Latest release

Part B - Relationship to the IMF GFSM 2014

Australian System of Government Finance Statistics: Concepts, Sources and Methods
Reference period
2015
Released
23/12/2015
Next release Unknown
First release

17.3.

Australia’s GFS system follows the conceptual basis of the IMF GFSM 2014 but has some differences. These include:

  1. Debt Valuation
    For consistency with Australia’s System of National Accounts (ASNA), AGFS15 requires the valuation of debt at the current market value (also known as the fair value or creditor approach) for all debt instruments. IMF GFSM 2014 uses the debtor approach for non-tradable debt instruments;
  2. Debt Presentation
    While AGFS15 has adopted the essence of the matrix style presentation of public sector debt by type of instrument and level of government as outlined in What Lies Beneath: The Statistical Definition of Public Sector Debt, IMF Staff Discussion Note. IMF July 27, 2012; the debt and other liabilities matrix as shown in paragraphs 13.14 to 13.16 of this manual has been modified for Australia’s purposes;
  3. Derivatives
    IMF GFSM 2014 recognises derivatives as financial claims but does not recognise them as debt instruments. To provide a more complete picture of government financial exposure AGFS15 defines derivatives as a debt instrument;
  4. Compensation of Employees
    AGFS15 records salary sacrifice expenses as supporting information, whereas IMF GFSM 2014 does not require their disclosure; AGFS15 seeks additional detail for superannuation that is not required by IMF GFSM 2014. This is to provide a more complete set of data to be available and used in the national accounts;
  5. Breakdown of own-account capital formation as supporting information
    AGFS15 records a breakdown of own-account capital formation as supporting information. IMF GFSM 2014 does not separately identify it. This is to provide a more complete set of data to be available and used in the national accounts;
  6. Gold Swaps and Repurchase Agreements
    In AGFS15 gold swaps and repurchases are treated as sales and forward purchases of derivatives. IMF GFSM 2014 treats them as collateralised loans. This is because the ABS considers its treatment better reflects the fact that the economic ownership has changed. Further the IMF GFSM 2014 treatment could result in negative assets which cannot exist in the Australian GFS.
  7. Debt Assumptions and Secondary Trades in Securities
    AGFS15 treats debt assumptions and secondary trades in securities as transactions. IMF GFSM 2014 treats them as reclassifications. The ABS considers that debt assumptions and secondary trades in securities are transactions between all three parties involved and that treating them as reclassifications recognises the public sector unit assuming the liability and the public sector unit which passes on the liability as the only parties involved; the lending body is not recognised.
  8. Holding Companies
    Holding companies are classified according to the activities of the subsidiaries in AGFS15, in order to align with other macroeconomic classifications used in Australia. They are treated as financial corporations by IMF GFSM 2014.

17.4.

There are also variations in the way that the ABS GFS are presented as output. Statistics compiled in accordance with AGFS15 can be used by the ABS to satisfy the GFS requirements of the IMF. Further information on the AGFS15 departures from the IMF GFSM 2014 can be found in Appendix 3 of this manual.

Scope

17.5.

The IMF GFSM 2014 provides guidance for compiling data for the general government sector, the broader public sector and their subsectors (public non-financial corporations and public financial corporations). The ABS compiles statistics for the widest possible coverage of government operations recommended by the IMF, and has adopted the guidance set out in the IMF GFSM 2014.

Units and unit classifications

17.6.

The basic unit in the IMF GFSM 2014 is the institutional unit, which is defined in the same way as the unit of the same name in 2008 SNA (i.e. as an entity capable, in its own right, of owning assets, incurring liabilities and engaging in economic activities and in transactions with other units). As noted in Chapter 2 of this manual, the Australia’s GFS system also recognises the institutional unit as the basic statistical unit.

17.7.

The concept of quasi-corporations in the 2008 SNA is also applied in the IMF GFSM 2014. The concept effectively reduces the scope of the general government sector by excluding government market entities that operate like corporations. In Australia’s GFS system, the same concept is applied.

17.8.

