MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements February 2019

MC 26/19

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

Date: Friday, 22 March 2019

KEY POINTS

  • The underlying cash balance for the 2018-19 financial year to 28 February 2019 was a deficit of $10,657 million.
  • The fiscal balance for the 2018-19 financial year to 28 February 2019 was a deficit of $2,825 million.
AGGREGATES ACTUAL 2018-2019 February
$m
ACTUAL 2018-2019 YTD February
$m
MYEFO Profile 2018-2019 YTD February
$m
MYEFO ESTIMATE* 2018-2019 FULL YEAR
$m
Revenue 47,646 317,161 314,630 493,288
Expenses 36,922 318,244 320,511 488,363
Net operating balance 10,724 -1,082 -5,881 4,926
Net capital investment -76 1,742 2,410 6,826
Fiscal balance 10,801 -2,825 -8,291 -1,901
Receipts(a) 45,950 307,990 308,153 482,084
less Payments(b) 34,520 313,769 316,642 483,370
less Net Future Fund earnings 231 4,877 4,971 3,886
Underlying cash balance(c) 11,199 -10,657 -13,460 -5,172
Headline cash balance 9,705 -15,879 -19,406 -18,329
Total assets   569,084   580,554
Total liabilities   1,010,598   901,307
Net worth(d)   -441,514   -320,753
Net debt(e)   370,901   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 February 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 28 February 2019 was a deficit of $10,657 million, which is $2,804 million lower than the 2018-19 MYEFO profile deficit of $13,460 million.

  • Receipts
    Total receipts were $163 million lower than the 2018-19 MYEFO profile.
  • Payments
    Total payments were $2,873 million lower than the 2018-19 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 28 February 2019 was a deficit of $1,082 million, which is $4,798 million lower than the 2018-19 MYEFO profile deficit of $5,881 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 28 February 2019 was a deficit of $2,825 million, which is $5,466 million lower than the 2018-19 MYEFO profile deficit of $8,291 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 28 February 2019:

  • net worth is negative $441,514 million;
  • net debt is $370,901 million; and
  • net financial liabilities are $646,947 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

