Media Release

Australian Government General Government Sector Monthly Financial Statements September 2018

MC 70/18

Senator the Hon. Mathias Cormann
Minister for Finance and the Public Service
Leader of the Government in the Senate
Senator for Western Australia

25 October 2018

KEY POINTS

  • The underlying cash balance for the 2018-19 financial year to 30 September 2018 was a deficit of $10,525 million.
  • The fiscal balance for the 2018-19 financial year to 30 September 2018 was a deficit of $10,149 million.
AGGREGATES

ACTUAL
2018-2019
September
$m
ACTUAL
2018-2019
YTD September
$m
Budget Profile
2018-2019
YTD September
$m
BUDGET ESTIMATE*
2018-2019
Full Year
$m
Revenue 31,157 107,460 101,521 486,141
Expenses 36,603 117,834 121,543 488,584
Net operating balance -5,446 -10,373 -20,022 -2,443
Net capital investment 161 -224 1,392 4,989
Fiscal balance -5,607 -10,149 -21,414 -7,431
Receipts(a) 32,202 107,574 100,880 473,745
less Payments(b) 36,721 116,798 119,515 484,648
less Net Future Fund earnings 473 1,302 891 3,559
Underlying cash balance(c) -4,991 -10,525 -19,526 -14,462
Headline cash balance -5,618 -12,585 -22,111 -27,562
Total assets   560,442   567,956
Total liabilities   986,433   905,565
Net worth(d)   -425,991   -337,609
Net debt(e)   350,887   349,851

*As published in the 2018-19 Budget.
(a) Cash receipts for operating activities and sales of non-financial assets.(b) Cash payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases.(c) Excludes net Future Fund earnings. Consistent with Budget documents, the net adjustment for the Future Fund is shown separately.(d) Net worth is calculated as total assets minus total liabilities.(e) Net debt equals the sum of interest bearing liabilities (deposits held, government securities, loans and other borrowing), minus the sum of cash and deposits, advances paid, and investments, loans and placements.

Care needs to be taken when comparing monthly or cumulative data across years and to full-year estimates, as revenue and expenses vary from month to month.

 

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 30 September 2018 was a deficit of $10,525 million, which is $9,001 million lower than the 2018-19 Budget profile deficit of $19,526 million.

  • Receipts
    Total receipts were $6,694 million higher than the 2018-19 Budget profile.
  • Payments
    Total payments were $2,717 million lower than the 2018-19 Budget profile.

Net Operating Balance

The net operating balance for the year to 30 September 2018 was a deficit of $10,373 million, which is $9,649 million better than the 2018-19 Budget profile deficit of
$20,022 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 30 September 2018 was a deficit of $10,149 million, which is $11,264 million better than the 2018-19 Budget profile deficit of $21,414 million. As with the net operating balance, the difference primarily results from higher than expected revenue, lower expenses and lower net capital investments.

Assets and Liabilities

As at 30 September 2018:
• Net worth is negative $425,991 million;
• Net debt is $350,887 million; and
• Net financial liabilities are $629,062 million.

Senator the Hon. Mathias Cormann
Minister for Finance and the Public Service
Rosemary Huxtable PSM
Secretary
Department of Finance
Media Contact  
Karen Wu      0428 350 139