The IMF GFSM 2014 recommends that GFS be presented for subsectors of the general government sector. A maximum of four subsectors is recommended: central government, state / territory government, local government, and social security funds. With the exception of social security funds which do not exist in Australia, the subsectors coincide with Australia’s level of government classification. Social security funds are institutional units which provide social benefits to the entire community, or large sections of it, through a social insurance scheme which generally involves compulsory contributions by participants. The IMF GFSM 2014 does not include the concepts of jurisdictions and of multi-jurisdictional units that are applied in Australia and therefore does not have a concept of national government, which is the combination of the central government and control not further defined units.

17.9.

The definition of the general government sector applied in the IMF GFSM 2014 is the same as in the 2008 SNA. The same definition is also applied in Australia's GFS system.

Flows, stocks and accounting rules

17.10.

The IMF GFSM 2014 includes the same definitions of economic stocks and flows, and of transactions and other economic flows, as are applied in the 2008 SNA. Australia’s GFS system applies identical concepts. The double-entry accounting model followed in the IMF GFSM 2014 is also applied in the Australian system. The IMF recommends full consolidation of flows and stock holdings between units contributing to the same aggregates, which is the practice followed in Australia's GFS system.

17.11.

The Australian GFS system employs an accrual basis of recording that is defined in the same way as the accrual system employed in the IMF GFSM 2014. The IMF standard provides guidelines on accrual recording of specific types of transactions, including taxes, grants, dividends, transactions in non-financial assets, inventories and financial assets. In Australia’s GFS system, the accrual practices adopted in government accounting systems are the starting point of recording GFS on an accrual basis. These practices may depart from the IMF guidelines in matters of detail but generally follow the principles underlying the IMF guidelines. The ABS adjusts the accounting data where material departures from the IMF principles come to notice.

17.12.

In accordance with the 2008 SNA, the IMF GFSM 2014 states that, in general, all flows and stocks should be valued at market prices. The standard provides guidelines on how market values of flows and stocks might be estimated, if not directly available from accounting records. In Australia’s GFS system, market values are recorded for most flows and stocks (with the exception of depreciation, which is recorded instead of consumption of fixed capital).

Analytical framework

17.13.

The ABS GFS framework is the same as the IMF framework in all conceptual respects, but differs slightly in terms of structure, presentation and level of classificatory detail. It incorporates the recommended integration of economic stocks and flows that is achieved by applying the formula in Table 17.1 below.

Table 17.1 - The broad GFS analytical framework
The value of opening stocks
plus
The value of transactions
plus
The value of other economic flows
equals
The value of closing stocks.

 

17.14.

The financial statements recommended in the IMF standard and the corresponding statements in Australia’s GFS system are set out in Table 17.2 below.

Table 17.2 - Comparison of financial statements in the AGFS15 and the IMF GFSM 2014.
AGFS15 StatementCorresponding IMF GFSM 2014 Statement
The statement of operationsThe statement of operations
The statement of sources and uses of cashThe statement of sources and uses of cash
The statement of stocks and flowsThe statement of other economic flows
The balance sheetThe balance sheet
The statement of total changes in net worthThe statement of total changes in net worth
The statement of contingent liabilitiesThe summary statement of explicit contingent liabilities and net implicit obligations for future social security benefits

 

17.15.

The statements in the IMF and Australian GFS systems cover the same economic flows with minor differences in terminology and arrangement of the statements evident in Table 17.2.

17.16.

The main differences are that the Australian system includes a statement of stocks and flows that is not included in the IMF system, and includes a summary statement of explicit contingent liabilities and implicit contingent liabilities rather than a summary statement of explicit contingent liabilities and net implicit obligations for future social security benefits. The reason for this is because the present value of implicit obligations for future social security benefits is zero for Australia. The only type of social security benefits that involve a contractual liability for Australian public sector units relate to employment related retirement benefits which have always been included in Australia's GFS.

Revenue and expenses

17.17.

Of the basic elements included in the IMF statement of operations, the ABS GFS statement of operations covers all except transactions in financial assets and liabilities (ETF 3). In the Australian GFS system, details of transactions in financial assets and liabilities are included in the statement of stocks and flows. The broad items covered in the IMF revenue and expense classification and the corresponding items in the Australian system are shown in Table 17.3 below.

