            129       -168       48  
Total net acquisition of non-financial assets
            5,847       1,705       6,433  
Fiscal balance (Net lending/borrowing)(d)
            -54,753       -17,759       -52,906  
(a)
Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b)
Reflects changes in the market valuation of investments and any revaluations at the point of disposal or sale.
(c)
Largely reflects other revaluation of assets and liabilities.
(d)
The term fiscal balance is not used by the ABS.
(e)
The month of June is derived by deducting May year to date published data from the annual outcome. Statistically, June movements in some series relate to earlier published months that are not reissued, this can result in negative movements.


 
12

 
Part 2: Australian Government Financial Statements
 
Table 9: Australian Government general government sector balance sheet
   
Note
   
2009-10
Estimate at
2010-11
Budget
$m
   
2009-10
Outcome
$m
 
Assets
                 
Financial assets
                 
Cash and deposits
    20(a)       2,027       1,865  
Advances paid
    14       23,422       24,550  
Investments, loans and placements
    15       99,288       102,910  
Other receivables
    14       39,024       37,149  
Equity investments
                       
Investments in other public sector entities
            26,352       22,757  
Equity accounted investments
            262       274  
Investments - shares
            28,821       29,043  
Total financial assets
            219,197       218,548  
Non-financial assets
    16                  
Land
            8,349       8,562  
Buildings
            20,667       21,437  
Plant, equipment and infrastructure
            46,702       47,697  
Inventories
            6,613       6,529  
Intangibles
            4,123       4,032  
Investment property
            182       504  
Biological assets
            32       119  
Heritage and cultural assets
            9,091       9,367  
Assets held for sale
            158       151  
Other non-financial assets
            2,456       2,832  
Total non-financial assets
            98,372       101,230  
Total assets
            317,569       319,778  
Liabilities
                       
Interest bearing liabilities
                       
Deposits held
            230       232  
Government securities
            154,080       157,353  
Loans
    17       11,430       13,217  
Other borrowing
            835       805  
Total interest bearing liabilities
            166,575       171,607  
Provisions and payables
                       
Superannuation liability
    18       122,874       141,007  
Other employee liabilities
    18       9,874       10,434  
Suppliers payable
    19       4,363       5,772  
Personal benefits provisions and payable
    19       12,651       12,832  
Subsidies provisions and payable
    19       1,897       1,792  
Grants provisions and payable
    19       7,062       7,920  
Other provisions and payables
    19       12,410       13,262  
Total provisions and payables
            171,131       193,019  
Total liabilities
            337,706       364,627  
Net worth(a)
            -20,137       -44,848  
Net financial worth(b)
            -118,509       -146,079  
Net financial liabilities(c)
            144,861       168,836  
Net debt(d)
            41,838       42,283  
(a)
Net worth is calculated as total assets minus total liabilities.
(b)
Net financial worth equals total financial assets minus total liabilities.
(c)
Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(d)
Net debt equals the sum of deposits held, government securities, loans and other borrowing, minus the sum of cash and deposits, advances paid, and investments, loans and placements.


 
13

 
Part 2: Australian Government Financial Statements
 
Table 10: Australian Government general government sector cash flow statement(a)
   
2009-10
Estimate at
2010-11
Budget
$m
   
Month of
June 2010(d)
$m
   
2009-10
Outcome
$m
 
Cash receipts from operating activities
                 
Taxes received
    260,959       19,648       260,973  
Receipts from sales of goods and services
    7,657       370       7,706  
Interest receipts
    4,507       817       4,025  
Dividends and income tax equivalents
    6,927       148       6,999  
Other receipts
    4,882       549       4,715  
Total operating receipts
    284,932       21,532       284,417  
Cash payments for operating activities
                       
Payments for employees
    -23,024       -2,029       -22,415  
Payments for goods and services
    -62,931       -5,730       -61,742  
Grants and subsidies paid
    -131,537       -15,266       -130,553  
Interest paid
    -6,493       -653       -6,411  
Personal benefit payments
    -100,620       -7,537       -100,198  
Other payments
    -4,047       -347       -4,412  
Total operating payments
    -328,652       -31,562       -325,731  
Net cash flows from operating activities
    -43,720       -10,030       -41,314  
Cash flows from investments in non-financial assets
                       
Sales of non-financial assets
    269       103       245  
Purchases of non-financial assets
    -10,826       -2,332       -11,144  
Net cash flows from investments in non-financial assets
    -10,557       -2,229       -10,899  
Net cash flows from investments in financial assets for policy purposes
    -4,916       -723       -4,278  
Cash flows from investments in financial assets for liquidity purposes
                       