Australian Government general government sector operating statement

 NoteACTUAL
2018-2019
September
$m
ACTUAL
2018-2019
YTD September
$m
Budget Profile
2018-2019
YTD September
$m
BUDGET ESTIMATE*
2018-2019
Full Year
$m
Revenue          
Taxation revenue 1, 2 28,511 99,608 93,612 452,001
Sales of goods and services   1,089 3,267 3,525 14,490
Interest income   413 936 1,062 4,442
Dividend income   466 1,278 767 4,126
Other   679 2,371 2,555 11,082
Total revenue   31,157 107,460 101,521 486,141
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,549 4,899 4,988 20,411
Superannuation   510 1,839 1,790 6,022
Depreciation and amortisation   634 2,134 2,261 9,023
Supply of goods and services   9,613 27,792 29,586 119,633
Other operating expenses(a)   530 1,507 1,545 6,045
Total gross operating expenses   12,836 38,171 40,169 161,134
Superannuation interest expense   806 2,419 2,445 10,648
Interest expenses   1,447 4,477 4,653 19,045
Current transfers          
Current grants   10,051 35,796 36,304 149,042
Subsidy expenses   962 2,857 2,938 12,055
Personal benefits   10,243 33,334 33,550 126,429
Total current transfers   21,255 71,988 72,793 287,525
Capital transfers          
Mutually agreed write-downs   98 360 371 1,494
Other capital grants   161 418 1,112 8,738
Total capital transfers   259 778 1,483 10,232
Total expenses 3 36,603 117,834 121,543 488,584
Net operating balance   -5,446 -10,373 -20,022 -2,443
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -353 -1,313 -1,911 -8,867
Assets recognised for the first time   17 50 50 200
Actuarial revaluations   6 17 10 41
Net foreign exchange gains   240 -576 0 130
Net swap interest received   -91 -218 0 0
Market valuation of debt   5,576 2,281 385 1,315
Other gains/(losses)   -2,890 1,865 1,285 3,633
Total other economic flows          
- included in operating result   2,504 2,106 -181 -3,547
Operating result (b)   -2,942 -8,267 -20,203 -5,990
Non-owner movements in equity          
Revaluation of equity investments   414 1 -40 -6,091
Actuarial revaluations   0 0 0 81
Other economic revaluations   488 411 4,450 -377
Total other economic flows - included in equity   902 412 4,410 -6,387
Comprehensive result - Total change in net worth   -2,040 -7,855 -15,793 -12,377
Net operating balance   -5,446 -10,373 -20,022 -2,443
Net acquisition of non-financial assets          
Purchases of non-financial assets   848 2,032 3,208 14,222
less Sales of non-financial assets   17 36 75 287
less Depreciation   634 2,134 2,261 9,023
plus Change in inventories   -26 -113 505 75
plus Other movements in non-financial assets   -10 27 14 1
Total net acquisition of non-financial assets   161 -224 1,392 4,989
Fiscal balance (Net lending/borrowing)(c)   -5,607 -10,149 -21,414 -7,431

*As published in the 2018-19 Budget.
(a) Consistent with Australian Bureau of Statistics' (ABS) Government Finance Statistics (GFS) classification, other employee related expenses are reported under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.
(b) Operating result under Australian Accounting Standards.
(c) The term fiscal balance is not used by the ABS.



Australian Government general government sector balance sheet

 ACTUAL
as at
30 September 2018
$m
BUDGET ESTIMATE*
as at
30 June 2019
$m
Assets    
Financial assets    
Cash and deposits 5,884 5,875
Advances paid 58,541 73,041
Investments, loans and placements 184,263 183,513
Other receivables 54,111 55,983
Equity investments    
Investments in other public sector entities 58,564 51,976
Equity accounted investments 144 331
Investments - shares 54,428 51,928
Total financial assets 415,936 422,648
Non-financial assets    
Land 11,619 10,650
Buildings 26,515 26,622
Plant, equipment and infrastructure 78,138 78,346
Inventories 8,497 7,874
Intangibles 7,855 9,819
Investment property 26 159
Biological assets 32 54
Heritage and cultural assets 11,605 11,636
Assets held for sale 160 85
Other non-financial assets 59 62
Total non-financial assets 144,507 145,308
Total assets 560,442 567,956
Liabilities    
Interest bearing liabilities    
Deposits held 346 218
Government securities 580,692 594,437
Loans 17,017 16,090
Other borrowing 1,519 1,534
Total interest bearing liabilities 599,575 612,280
Provisions and payables    
Superannuation liability(a) 315,514 223,564
Other employee liabilities 20,250 18,902
Suppliers payables 6,672 8,203
Personal benefits payables 3,441 3,038
Subsidies payables 595 1,114
Grants payables 2,340 3,072
Other payables 2,618 2,236
Provisions 35,428 33,157
Total provisions and payables 386,858 293,285
Total liabilities 986,433 905,565
Net worth(b) -425,991 -337,609
Net financial worth(c) -570,497 -482,917
Net financial liabilities(d) 629,062 534,893
Net debt(e) 350,887 349,851

