Appendix B: Government Finance Statistics statements
(continued)

Table B6: Australian Government public non-financial corporations balance sheet

1. Includes the elimination of commercial taxation adjustments for future income tax benefits and deferred income tax.
2. Net worth is calculated as total assets minus total liabilities minus shares and other contributed capital. The negative net worth recorded for this sector reflects a higher valuation of listed Australian Government corporations by the sharemarket than the value of net assets recorded by these corporations.
3. Net financial worth equals total financial assets minus total liabilities minus shares and other contributed capital. That is, it excludes non-financial assets.
4. Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.

Table B7: Australian Government public non-financial corporations cash flow statement^(a)

1. A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
2. Other payments for operating activities includes the cash flow to the general government sector from public non-financial corporation distributions paid.
3. Distributions paid comprise public non-financial corporation dividends to non-general government shareholders.
4. The acquisition of assets under finance leases decreases the surplus or increases the deficit. The disposal of assets previously held under finance leases increases the surplus or decreases the deficit.

Table B8: Australian Government total non-financial public sector operating statement

1. The fiscal balance and net operating balance estimates in this table differ from those presented elsewhere in the MYEFO reflecting the treatment of the GST as an Australian Government tax.
2. The term fiscal balance is not used by the ABS.

Table B9: Australian Government total non-financial public sector balance sheet

1. Net worth is calculated as total assets minus total liabilities minus shares and other contributed capital. The negative net worth recorded for this sector reflects a higher valuation of listed Australian Government corporations by the sharemarket than the value of net assets recorded by these corporations.
2. Net financial worth equals total financial assets minus total liabilities minus shares and other contributed capital. That is, it excludes non-financial assets.
3. 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.

Table B10: Australian Government total non-financial public sector cash flow statement^(a)

1. A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
2. GST flows are excluded from these categories.
3. Distributions paid comprise public non-financial corporation dividends to non-general government shareholders.
4. The acquisition of assets under finance leases decreases the surplus or increases the deficit. The disposal of assets previously held under finance leases increases the surplus or decreases the deficit.

Loan Council Allocation

Under Loan Council arrangements, every year the Australian Government and each state and territory nominate Loan Council Allocations. A jurisdiction’s Loan Council Allocation incorporates:

• the estimated non-financial public sector cash deficit/surplus (underlying cash balance), made up from the general government and public non-financial corporations sector balances;

• net cash flows from investments in financial assets for policy purposes; and

• memorandum items, which involve transactions that are not formally borrowings but nevertheless have many of the characteristics of borrowings.

Loan Council Allocation nominations are considered by the Loan Council, having regard to each jurisdiction’s fiscal position and reasonable infrastructure requirements, as well as the macroeconomic implications of the aggregate figure.

In March 2004, the Australian Government nominated, and the Loan Council endorsed a Loan Council Allocation surplus of $3.7 billion. In the 2004-05 Budget, the Australian Government estimated a Loan Council Allocation surplus of $2.3 billion.

Table B11 presents a revised estimate for the Australian Government’s 2004-05 Loan Council Allocation surplus of $6.4 billion.

Table B11: Australian Government Loan Council Allocation for 2004-05

1. Such transactions involve the transfer or exchange of a financial asset and are not included within the cash deficit/surplus. However, the cash inflow from investments in financial assets for policy purposes has implications for a government’s call on financial markets.
2. For the Australian Government, memorandum items comprise the change in net present value (NPV) of operating leases (with NPV greater than $5 million), overfunding of superannuation and an adjustment to exclude the net financing requirement.

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