MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements April 2019

MC 44/19

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, 24 May 2019

KEY POINTS

  • The underlying cash balance for the 2018-19 financial year to 30 April 2019 was a deficit of $4,914 million.
  • The fiscal balance for the 2018-19 financial year to 30 April 2019 was a surplus of $1,816 million.
AGGREGATES ACTUAL 2018-2019 April
$m
ACTUAL 2018-2019 YTD April
$m
Revised Budget Profile 2018-2019 YTD April
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Revenue 46,453 400,946 400,658 495,796
Expenses 39,433 396,578 398,388 487,343
Net operating balance 7,020 4,368 2,270 8,452
Net capital investment 630 2,552 3,951 6,490
Fiscal balance 6,390 1,816 -1,682 1,962
Receipts(a) 44,452 390,971 391,334 485,165
less Payments(b) 40,836 389,961 392,218 482,734
less Net Future Fund earnings 457 5,924 5,895 6,592
Underlying cash balance(c) 3,159 -4,914 -6,780 -4,162
Headline cash balance 2,058 -11,370 -12,900 -12,719
Total assets   575,866   581,668
Total liabilities   1,016,572   922,557
Net worth(d)   -440,705   -340,889
Net debt(e)   372,154   373,473

*As published in the 2019-20 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.

Comparators for the April 2019 monthly financial statements are based on the 2018-19 estimates that were revised as part of the 2019-20 Budget (released on 2 April 2019).

 

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 30 April 2019 was a deficit of $4,914 million, which is $1,866 million lower than the 2018-19 Revised Budget profile deficit of $6,780 million.

  • Receipts
    Total receipts were $363 million lower than the 2018-19 Revised Budget profile.
  • Payments
    Total payments were $2,258 million lower than the 2018-19 Revised Budget profile.

Net Operating Balance

The net operating balance for the year to 30 April 2019 was a surplus of $4,368 million, which is $2,099 million higher than the 2018-19 Revised Budget profile surplus of $2,270 million. The difference results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 30 April 2019 was a surplus of $1,816 million, which is $3,498 million better than the 2018-19 Revised Budget profile deficit of $1,682 million. The difference results from higher than expected revenue, lower expenses and lower net capital investments.

Assets and Liabilities

As at 30 April 2019:
• net worth is negative $440,705 million;
• net debt is $372,154 million; and
• net financial liabilities are $645,733 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 April
$m
ACTUAL 2018-2019 YTD April
$m
Revised Budget Profile 2018-2019 YTD April
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 43,880 372,109 372,072 459,085
Sales of goods and services   1,159 10,719 10,461 13,455
Interest income   441 3,730 3,606 4,837
Dividend income   467 5,902 5,784 7,718
Other   506 8,486 8,735 10,701
Total revenue   46,453 400,946 400,658 495,796
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,698 16,320 16,683 20,693
Superannuation   759 7,658 7,401 9,043
Depreciation and amortisation   635 7,216 7,245 8,742
Supply of goods and services   9,876 93,768 95,338 117,709
Other operating expenses(a)   644 5,737 5,729 6,693
Total gross operating expenses   13,612 130,698 132,394 162,881
Superannuation interest expense   787 7,872 7,872 9,447
Interest expenses   1,523 14,979 14,904 18,375
Current transfers          
Current grants   11,424 123,382 123,806 148,852
Subsidy expenses   905 9,582 9,475 11,367
Personal benefits   10,536 104,946 104,869 125,230
Total current transfers   22,866 237,910 238,151 285,449
Capital transfers          
Mutually agreed write-downs   88 1,003 1,033 1,317
Other capital grants   557 4,117 4,034 9,875
Total capital transfers   645 5,120 5,067 11,192
Total expenses 3 39,433 396,578 398,388 487,343
Net operating balance   7,020 4,368 2,270 8,452
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -998 -6,313 -5,786 -8,049
Assets recognised for the first time   -1 116 158 189
Actuarial revaluations   152 152 155 30
Net foreign exchange gains   -265 -1,210 -68 -208
Net swap interest received   3 -442 -445 -356
Market valuation of debt   67 -27,057 -22,309 -21,460
Other gains/(losses)   2,201 5,040 1,249 2,584
Total other economic flows
- included in operating result
  1,159 -29,714 -27,047 -27,269
Operating Result (b)   8,180 -25,346 -24,777 -18,816
Non-owner movements in equity          
Revaluation of equity investments   -2 -8 -11 -3,499
Actuarial revaluations   0 0 0 1,441
Other economic revaluations   1,673 2,784 1,649 25
Total other economic flows
- included in equity
  1,671 2,776 1,638 -2,033
Comprehensive result
- Total change in net worth
  9,850 -22,570 -23,139 -20,849
Net operating balance   7,020 4,368 2,270 8,452
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,203 9,818 10,433 15,306
less Sales of non-financial assets   -2 157 188 194
less Depreciation   635 7,216 7,245 8,742
plus Change in inventories   85 77 915 118
plus Other movements in non-financial assets   -25 29 37 2
Total net acquisition of non-financial assets   630 2,552 3,951 6,490
Fiscal balance (Net lending/borrowing)(c)   6,390 1,816 -1,682 1,962