  Note ACTUAL 2018-2019 February
$m
ACTUAL 2018-2019 YTD February
$m
MYEFO Profile 2018-2019 YTD February
$m
MYEFO ESTIMATE* 2018-2019 FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 45,091 293,865 291,594 457,997
Sales of goods and services   1,053 8,448 8,388 14,024
Interest income   350 2,911 2,891 4,810
Dividend income   310 4,840 4,833 4,648
Other   842 7,097 6,924 11,809
Total revenue   47,646 317,161 314,630 493,288
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,594 12,948 13,354 20,551
Superannuation   731 6,114 5,639 9,291
Depreciation and amortisation   834 5,761 5,764 8,606
Supply of goods and services   9,198 73,686 74,252 118,012
Other operating expenses(a)   623 4,483 4,449 6,677
Total gross operating expenses   12,980 102,991 103,458 163,136
Superannuation interest expense   787 6,297 6,352 9,446
Interest expenses   1,382 11,941 12,033 18,498
Current transfers          
Current grants   10,743 101,415 101,553 149,036
Subsidy expenses   956 7,694 7,667 11,491
Personal benefits   9,380 84,083 84,508 125,837
Total current transfers   21,079 193,192 193,728 286,364
Capital transfers          
Mutually agreed write-downs   101 854 898 1,450
Other capital grants   592 2,968 4,042 9,469
Total capital transfers   694 3,822 4,940 10,919
Total expenses 3 36,922 318,244 320,511 488,363
Net operating balance   10,724 -1,082 -5,881 4,926
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   1,984 -4,941 -5,071 -8,202
Assets recognised for the first time   7 112 134 200
Actuarial revaluations   6 46 46 70
Net foreign exchange gains   -782 -974 64 -269
Net swap interest received   -34 -390 -355 -218
Market valuation of debt   -4,610 -16,199 -3,102 -2,282
Other gains/(losses)   43 1,278 -1,506 7,491
Total other economic flows
- included in operating result
  -3,387 -21,068 -9,790 -3,211
Operating Result (b)   7,338 -22,150 -15,671 1,715
Non-owner movements in equity          
Revaluation of equity investments   -1 1 254 -3,529
Actuarial revaluations   0 0 0 -5,794
Other economic revaluations   -2,103 -1,229 796 -76
Total other economic flows
- included in equity
  -2,104 -1,229 1,050 -9,399
Comprehensive result
- Total change in net worth
  5,234 -23,379 -14,620 -7,685
Net operating balance   10,724 -1,082 -5,881 4,926
Net acquisition of non-financial assets          
Purchases of non-financial assets   704 7,532 8,228 15,556
less Sales of non-financial assets   39 114 115 285
less Depreciation   834 5,761 5,764 8,606
plus Change in inventories   92 31 40 159
plus Other movements in non-financial assets   0 54 20 2
Total net acquisition of non-financial assets   -76 1,742 2,410 6,826
Fiscal balance (Net lending/borrowing)(c)   10,801 -2,825 -8,291 -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 28 February 2019
$m
MYEFO ESTIMATE* as at 30 June 2019
$m
Assets    
Financial assets    
Cash and deposits 7,972 5,849
Advances paid 64,257 72,662
Investments, loans and placements 178,226 174,371
Other receivables 56,778 54,623
Equity investments    
Investments in other public sector entities 59,210 56,251
Equity accounted investments 119 265
Investments - shares 56,298 66,355
Total financial assets 422,861 430,375
Non-financial assets    
Land 11,669 11,492
Buildings 26,423 27,078
Plant, equipment and infrastructure 79,634 81,751
Inventories 8,547 8,437
Intangibles 7,919 9,397
Investment properties 170 173
Biological assets 19 36
Heritage and cultural assets 11,596 11,599
Assets held for sale 160 181
Other non-financial assets 86 34
Total non-financial assets 146,223 150,178
Total assets 569,084 580,554
Liabilities    
Interest bearing liabilities    
Deposits held 326 381
Government securities 602,556 586,341
Loans 16,936 16,615
Other borrowing 1,540 1,493
Total interest bearing liabilities 621,357 604,830
Provisions and payables    
Superannuation liability(a) 319,905 223,589
Other employee liabilities 20,002 20,175
Suppliers payables 5,683 7,392
Personal benefits payables 2,729 3,359
Subsidies payables 461 508
Grants payables 2,565 3,710
Other payables 2,093 2,176
Provisions 35,802 35,568
Total provisions and payables 389,241 296,477
Total liabilities 1,010,598 901,307
Net worth(b) -441,514 -320,753
Net financial worth(c) -587,737 -470,932
Net financial liabilities(d) 646,947 527,182
Net debt(e) 370,901 351,948

