Media Release

Australian Government General Government Sector Monthly Financial Statements January 2019

MC 17/19

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

22 February 2019

KEY POINTS

  • The underlying cash balance for the 2018-19 financial year to 31 January 2019 was a deficit of $21,856 million.
  • The fiscal balance for the 2018-19 financial year to 31 January 2019 was a deficit of $13,625 million.
AGGREGATES

ACTUAL
2018-2019
January
$m
ACTUAL
2018-2019
YTD January
$m
MYEFO Profile
2018-2019
YTD January
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Revenue 34,744 269,515 268,099 493,288
Expenses 42,952 281,322 283,330 488,363
Net operating balance -8,208 -11,807 -15,231 4,926
Net capital investment 419 1,819 2,029 6,826
Fiscal balance -8,627 -13,625 -17,260 -1,901
Receipts(a) 32,254 262,039 261,911 482,084
less Payments(b) 39,334 279,249 282,141 483,370
less Net Future Fund earnings 1,398 4,646 4,581 3,886
Underlying cash balance(c) -8,478 -21,856 -24,811 -5,172
Headline cash balance -8,531 -25,584 -29,310 -18,329
Total assets   553,162   580,554
Total liabilities   999,910   901,307
Net worth(d)   -446,748   -320,753
Net debt(e)   373,417   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 January 2019 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 January 2019 was a deficit of $21,856 million, which is $2,955 million lower than the 2018-19 MYEFO profile deficit of $24,811 million.

  • Receipts
    Total receipts were $128 million higher than the 2018-19 MYEFO profile.
  • Payments
    Total payments were $2,892 million lower than the 2018-19 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 31 January 2019 was a deficit of $11,807 million, which is $3,424 million better than the 2018-19 MYEFO profile deficit of $15,231 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 January 2019 was a deficit of $13,625 million, which is $3,634 million better than the 2018-19 MYEFO profile deficit of $17,260 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 January 2019:
• net worth is negative $446,748 million;
• net debt is $373,417 million; and
• net financial liabilities are $652,528 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
January
$m
ACTUAL
2018-2019
YTD January
$m
MYEFO Profile
2018-2019
YTD January
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 31,008 248,773 247,686 457,997
Sales of goods and services   1,119 7,395 7,377 14,024
Interest income   369 2,561 2,508 4,810
Dividend income   1,339 4,531 4,509 4,648
Other   908 6,255 6,018 11,809
Total revenue   34,744 269,515 268,099 493,288
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,436 11,354 11,729 20,551
Superannuation   1,750 5,383 4,755 9,291
Depreciation and amortisation   662 4,927 5,037 8,606
Supply of goods and services   6,940 64,488 64,912 118,012
Other operating expenses(a)   421 3,860 3,866 6,677
Total gross operating expenses   11,209 90,012 90,299 163,136
Superannuation interest expense   671 5,510 5,579 9,446
Interest expenses   1,502 10,559 10,624 18,498
Current transfers          
Current grants   17,623 90,672 90,817 149,036
Subsidy expenses   977 6,737 6,713 11,491
Personal benefits   10,058 74,703 75,132 125,837
Total current transfers   28,658 172,112 172,662 286,364
Capital transfers          
Mutually agreed write-downs   88 753 773 1,450
Other capital grants   823 2,376 3,393 9,469
Total capital transfers   911 3,129 4,166 10,919
Total expenses 3 42,952 281,322 283,330 488,363
Net operating balance   -8,208 -11,807 -15,231 4,926
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -1,178 -6,925 -5,389 -8,202
Assets recognised for the first time   -61 105 117 200
Actuarial revaluations   6 41 41 70
Net foreign exchange gains   1,185 -192 64 -269
Net swap interest received   7 -356 -355 -218
Market valuation of debt   -2,983 -11,589 -3,319 -2,282
Other gains/(losses)   972 1,235 -1,402 7,491
Total other economic flows
   - included in operating result
  -2,053 -17,681 -10,243 -3,211
Operating Result (b)   -10,261 -29,488 -25,474 1,715
Non-owner movements in equity          
Revaluation of equity investments   0 1 256 -3,529
Actuarial revaluations   0 0 0 -5,794
Other economic revaluations   139 874 772 -76
Total other economic flows - included in equity   139 875 1,028 -9,399
Comprehensive result - Total change in net worth   -10,122 -28,613 -24,446 -7,685
Net operating balance   -8,208 -11,807 -15,231 4,926
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,097 6,828 7,120 15,556
less Sales of non-financial assets   4 75 101 285
less Depreciation   662 4,927 5,037 8,606
plus Change in inventories   -14 -60 25 159
plus Other movements in non-financial assets   1 54 21 2
Total net acquisition of non-financial assets   419 1,819 2,029 6,826
Fiscal balance (Net lending/borrowing)(c)   -8,627 -13,625 -17,260 -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 January 2019
$m
MYEFO ESTIMATE*
as at
30 June 2019
$m
Assets    
Financial assets    
Cash and deposits 7,507 5,849
Advances paid 62,540 72,662
Investments, loans and placements 168,053 174,371
Other receivables 56,951 54,623
Equity investments    
Investments in other public sector entities 59,302 56,251
Equity accounted investments 117 265
Investments - shares 52,214 66,355
Total financial assets 406,684 430,375
Non-financial assets    
Land 11,668 11,492
Buildings 26,443 27,078
Plant, equipment and infrastructure 79,914 81,751
Inventories 8,525 8,437
Intangibles 7,890 9,397
Investment properties 169 173
Biological assets 20 36
Heritage and cultural assets 11,600 11,599
Assets held for sale 164 181
Other non-financial assets 86 34
Total non-financial assets 146,477 150,178
Total assets 553,162 580,554
Liabilities    
Interest bearing liabilities    
Deposits held 386 381
Government securities 593,202 586,341
Loans 16,391 16,615
Other borrowing 1,538 1,493
Total interest bearing liabilities 611,517 604,830
Provisions and payables    
Superannuation liability(a) 319,081 223,589
Other employee liabilities 19,908 20,175
Suppliers payables 5,570 7,392
Personal benefits payables 2,767 3,359
Subsidies payables 436 508
Grants payables 2,568 3,710
Other payables 2,278 2,176
Provisions 35,786 35,568
Total provisions and payables 388,393 296,477
Total liabilities 999,910 901,307
Net worth(b) -446,748 -320,753
Net financial worth(c) -593,226 -470,932
Net financial liabilities(d) 652,528 527,182
Net debt(e) 373,417 351,948