*As published in the 2018-19 Budget.
(a) For budget reporting purposes, a discount rate applied by actuaries in preparing Long Term Cost Reports is used to value the superannuation liability. This reduces the volatility in reported liabilities that would occur from year to year if the long-term government bond rate were used. Consistent with Australian Accounting Standards, the long-term government bond rate as at 30 June, that best matches each individual scheme's liability duration, is used to calculate the superannuation liability for the purpose of actuals reporting.
(b) Net worth is calculated as total assets minus total liabilities.
(c) Net financial worth equals total financial assets minus total liabilities.
(d) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(e) Net debt equals the sum of interest bearing liabilities (deposits held, government securities, loans and other borrowing), minus the sum of cash and deposits, advances paid, and investments, loans and placements.



Australian Government general government sector cash flow statement (a)

 ACTUAL
2018-2019
September
$m
ACTUAL
2018-2019
YTD September
$m
Budget Profile
2018-2019
YTD September
$m
BUDGET ESTIMATE*
2018-2019
Full Year
$m
Cash receipts from operating activities        
Taxes received 29,712 98,028 91,593 440,480
Receipts from sales of goods and services 711 3,012 3,440 14,551
Interest receipts 292 1,100 821 4,257
Dividends and income tax equivalents 546 2,007 1,004 3,970
Other receipts 929 3,399 3,947 9,767
Total operating receipts 32,189 107,547 100,805 473,026
Cash payments for operating activities        
Payments for employees -2,228 -6,613 -7,433 -29,718
Payments for goods and services -9,298 -29,225 -30,222 -117,209
Grants and subsidies paid -11,287 -39,961 -41,094 -169,900
Interest paid -2,380 -3,027 -1,790 -18,749
Personal benefit payments -10,297 -34,004 -34,115 -129,372
Other payments -323 -1,537 -1,612 -5,717
Total operating payments -35,813 -114,366 -116,266 -470,664
Net cash flows from operating activities -3,624 -6,820 -15,461 2,362
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets 13 28 75 720
Purchases of non-financial assets -908 -2,430 -3,249 -13,984
Net cash flows from investments in
    non-financial assets
-895 -2,402 -3,174 -13,265
Net cash flows from investments in
    financial assets for policy purposes
-1,099 -3,361 -3,476 -16,659
Cash flows from investments in
    financial assets for liquidity purposes
       
Increase in investments -4,683 6,289 6,788 1,359
Net cash flows from investments in
    financial assets for liquidity purposes
-4,683 6,289 6,788 1,359
Cash flows from financing activities        
Borrowing (net) 5,641 5,810 15,184 29,358
Other financing (net) 180 -411 -372 -2,643
Net cash flows from financing activities 5,821 5,399 14,812 26,715
Net increase/(decrease) in cash held -4,480 -894 -511 512
GFS cash surplus(+)/deficit(-)(b) -4,519 -9,222 -18,635 -10,903
less Finance leases and similar arrangements(c) 0 2 0 0
less Net Future Fund earnings 473 1,302 891 3,559
Equals underlying cash balance(d) -4,991 -10,525 -19,526 -14,462
plus Net cash flows from investments in
    financial assets for policy purposes
-1,099 -3,361 -3,476 -16,659
plus Net Future Fund earnings 473 1,302 891 3,559
Equals headline cash balance -5,618 -12,585 -22,111 -27,562

*As published in the 2018-19 Budget.
(a) A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(c) The acquisition of assets under finance leases worsens the underlying cash balance. The disposal of assets previously held under finance leases improves the underlying cash balance.
(d) The term underlying cash balance is not used by the Australian Bureau of Statistics.



Note 1: Income Tax

 ACTUAL
2018-2019
September
$m
ACTUAL
2018-2019
YTD September
$m
Budget Profile
2018-2019
YTD September
$m
BUDGET ESTIMATE*
2018-2019
Full Year
$m
Individuals and other withholding taxes        
Gross income tax withholding 16,613 50,810 50,079 203,800
Gross other individuals 1,642 10,175 10,095 49,600
less Refunds 3,277 15,520 16,083 30,500
Total individuals and other withholding taxation 14,977 45,465 44,092 222,900
Fringe benefits tax -50 837 918 4,310
Company tax 6,274 21,806 17,496 91,200
Superannuation fund taxes 602 3,010 2,717 10,360
Petroleum resource rent tax -59 205 333 1,420
Total income taxation revenue 21,744 71,324 65,555 330,190

*As published in the 2018-19 Budget.



