Media Release

Australian Government General Government Sector Monthly Financial Statements December 2018

MC 09/19

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

1 February 2019

KEY POINTS

  • The underlying cash balance for the 2018-19 financial year to 31 December 2018 was a deficit of $13,378 million.
  • The fiscal balance for the 2018-19 financial year to 31 December 2018 was a deficit of $4,998 million.
AGGREGATES

ACTUAL
2018-2019
December
$m
ACTUAL
2018-2019
YTD December
$m
MYEFO Profile
2018-2019
YTD December
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Revenue 40,511 234,771 233,100 493,288
Expenses 40,803 238,370 239,770 488,363
Net operating balance -292 -3,599 -6,670 4,926
Net capital investment 821 1,399 1,569 6,826
Fiscal balance -1,113 -4,998 -8,239 -1,901
Receipts(a) 39,560 229,785 228,878 482,084
less Payments(b) 39,719 239,915 240,644 483,370
less Net Future Fund earnings 722 3,248 3,194 3,886
Underlying cash balance(c) -881 -13,378 -14,960 -5,172
Headline cash balance -1,527 -17,054 -19,357 -18,329
Total assets   557,635   580,554
Total liabilities   994,095   901,307
Net worth(d)   -436,460   -320,753
Net debt(e)   359,934   351,948

*As published in the 2018-19 MYEFO.
(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.

Comparators for the December 2018 monthly financial statements are based on the 2018-19 Mid-Year Economic and Fiscal Outlook (MYEFO) published in December 2018.

 

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 31 December 2018 was a deficit of $13,378 million, which is $1,581 million lower than the 2018-19 MYEFO profile deficit of $14,960 million.

  • Receipts
    Total receipts were $907 million higher than the 2018-19 MYEFO profile.
  • Payments
    Total payments were $729 million lower than the 2018-19 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 31 December 2018 was a deficit of $3,599 million, which is $3,071 million better than the 2018-19 MYEFO profile deficit of $6,670 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 December 2018 was a deficit of $4,998 million, which is $3,241 million better than the 2018-19 MYEFO profile deficit of $8,239 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 31 December 2018:
• net worth is negative $436,460 million;
• net debt is $359,934 million; and
• net financial liabilities are $641,601 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
December
$m
ACTUAL
2018-2019
YTD December
$m
MYEFO Profile
2018-2019
YTD December
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 37,580 217,765 216,297 457,997
Sales of goods and services   975 6,275 6,268 14,024
Interest income   367 2,192 2,127 4,810
Dividend income   659 3,192 3,189 4,648
Other   929 5,347 5,218 11,809
Total revenue   40,511 234,771 233,100 493,288
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,626 9,918 10,085 20,551
Superannuation   586 3,633 3,863 9,291
Depreciation and amortisation   670 4,265 4,308 8,606
Supply of goods and services   10,890 57,548 57,787 118,012
Other operating expenses(a)   600 3,439 3,343 6,677
Total gross operating expenses   14,371 78,803 79,386 163,136
Superannuation interest expense   806 4,839 4,806 9,446
Interest expenses   1,665 9,057 9,070 18,498
Current transfers          
Current grants   11,895 73,049 72,800 149,036
Subsidy expenses   968 5,760 5,755 11,491
Personal benefits   10,719 64,645 64,582 125,837
Total current transfers   23,582 143,454 143,137 286,364
Capital transfers          
Mutually agreed write-downs   71 665 667 1,450
Other capital grants   306 1,553 2,703 9,469
Total capital transfers   378 2,217 3,370 10,919
Total expenses 3 40,803 238,370 239,770 488,363
Net operating balance   -292 -3,599 -6,670 4,926
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   253 -5,581 -4,128 -8,202
Assets recognised for the first time   23 166 100 200
Actuarial revaluations   6 35 35 70
Net foreign exchange gains   -1,452 -1,376 64 -269
Net swap interest received   -7 -362 -355 -218
Market valuation of debt   -9,150 -8,606 -3,555 -2,282
Other gains/(losses)   -281 263 -4,771 7,491
Total other economic flows
   - included in operating result
  -10,608 -15,462 -12,610 -3,211
Operating Result (b)   -10,900 -19,061 -19,280 1,715
Non-owner movements in equity          
Revaluation of equity investments   0 1 265 -3,529
Actuarial revaluations   0 0 540 -5,794
Other economic revaluations   99 735 4,202 -76
Total other economic flows - included in equity   99 736 5,007 -9,399
Comprehensive result - Total change in net worth   -10,801 -18,325 -14,273 -7,685
Net operating balance   -292 -3,599 -6,670 4,926
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,459 5,731 5,935 15,556
less Sales of non-financial assets   11 72 88 285
less Depreciation   670 4,265 4,308 8,606
plus Change in inventories   22 -47 10 159
plus Other movements in non-financial assets   21 52 20 2
Total net acquisition of non-financial assets   821 1,399 1,569 6,826
Fiscal balance (Net lending/borrowing)(c)   -1,113 -4,998 -8,239 -1,901

