MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements July and August 2019

MC 68/19

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

Date: Friday, 11 October 2019

KEY POINTS

  • The underlying cash balance for the 2019-20 financial year to 31 August 2019 was a deficit of $9,669 million.
  • The fiscal balance for the 2019-20 financial year to 31 August 2019 was a deficit of $8,097 million.
AGGREGATES ACTUAL 2019-2020 July
$m
ACTUAL 2019-2020 August
$m
ACTUAL 2019-2020 YTD August
$m
Budget Profile 2019-2020 YTD August
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
Revenue 40,470 37,571 78,041 80,588 513,763
Expenses 46,894 39,564 86,459 86,169 500,872
Net operating balance -6,425 -1,993 -8,418 -5,582 12,891
Net capital investment -509 188 -321 662 4,749
Fiscal balance -5,916 -2,181 -8,097 -6,243 8,142
Receipts(a) 39,846 35,137 74,983 75,439 505,521
less Payments(b) 46,605 37,129 83,734 83,588 493,327
less Net Future Fund earnings 550 368 918 856 5,140
Underlying cash balance(c) -7,309 -2,360 -9,669 -9,005 7,054
Headline cash balance -7,065 -2,473 -9,538 -10,981 -4,388
Total assets 607,567   617,420   611,012
Total liabilities 1,152,561   1,173,263   944,336
Net worth(d) -544,994   -555,843   -333,324
Net debt(e) 388,934   399,059   361,040

*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.

Monthly results are generally volatile due to timing differences between revenue and receipts, and expenses and payments. Historically, expenses and payments exceed revenue and receipts in the first half of the financial year. Therefore, care needs to be taken when comparing monthly or cumulative data across years and to full-year estimates, as revenue and receipts and expenses and payments vary from month to month.

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 31 August 2019 was a deficit of $9,669 million, which is $664 million higher than the 2019-20 Budget profile deficit of $9,005 million.

  • Receipts
    Total receipts were $456 million lower than the 2019-20 Budget profile.
  • Payments
    Total payments were $146 million higher than the 2019-20 Budget profile.

Net Operating Balance

The net operating balance for the year to 31 August 2019 was a deficit of $8,418 million, which is $2,836 million higher than the 2019-20 Budget profile deficit of $5,582 million. The difference results from lower than expected revenue and higher expenses.

Fiscal Balance

The fiscal balance for the year to 31 August 2019 was a deficit of $8,097 million, which is $1,853 million higher than the 2019-20 Budget profile deficit of $6,243 million. The difference results from lower than expected revenue, higher expenses and lower net capital investment.

Assets and Liabilities

As at 31 August 2019:

  • net worth is negative $555,843 million;
  • net debt is $399,059 million; and
  • net financial liabilities are $765,860 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 2019-2020 July
$m
ACTUAL 2019-2020 August
$m
ACTUAL 2019-2020 YTD August
$m
Budget Profile 2019-2020 YTD August
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
Revenue            
Taxation revenue 1, 2 38,243 34,484 72,726 75,311 476,596
Sales of goods and services   769 1,384 2,153 2,262 15,757
Interest income   368 375 743 740 6,009
Dividend income   407 408 815 766 6,112
Other   683 920 1,603 1,508 9,290
Total revenue   40,470 37,571 78,041 80,588 513,763
Expenses            
Gross operating expenses            
Wages and salaries(a)   1,721 1,714 3,435 3,549 21,348
Superannuation   712 705 1,416 961 5,907
Depreciation and amortisation   714 603 1,317 1,381 8,505
Supply of goods and services   10,639 10,652 21,290 20,447 125,566
Other operating expenses(a)   568 649 1,217 1,158 6,873
Total gross operating expenses   14,353 14,323 28,676 27,497 168,199
Superannuation interest expense   720 719 1,439 1,855 11,127
Interest expenses   1,433 1,492 2,925 2,939 19,264
Current transfers            
Current grants   16,836 10,930 27,766 27,398 150,408
Subsidy expenses   982 1,004 1,985 2,075 12,661
Personal benefits   12,387 10,898 23,285 23,696 128,972
Total current transfers   30,205 22,832 53,036 53,170 292,040
Capital transfers            
Mutually agreed write-downs   89 111 200 270 1,368
Other capital grants   95 88 183 439 8,874
Total capital transfers   184 199 383 709 10,241
Total expenses 3 46,894 39,564 86,459 86,169 500,872
Net operating balance   -6,425 -1,993 -8,418 -5,582 12,891
Other economic flows            
- included in operating result            
Net write-downs of assets   -798 -471 -1,269 -1,156 -7,996
Assets recognised for the first time   -34 87 53 34 190
Actuarial revaluations   5 9 13 9 54
Net foreign exchange gains   -450 -1,167 -1,617 0 61
Net swap interest received   -54 -90 -144 0 0
Market valuation of debt   -5,049 -10,245 -15,294 951 5,040
Other gains/(losses)   1,887 2,944 4,831 282 3,090
Total other economic flows
- included in operating result
  -4,493 -8,933 -13,426 121 439
Operating Result(b)   -10,918 -10,926 -21,843 -5,461 13,330
Non-owner movements in equity            
Revaluation of equity investments   -4,873 597 -4,277 0 -6,017
Actuarial revaluations   0 0 0 0 262
Other economic revaluations   14,256 -520 13,736 149 -10
Total other economic flows
- included in equity
  9,382 77 9,459 149 -5,765
Comprehensive result
- Total change in net worth
  -1,535 -10,849 -12,384 -5,312 7,565
Net operating balance   -6,425 -1,993 -8,418 -5,582 12,891
Net acquisition of non-financial assets            
Purchases of non-financial assets   276 736 1,012 2,021 14,425
less Sales of non-financial assets   18 4 22 14 1,171
less Depreciation   714 603 1,317 1,381 8,505
plus Change in inventories   -62 53 -9 19 3
plus Other movements in non-financial assets   9 6 15 16 -3
Total net acquisition of non-financial assets   -509 188 -321 662 4,749
Fiscal balance (Net lending/borrowing)(c)   -5,916 -2,181 -8,097 -6,243 8,142