*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
January
$m
ACTUAL
2018-2019
YTD January
$m
MYEFO Profile
2018-2019
YTD January
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 28,551 239,960 239,913 447,645
Receipts from sales of goods and services 875 6,952 7,098 14,180
Interest receipts 339 2,399 2,350 4,397
Dividends and income tax equivalents 1,320 5,256 5,103 4,390
Other receipts 734 6,973 6,913 10,751
Total operating receipts 31,818 261,540 261,378 481,363
Cash payments for operating activities        
Payments for employees -2,412 -16,465 -17,118 -30,191
Payments for goods and services -7,026 -65,288 -65,448 -117,058
Grants and subsidies paid -18,678 -100,617 -101,840 -169,851
Interest paid -568 -10,624 -10,659 -18,385
Personal benefit payments -9,302 -75,875 -76,447 -126,483
Other payments -705 -3,913 -3,838 -6,286
Total operating payments -38,690 -272,781 -275,349 -468,255
Net cash flows from operating activities -6,872 -11,240 -13,971 13,108
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets 436 499 534 720
Purchases of non-financial assets -644 -6,466 -6,792 -15,115
Net cash flows from investments in
    non-financial assets
-208 -5,967 -6,258 -14,395
Net cash flows from investments in
    financial assets for policy purposes
-1,451 -8,375 -9,080 -17,042
Cash flows from investments in
    financial assets for liquidity purposes
       
Increase in investments 6,275 20,782 23,032 8,905
Net cash flows from investments in
    financial assets for liquidity purposes
6,275 20,782 23,032 8,905
Cash flows from financing activities        
Borrowing (net) 1,466 7,303 10,411 11,254
Other financing (net) -121 -1,779 -1,905 -2,764
Net cash flows from financing activities 1,345 5,524 8,506 8,490
Net increase/(decrease) in cash held -910 723 2,228 -934
GFS cash surplus(+)/deficit(-)(b) -7,080 -17,208 -20,230 -1,286
less Finance leases and similar arrangements(c) 0 2 0 0
less Net Future Fund earnings 1,398 4,646 4,581 3,886
Equals underlying cash balance(d) -8,478 -21,856 -24,811 -5,172
plus Net cash flows from investments in
    financial assets for policy purposes
-1,451 -8,375 -9,080 -17,042
plus Net Future Fund earnings 1,398 4,646 4,581 3,886
Equals headline cash balance -8,531 -25,584 -29,310 -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
January
$m
ACTUAL
2018-2019
YTD January
$m
MYEFO Profile
2018-2019
YTD January
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 15,824 118,337 117,851 207,600
Gross other individuals 2,182 23,015 22,431 49,500
less Refunds 1,256 23,370 23,431 30,000
Total individuals and other withholding taxation 16,749 117,983 116,852 227,100
Fringe benefits tax 699 2,548 2,526 3,930
Company tax 5,901 52,294 52,907 94,500
Superannuation fund taxes 529 8,105 7,435 10,670
Petroleum resource rent tax 279 754 1,020 1,480
Total income taxation revenue 24,157 181,683 180,739 337,680

*As published in the 2018-19 MYEFO.

 

Note 2: Indirect Tax

 ACTUAL
2018-2019
January
$m
ACTUAL
2018-2019
YTD January
$m
MYEFO Profile
2018-2019
YTD January
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Goods and services tax 2,974 38,313 37,867 69,180
Wine equalisation tax 117 602 614 1,050
Luxury car tax 53 388 401 700
Excise duty 1,812 14,111 13,950 23,385
Customs duty 1,359 8,567 9,028 16,750
Other indirect tax 536 5,109 5,086 9,252
Total indirect taxation revenue 6,852 67,090 66,946 120,317

*As published in the 2018-19 MYEFO.

 

Note 3: Total expenses by function

 ACTUAL
2018-2019
January
$m
ACTUAL
2018-2019
YTD January
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Expenses by function      
General public services 3,459 16,787 26,193
Defence 1,669 17,403 30,594
Public order and safety 577 3,189 5,544
Education 8,307 25,553 35,170
Health 5,912 42,973 80,183
Social security and welfare 12,015 99,472 174,684
Housing and community amenities 337 2,439 5,647
Recreation and culture 306 2,030 3,949
Fuel and energy 600 4,271 7,716
Agriculture, forestry and fishing 179 1,257 3,196
Mining, manufacturing and construction 227 1,656 2,915
Transport and communication 906 2,896 8,455
Other economic affairs 752 5,447 10,039
Other purposes      
Public debt interest 1,461 10,132 17,235
Nominal superannuation interest 671 5,510 9,446
General purpose inter-government transactions 5,573 40,306 68,953
Natural disaster relief 0 0 153
Contingency reserve 0 0 -1,706
Total expenses 42,952 281,322 488,363

*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