*As published in the 2018-19 MYEFO.
(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
31 December 2018
$m
MYEFO ESTIMATE*
as at
30 June 2019
$m
Assets    
Financial assets    
Cash and deposits 8,420 5,849
Advances paid 62,010 72,662
Investments, loans and placements 176,912 174,371
Other receivables 55,613 54,623
Equity investments    
Investments in other public sector entities 59,040 56,251
Equity accounted investments 130 265
Investments - shares 49,409 66,355
Total financial assets 411,533 430,375
Non-financial assets    
Land 11,601 11,492
Buildings 26,421 27,078
Plant, equipment and infrastructure 79,591 81,751
Inventories 8,565 8,437
Intangibles 7,886 9,397
Investment properties 168 173
Biological assets 20 36
Heritage and cultural assets 11,602 11,599
Assets held for sale 162 181
Other non-financial assets 85 34
Total non-financial assets 146,101 150,178
Total assets 557,635 580,554
Liabilities    
Interest bearing liabilities    
Deposits held 376 381
Government securities 587,976 586,341
Loans 17,424 16,615
Other borrowing 1,501 1,493
Total interest bearing liabilities 607,276 604,830
Provisions and payables    
Superannuation liability(a) 317,685 223,589
Other employee liabilities 20,044 20,175
Suppliers payables 6,738 7,392
Personal benefits payables 2,911 3,359
Subsidies payables 385 508
Grants payables 1,913 3,710
Other payables 2,188 2,176
Provisions 34,954 35,568
Total provisions and payables 386,819 296,477
Total liabilities 994,095 901,307
Net worth(b) -436,460 -320,753
Net financial worth(c) -582,561 -470,932
Net financial liabilities(d) 641,601 527,182
Net debt(e) 359,934 351,948

