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Statement 9: Australian Government Budget Financial Statements (Continued)

Notes to the general government sector financial statements

Note 1: External reporting standards and accounting policies

The Charter of Budget Honesty Act 1998 (the Charter) requires that the budget be based on external reporting standards and that departures from applicable external reporting standards be identified.

The major external standards used for budget reporting purposes are:

the Australian Bureau of Statistics' (ABS) accrual Government Finance Statistics (GFS) publication, Australian System of Government Finance Statistics: Concepts, Sources and Methods, (cat no. 5514.0), which in turn is based on the International Monetary Fund (IMF) accrual GFS framework; and
Australian Accounting Standards (AAS), being AASB 1049 Whole of Government and General Government Sector Financial Reporting (AASB 1049) and other applicable Australian Equivalents to International Financial Reporting Standards (AEIFRS).

The financial statements have been prepared on an accrual basis that complies with both ABS GFS and AAS, except for departures disclosed at Note 2.

A more detailed description of the AAS and ABS GFS frameworks, in addition to definitions of key terms used in these frameworks, can be found in Appendix A. Table A2 in Appendix A explains the key differences between the two frameworks. Detailed accounting policies, as required by AAS, are disclosed in the annual consolidated financial statements.

Budget reporting focuses on the general government sector (GGS). The GGS provides public services that are mainly non‑market in nature and for the collective consumption of the community, or involve the transfer or redistribution of income. These services are largely financed through taxes and other compulsory levies, user charging and external funding. This sector comprises all government departments, offices and some other bodies. In preparing financial statements for the GGS, all material transactions and balances between entities within the GGS have been eliminated. A list of entities within the GGS, as well as entities within and a description of the public non‑financial corporations (PNFC) sector and public financial corporations (PFC) sector, are disclosed in Table A1 in Appendix A.

The Government's key fiscal aggregates are based on ABS GFS concepts and definitions, including the ABS GFS cash surplus/deficit and the derivation of the underlying cash balance and net financial worth. AASB 1049 requires the disclosure of other ABS GFS fiscal aggregates, including net operating balance, net lending/borrowing (fiscal balance) and net worth. In addition to these ABS GFS aggregates the Uniform Presentation Framework (UPF) requires disclosure of net debt, net financial worth and net financial liabilities.

Explanations of variations in fiscal balance, revenue, expenses, net capital investment, cash flows, net debt, net financial worth and net worth since the Mid‑Year Economic and Fiscal Outlook 2012‑13 (MYEFO) are disclosed in Statement 3.

Details of the Australian Government's GGS contingent liabilities are disclosed in Statement 8.

Authoritative guidance has not been issued under the AAS for the measurement of accrual revenue and expenses under the carbon pricing mechanism. An interpretation of the AAS for the carbon pricing mechanism is provided in Note 2. Current estimates measure revenue and expenses at the expected market price for carbon in the year in which emissions occur. The Department of Finance and Deregulation and the Department of the Treasury will continue to review this treatment in consultation with the ABS and the Australian National Audit Office (ANAO).

Note 2: Departures from external reporting standards

The Charter requires that departures from applicable external reporting standards be identified. The budget financial statements depart from the external reporting standards as follows.

General government sector

Departures from ABS GFS

ABS GFS requires that provisions for bad and doubtful debts be excluded from the balance sheet. This treatment has not been adopted in the budget financial statements or in any reconciliation notes because excluding such provisions would overstate the value of Australian Government assets in the balance sheet. The budget financial statements currently adopt AAS treatment for provisions for bad and doubtful debts.

ABS GFS treats coins on issue as a liability and no revenue is recognised. The ABS GFS treatment of circulating coins as a liability has not been adopted in the budget financial statements or in any reconciliation notes. Instead, the budget financial statements adopt AAS treatment for circulating coins (seigniorage). Under this treatment, seigniorage revenue is recognised upon the issue of coins and no liability is recorded.

ABS GFS records defence weapons platforms (DWP) as a non‑financial asset on a market value basis (fair value), rather than expensing at time of acquisition. The value used by ABS is consistent with the National Accounts statistical methodology, and represents an early adoption of changes to the System of National Accounts 2008. ABS GFS treatment of DWP is consistent with AAS, as non‑financial assets can be valued at fair value as long as they can be reliably measured, otherwise cost is permissible. DWP will be valued at cost in the budget financial statements, as they have in previous budgets, while the Australian Government ascertains if a relevant and reliable fair value can be sourced.