Table 17.3 - Comparison of revenue and expense classifications in the AGFS15 and the IMF GFSM 2014

ETF Codes

AGFS15 Descriptor

IMF Codes

IMF GFSM 2014 Descriptor

 

1

Revenue and expenses

1

Revenue

11

Revenue

11

Taxes

111

Taxation revenue

11

Taxes

1111

Taxes on income

111

Taxes on income , profits and capital gains

1112

Other current taxes

1132

1136

11451

Recurrent taxes on net wealth

Other recurrent taxes on property

Motor vehicle taxes

 

 

11451

Motor vehicle taxes

1113

Taxes on products

1141

1142

1143

1144

1146

115

General taxes on goods and services

Excises

Profits of fiscal monopolies

Taxes on specific services

Other taxes on goods and services

Taxes on international trade and transactions

1114

Other taxes on production

112

1131

11452

Taxes on payroll and workforce

Recurrent taxes on immovable property

Other taxes on use of goods and on permission to use goods or perform activities

1115

Capital taxes

114

111

 

Estate, inheritance and gift taxes

Capital levies

 

112

Sales of goods and services

142

Sales of goods and services

1121

Sales by market establishments

1421

Sales by market establishments

1122

Administrative fees

1422

Administrative fees

1123

Incidental sales by non-market establishments

1423

Incidental sales by non-market establishments

1124

Imputed sales of goods and services

1424

Imputed sales of goods and services

113

Property income

141

Property income

1131

Interest income

1411

Interest

1132

Dividend income (including tax equivalents)

1412

Dividends

1133

Withdrawals from income of quasi-corporations

1413

Withdrawals from income of quasi-corporations

1134

Land rent income

1415

Rent

1135

Royalty income

1415

Rent

1136

Revenue from investment funds

1414

Property income from investment income disbursements

1137

Reinvested earnings on foreign direct investment

1416

Reinvested earnings on foreign direct investment

1139

Property income not elsewhere classified

141

Property income

114

Other current revenue

14

Other revenue

1141

 

Revenue from current grants and subsidies

14411

14412

Subsidies

Other current transfers not elsewhere classified

1142

Fines, penalties and forfeits

143

Fines, penalties and forfeits

1143

 

Premiums, fees and current claims related to non-life insurance and standardised guarantee schemes

1451

Premiums, fees and current claims

1149

Other current revenue not elsewhere classified

14

Other revenue

115

Capital revenue

1442

Capital transfers not elsewhere classified

1151

Revenue from capital grants

1442

Capital transfers not elsewhere classified

1152

Assets acquired below market value

311

Fixed produced assets

1153

 

Capital claims related to non-life insurance and standardised guarantee schemes

1452

Capital claims

1159

Other capital revenue not elsewhere classified

14

Other revenue

12

Expense

2

Expense

121

Superannuation expenses

212

Employers' social contributions

1211

Superannuation expenses - defined contribution scheme

2121

Actual employers' social contributions

1212

Superannuation expenses - defined benefit scheme

2121

Actual employers' social contributions

1213

Imputed employers' contributions - defined benefit scheme

2122

Imputed employers' social contributions

122

Other employee expenses

21

Compensation of employees

1221

Wages, salaries and supplements in cash

2111

Wages and salaries in cash

1222

Wages and salaries in kind

2112

Wages and salaries in kind

1223

Fringe benefits tax (FBT) expenses

21

Compensation of employees

1224

Workers' compensation expenses

21

Compensation of employees

1229

Other employee expenses not elsewhere classified

21

Compensation of employees

123

Non-employee expenses

28

Other expense

1231

Production tax expenses

28

Other expense

1232

 

Social benefits to households in goods and services

28

Other expense

1233

Use of goods and services

22

Use of goods and services

1239

 

Non-employee expenses not elsewhere classified

28

Other expense

124

Depreciation

23

Consumption of fixed capital

1241

Depreciation of fixed produced assets (non-defence)

23

Consumption of fixed capital

1242

Depreciation of fixed produced assets (defence)