*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 February
$m
ACTUAL 2018-2019 YTD February
$m
MYEFO Profile 2018-2019 YTD February
$m
MYEFO ESTIMATE* 2018-2019 FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 43,491 283,451 283,795 447,645
Receipts from sales of goods and services 993 7,946 8,148 14,180
Interest receipts 251 2,650 2,615 4,397
Dividends and income tax equivalents 496 5,752 5,448 4,390
Other receipts 685 7,658 7,599 10,751
Total operating receipts 45,917 307,457 307,605 481,363
Cash payments for operating activities        
Payments for employees -2,224 -18,689 -19,121 -30,191
Payments for goods and services -8,983 -74,271 -74,646 -117,058
Grants and subsidies paid -12,448 -113,065 -113,995 -169,851
Interest paid -183 -10,807 -10,861 -18,385
Personal benefit payments -9,379 -85,254 -85,838 -126,483
Other payments -667 -4,580 -4,381 -6,286
Total operating payments -33,885 -306,666 -308,843 -468,255
Net cash flows from operating activities 12,031 791 -1,238 13,108
Cash flows from investments in non-financial assets        
Sales of non-financial assets 34 532 548 720
Purchases of non-financial assets -635 -7,101 -7,799 -15,115
Net cash flows from investments in non-financial assets -601 -6,569 -7,251 -14,395
Net cash flows from investments in financial assets for policy purposes -1,725 -10,100 -10,917 -17,042
Cash flows from investments in financial assets for liquidity purposes        
Increase in investments -12,819 7,963 12,228 8,905
Net cash flows from investments in financial assets for liquidity purposes -12,819 7,963 12,228 8,905
Cash flows from financing activities        
Borrowing (net) 3,604 10,907 13,238 11,254
Other financing (net) -25 -1,804 -1,878 -2,764
Net cash flows from financing activities 3,579 9,103 11,360 8,490
Net increase/(decrease) in cash held 465 1,189 4,183 -934
GFS cash surplus(+)/deficit(-)(b) 11,430 -5,778 -8,489 -1,286
less Finance leases and similar arrangements(c) 0 2 0 0
less Net Future Fund earnings 231 4,877 4,971 3,886
Equals underlying cash balance(d) 11,199 -10,657 -13,460 -5,172
plus Net cash flows from investments in financial assets for policy purposes -1,725 -10,100 -10,917 -17,042
plus Net Future Fund earnings 231 4,877 4,971 3,886
Equals headline cash balance 9,705 -15,879 -19,406 -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 February
$m
ACTUAL 2018-2019 YTD February
$m
MYEFO Profile 2018-2019 YTD February
$m
MYEFO ESTIMATE* 2018-2019 FULL YEAR
$m
Individuals and other withholding taxes 0 0 0 0
Gross income tax withholding 18,996 137,333 136,637 207,600
Gross other individuals 4,542 27,557 26,882 49,500
less Refunds 994 24,363 24,484 30,000
Total individuals and other withholding taxation 22,544 140,527 139,035 227,100
Fringe benefits tax 195 2,743 2,710 3,930
Company tax 7,855 60,149 59,600 94,500
Superannuation fund taxes 865 8,970 8,270 10,670
Petroleum resource rent tax 71 825 1,020 1,480
Total income taxation revenue 31,530 213,214 210,634 337,680

*As published in the 2018-19 MYEFO.

Note 2: Indirect Tax

  ACTUAL 2018-2019 February
$m
ACTUAL 2018-2019 YTD February
$m
MYEFO Profile 2018-2019 YTD February
$m
MYEFO ESTIMATE* 2018-2019 FULL YEAR
$m
Goods and services tax 8,614 46,927 47,428 69,180
Wine equalisation tax 99 701 716 1,050
Luxury car tax 48 437 458 700
Excise duty 1,735 15,845 15,703 23,385
Customs duty 1,926 10,493 10,581 16,750
Other indirect tax 1,140 6,248 6,075 9,252
Total indirect taxation revenue 13,561 80,651 80,960 120,317

*As published in the 2018-19 MYEFO.

Note 3: Total expenses by function

  ACTUAL 2018-2019 February
$m
ACTUAL 2018-2019 YTD February
$m
MYEFO ESTIMATE* 2018-2019 FULL YEAR
$m
Expenses by function      
General public services 1,976 18,763 26,193
Defence 2,745 20,148 30,594
Public order and safety 520 3,709 5,544
Education 1,669 27,222 35,170
Health 6,554 49,527 80,183
Social security and welfare 12,494 111,966 174,684
Housing and community amenities 446 2,885 5,647
Recreation and culture 323 2,353 3,949
Fuel and energy 660 4,932 7,716
Agriculture, forestry and fishing 224 1,481 3,196
Mining, manufacturing and construction 161 1,817 2,915
Transport and communication 391 3,287 8,455
Other economic affairs 743 6,190 10,039
Other purposes      
Public debt interest 1,330 11,462 17,235
Nominal superannuation interest 787 6,297 9,446
General purpose inter-government transactions 5,899 46,206 68,953
Natural disaster relief 0 0 153
Contingency reserve 0 0 -1,706
Total expenses 36,922 318,244 488,363

*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