Under ABS GFS, concessional loans are recognised at their nominal value, that is, they are not discounted to fair (market) value as there is not considered to be a secondary market. This treatment has not been adopted for the financial statements. Consistent with AAS, loans issued at below market interest rates or with long repayment periods are recorded at fair value (by discounting them by market interest rates). The difference between the nominal value and the fair value of the loan is recorded as an expense which is written back over the life of the loan.

ABS GFS requires investments in unlisted public sector entities to be valued based on their net assets. Under AAS, investments in public sector entities can be valued at fair value as long as a fair value can be reliably measured, otherwise net assets is permissible. The AAS treatment has been adopted in the financial statements.

Movements in the provision for restoration, decommissioning and make‑good of assets have been included in the calculation of the fiscal balance capital adjustment because in many cases they involve legal obligations to expend resources. ABS GFS does not recognise adjustments for such provisions because they are considered a constructive obligation that may not materialise for many years.

ABS GFS treats the issuance and registration of Renewable Energy Certificates (RECs) under the Renewable Energy Target and Australian Carbon Credit Units (ACCUs) under the Carbon Farming Initiative as government financial transactions resulting in the recognition of assets, liabilities, tax revenue and expenses.

Under the interpretation of the AAS, the issuance and registration of such certificates is considered to be an administrative function and does not result in the recognition of an asset or liability and therefore no tax revenue or expense is recognised. The AAS treatment has been adopted in the financial statements.

Departures from AAS (including AASB 1049)

AAS requires the advances paid to the International Development Association, African Development Fund and Asian Development Fund to be recognised at fair value. Under ABS GFS these advances are recorded at nominal value. The ABS GFS treatment is adopted in the financial statements.

Under AAS, prepayments are classified as non‑financial assets. In accordance with ABS GFS, prepayments have been classified as financial assets in the budget financial statements. This treatment is consistent with the exclusion of prepayments from net acquisition of non‑financial assets in the calculation of the fiscal balance.

The interpretation of the AAS indicates that transactions under the carbon pricing mechanism are recognised in the financial statements where they are expected to result in a receipt or payment of cash by the government at the amount of the expected cash settlement. The issuance and surrender of free carbon units and ACCUs used in the settlement of emissions liabilities do not qualify for recognition by the government as assets, liabilities, revenues or expenses.

Revenues are recognised for the amount of cash received and receivable by the government for carbon units at the time when emissions occur, if able to be reliably measured.
Expenses are recognised on issue of a free carbon unit, based on the number of free permits that are expected to be cashed in by the permit holders under the buy‑back arrangements.
Receivables/payables are recognised at the amount of cash expected to be received/paid by the government.

Transactions under the carbon pricing mechanism are recognised under ABS GFS at their expected market value at the time of the transaction.

Revenues are recognised at the expected market value of carbon units at the time when emissions occur.
Expenses are recognised for ACCUs issued in the fixed price period and all free carbon units at the expected market value at the time of issue.
Receivables/payables are recognised at the carbon units' expected future market value for the reporting period.

In the fixed price period from 1 July 2012 to 30 June 2015, the price of carbon units that the government will pay under the buy‑back arrangements and sell to liable emitters to settle their obligations is set by the government. This set price, which is the prevailing fixed price, has been taken to be the market value for the relevant year. Materially, the ABS GFS treatment has been adopted in the financial statements.

AASB 1049 requires disaggregated information, by ABS GFS function, for expenses and total assets to be disclosed where they are reliably attributable. ABS GFS does not require total assets attributed to functions. In accordance with ABS GFS, disaggregated information for expenses and net acquisition of non‑financial assets by function is disclosed in Statement 6. In accordance with the UPF, purchases of non‑financial assets by function are also disclosed in Statement 6.

AASB 1049 requires AAS measurement of items to be disclosed on the face of the financial statements with reconciliation to ABS GFS measurement of items, where different, in notes to the financial statements. Reconciliation notes have not been included as they would effectively create two measures of the same aggregate.