23

Consumption of fixed capital

125

Current transfer expenses

26

2821

Grants

Current transfers not elsewhere classified

1251

Current grant expenses

2611

2621

2631

2821

Grants to foreign governments

Grants to international organisations

Grants to other general government units

Current transfers not elsewhere classified

1252

Subsidies on products

25

Subsidies

1253

Other subsidies on production

25

Subsidies

1254

Current monetary transfers to households

2821

Current transfers not elsewhere classified

1255

Tax expenses

28

Other expense

1256

 

Premiums, fees and current claims related to non-life insurance and standardised guarantee schemes

2831

Premiums, fees and current claims

1259

 

Current transfer expenses not elsewhere classified

2821

Current transfers not elsewhere classified

126

Capital transfer expenses

26

2822

Grants

Capital transfers not elsewhere classified

1261

Capital grant expenses

2612

2622

2632

2822

Grants to foreign governments

Grants to international organisations

Grants to other general government units

Capital transfers not elsewhere classified

1262

Assets donated

26

2822

Grants

Capital transfers not elsewhere classified

1263

 

Capital claims related to non-life insurance and standardised guarantee schemes

2832

Capital claims

1269

 

Capital transfer expenses not elsewhere classified

2822

Capital transfers not elsewhere classified

127

Interest expenses

24

Interest

1271

Interest on defined benefit superannuation

242

To residents other than general government

 

 

243

To other general government units

1279

Interest expenses not elsewhere classified

241

242

243

To non-residents

To residents other than general government

To other general government units

128

Other property expenses

281

Property expense other than interest

1281

 

Income transferred by public corporations as dividends (including tax equivalents)

2811

Dividends

1282

Withdrawal from income of quasi-corporations

2812

Withdrawal from income of quasi-corporations

1283

Land rent and royalty expenses

2814

Rent

1284

Dividends to shareholders

2811

Dividends

1285

 

Reinvested earnings on foreign direct investments

2815

Reinvested earnings on foreign direct investment

1286

 

Property expense for investment income disbursements

2813

Property expense for investment income disbursements

1289

 

Other property expenses not elsewhere classified

281

Property expense other than interest

Cash flows

17.18.

All of the Australian GFS items which correspond to items in the IMF statement of sources and uses of cash are recorded in the Australian GFS statement of sources and uses of cash. Table 17.4 lists the cash flow items in the IMF GFSM 2014 and those in the Australian GFS system that correspond to the IMF items.

Table 17.4 - Comparison of cash flow classifications in the AGFS15 and the IMF GFSM 2014

ETF Codes

AGFS15 Descriptor

IMF Codes

IMF GFSM 2014 Descriptor

 

21

 

Cash Flows From Operating Activities

C1

C2

Revenue cash flows

Expense cash flows

211

Cash receipts from operating activities

C1

Revenue cash flows

2111

Taxes received

C11

Taxes

2112

Cash received from sales of goods and services

C14

Other receipts

2113

Grants and subsidies received

C14

Other receipts

2114

Income transferred from public corporations

C13

Grants

 

 

C14

Other receipts

2115

Interest received

C14

Other receipts

2119

 

Cash receipts from operating activities not elsewhere classified

C14

Other receipts

212

Cash payments for employee expenses

C2

Expense cash flows

2121

 

Cash paid for employee superannuation - defined contribution schemes

C21

Compensation of employees

2122

 

Cash paid for employee superannuation - defined benefit schemes

C21

Compensation of employees

2123

Salary sacrifice expenses - superannuation

C21

Compensation of employees

2124

 

Salary sacrifice expenses - items other than superannuation

C21

Compensation of employees

2129

 

Cash payments for employee expenses not elsewhere classified

C28

Other payments

213

Cash payments for non-employee expenses

C28

Other payments

2131

 

Cash paid for the purchase of other goods and services

C22

Purchases of goods and services

2132

Subsidies paid

C25

Subsidies

2133

Grants paid

C26

Grants

2134

Other transfer payments

C28

Other payments

2135

Interest paid

C24

Interest

2136

Distributions paid

NFB

Net cash inflow from financing activities

2139

 

Cash payments for non-employee expenses not elsewhere classified

C28

Other payments

22

 

Cash flows from transactions in non-financial assets

C31

Net cash outflow from investment in non-financial assets

221

Expenditure on non-financial assets (net)

