MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements November 2019

MC 100/19

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

Date: Friday, 20 December 2019

KEY POINTS

  • The Monthly Financial Statements for November 2019 report the budget position against the expected monthly profile for the 2019-20 financial year through to 30 November 2019, based on the 2019-20 Budget published in April 2019.
  • The 2019-20 Mid-Year Economic and Fiscal Outlook (MYEFO) released on Monday, 16 December 2019, includes updated estimates for the 2019-20 financial year.  Commencing with the December 2019 monthly financial statements, which will be released in January 2020, the budget position will be reported against the expected monthly profile based on the updated estimates outlined in the 2019-20 MYEFO.
  • The underlying cash balance for the 2019-20 financial year to 30 November 2019 was a deficit of $13,848 million against the 2019-20 Budget profile deficit of $13,130 million.
  • The fiscal balance for the 2019-20 financial year to 30 November 2019 was a deficit of $9,450 million against the 2019-20 Budget profile deficit of $8,985 million.
AGGREGATES ACTUAL
2019-2020
November
$m
ACTUAL
2019-2020
YTD November
$m
Budget Profile
2019-2020
YTD November
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue 44,122 199,056 198,716 513,763
Expenses 39,373 207,839 205,737 500,872
Net operating balance 4,749 -8,783 -7,021 12,891
Net capital investment 418 666 1,964 4,749
Fiscal balance 4,331 -9,450 -8,985 8,142
Receipts(a) 42,318 195,501 197,165 505,521
less Payments(b) 40,911 206,946 208,166 493,327
less Net Future Fund earnings 531 2,403 2,129 5,140
Underlying cash balance(c) 875 -13,848 -13,130 7,054
Headline cash balance 330 -15,453 -17,796 -4,388
Total assets   616,556   611,012
Total liabilities   1,176,355   944,336
Net worth(d)   -559,799   -333,324
Net debt(e)   396,064   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.

Comparators for the November 2019 monthly financial statements are based on the 2019‑20 Budget published in April 2019. From the December 2019 monthly financial statements, the comparators will be based on updated estimates from the 2019-20 MYEFO.

 

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 30 November 2019 was a deficit of $13,848 million, which is $718 million higher than the 2019-20 Budget profile deficit of $13,130 million.

  • Receipts
    Total receipts were $1,664 million lower than the 2019-20 Budget profile.
  • Payments
    Total payments were $1,220 million lower than the 2019-20 Budget profile.

Net Operating Balance

The net operating balance for the year to 30 November 2019 was a deficit of $8,783 million, which is $1,763 million higher than the 2019-20 Budget profile deficit of $7,021 million. The difference results from higher than expected revenue and higher expenses.

Fiscal Balance

The fiscal balance for the year to 30 November 2019 was a deficit of $9,450 million, which is $465 million higher than the 2019-20 Budget profile deficit of $8,985 million. The difference results from higher than expected revenue, higher expenses and lower net capital investment.

Assets and Liabilities

As at 30 November 2019:

  • net worth is negative $559,799 million;
  • net debt is $396,064 million; and
  • net financial liabilities are $770,419 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
November
$m
ACTUAL
2019-2020
YTD November
$m
Budget Profile
2019-2020
YTD November
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 40,390 183,334 185,261 476,596
Sales of goods and services   1,576 6,056 5,789 15,757
Interest income   315 1,803 1,804 6,009
Dividend income   562 2,407 2,065 6,112
Other   1,279 5,457 3,797 9,290
Total revenue   44,122 199,056 198,716 513,763
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,673 8,519 8,869 21,348
Superannuation   2,028 4,820 2,474 5,907
Depreciation and amortisation   943 3,785 3,451 8,505
Supply of goods and services   10,131 52,412 50,688 125,566
Other operating expenses(a)   694 3,184 2,910 6,873
Total gross operating expenses   15,471 72,721 68,392 168,199
Superannuation interest expense   401 3,277 4,636 11,127
Interest expenses   1,376 7,154 7,253 19,264
Current transfers          
Current grants   10,436 63,450 63,383 150,408
Subsidy expenses   997 4,987 5,156 12,661
Personal benefits   10,286 54,743 55,126 128,972
Total current transfers   21,719 123,180 123,665 292,040
Capital transfers          
Mutually agreed write-downs   58 612 637 1,368
Other capital grants   350 896 1,153 8,874
Total capital transfers   407 1,508 1,790 10,241
Total expenses 3 39,373 207,839 205,737 500,872
Net operating balance   4,749 -8,783 -7,021 12,891
Other economic flows
- included in operating result
         