AASB 1049 requires major variances between original budget estimates and outcomes to be explained in the financial statements. Explanations of major variances for the 2012‑13 year from the 2012‑13 Budget to the 2012‑13 MYEFO are discussed in Part 3 of the MYEFO. All policy decisions taken between the 2012‑13 Budget and the 2012‑13 MYEFO are disclosed in Appendix A of the MYEFO. Explanations of variations since the 2012‑13 MYEFO are disclosed in Statement 3 of this document, with decisions taken since the MYEFO disclosed in Budget Paper No. 2.

In addition to above adjustments, there are specific adjustments made to the corporations sectors as outlined below.

Public non‑financial corporations (PNFC) sector and total non‑financial public sector (NFPS)

Departures from ABS GFS

AASB 1049 defines net worth for the PNFC sector and NFPS as total assets less total liabilities; however, ABS GFS defines net worth as total assets less total liabilities less shares and contributed capital (which is equal to zero for the PNFC sector). Similarly, AASB 1049 defines net financial worth for these sectors as financial assets less total liabilities, whereas under ABS GFS it is equal to financial assets less total liabilities less shares and contributed capital. The AASB 1049 treatment has been adopted in the PNFC sector and NFPS financial statements.

Departures from AAS (including AASB 1049)

The financial statements for the PNFC sector and NFPS comply with the UPF but do not include all the line item disclosures required by AASB 1049. Disaggregated outcome notes for the PNFC sector will be disclosed in the consolidated financial statements.

AAS requires dividends paid to be classified as a distribution of equity. Under ABS GFS, dividends paid are classified as an expense. The ABS GFS treatment has been adopted for use in the financial statements.

Australian Government public corporations use commercial tax effect accounting to determine their net tax liability while the ATO determines their tax liability on a due and payable basis. To ensure symmetry in treatment between Australian Government sectors, the ABS removes tax effect adjustments. The ABS GFS treatment has been adopted in the financial statements.

Note 3: Taxation revenue by type
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Individuals' and other withholding taxes
Gross income tax withholding	151,660	164,660	178,100	192,120	204,820
Gross other individuals	35,940	37,490	41,580	46,640	51,580
less Refunds	26,750	26,800	28,350	30,250	32,100
Total individuals' and other withholding taxation	160,850	175,350	191,330	208,510	224,300
Fringe benefits tax	3,890	4,320	4,740	5,080	5,390
Company tax	68,132	73,969	74,860	80,666	85,213
Superannuation funds	7,800	8,480	10,210	12,850	14,270
Resource rent taxes(a)	1,740	3,420	3,530	4,180	5,340
Total income taxation revenue	242,412	265,539	284,670	311,286	334,513
Sales taxes
Goods and services tax	50,220	53,080	55,760	58,920	61,830
Wine equalisation tax	730	780	820	870	920
Luxury car tax	430	400	360	390	420
Total sales taxes	51,380	54,260	56,940	60,180	63,170
Excise duty
Petrol	6,000	5,790	5,870	5,920	6,000
Diesel	8,610	8,920	9,230	9,430	9,710
Beer	1,950	1,980	2,100	2,220	2,330
Other excisable products(b)	9,030	9,360	9,750	9,880	10,130
of which: Other excisable beverages(c)	900	960	1,000	1,050	1,110
Total excise duty revenue	25,590	26,050	26,950	27,450	28,170
Customs duty
Textiles, clothing and footwear	680	710	560	410	440
Passenger motor vehicles	920	920	990	1,060	1,140
Excise-like goods(b)	5,660	5,850	6,010	6,220	6,510
Other imports	1,540	1,610	1,670	1,790	1,910
less Refunds and drawbacks	330	260	260	260	260
Total customs duty revenue	8,470	8,830	8,970	9,220	9,740
Carbon pricing mechanism(d)	7,540	8,340	9,270	4,090	6,110
Other indirect taxation
Agricultural levies	463	443	434	440	446
Other taxes	2,871	3,202	3,372	3,309	3,446
Total other indirect taxation revenue	3,335	3,646	3,806	3,748	3,892
Mirror taxes	485	513	543	576	602
less Transfers to States in relation to mirror tax revenue	485	513	543	576	602
Mirror tax revenue	0	0	0	0	0
Total indirect taxation revenue	96,315	101,126	105,936	104,688	111,082
Total taxation revenue	338,727	366,664	390,606	415,974	445,595
Memorandum:
Capital gains tax	6,600	8,100	11,100	13,600	15,900
Medicare levy revenue	9,720	10,300	14,190	15,230	16,200