C2M

Expenditure cash flows

2211

 

Purchases of new non-financial assets

C31

Net cash outflow from investment in non-financial assets

2212

 

Purchases of second-hand non-financial assets

C31

Net cash outflow from investment in non-financial assets

2213

 

Sales of non-financial assets

C31

Net cash outflow from investment in non-financial assets

23

 

Cash flows from transactions in financial assets for policy purposes

NFB

Net cash inflow from financing activities

231

Advances paid (net)

C33

Net incurrence of liabilities

2311

Gross Advances paid – concessional loans

C33

Net incurrence of liabilities

2312

Advances paid other than concessional loans

C33

Net incurrence of liabilities

2313

Repayments of advances

C33

Net incurrence of liabilities

232

 

Equity acquisitions, disposals and sale of equity (net)

C33

Net incurrence of liabilities

2321

 

Equity acquisitions

C32x

Net acquisition of financial assets other than cash

2322

 

Equity disposals and sale of equity

C32x

Net acquisition of financial assets other than cash

24

 

Cash flows from investments in financial assets for liquidity management purposes

NFB

Net cash inflow from financing activities

241

Increase in investments

NFB

Net cash inflow from financing activities

2411

Increase in investments

NFB

Net cash inflow from financing activities

25

Cash flows from financing

NFB

Net cash inflow from financing activities

251

Advances received (net)

NFB

Net cash inflow from financing activities

2511

Gross Advances received - concessional loans

NFB

Net cash inflow from financing activities

2512

Advances received other than concessional loans

NFB

Net cash inflow from financing activities

2513

Advances repaid

NFB

Net cash inflow from financing activities

252

Borrowing (net)

NFB

Net cash inflow from financing activities

2521

Borrowing (net)

NFB

Net cash inflow from financing activities

253

Deposits received (net)

NFB

Net cash inflow from financing activities

2531

Increase in deposits received

NFB

Net cash inflow from financing activities

259

Other financing (net)

NFB

Net cash inflow from financing activities

2599

Other financing not elsewhere classified (net)

NFB

Net cash inflow from financing activities

26

Increase / (decrease) in cash held

NCB

Net change in the stock of cash

261

Increase / (decrease) in cash held

NCB

Net change in the stock of cash

2611

Increase / (decrease) in cash held

NCB

Net change in the stock of cash

Transactions in financial assets and liabilities

17.19.

Australia’s GFS system covers essentially the same conceptual categories for transactions in financial assets and liabilities that are included in the IMF at the lower classification levels, with the only differences being in the structural headings of the ABS classification. Table 17.5 lists the transactions in financial assets and liabilities classification items in the IMF GFSM 2014 and those in the Australian GFS system that correspond to the IMF items.

Table 17.5 - Comparison of transactions in financial assets and liabilities classifications in the AGFS15 and the IMF GFSM 2014

ETF Codes

AGFS15 Descriptor

IMF Codes

IMF GFSM 2014 Descriptor

 

3

Transactions in financial assets and liabilities

32

33

Financial assets

Liabilities

31

Transactions in financial assets (net)

32

Financial assets

311

Transactions in financial assets (net)

32

Financial assets

3111

Transactions in financial assets (net)

32

Financial assets

32

Transactions in liabilities (net)

33

Liabilities

321

Transactions in liabilities (net)

33

Liabilities

3211

Transactions in liabilities (net)

33

Liabilities

Transactions in non-financial assets (excluding depreciation)

17.20.

Australia’s GFS system covers essentially the same conceptual categories for transactions in non-financial assets that are included in the IMF at the lower classification levels, with the only differences being in the structural headings of the ABS classification. Table 17.6 lists the transactions in non-financial asset classification items in the IMF GFSM 2014 and those in the Australian GFS system that correspond to the IMF items.