Net write-downs of assets   -406 -2,317 -3,062 -7,996
Assets recognised for the first time   19 57 76 190
Actuarial revaluations   -27 0 23 54
Net foreign exchange gains   -786 -1,610 0 61
Net swap interest received   15 -268 0 0
Market valuation of debt   -4,705 -9,113 2,278 5,040
Other gains/(losses)   2,388 4,422 780 3,090
Total other economic flows
- included in operating result
  -3,503 -8,831 94 439
Operating Result(b)   1,246 -17,614 -6,926 13,330
Non-owner movements in equity          
Revaluation of equity investments   0 -3 0 -6,017
Actuarial revaluations   0 0 0 262
Other economic revaluations   331 1,276 193 -10
Total other economic flows
- included in equity
  331 1,273 193 -5,765
Comprehensive result
- Total change in net worth
  1,577 -16,341 -6,734 7,565
Net operating balance   4,749 -8,783 -7,021 12,891
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,291 4,625 5,407 14,425
less Sales of non-financial assets   11 52 35 1,171
less Depreciation   943 3,785 3,451 8,505
plus Change in inventories   79 -151 23 3
plus Other movements in non-financial assets   2 29 19 -3
Total net acquisition of non-financial assets   418 666 1,964 4,749
Fiscal balance (Net lending/borrowing)(c)   4,331 -9,450 -8,985 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 November 2019
$m
BUDGET ESTIMATE*
as at 30 June 2020
$m
Assets    
Financial assets    
Cash and deposits 8,731 5,342
Advances paid 78,049 83,302
Investments, loans and placements 187,062 188,358
Other receivables 60,047 57,430
Equity investments    
Investments in other public sector entities 57,882 48,324
Equity accounted investments 3,506 3,562
Investments - shares 68,541 70,034
Total financial assets 463,818 456,352
Non-financial assets    
Land 11,875 11,484
Buildings 27,148 27,589
Plant, equipment and infrastructure 83,901 86,178
Inventories 8,767 8,045
Intangibles 8,768 9,353
Investment properties 197 193
Biological assets 23 14
Heritage and cultural assets 11,685 11,594
Assets held for sale 309 179
Other non-financial assets 65 31
Total non-financial assets 152,738 154,660
Total assets 616,556 611,012
Liabilities    
Interest bearing liabilities    
Deposits held 290 381
Government securities 649,774 619,463
Loans 18,319 16,731
Other borrowing 1,522 1,466
Total interest bearing liabilities 669,905 638,042
Provisions and payables    
Superannuation liability(a) 419,385 230,748
Other employee liabilities 26,412 20,591
Suppliers payables 8,901 6,809
Personal benefits payables 2,791 3,746
Subsidies payables 4,345 1,210
Grants payables 2,018 3,927
Other payables 4,177 2,202
Provisions 38,421 37,060
Total provisions and payables 506,450 306,294
Total liabilities 1,176,355 944,336
Net worth(b) -559,799 -333,324
Net financial worth(c) -712,537 -487,984
Net financial liabilities(d) 770,419 536,308
Net debt(e) 396,064 361,040

*As published in the 2019-20 Budget.
(a) For budget reporting purposes, a discount rate of 5 per cent determined by actuaries in preparing the 2017 Long Term Cost Reports is used to value the superannuation liability. This reflects the average annual rate estimated to apply over the term of the liability and it reduces the volatility in reported liabilities that would occur from year to year if the spot rates on long-term government bonds were used. Consistent with AAS, the superannuation liability for the 2019-20 Monthly Financial Statements was calculated using the spot rates on long-term government bonds as at 30 June 2019 that best matched each individual scheme’s liability duration. These rates were between 1.4 and 1.9 per cent per annum.
(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
November
$m
ACTUAL
2019-2020
YTD November
$m
Budget Profile
2019-2020
YTD November
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 39,834 176,094 177,226 466,397
Receipts from sales of goods and services 669 6,890 5,849 15,745
Interest receipts 290 1,874 2,187 5,701
Dividends and income tax equivalents 523 4,184 2,058 6,165
Other receipts 996 6,421 9,801 9,897
Total operating receipts 42,313 195,462 197,121 503,906
Cash payments for operating activities        
Payments for employees(b) -2,391 -12,545 -12,873 -31,101
Payments for goods and services -12,808 -54,865 -53,120 -123,277
Grants and subsidies paid -11,789 -69,831 -69,879 -171,775
Interest paid -2,325 -7,137 -7,589 -16,638
Personal benefit payments -9,936 -55,236 -56,559 -129,783
Other payments(b) -437 -2,938 -2,931 -6,493
Total operating payments -39,687 -202,552 -202,952 -479,066
Net cash flows from operating activities 2,626 -7,089 -5,831 24,840
Cash flows from investments in non-financial assets        
Sales of non-financial assets 4 38 44 1,615
Purchases of non-financial assets -1,224 -4,394 -5,214 -14,261
Net cash flows from investments in non-financial assets -1,220 -4,356 -5,170 -12,647
Net cash flows from investments in financial assets for policy purposes -1,077 -4,008 -6,796 -16,581
Net cash flows from investments in financial assets for liquidity purposes -4,695 1,391 8,486 -12,248
Cash flows from financing activities        
Borrowing (net) 4,346 16,312 7,165 16,945
Other financing (net) -715 -2,041 -1,384 -2,531
Net cash flows from financing activities 3,631 14,271 5,781 14,414
Net increase/(decrease) in cash held -735 209 -3,529 -2,222
GFS cash surplus(+)/deficit(-)(c) 1,406 -11,445 -11,001 12,193
less Finance leases and similar arrangements(d) 0 0 0 0
less Net Future Fund earnings 531 2,403 2,129 5,140
Equals underlying cash balance(e) 875 -13,848 -13,130 7,054
plus Net cash flows from investments in financial assets for policy purposes -1,077 -4,008 -6,796 -16,581
plus Net Future Fund earnings 531 2,403 2,129 5,140
Equals headline cash balance 330 -15,453 -17,796 -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) Consistent with the ABS GFS classification, other employee related payments are reported under other payments.
(c) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(d) 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.
(e) The term underlying cash balance is not used by the ABS.

