1307.8 - Australian Capital Territory in Focus, 2007

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 29/11/2007 Ceased

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Contents >> Government >> Government Finance Statistics

GOVERNMENT FINANCE STATISTICS

Operating statement

In the ACT in 2005-06, Government Finance Statistics (GFS) operating revenue totalled $2,694m, with 41% ($1,118m) from current grants and subsidies, and a further 29% ($782m) from taxation revenue. With expenses totalling $2,828m in the year, the ACT Government net operating balance (NOB) was -$134m and net lending was -$167m.

GFS NOB is a summary measure of the ongoing sustainability of government operations. It is the difference between GFS revenue and GFS expenses that reflects the change in net worth due to transactions. A positive NOB indicates an increase in the net worth of government and a negative NOB indicates a decrease in net worth.

3.6 ACT General Government operating statement

			2003-04	2004-05	2005-06
			$m	$m	$m

GFS Revenue
	Taxation revenue		753	712	782
	Current grants and subsidies		1 033	1 076	1 118
	Sales of goods and services		260	274	310
	Interest income		99	86	111
	Other		218	243	373
	Total		2 363	2 391	2 694
GFS Expenses
	Gross operating expenses
		Depreciation	134	151	158
		Employee expenses	1 020	1 110	1 209
		Other operating expenses	752	765	716
		Total	1 907	2 027	2 083
	Nominal superannuation interest expenses		97	105	144
	Other interest expenses		54	54	59
	Other property expenses		-	-	-
	Current transfers
		Grant expenses	342	381	399
		Subsidy expenses	117	74	85
		Other current transfers	-	-	-
	Capital transfers
		Grants to local governments	-	-	-
		Other capital transfers	49	48	60
	Total		2 565	2 687	2 828
equals
	GFS Net Operating Balance		-202	-297	-134
less
	Net acquisition of non-financial assets
		Gross fixed capital formation	163	176	237
		less Depreciation	134	151	158
		plus Change in inventories	-	-	-
		plus Other transactions in non-financial assets	-204	-158	-46
		Total	-175	-134	33
equals
	GFS Net Lending(+)/Borrowing(-)		-27	-163	-167

- nil or rounded to zero (including null cells)
Government Finance Statistics, Australia, 2005-06 (cat. no. 5512.0), Time series spreadsheets.

Expenses by purpose

Health and education remain the key purposes for which ACT government funds are used. In 2005-06, these purposes comprised 24% and 22%, respectively, of total ACT general government expenditure.

3.7 ACT General Government Expenses, By purpose

		2003-04	2004-05	2005-06
		$m	$m	$m

General public services		402	368	462
Defence		-	-	-
Public order and safety		219	211	226
Education
	Primary and secondary	450	471	483
	University	32	40	21
	Technical and further education	72	72	74
	Other tertiary	-	-	-
	Other	25	31	45
	Total	579	613	623
Health
	Acute care institutions	322	359	400
	Other health institutions	4	3	5
	Community health services	98	113	133
	Pharmaceutical	9	7	9
	Other	91	108	108
	Total	523	590	655
Social security and welfare
	Social security	-	-	-
	Welfare services	137	183	180
	Other	-	-	-
	Total	137	183	180
Housing and community amenities
	Housing and community development	148	128	92
	Water supply	9	-	1
	Sanitation and protection of the environment	12	14	26
	Other community amenities	3	4	38
	Total	172	146	156
Recreation and culture
	Recreational facilities and services	69	65	29
	Cultural facilities and services	18	23	22
	Broadcasting and film production	-	-	-
	Other recreation and culture	8	7	1
	Total	95	95	51
Fuel and energy		-	-	-
Agriculture, forestry and fishing		2	1	3
Mining, manufacturing and construction		-	-	-
Transport and communications
	Road transport	155	144	152
	Water transport	-	-	-
	Rail transport	-	-	-
	Air transport	-	-	-
	Communications and other transport	5	12	12
	Total	161	156	164
Other economic affairs		33	42	48
Nominal interest on superannuation		97	105	144
Public debt transactions		54	54	60
Other		91	124	57
Total		2 565	2 687	2 828

- nil or rounded to zero (including null cells)
Government Finance Statistics, Australia, 2005-06 (cat. no. 5512.0), Time series spreadsheets.