Table 17.6 - Comparison of transactions in non-financial asset classifications in the AGFS15 and the IMF GFSM 2014

ETF Codes

AGFS15 Descriptor

IMF Codes

IMF GFS 2014 Descriptor

 

4

Transactions in non-financial assets

31

Non-financial assets

41

Acquisitions of non-financial assets

31

Non-financial assets

411

Acquisitions of non-financial assets

31

Non-financial assets

4111

Change in inventories

312

Inventories

4112

Acquisitions of non-financial assets under new finance leases

31

Non-financial assets

4113

Own-account capital formation

3M1

Own-account capital formation

4114

Acquisitions of other new non-financial assets

31

Non-financial assets

4115

Acquisitions of second-hand non-financial assets

31

Non-financial assets

4116

Costs of ownership transfer on non-produced assets other than land

31133

Costs of ownerships transfer on non-produced assets other than land

42

Disposals of non-financial assets

31

Non-financial assets

421

Disposals of non-financial assets

31

Non-financial assets

4211

Disposals of non-financial assets (excluding depreciation)

31

Non-financial assets

4212

Reductions in non-financial assets due to depreciation

31

Non-financial assets

Other economic flows of assets and liabilities

17.21.

The IMF system includes a statement of other economic flows which is not required in the Australian system because the items are recorded in the columns for holding gains and losses and other changes in the volume of assets in the Australian statement of stocks and flows. The Australian GFS items corresponding to items in the IMF statement of other economic flows are shown in Table 17.7. As can be seen, Australia’s GFS system covers essentially the same conceptual categories that are included in the IMF at the lower classification levels, with the only differences being in the structural headings of the ABS classification.

Table 17.7 - Comparison of other economic flow classifications in the AGFS15 and the IMF GFSM 2014

ETF Codes

AGFS15 Descriptor

IMF Codes

IMF GFSM 2014 Descriptor

5

Other economic flows of assets and liabilities

41

42

43

Non-financial assets

Financial assets

Liabilities

51

Holding gains and losses (revaluations)

41

42

43

Non-financial assets

Financial assets

Liabilities

511

Holding gains and losses (revaluations)

41

42

43

Non-financial assets

Financial assets

Liabilities

5111

Holding gains and losses on financial assets

42

Financial assets

5112

Holding gains and losses on non-financial assets

41

Non-financial assets

5113

Holding gains and losses on liabilities

43

Liabilities

512

Change in net worth due to holding gains and losses

4

Net worth and its changes

5121

Change in net worth due to holding gains and losses

4

Net worth and its changes

52

Other changes in volume

51

52

53

Non-financial assets

Financial assets

Liabilities

521

Other changes in volume

51

52

53

Non-financial assets

Financial assets

Liabilities

5211

Other changes in volume of financial assets

52

Financial assets

5212

Other changes in volume of-non-financial assets

51

Non-financial assets

5213

Other changes in volume of liabilities

53

Liabilities

522

Change in net worth due to other changes in volume

5

Net worth and its changes

5221

Changes in net worth due to other changes in volume

5

Net worth and its changes

17.22.

Intra-unit transfers (ETF 6) are used exclusively by ABS compilers and hence are not discussed here.

Supplementary information

17.23.

In Australia, extra supporting information is collected for national accounting purposes. This supplementary information includes salary detail on sacrifice expenses and a detailed breakdown of own-account capital formation. The Australian GFS items corresponding to supplementary information in the IMF GFS system are shown in Table 17.7.

Table 17.8 - Comparison of supplementary information classifications in the AGFS15 and the IMF GFSM 2014

ETF Codes

AGFS15 Descriptor

IMF Codes

IMF GFSM 2014 Descriptor

7

Supplementary information

3M1

Own-account capital formation

71

Memorandum items - balance sheet

6M391

6M392

 