(a) Comprises gross revenue from the PRRT and MRRT. Net revenue from the MRRT is expected to be $0.2 billion in 2012‑13, $0.7 billion in 2013‑14, $1.0 billion in 2014‑15, $1.4 billion in 2015‑16 and $2.2 billion in 2016‑17 which represent the net revenue impact across different revenue heads. These include offsetting reductions in company tax (through deductibility) and interactions with other taxes.

(b) Tobacco estimates are not separately reported due to taxpayer confidentiality. Tobacco excise is included in other excisable products and tobacco customs duty is included in excise‑like goods. The Government intends to introduce legislation to enable better public disclosure of tax revenue, even when the identity of particular entities could be determined.

(c) Other excisable beverages are those not exceeding 10 per cent by volume of alcohol (excluding beer, brandy and wine).

(d) Tax revenue includes carbon accrual revenue measured at market price, with details of the accounting treatment of carbon revenue set out in Note 2 to the General Government Sector Financial Statements.

Note 3(a): Taxation revenue by source
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Taxes on income, profits and capital gains
Income and capital gains levied on individuals	164,740	179,720	196,140	213,670	229,760
Income and capital gains levied on enterprises	77,672	85,819	88,530	97,616	104,753
Total taxes on income, profits and capital gains	242,412	265,539	284,670	311,286	334,513
Taxes on employers' payroll and labour force	529	553	590	626	682
Taxes on the provision of goods and services
Sales/goods and services tax	51,380	54,260	56,940	60,180	63,170
Excises and levies	26,053	26,493	27,384	27,890	28,616
Taxes on international trade	8,470	8,830	8,970	9,220	9,740
Total taxes on the provision of goods and services	85,903	89,583	93,294	97,290	101,526
Other sale of goods and services	9,882	10,989	12,052	6,773	8,874
Total taxation revenue	338,727	366,664	390,606	415,974	445,595
Memorandum:
Medicare levy revenue	9,720	10,300	14,190	15,230	16,200

Note 4: Sales of goods and services revenue
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Sales of goods	1,492	1,623	1,669	1,696	1,787
Rendering of services	4,031	3,745	3,439	3,464	3,451
Operating lease rental	53	55	58	59	56
Fees from regulatory services	3,182	3,155	3,277	3,395	3,482
Total sales of goods and services revenue	8,757	8,577	8,443	8,614	8,776

Note 5: Interest and dividend revenue
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Interest from other governments
State and Territory debt	10	11	14	15	15
Housing agreements	160	155	150	144	139
Total interest from other governments	170	166	164	160	154
Interest from other sources
Advances	44	48	52	56	62
Deposits	100	92	93	94	102
Bank deposits	157	140	146	153	143
Indexation of HELP receivable and other student loans	503	575	671	790	926
Other	2,790	3,292	3,351	3,727	4,061
Total interest from other sources	3,594	4,147	4,313	4,821	5,295
Total interest	3,764	4,313	4,477	4,980	5,448
Dividends
Dividends from other public sector entities	691	789	539	627	624
Other dividends	1,739	1,637	1,726	1,849	1,980
Total dividends	2,429	2,426	2,265	2,476	2,604
Total interest and dividend revenue	6,194	6,739	6,742	7,457	8,052

Note 6: Other sources of non‑taxation revenue
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Industry contributions	39	38	37	38	37
Royalties	1,785	1,457	1,419	1,431	1,431
Seigniorage	136	135	138	137	138
Other	4,324	4,139	4,226	4,447	4,540
Total other sources of non-taxation revenue	6,284	5,768	5,820	6,052	6,146