Taxation revenue

Taxes on property were the source of 51% ($399m) of the ACT Government’s taxation revenue in 2005-06. A further 26% ($204m) came from Taxes on employers’ payroll and labour force.

Overall total taxation revenue dropped by 10% ($70m) between 2004-05 and 2005-06. The biggest increase occurred in Stamp duties on conveyancing, up $33m (22%), while the biggest decrease occurred in Financial institutions transactions taxes, down $14m (82%).

3.8 ACT general government taxation revenue

			2003-04	2004-05	2005-06
			$m	$m	$m

Taxes on employers payroll and labour force
	Employers payroll taxes		177	185	204
Taxes on property
	Taxes on immovable property
		Land taxes	49	56	59
		Municipal taxes	119	124	142
		Other	9	5	12
		Total	178	185	213
	Taxes on financial and capital transactions
		Financial institutions transactions taxes	17	17	3
		Government borrowing guarantee levies	-	-	-
		Stamp duties on conveyancing	192	148	181
		Other stamp duties	18	6	2
		Total	228	171	187
	Total		406	356	399
Taxes on the provision of goods and services
	Excises and levies
		Agricultural production taxes	-	-	-
		Levies on statutory corporations	-	-	-
		Total	-	-	-
	Taxes on gambling
		Taxes on government lotteries	6	6	6
		Taxes on private lotteries	7	7	7
		Taxes on gambling machines	33	31	31
		Casino taxes	2	2	2
		Race betting taxes	1	1	1
		Taxes on gambling n.e.c.	-	-	-
		Total	50	48	47
	Taxes on insurance
		Insurance companies contributions to fire brigades	-	-	-
		Third party insurance taxes	-	-	-
		Taxes on insurance n.e.c.	38	38	41
		Total	38	38	41
	Total		87	86	88
Taxes on the use of goods and performance of activities
	Motor vehicle taxes
		Stamp duty on vehicle registration	24	24	24
		Other	59	61	66
		Total	83	85	90
	Franchise taxes
		Gas taxes	-	-	-
		Petroleum products taxes	-	-	-
		Tobacco taxes	-	-	-
		Liquor taxes	-	-	-
		Total	-	-	-
	Other		-	-	-
	Total		83	85	90
Total			753	712	782
Taxes received from public corporations			15	17	25
Taxes received from other levels of government			5	5	5

- nil or rounded to zero (including null cells)
Taxation Revenue, Australia, 2005-06 (cat. no. 5506.0).

In 2005-06, the ACT Government charged residents an average of $2,386 a year in property taxes, stamp duty, gambling taxes, payroll and other taxes. Across states and territories, Western Australia recorded the highest taxation per capita ($3,015) and Tasmania recorded the lowest ($1,860). All states and territories recorded an increase in taxation per capita between 2004-05 and 2005-06.

3.9 Taxation per capita(a)

		2003-04	2004-05	2005-06
Level of government		$	$	$

State and Local
	Australian Capital Territory	2 331	2 195	2 386
	New South Wales	2 601	2 647	2 721
	Victoria	2 458	2 539	2 651
	Queensland	2 127	2 187	2 287
	South Australia	2 281	2 394	2 433
	Western Australia	2 506	2 600	3 015
	Tasmania	1 697	1 818	1 860
	Northern Territory	1 595	1 783	2 137
	Average	2 404	2 471	2 594
Commonwealth Government		10 487	11 340	11 976
All levels of government		12 874	13 792	14 551

(a) Population estimates used to calculate taxation per capita are the estimated resident population (ERP) at 31 December each year, as published in Australian Demographic Statistics (cat. no. 3101.0).
Taxation Revenue, Australia, 2005-06 (cat. no. 5506.0).

