29 September 2006

2005-06 Final Budget Outcome

The Australian Government general government sector recorded an underlying cash surplus of $15.8 billion (1.6 per cent of GDP) in 2005-06.
The surplus was $1.0 billion higher than expected at the time of the 2006-07 Budget because total cash payments were around $1.5 billion lower than expected. Cash receipts were $566 million lower than expected.

Payments for Cyclone Larry assistance were over-estimated. (Payments to 30 June 2006 were $173 million.) There were lower than anticipated payments to childcare providers as a result of 12 payments rather than 13 payments in the year. (This payment will move to 2006-07.) There were also a range of small underspends across other Government programmes.

Total cash receipts were around $0.6 billion lower than estimated at the 2006‑07 Budget. This was predominantly due to lower than expected company tax receipts, reflecting weaker than expected company tax wash-up payments for a number of small June balancing companies.

An accrual surplus of $14.8 billion was recorded for 2005-06.  This is $1.2 billion lower than estimated at the time of the 2006-07 Budget.

General government net debt fell by $17.7 billion in 2005-06 and net debt was eliminated. Net debt is at the lowest level in more than three decades.

General government net worth improved by $7.2 billion in 2005-06 to -$23.1 billion (-2.4 per cent of GDP).

An electronic version of the 2005-06 Final Budget Outcome document can be found at: http://www.budget.gov.au/