Note 2: Indirect Tax

 ACTUAL
2018-2019
September
$m
ACTUAL
2018-2019
YTD September
$m
Budget Profile
2018-2019
YTD September
$m
BUDGET ESTIMATE*
2018-2019
Full Year
$m
Goods and services tax 3,377 16,039 16,159 70,310
Wine equalisation tax 76 219 213 1,010
Luxury car tax 54 177 179 740
Excise duty 1,813 5,757 5,644 23,120
Customs duty 818 3,951 3,648 16,500
Other indirect tax 629 2,141 2,214 10,131
Total indirect taxation revenue 6,766 28,284 28,057 121,811

*As published in the 2018-19 Budget.



Note 3: Total expenses by function

 ACTUAL
2018-2019
September
$m
ACTUAL
2018-2019
YTD September
$m
BUDGET ESTIMATE*
2018-2019
Full Year
$m
Expenses by function      
General public services 1,729 8,551 23,065
Defence 2,838 7,314 31,215
Public order and safety 432 1,448 5,324
Education 1,729 8,263 34,736
Health 6,019 16,685 78,825
Social security and welfare 13,168 43,301 175,971
Housing and community amenities 336 900 5,382
Recreation and culture 106 732 3,638
Fuel and energy 617 1,763 7,541
Agriculture, Forestry and Fishing 207 542 3,070
Mining, manufacturing and construction 236 719 3,260
Transport and communication 433 861 9,062
Other economic affairs 824 2,328 9,471
Other purposes      
Public debt interest 1,421 4,363 17,811
Nominal superannuation interest 806 2,419 10,648
General purpose inter-government transactions 5,701 17,642 69,446
Natural disaster relief 0 0 17
Contingency reserve 0 0 101
Total expenses 36,603 117,834 488,584

*As published in the 2018-19 Budget.

 

NOTES: 

Australian Accounting Standard 1049

The Australian Government monthly financial statements have been prepared on a basis consistent with the Budget as required under section 47 of the Public Governance, Performance and Accountability Act 2013. The statements are prepared in accordance with the Australian Accounting Standards Board 1049 – Whole of Government and General Government Sector Financial Reporting (AASB 1049), which require treatment based on the Australian Bureau of Statistics’ (ABS) Government Finance Statistics (GFS) except where Australian Accounting Standards (AAS) provide a better conceptual treatment for specific items. Departures are limited to complying with either ABS GFS or AAS.

Taxation revenue

While total tax collections are known with certainty at the end of each month, the distribution across the relevant heads of revenue cannot be finalised until all business activity statements are received and processed. The outcomes for some revenue items provided in this statement are therefore estimates, in accordance with the best judgement of the Commissioner of Taxation, and subject to revision. The taxation revenue items not affected are: petroleum resource rent tax, excise duty, customs duty, other taxes and individuals refunds.

Style conventions

Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components are due to rounding..

International Monetary Fund Special Data Dissemination Standards

The Government is committed to releasing the monthly financial statements in a timely fashion and will endeavour to do so in accordance with International Monetary Fund (IMF) Special Data Dissemination Standards (SDDS). Under these standards the timeframe for releasing the monthly financial statements is by the end of the following month. Australia applies a special flexibility option which allows it to publish late the last and first month of a financial year.

In accordance with the IMF SDDS, the approximate date of release of the data on debt guaranteed by the Australian Government (central government), is given on the IMF’s Data Dissemination Advance Release Calendar http://dsbb.imf.org . Monthly and quarterly data on debt guaranteed by the Australian Government (central government) that meet the coverage and timeliness requirements of the SDDS are published on the Australian Office of Financial Management website at https://aofm.gov.au/cgs-quarterly/.

Electronic access to monthly financial statements 

The Australian Government general government sector monthly financial statements and the historical series are available in electronic format at: https://data.gov.au/dataset/australian-government-general-government-sector-monthly-financial-statements-tables-and-data.

[ENDS]

Media Contact(s): 

Karen Wu - 0428 350 139

Senator the Hon Mathias Cormann, Minister for Finance and the Public Service, Perth