Cash flow statement

The GFS Surplus/Deficit is a broad indicator of cash flow requirements. When this measure is positive (in surplus), it reflects the extent to which cash is available to the government to either increase its financial assets or decrease its liabilities (assuming no revaluations or other changes occur). When this measure is negative (in deficit), it reflects the extent to which the government requires cash, by running down its financial assets, or by drawing on the cash reserves of the domestic economy, or by borrowing from overseas.

In 2005-06, the ACT Government recorded a surplus of $76m. This represented an increase of 177% over that recorded for the previous year.

3.10 ACT General Government Cash Flow Statement

		2003-04	2004-05	2005-06
		$m	$m	$m
Cash Flow Statement

Cash receipts from operating activities
	Taxes received	750	723	782
	Receipts from sales of goods and services	284	318	338
	Grants and subsidies received	1 063	1 117	1 184
	Other receipts	417	422	439
	Total	2 514	2 580	2 743
Cash payments for operating activities
	Payments for goods and services	-1 471	-1 708	-1 648
	Grants and subsidies paid	-463	-494	-534
	Interest paid	-54	-55	-60
	Other payments	-267	-261	-260
	Total	-2 255	-2 518	-2 502
Net cash flows from operating activities		259	63	241
Net cash flows from investments in non-financial assets
	Sales of non-financial assets	208	161	51
	Purchases of new non-financial assets	-167	-189	-217
	Purchases of secondhand non-financial assets	-	-	-
	Total	41	-28	-165
Net cash flows from investments in financial assets for policy purposes		-26	12	9
Net cash flows from investments in financial assets for liquidity purposes		-95	-127	48
Net cash flows from financing activities
	Advances received (net)	-11	-11	-11
	Borrowings (net)	-56	-63	-16
	Deposits received (net)	-	-	-
	Other financing (net)	-3	17	-31
	Total	-70	-57	-58
Net Increase(+)/Decrease(-) in Cash Held		109	-137	74
Surplus(+)/Deficit(-)

Net cash flows from operating activities, net cash flows from investments in non-financial assets and distributions paid		299	35	76
Acquisitions of assets under finance leases and similar arrangements		-	-	-
Surplus(+)/Deficit(-)		299	35	76

- nil or rounded to zero (including null cells)
Government Finance Statistics, Australia, 2005-06 (cat. no. 5512.0), Time series spreadsheets.
Negative figures denote outflows.

Balance sheet

GFS net worth reflects the contribution of the ACT Government to the wealth of the ACT. The net worth as at 30 June 2006 was $9,445m, an increase of 2% from $9,265m recorded a year earlier.

The most significant assets held by the ACT Government were Land and fixed assets of $6,192m, followed by Equity of $4,219m. The most significant liabilities were Unfunded superannuation and other employee liabilities of $3,156m, followed by Borrowing of $699m.

3.11 ACT General Government Balance Sheet, as at 30 June

			2004	2005	2006
			$m	$m	$m

Assets
	Financial assets
		Cash and deposits	64	65	73
		Advances paid	502	506	511
		Investments, loans and placements	2 254	2 362	2 657
		Other non-equity assets	258	146	170
		Equity	3 895	4 010	4 219
		Total	6 972	7 089	7 630
	Non-financial assets
		Land and fixed assets	5 656	6 084	6 192
		Other non-financial assets	352	123	103
		Total	6 008	6 207	6 295
	Total		12 980	13 296	13 925
Liabilities
	Deposits held		56	23	74
	Advances received		262	251	240
	Borrowing		633	667	699
	Unfunded superannuation liability and other employee entitlements		2 338	2 789	3 156
	Other provisions		22	8	28
	Other non-equity liabilities		289	293	283
	Total		3 600	4 031	4 480
GFS Net Worth			9 380	9 265	9 445
Net debt			-1 869	-1 993	-2 228
Net financial worth			3 372	3 058	3 150

Government Finance Statistics, Australia, 2005-06 (cat. no. 5512.0), Time series spreadsheets.