MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements May 2019

MC 46/19

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

Date: Friday, 28 June 2019

KEY POINTS

  • The underlying cash balance for the 2018-19 financial year to 31 May 2019 was a deficit of $115 million.
  • The fiscal balance for the 2018-19 financial year to 31 May 2019 was a surplus of $13,707 million.
AGGREGATES ACTUAL 2018-2019 May
$m
ACTUAL 2018-2019 YTD May
$m
Revised Budget Profile 2018-2019 YTD May
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Revenue 53,576 454,523 451,032 495,796
Expenses 40,251 436,829 439,783 487,343
Net operating balance 13,326 17,694 11,249 8,452
Net capital investment 1,434 3,987 4,737 6,490
Fiscal balance 11,891 13,707 6,512 1,962
Receipts(a) 49,810 440,781 439,388 485,165
less Payments(b) 43,711 433,671 435,400 482,734
less Net Future Fund earnings 1,301 7,225 6,352 6,592
Underlying cash balance(c) 4,799 -115 -2,365 -4,162
Headline cash balance 4,652 -6,719 -9,151 -12,719
Total assets   591,229   581,668
Total liabilities   1,033,345   922,557
Net worth(d)   -442,116   -340,889
Net debt(e)   375,608   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 May 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 31 May 2019 was a deficit of $115 million, which is $2,249 million lower than the 2018-19 Revised Budget profile deficit of $2,365 million.

  • Receipts
    Total receipts were $1,394 million higher than the 2018-19 Revised Budget profile.
  • Payments
    Total payments were $1,729 million lower than the 2018-19 Revised Budget profile.

Net Operating Balance

The net operating balance for the year to 31 May 2019 was a surplus of $17,694 million, which is $6,445 million higher than the 2018-19 Revised Budget profile surplus of $11,249 million. The difference results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 May 2019 was a surplus of $13,707 million, which is $7,195 million higher than the 2018-19 Revised Budget profile surplus of $6,512 million. The difference results from higher than expected revenue, lower expenses and lower net capital investments.

Assets and Liabilities

As at 31 May 2019:

  • net worth is negative $442,116 million;
  • net debt is $375,608 million; and
  • net financial liabilities are $647,813 million.
Senator the Hon. Mathias Cormann
Minister for Finance
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 May
$m
ACTUAL 2018-2019 YTD May
$m
Revised Budget Profile 2018-2019 YTD May
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 49,580 421,689 419,975 459,085
Sales of goods and services   1,001 11,719 11,351 13,455
Interest income   378 4,108 4,013 4,837
Dividend income   1,389 7,291 6,085 7,718
Other   1,229 9,715 9,608 10,701
Total revenue   53,576 454,523 451,032 495,796
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,859 18,178 18,794 20,693
Superannuation   754 8,411 8,200 9,043
Depreciation and amortisation   697 7,913 7,990 8,742
Supply of goods and services   10,461 104,229 105,906 117,709
Other operating expenses(a)   694 6,431 6,263 6,693
Total gross operating expenses   14,465 145,162 147,153 162,881
Superannuation interest expense   787 8,659 8,659 9,447
Interest expenses   1,403 16,382 16,407 18,375
Current transfers          
Current grants   10,656 134,039 134,656 148,852
Subsidy expenses   929 10,511 10,373 11,367
Personal benefits   10,712 115,658 115,448 125,230
Total current transfers   22,298 260,207 260,478 285,449
Capital transfers          
Mutually agreed write-downs   153 1,156 1,211 1,317
Other capital grants   1,146 5,263 5,876 9,875
Total capital transfers   1,299 6,418 7,086 11,192
Total expenses 3 40,251 436,829 439,783 487,343
Net operating balance   13,326 17,694 11,249 8,452
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -756 -7,069 -6,596 -8,049
Assets recognised for the first time   28 144 173 189
Actuarial revaluations   13 165 170 30
Net foreign exchange gains   -425 -1,636 -69 -208
Net swap interest received   -108 -550 -445 -356
Market valuation of debt   -11,804 -38,862 -21,875 -21,460
Other gains/(losses)   -1,240 3,800 410 2,584
Total other economic flows
- included in operating result
  -14,292 -44,007 -28,232 -27,269
Operating Result (b)   -967 -26,313 -16,983 -18,816
Non-owner movements in equity          
Revaluation of equity investments   0 -8 -12 -3,499
Actuarial revaluations   0 0 0 1,441
Other economic revaluations   -444 2,340 1,785 25
Total other economic flows
- included in equity
  -444 2,332 1,773 -2,033
Comprehensive result
- Total change in net worth
  -1,410 -23,980 -15,211 -20,849
Net operating balance   13,326 17,694 11,249 8,452
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,943 11,761 11,888 15,306
less Sales of non-financial assets   8 165 215 194
less Depreciation   697 7,913 7,990 8,742
plus Change in inventories   200 277 1,034 118
plus Other movements in non-financial assets   -3 26 19 2
Total net acquisition of non-financial assets   1,434 3,987 4,737 6,490
Fiscal balance (Net lending/borrowing)(c)   11,891 13,707 6,512 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 31 May 2019
$m
Revised Budget ESTIMATE* as at 30 June 2019
$m
Assets    
Financial assets    
Cash and deposits 7,104 7,563
Advances paid 67,430 71,008
Investments, loans and placements 189,501 175,216
Other receivables 59,631 55,700
Equity investments    
Investments in other public sector entities 56,370 52,907
Equity accounted investments 3,309 3,405
Investments - shares 58,557 66,000
Total financial assets 441,902 431,799
Non-financial assets    
Land 11,603 11,586
Buildings 26,595 27,072
Plant, equipment and infrastructure 81,608 81,742
Inventories 8,466 8,397
Intangibles 8,502 9,039
Investment properties 176 193
Biological assets 18 20
Heritage and cultural assets 11,602 11,604
Assets held for sale 699 183
Other non-financial assets 58 34
Total non-financial assets 149,327 149,869
Total assets 591,229 581,668
Liabilities    
Interest bearing liabilities    
Deposits held 310 381
Government securities 620,626 608,637
Loans 17,228 16,742
Other borrowing 1,480 1,499
Total interest bearing liabilities 639,644 627,260
Provisions and payables    
Superannuation liability(a) 322,324 223,720
Other employee liabilities 20,050 20,166
Suppliers payables 8,507 6,027
Personal benefits payables 2,659 3,389
Subsidies payables 495 519
Grants payables 2,180 3,539
Other payables 1,804 2,316
Provisions 35,682 35,622
Total provisions and payables 393,701 295,297
Total liabilities 1,033,345 922,557
Net worth(b) -442,116 -340,889
Net financial worth(c) -591,443 -490,758
Net financial liabilities(d) 647,813 543,665
Net debt(e) 375,608 373,473