Increase in investments
    7,740       8,948       5,152  
Net cash flows from investments in financial assets for liquidity purposes
    7,740       8,948       5,152  
Cash receipts from financing activities
                       
Borrowing
    46,909       4,487       47,385  
Other financing
    4,995       32       4,977  
Total cash receipts from financing activities
    51,904       4,519       52,362  
Cash payments for financing activities
                       
Other financing
    -77       -258       -810  
Total cash payments for financing activities
    -77       -258       -810  
Net cash flows from financing activities
    51,827       4,261       51,552  
Net increase/(decrease) in cash held
    374       225       212  

 
14

 
Part 2: Australian Government Financial Statements
 
Table 10: Australian Government general government sector cash flow statement (continued)(a)
   
2009-10
Estimate at
2010-11
Budget
$m
   
Month of
June 2010(d)
$m
   
2009-10
Outcome
$m
 
Net cash flows from operating activities and investments in non-financial assets
                 
(Surplus(+)/deficit(-))
    -54,277       -12,260       -52,213  
Finance leases and similar arrangements(b)
    -1       -19       -25  
GFS cash surplus(+)/deficit(-)
    -54,278       -12,279       -52,238  
less Future Fund earnings
    2,802       131       2,512  
Equals underlying cash balance(c)     -57,079       -12,409       -54,750  
plus Net cash flows from investments in financial assets for policy purposes     -4,916       -723       -4,278  
plus Future Fund earnings
    2,802       131       2,512  
Equals headline cash balance
    -59,194       -13,002       -56,517  
(a)
A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b)
The acquisition of assets under finance leases decreases the underlying cash balance. The disposal of assets previously held under finance leases increases the underlying cash balance.
(c)
The term underlying cash balance is not used by the ABS.
(d)
The month of June is derived by deducting May year-to-date published data from the annual outcome. Statistically, June movements in some series relate to earlier published months that are not reissued, this can result in negative movements.


 
15

 
Part 2: Australian Government Financial Statements
 
Table 11: Australian Government public non-financial corporations sector operating statement
   
2009-10
Estimate at
2010-11
Budget
$m
   
2009-10
Outcome
$m
 
Revenue
           
Current grants and subsidies
    16       100  
Sales of goods and services
    6,971       7,047  
Interest income
    30       50  
Other
    17       91  
Total revenue
    7,035       7,288  
Expenses
               
Gross operating expenses
               
Wages and salaries(a)
    2,812       2,644  
Superannuation
    170       209  
Depreciation and amortisation
    392       388  
Supply of goods and services
    3,030       3,088  
Other operating expenses(a)
    399       473  
Total gross operating expenses
    6,803       6,802  
Interest expenses
    40       52  
Other property expenses
    209       216  
Current transfers
               
Tax expenses
    373       227  
Total current transfers
    373       227  
Total expenses
    7,426       7,297  
Net operating balance
    -391       -9  
Other economic flows
    797       725  
Comprehensive result - Total change in net worth
less Net acquisition of non-financial assets
    406       716  
Purchases of non-financial assets
    1,989       1,509  
less Sales of non-financial assets
    47       56  
less Depreciation
    393       390  
plus Change in inventories
    -13       -31  
plus Other movements in non-financial assets
    8       37  
Total net acquisition of non-financial assets
    1,545       1,071  
Fiscal balance (Net lending/borrowing)(b)
    -1,936       -1,079  
(a)
Consistent with ABS GFS classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b)
The term fiscal balance is not used by the ABS.

 
16

 
Part 2: Australian Government Financial Statements

 
Table 12: Australian Government public non-financial corporations sector balance sheet
   
2009-10
Estimate at
2010-11
Budget
$m
   
2009-10
Outcome
$m
 
Assets
           
Financial assets
           
Cash and deposits
    806       1,022  
Investments, loans and placements
    461       245  
Other receivables
    908       382  
Equity investments
    318       307  
Total financial assets
    2,493       1,956  
Non-financial assets
               
Land and fixed assets
    6,384       6,071  
Other non-financial assets(a)
    498       1,279  
Total non-financial assets
    6,881       7,351  
Total assets
    9,375       9,307  
Liabilities
               
Interest bearing liabilities
               
        Borrowing     1,218        928  
Total interest bearing liabilities
    1,218       928  
Provisions and payables
               
Other employee liabilities
    1,209       1,358  
Other provisions and payables(a)
    1,603       1,365  
Total provisions and payables
    2,812       2,723  
Total liabilities
    4,029       3,651  
Shares and other contributed capital
    5,346       5,656  
Net worth(b)
    5,346       5,656  
Net financial worth(c)
    -1,536       -1,695  
Net debt(d)
    -50       -339