MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements September 2019

MC 70/19

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

Date: Friday, 25 October 2019

KEY POINTS

The Monthly Financial Statements for September 2019 report the budget position against the expected monthly profile for the 2019-20 financial year through the year to 30 September 2019. Against this profile, the September 2019 result shows that as at 30 September 2019, the underlying cash balance was $119 million better than expected at the time of the 2019-20 Budget. This is a $783 million improvement compared to the position against the Budget profile at the end of August.

AGGREGATES ACTUAL 2019-2020 September
$m
ACTUAL 2019-2020 YTD September
$m
Budget Profile 2019-2020 YTD September
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
Revenue 32,563 110,603 111,937 513,763
Expenses 39,353 125,812 124,466 500,872
Net operating balance -6,791 -15,209 -12,528 12,891
Net capital investment -238 -559 1,193 4,749
Fiscal balance -6,553 -14,650 -13,721 8,142
Receipts(a) 33,087 108,070 107,442 505,521
less Payments(b) 36,840 120,574 120,130 493,327
less Net Future Fund earnings 430 1,348 1,284 5,140
Underlying cash balance(c) -4,183 -13,853 -13,972 7,054
Headline cash balance -4,968 -14,506 -16,851 -4,388
Total assets   615,794   611,012
Total liabilities   1,184,473   944,336
Net worth(d)   -568,678   -333,324
Net debt(e)   401,749   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 30 September 2019 was a deficit of $13,853 million, which is $119 million lower (better) than the 2019-20 Budget profile deficit of $13,972 million.

  • Receipts
    Total receipts were $627 million higher than the 2019-20 Budget profile.
  • Payments
    Total payments were $444 million higher than the 2019-20 Budget profile.

Net Operating Balance

The net operating balance for the year to 30 September 2019 was a deficit of $15,209 million, which is $2,681 million higher than the 2019-20 Budget profile deficit of $12,528 million. The difference results from lower than expected revenue and higher expenses.

Fiscal Balance

The fiscal balance for the year to 30 September 2019 was a deficit of $14,650 million, which is $928 million higher than the 2019-20 Budget profile deficit of $13,721 million. The difference results from lower than expected revenue, higher expenses and lower net capital investment.

Assets and Liabilities

As at 30 September 2019:

  • net worth is negative $568,678 million;
  • net debt is $401,749 million; and
  • net financial liabilities are $777,889 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 September
$m
ACTUAL 2019-2020 YTD September
$m
Budget Profile 2019-2020 YTD September
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 29,029 101,755 103,938 476,596
Sales of goods and services   1,693 3,846 3,573 15,757
Interest income   338 1,082 1,104 6,009
Dividend income   461 1,276 1,169 6,112
Other   1,042 2,645 2,153 9,290
Total revenue   32,563 110,603 111,937 513,763
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,665 5,101 5,311 21,348
Superannuation   714 2,130 1,439 5,907
Depreciation and amortisation   981 2,298 2,071 8,505
Supply of goods and services   10,535 31,826 30,564 125,566
Other operating expenses(a)   651 1,868 1,734 6,873
Total gross operating expenses   14,546 43,222 41,118 168,199
Superannuation interest expense   719 2,158 2,782 11,127
Interest expenses   1,403 4,328 4,377 19,264
Current transfers          
Current grants   10,907 38,673 38,065 150,408
Subsidy expenses   989 2,974 3,110 12,661
Personal benefits   10,492 33,777 34,054 128,972
Total current transfers   22,388 75,424 75,229 292,040
Capital transfers          
Mutually agreed write-downs   221 422 395 1,368
Other capital grants   75 258 564 8,874
Total capital transfers   296 679 959 10,241
Total expenses 3 39,353 125,812 124,466 500,872
Net operating balance   -6,791 -15,209 -12,528 12,891
Other economic flows          
- included in operating result          
Net write-downs of assets   -69 -1,338 -1,476 -7,996
Assets recognised for the first time   -21 32 51 190
Actuarial revaluations   7 20 14 54
Net foreign exchange gains   105 -1,512 0 61
Net swap interest received   -66 -210 0 0
Market valuation of debt   5,403 -9,891 1,406 5,040
Other gains/(losses)   -1,806 3,025 438 3,090
Total other economic flows
- included in operating result
  3,554 -9,872 432 439
Operating Result(b)   -3,237 -25,080 -12,096 13,330
Non-owner movements in equity          
Revaluation of equity investments   4,277 0 0 -6,017
Actuarial revaluations   0 0 0 262
Other economic revaluations   -13,876 -140 167 -10
Total other economic flows
- included in equity
  -9,599 -139 167 -5,765
Comprehensive result
- Total change in net worth
  -12,836 -25,220 -11,929 7,565
Net operating balance   -6,791 -15,209 -12,528 12,891
Net acquisition of non-financial assets          
Purchases of non-financial assets   956 1,969 3,250 14,425
less Sales of non-financial assets   2 24 20 1,171
less Depreciation   981 2,298 2,071 8,505
plus Change in inventories   -218 -227 18 3
plus Other movements in non-financial assets   6 21 16 -3
Total net acquisition of non-financial assets   -238 -559 1,193 4,749
Fiscal balance (Net lending/borrowing)(c)   -6,553 -14,650 -13,721 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 30 September 2019
$m
BUDGET ESTIMATE* as at 30 June 2020
$m
Financial assets    
Cash and deposits 7,602 5,342
Advances paid 75,780 83,302
Investments, loans and placements 194,628 188,358
Other receivables 59,205 57,430
Equity investments    
Investments in other public sector entities 57,590 48,324
Equity accounted investments 3,507 3,562
Investments - shares 65,862 70,034
Total financial assets 464,174 456,352
Non-financial assets    
Land 11,886 11,484
Buildings 27,281 27,589
Plant, equipment and infrastructure 82,726 86,178
Inventories 8,715 8,045
Intangibles 8,750 9,353
Investment properties 195 193
Biological assets 24 14
Heritage and cultural assets 11,690 11,594
Assets held for sale 298 179
Other non-financial assets 56 31
Total non-financial assets 151,621 154,660
Total assets 615,794 611,012
Liabilities    
Interest bearing liabilities    
Deposits held 282 381
Government securities 659,164 619,463
Loans 18,648 16,731
Other borrowing 1,667 1,466
Total interest bearing liabilities 679,759 638,042
Provisions and payables    
Superannuation liability(a) 417,159 230,748
Other employee liabilities 26,808 20,591
Suppliers payables 7,445 6,809
Personal benefits payables 3,294 3,746
Subsidies payables 4,380 1,210
Grants payables 1,970 3,927
Other payables 4,959 2,202
Provisions 38,698 37,060
Total provisions and payables 504,713 306,294
Total liabilities 1,184,473 944,336
Net worth(b) -568,678 -333,324
Net financial worth(c) -720,299 -487,984
Net financial liabilities(d) 777,889 536,308
Net debt(e) 401,749 361,040