Note 7: Employee and superannuation expense
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Wages and salaries expenses	19,355	19,772	19,800	20,556	21,059
Other operating expenses
Leave and other entitlements	2,514	2,507	2,553	2,592	2,636
Separations and redundancies	126	46	46	46	45
Workers compensation premiums and claims	700	622	665	711	910
Other	2,072	2,292	2,422	2,543	2,622
Total other operating expenses	5,411	5,467	5,686	5,893	6,214
Superannuation expenses
Superannuation	8,102	4,039	4,040	4,090	4,196
Superannuation interest cost	6,778	8,462	8,773	9,093	9,423
Total superannuation expenses	14,880	12,501	12,813	13,184	13,619
Total employee and superannuation expense	39,646	37,739	38,299	39,633	40,891

Note 8: Depreciation and amortisation expense
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Depreciation
Specialist military equipment	2,579	2,326	2,489	2,636	2,827
Buildings	1,273	1,306	1,368	1,437	1,438
Other infrastructure, plant and equipment	1,320	1,363	1,408	1,439	1,436
Heritage and cultural assets	36	37	37	37	37
Total depreciation	5,208	5,032	5,302	5,549	5,737
Total amortisation	815	780	755	763	743
Total depreciation and amortisation expense	6,022	5,813	6,058	6,312	6,480

Note 9: Supply of goods and services expense
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Supply of goods and services	22,931	24,996	24,605	25,300	25,730
Operating lease rental expenses	2,518	2,451	2,477	2,557	2,574
Personal benefits — indirect	39,671	41,419	44,254	48,191	50,932
Health care payments	5,391	5,410	5,471	5,575	5,805
Other	1,509	1,642	1,607	1,675	1,775
Total supply of goods and services expense	72,019	75,918	78,414	83,298	86,816

Note 10: Interest expense
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Interest on debt
Government securities(a)	12,200	12,453	12,733	12,902	12,890
Loans	9	10	9	8	0
Other(b)	550	526	524	523	526
Total interest on debt	12,759	12,989	13,266	13,432	13,416
Other financing costs	521	1,019	1,022	991	757
Total interest expense	13,281	14,008	14,289	14,423	14,173

(a) Public debt interest estimates are calculated using the contract interest rates incurred on existing Commonwealth Government Securities (CGS) when issued and on technical assumptions, based on prevailing market interest rates across the yield curve, for yields on future CGS issuance.

(b) Interest on taxation overpayments has been reclassified from other financing costs to interest on debt.

Note 11: Current and capital grants expense
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Current grants expense
State and Territory governments	84,585	87,976	93,036	98,855	105,780
Local governments	34	17	6	2	0
Private sector	1,752	2,832	3,205	2,531	1,936
Overseas	4,115	4,873	5,206	5,823	6,982
Non-profit organisations	1,740	1,630	1,721	1,988	1,797
Multi-jurisdictional sector	9,408	9,737	10,072	10,442	10,616
Other	8,316	11,074	11,865	10,599	11,510
Total current grants expense	109,950	118,137	125,111	130,239	138,621
Capital grants expense
Mutually agreed write-downs	1,997	2,137	2,277	2,453	2,633
Other capital grants
State and Territory governments	6,931	6,873	6,428	5,469	4,424
Local governments	407	435	352	359	342
Private sector	150	40	0	0	0
Multi-jurisdictional sector	95	98	102	105	107
Other	344	459	492	439	477
Total capital grants expense	9,923	10,042	9,650	8,824	7,983
Total grants expense	119,873	128,179	134,762	139,063	146,604

Note 12: Personal benefits expense
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Social welfare - assistance to the aged	37,282	40,185	42,734	45,696	49,077
Assistance to veterans and dependants	6,202	6,213	6,090	5,983	5,801
Assistance to people with disabilities	21,204	22,578	24,063	25,512	27,228
Assistance to families with children	34,328	34,120	34,680	35,502	36,305
Assistance to the unemployed	8,559	9,550	10,559	9,830	9,859
Student assistance	3,349	3,380	3,243	3,175	3,265
Other welfare programmes	1,396	1,288	1,285	1,288	1,315
Financial and fiscal affairs	359	340	363	388	424
Vocational and industry training	274	276	271	267	267
Other	4,444	3,769	5,196	6,884	10,787
Total personal benefits expense	117,397	121,699	128,484	134,528	144,329