*As published in the 2019-20 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 April 2019
$m
Revised Budget ESTIMATE* as at 30 June 2019
$m
Assets    
Financial assets    
Cash and deposits 6,543 7,563
Advances paid 66,108 71,008
Investments, loans and placements 177,369 175,216
Other receivables 57,458 55,700
Equity investments    
Investments in other public sector entities 56,287 52,907
Equity accounted investments 3,257 3,405
Investments - shares 60,105 66,000
Total financial assets 427,126 431,799
Non-financial assets    
Land 11,623 11,586
Buildings 26,664 27,072
Plant, equipment and infrastructure 81,816 81,742
Inventories 8,516 8,397
Intangibles 8,145 9,039
Investment properties 173 193
Biological assets 19 20
Heritage and cultural assets 11,606 11,604
Assets held for sale 116 183
Other non-financial assets 62 34
Total non-financial assets 148,741 149,869
Total assets 575,866 581,668
Liabilities    
Interest bearing liabilities    
Deposits held 410 381
Government securities 603,214 608,637
Loans 17,023 16,742
Other borrowing 1,526 1,499
Total interest bearing liabilities 622,173 627,260
Provisions and payables    
Superannuation liability(a) 321,604 223,720
Other employee liabilities 20,505 20,166
Suppliers payables 7,217 6,027
Personal benefits payables 3,404 3,389
Subsidies payables 471 519
Grants payables 2,446 3,539
Other payables 1,989 2,316
Provisions 36,763 35,622
Total provisions and payables 394,399 295,297
Total liabilities 1,016,572 922,557
Net worth(b) -440,705 -340,889
Net financial worth(c) -589,446 -490,758
Net financial liabilities(d) 645,733 543,665
Net debt(e) 372,154 373,473

