Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

asked the Minister for Finance and Deregulation, upon notice, on 11 March 2011:

With reference to the Monthly Financial Statements of December 2010:

(1) Is the Government still borrowing an average of $100 million per day; if not, what is the revised figure.

(2) Total liabilities for the 2010-11 financial year to December were at $388.8 billion, whereas the full year estimate for 2010-11 is $380 billion:

(a) why has this figure already reached the budgeted allocation; and

(b) does the Government plan to revise this estimate; if so, what is the new estimate.

(3) Can the estimated interest expenses of $10.5 billion for the 2010-11 financial year be confirmed and how is this estimate determined.

(4) In relation to expenses by function, fuel and energy costs for the 2010-11 financial year to December are $2.8 billion, while the full year estimate is expected to be $7.2 billion:

(a) does the Minister expect this figure to be reached; and

(b) if so, why is there such a significant increase on the first half of the financial year.

(5) What is the estimated full year draw down on the Contingency Reserve and where these funds will be allocated.

(6) The GST revenue for the 2010-11 financial year to December is $23.7 billion—does the Government expect to meet the full estimate of $49.1 billion; if not, why not and what is the updated estimate.

(7) Income tax revenue for the 2010-11 financial year to December is only $92.5 billion—does the Government expect to meet the full estimate of $214.5 billion; if not, why not and what is the updated estimate.

(8) Company tax revenue for the 2010-11 financial year to December is $26.3 billion—does the Government expect to meet the full estimate of $63.6 billion:

(a) if not, why not and what is the updated estimate; and

(b) if so, is this based predominantly on the anticipated increase in activity in the commodity sector.

(9) Can a breakdown be provided detailing the company tax paid by the industry sector.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The answer to the honourable senator's question is as follows:

(1) Budget Paper No.1, Table 2 on page 9-4 provides details of the Australian Government general government sector balance sheet.

(2) The difference in total liabilities as at December 2010 compared to the full year MYEFO estimates is mainly driven by the difference in Australian Government's superannuation liabilities and higher account payables, offset by Commonwealth Government Securities on issue.

(3) Budget Paper No.1, Note 10 on page 9-21 provides the details.

(4) Care needs to be taken when comparing and interpreting the monthly collections data against the full year estimate. Updated expenses estimates by function, for the 2010-11 financial year were published in the 2011-12 Budget released on 10 May 2011. See page 6-53 of Budget Paper 1.

(5) A description of the Contingency Reserve (CR) is at page 6-55 of Budget Paper No. 1.

The CR ensures that aggregate estimates are as close as possible to expected outcomes, but it is not appropriated. Estimates that are included in the CR can only be drawn down upon once they have been appropriated by Parliament to an individual agency. These estimates are removed from the CR and allocated to specific agencies for appropriation and for outcome reporting closer to the time when the associated events eventuate.

Estimates of the CR profile are at page 6-54 of Budget Paper No. 1.

(6) to (8) Care needs to be taken when comparing and interpreting the monthly collections data against the full year estimate. This is due to the lumpy nature of tax collections, meaning monthly outcomes may not necessarily provide an accurate indication of how collections are tracking. Updated revenue estimates were published in the 2011-12 Budget released on 10 May 2011. See pages 5-38 and 5-39 of Budget Paper 1.

(9) Company tax paid by industry sector is provided in Taxation Statistics, published annually by the Australian Taxation Office. Please note the published data available has a two year lag.