*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 July 2019
$m
ACTUAL as at 31 August 2019
$m
BUDGET ESTIMATE* as at 30 June 2020
$m
Assets      
Financial assets      
Cash and deposits 9,458 8,376 5,342
Advances paid 76,178 76,479 83,302
Investments, loans and placements 182,579 192,570 188,358
Other receivables 60,634 61,844 57,430
Equity investments      
Investments in other public sector entities 58,034 58,208 48,324
Equity accounted investments 3,494 3,494 3,562
Investments - shares 65,537 64,641 70,034
Total financial assets 455,915 465,610 456,352
Non-financial assets      
Land 11,942 11,827 11,484
Buildings 27,247 27,225 27,589
Plant, equipment and infrastructure 82,962 83,035 86,178
Inventories 8,622 8,731 8,045
Intangibles 8,731 8,723 9,353
Investment properties 207 208 193
Biological assets 25 25 14
Heritage and cultural assets 11,696 11,693 11,594
Assets held for sale 176 293 179
Other non-financial assets 44 50 31
Total non-financial assets 151,653 151,810 154,660
Total assets 607,567 617,420 611,012
Liabilities      
Interest bearing liabilities      
Deposits held 340 271 381
Government securities 637,241 655,424 619,463
Loans 17,944 19,176 16,731
Other borrowing 1,626 1,611 1,466
Total interest bearing liabilities 657,150 676,483 638,042
Provisions and payables      
Superannuation liability(a) 415,682 416,404 230,748
Other employee liabilities 20,309 20,562 20,591
Suppliers payables 8,249 9,372 6,809
Personal benefits payables 2,538 3,216 3,746
Subsidies payables 4,138 4,023 1,210
Grants payables 2,359 2,155 3,927
Other payables 4,098 3,981 2,202
Provisions 38,038 37,068 37,060
Total provisions and payables 495,411 496,780 306,294
Total liabilities 1,152,561 1,173,263 944,336
Net worth(b) -544,994 -555,843 -333,324
Net financial worth(c) -696,646 -707,652 -487,984
Net financial liabilities(d) 754,680 765,860 536,308
Net debt(e) 388,934 399,059 361,040

*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 2019-2020 July
$m
ACTUAL 2019-2020 August
$m
ACTUAL 2019-2020 YTD August
$m
Budget Profile 2019-2020 YTD August
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
Cash receipts from operating activities          
Taxes received 35,819 32,876 68,696 69,859 466,397
Receipts from sales of goods and services 2,192 542 2,735 2,260 15,745
Interest receipts 423 344 767 965 5,701
Dividends and income tax equivalents 473 337 810 775 6,165
Other receipts 930 1,033 1,963 1,563 9,897
Total operating receipts 39,837 35,133 74,970 75,422 503,906
Cash payments for operating activities          
Payments for employees(b) -2,580 -2,061 -4,640 -4,940 -31,101
Payments for goods and services -11,960 -10,000 -21,959 -20,659 -123,277
Grants and subsidies paid -17,800 -12,367 -30,166 -30,131 -171,775
Interest paid -564 -190 -755 -756 -16,638
Personal benefit payments -12,463 -10,866 -23,328 -23,973 -129,783
Other payments(b) -685 -741 -1,426 -1,185 -6,493
Total operating payments -46,051 -36,224 -82,275 -81,644 -479,066
Net cash flows from operating activities -6,214 -1,091 -7,305 -6,222 24,840
Cash flows from investments in non-financial assets          
Sales of non-financial assets 9 4 13 18 1,615
Purchases of non-financial assets -552 -905 -1,457 -1,945 -14,261
Net cash flows from investments in non-financial assets -543 -901 -1,444 -1,927 -12,647
Net cash flows from investments in financial assets for policy purposes -306 -480 -787 -2,832 -16,581
Net cash flows from investments in financial assets for liquidity purposes 3,231 -5,182 -1,951 -8,841 -12,248
Cash flows from financing activities          
Borrowing (net) 5,098 6,557 11,655 8,849 16,945
Other financing (net) -320 16 -304 -146 -2,531
Net cash flows from financing activities 4,778 6,573 11,352 8,703 14,414
Net increase/(decrease) in cash held 946 -1,081 -136 -11,119 -2,222
GFS cash surplus(+)/deficit(-)(c) -6,757 -1,992 -8,749 -8,149 12,193
less Finance leases and similar arrangements(d) 2 0 2 0 0
less Net Future Fund earnings 550 368 918 856 5,140
Equals underlying cash balance(e) -7,309 -2,360 -9,669 -9,005 7,054
plus Net cash flows from investments in financial assets for policy purposes -306 -480 -787 -2,832 -16,581
plus Net Future Fund earnings 550 368 918 856 5,140
Equals headline cash balance -7,065 -2,473 -9,538 -10,981 -4,388