*As published in the 2018-19 MYEFO.
(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 equals 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
December
$m
ACTUAL
2018-2019
YTD December
$m
MYEFO Profile
2018-2019
YTD December
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 37,177 211,410 210,865 447,645
Receipts from sales of goods and services 948 6,077 5,966 14,180
Interest receipts 265 2,060 2,068 4,397
Dividends and income tax equivalents 698 3,937 3,761 4,390
Other receipts 462 6,239 6,131 10,751
Total operating receipts 39,550 229,722 228,790 481,363
Cash payments for operating activities        
Payments for employees -1,990 -14,053 -14,660 -30,191
Payments for goods and services -10,454 -58,262 -58,014 -117,058
Grants and subsidies paid -13,559 -81,939 -82,658 -169,851
Interest paid -949 -10,056 -10,084 -18,385
Personal benefit payments -10,863 -66,573 -66,184 -126,483
Other payments -419 -3,208 -3,300 -6,286
Total operating payments -38,235 -234,091 -234,901 -468,255
Net cash flows from operating activities 1,315 -4,369 -6,111 13,108
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 10 63 88 720
Purchases of non-financial assets -1,484 -5,822 -5,743 -15,115
Net cash flows from investments in
   non-financial assets
-1,474 -5,759 -5,655 -14,395
Net cash flows from investments in
   financial assets for policy purposes
-1,368 -6,924 -7,592 -17,042
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -14 14,507 15,850 8,905
Net cash flows from investments in
   financial assets for liquidity purposes
-14 14,507 15,850 8,905
Cash flows from financing activities        
Borrowing (net) 1,056 5,836 7,600 11,254
Other financing (net) 436 -1,658 -1,728 -2,764
Net cash flows from financing activities 1,492 4,178 5,873 8,490
Net increase/(decrease) in cash held -49 1,634 2,365 -934
GFS cash surplus(+)/deficit(-)(b) -159 -10,128 -11,765 -1,286
less Finance leases and similar arrangements(c) 0 2 0 0
less Net Future Fund earnings 722 3,248 3,194 3,886
Equals underlying cash balance(d) -881 -13,378 -14,960 -5,172
plus Net cash flows from investments in
   financial assets for policy purposes
-1,368 -6,924 -7,592 -17,042
plus Net Future Fund earnings 722 3,248 3,194 3,886
Equals headline cash balance -1,527 -17,054 -19,357 -18,329

*As published in the 2018-19 MYEFO.
(a) A positive number denotes a cash inflow; a negative number 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
December
$m
ACTUAL
2018-2019
YTD December
$m
MYEFO Profile
2018-2019
YTD December
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 16,739 102,513 102,336 207,600
Gross other individuals 1,458 20,833 20,767 49,500
less Refunds 1,036 22,113 22,203 30,000
Total individuals and other withholding taxation 17,160 101,233 100,899 227,100
Fringe benefits tax 50 1,849 1,774 3,930
Company tax 8,712 46,393 46,001 94,500
Superannuation fund taxes 2,129 7,576 7,514 10,670
Petroleum resource rent tax -18 475 623 1,480
Total income taxation revenue 28,034 157,527 156,813 337,680

*As published in the 2018-19 MYEFO.

 

Note 2: Indirect Tax

 ACTUAL
2018-2019
December
$m
ACTUAL
2018-2019
YTD December
$m
MYEFO Profile
2018-2019
YTD December
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Goods and services tax 4,921 35,339 34,397 69,180
Wine equalisation tax 97 485 503 1,050
Luxury car tax 49 335 341 700
Excise duty 2,395 12,298 12,215 23,385
Customs duty 1,463 7,208 7,591 16,750
Other indirect tax 622 4,572 4,437 9,252
Total indirect taxation revenue 9,546 60,238 59,484 120,317

*As published in the 2018-19 MYEFO.

 

Note 3: Total expenses by function

 ACTUAL
2018-2019
December
$m
ACTUAL
2018-2019
YTD December
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Expenses by function      
General public services 1,249 13,328 26,193
Defence 3,405 15,733 30,594
Public order and safety 343 2,612 5,544
Education 2,635 17,246 35,170
Health 6,409 37,061 80,183
Social security and welfare 16,189 87,457 174,684
Housing and community amenities 469 2,102 5,647
Recreation and culture 273 1,724 3,949
Fuel and energy 609 3,671 7,716
Agriculture, forestry and fishing 150 1,079 3,196
Mining, manufacturing and construction 242 1,429 2,915
Transport and communication 379 1,991 8,455
Other economic affairs 796 4,694 10,039
Other purposes      
Public debt interest 1,457 8,670 17,235
Nominal superannuation interest 806 4,839 9,446
General purpose inter-government transactions 5,392 34,734 68,953
Natural disaster relief 0 0 153
Contingency reserve 0 0 -1,706
Total expenses 40,803 238,370 488,363

*As published in the 2018-19 MYEFO.

 

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 http://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:

http://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