*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 September
$m
ACTUAL 2019-2020 YTD September
$m
Budget Profile 2019-2020 YTD September
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 28,941 97,637 99,055 466,397
Receipts from sales of goods and services 1,085 3,820 3,678 15,745
Interest receipts 305 1,072 1,387 5,701
Dividends and income tax equivalents 2,188 2,997 1,156 6,165
Other receipts 566 2,529 2,139 9,897
Total operating receipts 33,084 108,054 107,416 503,906
Cash payments for operating activities        
Payments for employees(b) -2,190 -6,830 -7,457 -31,101
Payments for goods and services -9,943 -31,903 -30,698 -123,277
Grants and subsidies paid -12,389 -42,555 -41,895 -171,775
Interest paid -345 -1,100 -1,125 -16,638
Personal benefit payments -10,608 -33,937 -34,225 -129,783
Other payments(b) -533 -1,959 -1,593 -6,493
Total operating payments -36,009 -118,284 -116,993 -479,066
Net cash flows from operating activities -2,924 -10,230 -9,577 24,840
Cash flows from investments in non-financial assets        
Sales of non-financial assets 2 15 26 1,615
Purchases of non-financial assets -844 -2,301 -3,137 -14,261
Net cash flows from investments in non-financial assets -842 -2,286 -3,111 -12,647
Net cash flows from investments in financial assets for policy purposes -1,215 -2,002 -4,164 -16,581
Net cash flows from investments in financial assets for liquidity purposes -3,575 -5,526 -440 -12,248
Cash flows from financing activities        
Borrowing (net) 8,017 19,673 13,259 16,945
Other financing (net) -240 -544 -106 -2,531
Net cash flows from financing activities 7,778 19,129 13,153 14,414
Net increase/(decrease) in cash held -778 -914 -4,138 -2,222
GFS cash surplus(+)/deficit(-)(c) -3,766 -12,515 -12,687 12,193
less Finance leases and similar arrangements(d) -13 -11 0 0
less Net Future Fund earnings 430 1,348 1,284 5,140
Equals underlying cash balance(e) -4,183 -13,853 -13,972 7,054
plus Net cash flows from investments in financial assets for policy purposes -1,215 -2,002 -4,164 -16,581
plus Net Future Fund earnings 430 1,348 1,284 5,140
Equals headline cash balance -4,968 -14,506 -16,851 -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 Australian Bureau of Statistics.

Note 1: Income Tax

  ACTUAL 2019-2020 September
$m
ACTUAL 2019-2020 YTD September
$m
Budget Profile 2019-2020 YTD September
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
 
Individuals and other withholding taxes        
Gross income tax withholding 17,092 53,259 54,016 219,800
Gross other individuals 1,927 11,123 10,223 51,200
less Refunds 4,263 20,248 19,236 36,900
Total individuals and other withholding taxation 14,756 44,134 45,003 234,100
Fringe benefits tax 12 957 903 4,040
Company tax 6,551 21,827 22,928 100,600
Superannuation fund taxes 767 2,769 2,615 9,750
Petroleum resource rent tax 97 297 383 1,290
Total income taxation revenue 22,183 69,983 71,832 349,780

*As published in the 2019-20 Budget.

Note 2: Indirect Tax

  ACTUAL 2019-2020 September
$m
ACTUAL 2019-2020 YTD September
$m
Budget Profile 2019-2020 YTD September
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
 
Goods and services tax 3,214 15,969 16,052 69,630
Wine equalisation tax 79 248 227 1,100
Luxury car tax 52 173 156 640
Excise duty 2,315 6,320 6,332 24,140
Customs duty 570 6,897 6,968 21,120
Other indirect tax 615 2,164 2,370 10,185
Total indirect taxation revenue 6,845 31,772 32,106 126,815

*As published in the 2019-20 Budget.

Note 3: Total expenses by function

  ACTUAL 2019-2020 September
$m
ACTUAL 2019-2020 YTD September
$m
BUDGET ESTIMATE* 2019-2020 FULL YEAR
$m
Expenses by function      
General public services 675 5,597 23,614
Defence 3,320 8,500 32,243
Public order and safety 441 1,515 5,919
Education 1,757 8,620 36,350
Health 7,790 21,087 81,777
Social security and welfare 14,951 47,316 180,125
Housing and community amenities 324 1,019 5,907
Recreation and culture 274 933 3,849
Fuel and energy 666 1,972 8,171
Agriculture, forestry and fishing 173 558 2,871
Mining, manufacturing and construction 227 668 3,422
Transport and communication 222 547 9,038
Other economic affairs 785 2,387 9,297
Other purposes      
Public debt interest 1,359 4,148 17,037
Nominal superannuation interest 719 2,158 11,127
General purpose inter-government transactions 5,669 18,787 70,328
Natural disaster relief 0 0 11
Contingency reserve 0 0 -216
Total expenses 39,353 125,812 500,872

*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