Note 13: Advances paid and other receivables
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Advances paid
Loans to State and Territory governments	2,805	2,820	2,768	2,682	2,575
Higher Education Loan Program	22,349	26,210	30,953	36,230	42,090
Student Financial Supplement Scheme	653	588	522	454	383
Other	9,628	11,425	13,234	14,669	16,953
less Provision for doubtful debts	26	26	26	26	26
Total advances paid	35,409	41,017	47,452	54,008	61,975
Other receivables
Goods and services receivable	976	932	927	932	942
Recoveries of benefit payments	2,940	3,117	3,250	3,385	3,512
Taxes receivable	22,344	24,923	29,088	31,258	37,233
Prepayments(a)	2,439	2,257	2,230	2,240	2,270
Other	19,131	19,011	17,414	18,015	18,769
less Provision for doubtful debts	3,366	3,482	3,599	3,719	3,847
Total other receivables	44,464	46,756	49,310	52,111	58,880

(a) Prepayments have been reclassified from other non‑financial assets to other receivables to align with ABS GFS.

Note 14: Investments, loans and placements
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Investments - deposits	30,103	30,245	27,994	25,485	29,265
IMF quota	4,830	9,848	9,935	10,022	10,022
Other	68,345	72,872	78,296	85,013	92,038
Total investments, loans and placements	103,278	112,965	116,226	120,520	131,325

Note 15: Total non‑financial assets
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Land and buildings
Land	8,680	8,719	8,663	8,634	8,602
Buildings	23,433	24,454	24,613	25,592	25,784
Total land and buildings	32,113	33,173	33,276	34,226	34,386
Plant, equipment and infrastructure
Specialist military equipment	40,794	41,372	43,349	45,657	48,187
Other	12,911	13,516	13,427	13,168	12,618
Total plant, equipment and infrastructure	53,705	54,888	56,776	58,825	60,805
Inventories
Inventories held for sale	1,144	1,122	1,065	1,063	1,093
Inventories not held for sale	6,173	6,084	5,974	5,903	5,828
Total inventories	7,318	7,206	7,039	6,966	6,920
Intangibles
Computer software	3,402	3,411	3,233	3,045	2,858
Other	2,199	2,301	2,487	2,743	3,089
Total intangibles	5,602	5,712	5,719	5,788	5,948
Total investment properties	182	182	182	182	182
Total biological assets	37	37	37	37	37
Total heritage and cultural assets	10,451	10,465	10,477	10,488	10,501
Total assets held for sale	83	83	121	83	83
Total other non-financial assets(a)	795	873	1,446	342	268
Total non-financial assets	110,284	112,619	115,073	116,937	119,130

(a) Other non‑financial assets exclude prepayments that have been reclassified to other receivables to align with ABS GFS.

Note 16: Loans
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Promissory notes	3,176	6,453	5,978	5,956	5,934
Special drawing rights	4,586	4,627	4,667	4,708	4,708
Other	827	772	702	497	446
Total loans	8,588	11,851	11,347	11,161	11,088

Note 17: Employee and superannuation liabilities
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Total superannuation liability(a)	143,509	148,710	154,001	159,356	164,806
Other employee liabilities
Leave and other entitlements	7,378	7,426	7,516	7,658	7,809
Accrued salaries and wages	628	651	675	484	513
Workers compensation claims	2,594	2,626	2,656	2,690	2,730
Separations and redundancies	63	60	60	60	60
Other	3,936	4,066	4,078	4,082	4,280
Total other employee liabilities	14,600	14,829	14,984	14,974	15,391
Total employee and superannuation liabilities	158,109	163,539	168,985	174,330	180,197

(a) For budget reporting purposes, a discount rate applied by actuaries in preparing Long‑Term Cost Reports is used to value the superannuation liability. This reduces the volatility in reported liabilities that would occur from year to year if the long‑term government bond rate were used. Consistent with AAS, the long‑term government bond rate as at 30 June is used to calculate the superannuation liability for the purpose of actuals reporting.