*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 ABS.

Note 1: Income Tax

  ACTUAL 2019-2020 July
$m
ACTUAL 2019-2020 August
$m
ACTUAL 2019-2020 YTD August
$m
Budget Profile 2019-2020 YTD August
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 16,253 19,914 36,167 35,632 219,800  
Gross other individuals 5,895 3,301 9,196 8,937 51,200  
less Refunds 8,603 7,382 15,985 14,980 36,900  
Total individuals and other withholding taxation 13,545 15,832 29,378 29,590 234,100  
Fringe benefits tax 896 48 944 907 4,040  
Company tax 8,669 6,607 15,276 17,420 100,600  
Superannuation fund taxes 990 1,012 2,002 2,106 9,750  
Petroleum resource rent tax 4 196 200 401 1,290  
Total income taxation revenue 24,104 23,696 47,800 50,423 349,780  

*As published in the 2019-20 Budget.

Note 2: Indirect Tax

  ACTUAL 2019-2020 July
$m
ACTUAL 2019-2020 August
$m
ACTUAL 2019-2020 YTD August
$m
Budget Profile 2019-2020 YTD August
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
 
Goods and services tax 6,493 6,262 12,756 12,674 69,630  
Wine equalisation tax 77 93 169 149 1,100  
Luxury car tax 74 47 121 107 640  
Excise duty 2,207 1,798 4,005 4,049 24,140  
Customs duty 4,779 1,548 6,327 6,218 21,120  
Other indirect tax 509 1,041 1,549 1,692 10,185  
Total indirect taxation revenue 14,139 10,788 24,927 24,888 126,815  

*As published in the 2019-20 Budget.

Note 3: Total expenses by function

  ACTUAL 2019-2020 July
$m
ACTUAL 2019-2020 August
$m
ACTUAL 2019-2020 YTD August
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
Expenses by function        
General public services 2,926 1,996 4,922 23,614
Defence 2,632 2,548 5,180 32,243
Public order and safety 583 490 1,073 5,919
Education 4,973 1,890 6,863 36,350
Health 6,115 7,182 13,297 81,777
Social security and welfare 17,644 14,721 32,365 180,125
Housing and community amenities 301 395 696 5,907
Recreation and culture 414 245 659 3,849
Fuel and energy 627 679 1,306 8,171
Agriculture, forestry and fishing 155 231 385 2,871
Mining, manufacturing and construction 217 224 441 3,422
Transport and communication 117 207 325 9,038
Other economic affairs 784 818 1,603 9,297
Other purposes        
Public debt interest 1,391 1,397 2,788 17,037
Nominal superannuation interest 720 719 1,439 11,127
General purpose inter-government transactions 7,294 5,824 13,118 70,328
Natural disaster relief 0 0 0 11
Contingency reserve 0 0 0 -216
Total expenses 46,894 39,564 86,459 500,872

*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.

Australian Accounting Standard 16 – Leases

The new Australian Accounting Standard AASB 16 Leases (AASB 16), applies to all Australian Government entities from 1 July 2019. The effect of AASB 16 is to introduce a single lease accounting framework. This is achieved by removing the current distinction between operating and finance leases. As a result, leases that were previously accounted for as operating expenses and payments will be included as additional assets and liabilities on the balance sheet. For whole of Government and General Government Sector Financial Reporting, the implementation of AASB 16 will be reflected in the 2019-20 Mid-Year Economic and Fiscal Outlook estimates, and in the Australian Government General Government Sector Monthly Financial Statements from December 2019.

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