*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 May
$m
ACTUAL 2018-2019 YTD May
$m
Revised Budget Profile 2018-2019 YTD May
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 46,084 407,334 406,971 448,821
Receipts from sales of goods and services 1,349 11,484 11,149 13,467
Interest receipts 325 3,706 3,803 4,412
Dividends and income tax equivalents 1,294 8,207 7,037 7,175
Other receipts 751 9,469 9,768 10,643
Total operating receipts 49,803 440,201 438,728 484,518
Cash payments for operating activities        
Payments for employees -3,280 -26,606 -26,923 -29,603
Payments for goods and services -10,141 -102,944 -103,886 -116,831
Grants and subsidies paid -13,178 -151,186 -151,700 -170,609
Interest paid -2,612 -17,829 -17,982 -18,491
Personal benefit payments -11,683 -117,321 -117,524 -125,961
Other payments -584 -5,962 -6,018 -6,358
Total operating payments -41,477 -421,848 -424,033 -467,853
Net cash flows from operating activities 8,327 18,353 14,695 16,665
Cash flows from investments in non-financial assets        
Sales of non-financial assets 7 580 660 647
Purchases of non-financial assets -2,234 -11,821 -11,367 -14,881
Net cash flows from investments in non-financial assets -2,227 -11,241 -10,708 -14,234
Net cash flows from investments in financial assets for policy purposes -1,448 -13,829 -13,139 -15,149
Cash flows from investments in financial assets for liquidity purposes        
Increase in investments -10,577 465 1,854 1,979
Net cash flows from investments in financial assets for liquidity purposes -10,577 465 1,854 1,979
Cash flows from financing activities        
Borrowing (net) 7,112 9,774 10,232 14,401
Other financing (net) -627 -3,210 -3,175 -2,878
Net cash flows from financing activities 6,485 6,564 7,058 11,523
Net increase/(decrease) in cash held 560 313 -239 783
GFS cash surplus(+)/deficit(-)(b) 6,100 7,112 3,988 2,430
less Finance leases and similar arrangements(c) 0 2 0 0
less Net Future Fund earnings 1,301 7,225 6,352 6,592
Equals underlying cash balance(d) 4,799 -115 -2,365 -4,162
plus Net cash flows from investments in financial assets for policy purposes -1,448 -13,829 -13,139 -15,149
plus Net Future Fund earnings 1,301 7,225 6,352 6,592
Equals headline cash balance 4,652 -6,719 -9,151 -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 May
$m
ACTUAL 2018-2019 YTD May
$m
Revised Budget Profile 2018-2019 YTD May
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 19,974 190,958 190,950 207,600
Gross other individuals 8,651 48,543 46,090 50,200
less Refunds 1,839 28,504 28,416 29,500
Total individuals and other withholding taxation 26,786 210,997 208,624 228,300
Fringe benefits tax 194 3,830 3,912 3,870
Company tax 10,885 85,153 84,513 95,600
Superannuation fund taxes 575 10,738 10,898 11,320
Petroleum resource rent tax 2 1,249 1,234 1,250
Total income taxation revenue 38,441 311,967 309,180 340,340

*As published in the 2019-20 Budget.

Note 2: Indirect Tax

  ACTUAL 2018-2019 May
$m
ACTUAL 2018-2019 YTD May
$m
Revised Budget Profile 2018-2019 YTD May
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Goods and services tax 6,898 63,734 64,354 68,065
Wine equalisation tax 93 915 921 1,030
Luxury car tax 53 628 600 640
Excise duty 1,792 21,597 21,580 23,370
Customs duty 1,216 14,331 14,826 16,520
Other indirect tax 1,087 8,518 8,515 9,120
Total indirect taxation revenue 11,139 109,723 110,795 118,745

*As published in the 2019-20 Budget.

Note 3: Total expenses by function

  ACTUAL 2018-2019 May
$m
ACTUAL 2018-2019 YTD May
$m
Revised Budget ESTIMATE* 2018-2019 FULL YEAR
$m
Expenses by function      
General public services 2,302 24,883 26,048
Defence 3,021 29,075 31,014
Public order and safety 505 5,128 5,760
Education 2,136 32,861 34,773
Health 6,777 70,099 80,569
Social security and welfare 14,025 154,194 172,749
Housing and community amenities 432 4,094 5,278
Recreation and culture 377 3,399 3,988
Fuel and energy 692 6,986 7,956
Agriculture, forestry and fishing 192 2,160 3,149
Mining, manufacturing and construction 140 2,316 2,592
Transport and communication 758 5,071 8,105
Other economic affairs 848 8,637 10,281
Other purposes      
Public debt interest 1,423 15,748 17,154
Nominal superannuation interest 787 8,659 9,447
General purpose inter-government transactions 5,530 62,982 69,698
Natural disaster relief 305 537 775
Contingency reserve 0 0 -1,993
Total expenses 40,251 436,829 487,343

*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 https://www.aofm.gov.au/data-hub .

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