Note 1: Income Tax

  ACTUAL
2019-2020
November
$m
ACTUAL
2019-2020
YTD November
$m
Budget Profile
2019-2020
YTD November
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 18,800 90,325 89,500 219,800  
Gross other individuals 3,216 20,315 19,095 51,200  
less Refunds 2,563 26,736 26,055 36,900  
Total individuals and other withholding taxation 19,453 83,904 82,540 234,100  
Fringe benefits tax 60 1,917 1,878 4,040  
Company tax 8,459 37,977 39,933 100,600  
Superannuation fund taxes 868 4,506 4,968 9,750  
Petroleum resource rent tax -2 594 804 1,290  
Total income taxation revenue 28,838 128,898 130,123 349,780  

*As published in the 2019-20 Budget.

Note 2: Indirect Tax

  ACTUAL
2019-2020
November
$m
ACTUAL
2019-2020
YTD November
$m
Budget Profile
2019-2020
YTD November
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
 
Goods and services tax 7,001 30,216 30,769 69,630  
Wine equalisation tax 100 420 397 1,100  
Luxury car tax 52 280 258 640  
Excise duty 1,928 10,044 10,225 24,140  
Customs duty 1,183 9,409 9,114 21,120  
Other indirect tax 1,288 4,067 4,375 10,185  
Total indirect taxation revenue 11,552 54,436 55,139 126,815  

*As published in the 2019-20 Budget.

Note 3: Total expenses by function

  ACTUAL
2019-2020
November
$m
ACTUAL
2019-2020
YTD November
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
Expenses by function      
General public services 3,138 10,804 23,614
Defence 2,825 13,706 32,243
Public order and safety 438 2,450 5,919
Education 1,808 15,366 36,350
Health 7,095 35,111 81,777
Social security and welfare 13,985 76,399 180,125
Housing and community amenities 414 1,800 5,907
Recreation and culture 174 1,270 3,849
Fuel and energy 644 3,276 8,171
Agriculture, forestry and fishing 196 963 2,871
Mining, manufacturing and construction 236 1,118 3,422
Transport and communication 419 1,446 9,038
Other economic affairs 774 4,013 9,297
Other purposes      
Public debt interest 1,348 6,898 17,037
Nominal superannuation interest 402 3,278 11,127
General purpose inter-government transactions 5,477 29,941 70,328
Natural disaster relief 0 0 11
Contingency reserve 0 0 -216
Total expenses 39,373 207,839 500,872

*As published in the 2019-20 Budget.

 

NOTES:

AASB 1049 Whole of Government and General Government Sector Financial Reporting (AASB 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, 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.

AASB 16 Leases (AASB 16)

The new Australian Accounting Standard, AASB 16, applied to all Australian Government entities from 1 July 2019. AASB 16 introduced a single lease accounting framework for lessees and removed the distinction between operating and finance leases. As a result, new assets and liabilities have been recognised on the balance sheet for leases that were previously accounted for as operating expenses. The reduction in operating lease expenses is replaced with the depreciation charge for the right-of-use assets and interest expense on the lease liabilities.

For whole of Government and General Government Sector Financial Reporting, the implementation of AASB 16 has been reflected in the 2019-20 MYEFO estimates and will be reflected in the Australian Government General Government Sector Monthly Financial Statements from the December 2019 reporting period.

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 .

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