Note 18: Provisions and payables
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Suppliers payable
Trade creditors	3,744	3,743	3,807	3,870	3,833
Operating lease rental payable	202	201	203	202	201
Other creditors	318	314	310	308	306
Total suppliers payable	4,264	4,259	4,320	4,380	4,340
Total personal benefits provisions and payable	14,240	13,952	14,273	14,585	15,071
Total subsidies provisions and payable	3,216	3,475	3,460	3,845	5,092
Grants provisions and payable
State and Territory governments	339	320	319	319	318
Non-profit organisations	218	214	214	214	214
Private sector	488	475	475	475	475
Overseas	1,502	2,129	2,061	1,513	1,954
Local governments	7	7	7	7	7
Other	14,476	12,746	10,086	9,414	9,587
Total grants provisions and payable	17,030	15,892	13,162	11,942	12,555
Other provisions and payables
Provisions for tax refunds	2,970	3,021	3,037	3,062	3,086
Other	10,991	11,157	11,417	12,469	14,963
Total other provisions and payables	13,961	14,178	14,454	15,531	18,049

Note 19: Reconciliation of cash
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Operating balance (revenues less expenses)	-21,478	-10,552	-4,051	7,082	13,822
less Revenues not providing cash
Other	735	928	1,114	1,342	1,592
Total revenues not providing cash	735	928	1,114	1,342	1,592
plus Expenses not requiring cash
Increase/(decrease) in employee entitlements	8,184	5,570	5,627	5,563	6,119
Depreciation/amortisation expense	6,046	5,832	6,073	6,324	6,494
Mutually agreed write-downs	1,997	2,137	2,277	2,453	2,633
Other	90	384	718	865	-427
Total expenses not requiring cash	16,317	13,923	14,695	15,205	14,819
plus Cash provided/(used) by working capital items
Decrease/(increase) in inventories	-260	-162	-122	-205	-247
Decrease/(increase) in receivables	-8,501	-8,967	-9,534	-8,860	-13,542
Decrease/(increase) in other financial assets	1,280	1,656	1,628	1,803	2,471
Decrease/(increase) in other non-financial assets	64	169	12	-27	-50
Increase/(decrease) in benefits, subsidies and grants payable	4,212	-1,158	-2,297	-345	3,013
Increase/(decrease) in suppliers' liabilities	-757	17	44	27	-41
Increase/(decrease) in other provisions and payables	-706	-851	-1,248	-2,338	277
Net cash provided/(used) by working capital	-4,670	-9,296	-11,516	-9,945	-8,119
equals (Net cash from/(to) operating activities)	-10,566	-6,853	-1,986	10,999	18,930
plus (Net cash from/(to) investing activities)	-14,926	-22,874	-23,012	-24,077	-32,794
Net cash from operating activities and investment	-25,492	-29,728	-24,998	-13,078	-13,864
plus (Net cash from/(to) financing activities)	25,439	29,937	25,404	13,624	14,110
equals Net increase/(decrease) in cash	-54	209	406	545	247
Cash at the beginning of the year	2,523	2,470	2,679	3,085	3,630
Net increase/(decrease) in cash	-54	209	406	545	247
Cash at the end of the year	2,470	2,679	3,085	3,630	3,877

Note 19(a): Consolidated Revenue Fund
	Estimates			Projections
	2012‑13	2013‑14	2014‑15	2015‑16	2016‑17
	$m	$m	$m	$m	$m
Total general government sector cash	2,470	2,679	3,085	3,630	3,877
less CAC Agency cash balances	1,800	1,798	1,860	2,036	2,184
plus Special public monies	382	382	382	382	382
Balance of Consolidated Revenue Fund at 30 June	1,052	1,263	1,607	1,976	2,075

The estimated and projected cash balances reflected in the balance sheet for the Australian Government GGS (Table 2) include the reported cash balances controlled and administered by Australian Government agencies subject to the Financial Management and Accountability Act 1997, and the reported cash balances controlled and administered by entities subject to the Commonwealth Authorities and Companies Act 1997 (CAC Act), that implement public policy through the provision of primarily non‑market services.

Revenues or monies raised by the Executive Government automatically form part of the Consolidated Revenue Fund by force of section 81 of the Australian Constitution. For practical purposes, total Australian Government GGS cash, less cash controlled and administered by CAC Act entities, plus special public monies, represents the Consolidated Revenue Fund referred to in section 81 of the Australian Constitution. On this basis, the balance of the Consolidated Revenue Fund is shown above.

Further information on the Consolidated Revenue Fund is included in Budget Paper No. 4, Agency Resourcing 2013‑14.

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