*As published in the 2019-20 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 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 April
$m
ACTUAL 2018-2019 YTD April
$m
Revised Budget Profile 2018-2019 YTD April
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 41,765 361,250 361,506 448,821
Receipts from sales of goods and services 997 10,135 10,144 13,467
Interest receipts 441 3,382 3,424 4,412
Dividends and income tax equivalents 555 6,913 6,677 7,175
Other receipts 696 8,718 8,954 10,643
Total operating receipts 44,455 390,398 390,705 484,518
Cash payments for operating activities        
Payments for employees -2,385 -23,326 -23,852 -29,603
Payments for goods and services -9,344 -92,803 -94,083 -116,831
Grants and subsidies paid -13,161 -138,008 -137,861 -170,609
Interest paid -3,815 -15,217 -15,318 -18,491
Personal benefit payments -10,623 -105,639 -105,729 -125,961
Other payments -326 -5,379 -5,545 -6,358
Total operating payments -39,653 -380,371 -382,387 -467,853
Net cash flows from operating activities 4,802 10,026 8,317 16,665
Cash flows from investments in non-financial assets        
Sales of non-financial assets -3 573 629 647
Purchases of non-financial assets -1,183 -9,587 -9,831 -14,881
Net cash flows from investments in non-financial assets -1,186 -9,014 -9,202 -14,234
Net cash flows from investments in financial assets for policy purposes -1,558 -12,381 -12,016 -15,149
Cash flows from investments in financial assets for liquidity purposes        
Increase in investments -1,536 11,042 10,678 1,979
Net cash flows from investments in financial assets for liquidity purposes -1,536 11,042 10,678 1,979
Cash flows from financing activities        
Borrowing (net) 266 2,662 6,028 14,401
Other financing (net) -674 -2,582 -2,819 -2,878
Net cash flows from financing activities -407 79 3,209 11,523
Net increase/(decrease) in cash held 115 -247 986 783
GFS cash surplus(+)/deficit(-)(b) 3,616 1,012 -885 2,430
less Finance leases and similar arrangements(c) 0 2 0 0
less Net Future Fund earnings 457 5,924 5,895 6,592
Equals underlying cash balance(d) 3,159 -4,914 -6,780 -4,162
plus Net cash flows from investments in financial assets for policy purposes -1,558 -12,381 -12,016 -15,149
plus Net Future Fund earnings 457 5,924 5,895 6,592
Equals headline cash balance 2,058 -11,370 -12,900 -12,719

*As published in the 2019-20 Budget.
(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 April
$m
ACTUAL 2018-2019 YTD April
$m
Revised Budget Profile 2018-2019 YTD April
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 16,478 170,984 171,348 207,600
Gross other individuals 8,017 39,892 38,882 50,200
less Refunds 1,211 26,666 26,646 29,500
Total individuals and other withholding taxation 23,285 184,210 183,584 228,300
Fringe benefits tax 866 3,636 3,607 3,870
Company tax 8,114 74,268 73,949 95,600
Superannuation fund taxes 488 10,163 10,409 11,320
Petroleum resource rent tax 348 1,248 1,234 1,250
Total income taxation revenue 33,101 273,525 272,783 340,340

*As published in the 2019-20 Budget.

Note 2: Indirect Tax

  ACTUAL 2018-2019 April
$m
ACTUAL 2018-2019 YTD April
$m
Revised Budget Profile 2018-2019 YTD April
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Goods and services tax 6,497 56,836 57,466 68,065
Wine equalisation tax 69 822 830 1,030
Luxury car tax 75 575 550 640
Excise duty 2,222 19,806 19,733 23,370
Customs duty 1,339 13,115 13,258 16,520
Other indirect tax 576 7,431 7,452 9,120
Total indirect taxation revenue 10,779 98,584 99,288 118,745

*As published in the 2019-20 Budget.

Note 3: Total expenses by function

  ACTUAL 2018-2019 April
$m
ACTUAL 2018-2019 YTD April
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Expenses by function      
General public services 2,024 22,581 26,048
Defence 2,952 26,054 31,014
Public order and safety 337 4,623 5,760
Education 1,698 30,725 34,773
Health 6,896 63,322 80,569
Social security and welfare 14,352 140,168 172,749
Housing and community amenities 457 3,662 5,278
Recreation and culture 342 3,023 3,988
Fuel and energy 738 6,294 7,956
Agriculture, forestry and fishing 262 1,968 3,149
Mining, manufacturing and construction 134 2,176 2,592
Transport and communication 413 4,314 8,105
Other economic affairs 851 7,789 10,281
Other purposes      
Public debt interest 1,397 14,325 17,154
Nominal superannuation interest 787 7,872 9,447
General purpose inter-government transactions 5,671 57,452 69,698
Natural disaster relief 121 232 775
Contingency reserve 0 0 -1,993
Total expenses 39,433 396,578 487,343

*As published in the 2019-20 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 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