6M5

6M6

6M81

Concessional loans at nominal value

Implicit transfers resulting from loans at concessional interest rates

Arrears

Explicit contingent liabilities

Non-performing loans at fair value

711

Implicit transfers

6M392

Implicit transfers resulting from loans at concessional interest rates

7111

Implicit transfers receivable from concessional loans

6M392

Implicit transfers resulting from loans at concessional interest rates

7112

Implicit transfers payable due to concessional loans

6M392

Implicit transfers resulting from loans at concessional interest rates

712

Liabilities in arrears and related charges

6M5

Arrears

7121

Total arrears

6M5

Arrears

7122

Interest on arrears

6M5

Arrears

713

Non-performing loans

6M8

Non-performing loan assets at fair value

7131

Non-performing loans at market value

6M8

Non-performing loan assets at fair value

72

Contingent liabilities

6M6

Explicit contingent liabilities

721

Explicit contingent liabilities

6M6

Explicit contingent liabilities

7211

Loan and other debt instrument guarantees

6M61

Public guaranteed debt

7212

Other one-off guarantees

6M62

Other one-off guarantees

7213

Legal claims

6M63

Explicit contingent liabilities not elsewhere classified

7214

Indemnities

6M63

Explicit contingent liabilities not elsewhere classified

7215

Uncalled share capital

6M63

Explicit contingent liabilities not elsewhere classified

7219

Explicit contingent liabilities not elsewhere classified

6M63

Explicit contingent liabilities not elsewhere classified

722

Implicit contingent liabilities

6M7

Net implicit obligations for social security benefits

7221

Present value of implicit obligations for future social security benefits

6M7

Net implicit obligations for social security benefits

7229

Other implicit contingent liabilities not elsewhere classified

6M7

Net implicit obligations for social security benefits

73

Provisions for doubtful debts

None

No IMF equivalent

731

Provisions for doubtful debts

None

No IMF equivalent

7311

Provisions for doubtful debts

None

No IMF equivalent

74

Debt maturity

6M3

Gross debt at market value

741

Debt by maturity valued at market value

6M3

Gross debt at market value

7411

 

Short-term debt by original maturity valued at market value

63.1

Short-term, by original maturity (Debt instruments)

7412

 

Long term debt with payment due within one year or less valued at market value

63.2

Long-term by original maturity with payment due in one year or less

7413

Long term debt with payment due in more than one year valued at market value

63.3

Long-term by original maturity with payment due in more than one year

75

Salary sacrifice expenses

33082

Miscellaneous other accounts payable

751

Salary sacrifice expenses

33082

Miscellaneous other accounts payable

7511

Salary sacrifice expenses – superannuation

33082

Miscellaneous other accounts payable

7519

 

Salary sacrifice expenses not elsewhere classified

33082

Miscellaneous other accounts payable

76

Own-account capital formation

3M1

Own-account capital formation

761

Own-account superannuation payments

3M1

Own-account capital formation

7611

 

Own-account actual employers’ contributions - defined contribution scheme

3M11

Compensation of employees

7612

 

Own-account actual employers’ contributions - defined benefit scheme

3M11

Compensation of employees

7613

 

Own-account imputed employers’ contributions – defined benefit scheme

3M11

Compensation of employees

762

Own-account employee payments other than superannuation

3M11

Compensation of employees

7621

Own-account wages, salaries and supplements in cash

3M11

Compensation of employees

7622

Own-account wages and salaries in kind

3M11

Compensation of employees

7623

 

Own-account salary sacrifice payments – superannuation

3M11

Compensation of employees

7624

 

Own-account salary sacrifice payments –  items other than superannuation

3M11

Compensation of employees

7625

 

Own-account Fringe Benefits Tax (FBT) payments

3M11

Compensation of employees

7626

 

Own-account workers’ compensation payments

3M11

Compensation of employees

7629

 

Own-account employee payments not elsewhere classified

3M11

Compensation of employees

763

Own-account non-employee payments

3M1

Own-account capital formation

7631

Own-account use of goods and services

3M1

Own-account capital formation

7632

Own-account depreciation of fixed produced assets

3M1

Own-account capital formation

7633

 

Own-account taxes on production less other subsidies on production

3M1

Own-account capital formation

7639

 

Own-account other non-employee e payments not elsewhere classified

3M1

Own-account capital formation

Extra detail recorded in the ABS GFS supporting information

17.24.

Unlike some other countries, Australian GFS is not derived from the national accounts, but feeds into the national accounts as a separate statistical stream in its own right. The ABS compiles GFS for the general government sector and the total public sector and their subsectors (public non-financial corporations and public financial corporations). In addition to feeding into the national accounts, the ABS also publish separate quarterly and annual GFS.

17.25.

