Preface
Preface
I am pleased to present the Consolidated Financial Statements (CFS) for the Australian Government for the financial year ended 30 June 2013. The CFS presents the whole of government and general government sector (GGS) financial reports.
The CFS has been prepared in accordance with the regulations of the Financial Management and Accountability Act 1997 (FMA Act) and applicable Australian Accounting Standards (AAS), including the requirements of AASB 1049 Whole of Government and General Government Sector Financial Reporting (AASB 1049). The CFS shows the results of the Australian Government’s operations and cash flows for the year ended 30 June 2013 and the Australian Government’s financial position as at 30June 2013. The Preface and the Commentary on the Financial Statements should be read in light of the information and explanations provided in the Statement of Compliance and the CFS.
Fiscal balance
The Australian Government fiscal balance for the year ended 30 June 2013 was a deficit of $27.9 billion. For the year ended 30 June 2012, the Australian Government reported a fiscal balance deficit of $46.3 billion.
Consolidated fiscal balance[1]
Australian Government taxation revenue increased by $19.2 billion (6.1 per cent) in 201213, reflecting an increase in taxes from individuals and companies, Goods and Services Tax, combined excise and custom duty and the introduction of the carbon pricing mechanism. Nontaxation revenue increased by $2.4 billion (6.9 per cent).
Australian Government expenses increased by $5.5 billion (1.4 per cent) in 201213. This was driven by a $0.4 billion increase overall in current and capital transfers, a $5.3billion increase in operating expenses, partially offset by a $0.2 billion decrease in interest expenses (including borrowing costs and superannuation interest expenses).
The modest increase in current and capital transfers was due to a growth of $4.3 billion in personal benefits and $2.2 billion increase in subsidy expensespartially offset by a reduction in capital transfers of $5.5 billion and $0.6 billion in current grants.
Within operating expenses, supply of goods and services grew by $0.7 billion, superannuation by $3.9 billion and depreciation by $0.8 billion.
In addition, the Australian Government’s net acquisition of nonfinancial assets decreased by $2.3 billion.
Balance sheet
The Australian Government’s net worth was $210.5 billion at 30 June 2013. For the year ended 30 June 2012, the Australian Government’s net worth was $256.9 billion.
Australian Government net worth position
The Australian Government’s financial assets increased by $34.8 billion (13.0 per cent) in 201213. Total nonfinancial assets increased by $5.4 billion (4.4 per cent).
The Australian Government’s liabilities decreased by $6.1 billion (0.9 per cent), primarily driven by a decrease in provisions and payables of $33.8 billion from a decrease in the superannuation liability of $42.4 billion due to a change in the discount rate. This was offset by an increase in interest bearing liabilities of $27.7 billion (9.6percent) mainly relating to a $16.0 billion increase in the value of Commonwealth Government Securities.
Cash flow
The Australian Government recorded a cash deficit of $19.5 billion in 201213 from operating activities and investing activities in nonfinancial assets. The closing cash position was $4.0 billion.
Contingent liabilities, contingent assets and risks
Contingent liabilities and contingent assets for the Australian Government are not disclosed in the balance sheet but are set out in detail in Note 35. Analysis of interest rate, foreign currency, default and other risks that could potentially impact on the Australian Government’s financial position is included in Note 36.
I would like to thank the many Australian Government employees whose efforts have contributed to the completion of the 201213 CFS.
Senator the Hon Mathias Cormann
Minister for Finance
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Preface
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[1] The reporting of consolidated fiscal balance commenced in 2008-09 when the consolidated financial statements were prepared in accordance with the whole of government requirements of AASB 1049 for the first time.