The Australian Government general government sector recorded an underlying cash surplus of $13.6 billion (1.6 per cent of GDP) in 2004-05.
The surplus is $4.4 billion higher than expected at the time of the 2005-06 Budget principally because total cash payments were around $3.5 billion (1.8 per cent) lower than expected. This is due mainly to a lower than expected take up of grant and subsidy payments across a range of programmes ($1.3 billion). Also contributing to the underspends were delays in contract negotiations and delivery of goods and services ($0.5 billion), lower wages and salary payments ($0.5 billion), and the rejection by the Tasmanian and South Australian governments of an offer to extinguish state rail superannuation liabilities ($0.4 billion).
Total cash receipts were around $0.9 billion (0.4 per cent) higher than estimated at the 2005 06 Budget. This was predominately due to higher than expected company tax receipts, reflecting stronger company profits flowing from very high commodity prices.
An accrual fiscal surplus of $10.8 billion was recorded for 2004-05. This is $3.8 billion higher than estimated at the time of the 2005 06 Budget.
General government net debt fell by $11.9 billion in 2004-05 to $11.5 billion (1.3 per cent of GDP), the lowest level in 28 years.
An electronic version of the 2004-05 Final Budget Outcome document can be found at: http://www.budget.gov.au/