Part B - Relationship to the IMF GFSM 2014

Latest release

Australian System of Government Finance Statistics: Concepts, Sources and Methods

Reference period

2015

Released

23/12/2015

Next release Unknown

17.3.

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

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;
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;
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;
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;
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;
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.
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.
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 Statement	Corresponding IMF GFSM 2014 Statement
The statement of operations	The statement of operations
The statement of sources and uses of cash	The statement of sources and uses of cash
The statement of stocks and flows	The statement of other economic flows
The balance sheet	The balance sheet
The statement of total changes in net worth	The statement of total changes in net worth
The statement of contingent liabilities	The 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.

APA