In order to enhance domestic fiscal analysis and meet its national accounting obligations, the ABS has extended the GFS supporting information to include:

  • Salary sacrifice expenses; and
  • Own-account capital formation.

Salary sacrifice expenses

17.26.

The first extension to the ABS GFS supporting information concerns the recording of salary sacrifice expenses. Paragraph 7.47 of the 2008 SNA describes salary sacrifice as benefits (such as a motor vehicle or extra pension contributions) that may be purchased by an employee from an employer by foregoing some salary with the purpose of utilising the tax advantages connected to doing so.

17.27.

In order to provide more complete measurements of wages and salaries for the distribution of income account in the Australian national accounts, the ABS GFS records salary sacrifice expenses in the context of public sector employment related pensions (known as superannuation in Australia) and also in the context of items other than superannuation as part of other public sector employee expenses in the statement of operations input classification (see Appendix 1 Part B of this manual for further information).

Own-account capital formation

17.28.

Another extension to the ABS GFS supporting information is the detailed breakdown of own account capital formation. Own-account capital formation is the production of goods and services by a unit for their own use, often involving the construction of non-financial assets using a public sector unit's own materials, labour, and expertise.

17.29.

In order to provide better measurements of compensation of employees for the income account, the production account, and for the capital account in the national accounts, the ABS GFS records the value of payments relating to own-account capital formation as part of the supporting information (ETF 7) in the context of own-account superannuation expenses; own-account employee expenses other than superannuation expenses; and own-account non-employee expenses.

The balance sheet

17.30.

In both the IMF and the ABS GFS systems, information in each of the asset categories and the liabilities categories can be further disaggregated according to types of assets and liabilities. All of the concepts in the IMF balance sheet have a corresponding item in Australia's GFS system. Table 17.9 compares the ABS and IMF balance sheet classifications.

Table 17.9 - Comparison of balance sheet classifications in the ABS and the IMF GFS

ETF Codes

AGFS15 Descriptor

IMF Codes

IMF GFSM 2014 Descriptor

8

Balance sheet

3

31

32

33

Net worth and its changes

Non-financial assets

Financial assets

Liabilities

81

Fixed produced assets

31

Non-financial assets

82

Other produced assets

31

Non-financial assets

83

Non-produced assets

31

Non-financial assets

84

Financial assets

32

Financial assets

85

Liabilities

33

Liabilities

86

Net worth

3

Net worth and its changes

Concessional debt as part of the core GFS

17.31.

Concessional debt is comprised of loans that are extended by public sector units to other units, with the contractual interest rate or other condition set intentionally below the market interest rate or condition. Australian GFS includes the value of advances in the form of concessional debt as part of financial assets and liabilities separately in the balance sheet, but no imputations are made for the concessional element. The revaluation and concession element are not distinguished although the concessional element is disclosed as a memorandum item. The IMF GFSM 2014 records both the concessional debt and the implicit transfer or concessional element as memorandum items. The concessional loan is recorded together with other debt in the core balance sheet.

17.32.

For further information on the treatment of concessional debt in the GFS system, see Chapter 8, Chapter 10, Chapter 13, and Appendix 1 Part A of this manual.

Financial derivatives

17.33.

Australian GFS recognises financial derivatives as debt instruments. A financial derivative is a financial instrument that is linked to another specific financial instrument, indicator or commodity, and through which specific financial risks (such as interest rate risk, foreign exchange risk, equity and commodity price risks, credit risk, and so on) can be traded in their own right in financial markets. Although the IMF GFSM 2014 recognises financial derivatives as financial assets and liabilities it does not classify them as debt instruments. Paragraph 7.237 states that financial derivatives are not debt instruments because they do not supply funds or other resources, but rather shift the exposure to risks from one party to another.

Valuation of financial assets and liabilities at current market value

17.34.

The Australian GFS differs from the IMF GFSM 2014 in the valuation of all financial assets and liabilities at current market values. The IMF GFSM 2014 values debt instruments at the nominal value. Market value is conceptually equal to the required future payments of principal and contractual interest discounted at the existing market yield. For further information on the valuation of financial assets and liabilities in the GFS system, see Chapter 8, Chapter 10, Chapter 13, and Appendix 1 Part A of this manual.