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MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements January 2020

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

Date: Friday, 28 February 2020

KEY POINTS

  • The Monthly Financial Statements for January 2020 report the budget position against the expected monthly profile for the 2019-20 financial year through to 31 January 2020, based on the 2019-20 Mid-Year Economic and Fiscal Outlook (MYEFO) estimates published in December 2019.
  • The underlying cash balance for the 2019-20 financial year to 31 January 2020 was a deficit of $26,610 million against the 2019-20 MYEFO profile deficit of $22,885 million.
  • The fiscal balance for the 2019-20 financial year to 31 January 2020 was a deficit of $21,953 million against the 2019-20 MYEFO profile deficit of $20,349 million.
AGGREGATES(a) ACTUAL
2019-2020
January
$m
ACTUAL
2019-2020
YTD January
$m
MYEFO Profile
2019-2020
YTD January
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue 34,849 273,856 275,608 511,148
Expenses 44,531 293,751 294,184 503,180
Net operating balance -9,682 -19,895 -18,576 7,968
Net capital investment 323 2,058 1,773 4,161
Fiscal balance -10,006 -21,953 -20,349 3,807
Receipts(b) 30,660 266,824 271,623 502,472
less Payments(c) 41,730 290,107 291,223 491,976
less Net Future Fund earnings 369 3,328 3,284 5,468
Underlying cash balance(d) -11,440 -26,610 -22,885 5,028
Headline cash balance -11,868 -29,969 -26,333 -2,841
Total assets   639,691   655,554
Total liabilities   1,209,449   1,001,597
Net worth(e)   -569,758   -346,042
Net debt(f)   430,211   392,305

*As published in the 2019-20 MYEFO.
(a) Includes impacts resulting from the implementation of AASB 16 Leases.
(b) Cash receipts for operating activities and sales of non-financial assets.
(c) Cash payments for operating activities, purchases of non-financial assets and net cash flows from financing activities for leases.
(d) Excludes net Future Fund earnings. Consistent with Budget documents, the net adjustment for the Future Fund is shown separately.
(e) Net worth is calculated as total assets minus total liabilities.
(f) 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. 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 January 2020 was a deficit of $26,610 million, which is $3,725 million higher than the 2019-20 MYEFO profile deficit of $22,885 million.

  • Receipts
    Total receipts were $4,798 million lower than the 2019-20 MYEFO profile.
  • Payments
    Total payments were $1,117 million lower than the 2019-20 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 31 January 2020 was a deficit of $19,895 million, which is $1,319 million higher than the 2019-20 MYEFO profile deficit of $18,576 million. The difference results from lower than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 January 2020 was a deficit of $21,953 million, which is $1,604 million higher than the 2019-20 MYEFO profile deficit of $20,349 million. The difference results from lower than expected revenue, lower expenses and higher net capital investment.

Assets and Liabilities

As at 31 January 2020:

  • net worth is negative $569,758 million;
  • net debt is $430,211 million; and
  • net financial liabilities are $799,498 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
January
$m
ACTUAL
2019-2020
YTD January
$m
MYEFO Profile
2019-2020
YTD January
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue          
Taxation revenue 1,2 32,523 252,448 254,473 472,815
Sales of goods and services   1,193 8,799 8,726 14,980
Interest income   81 2,270 2,541 5,247
Dividend income   317 3,258 3,185 6,383
Other   735 7,081 6,684 11,723
Total revenue   34,849 273,856 275,608 511,148
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,613 11,737 12,198 21,366
Superannuation   1,702 7,248 6,908 12,357
Depreciation and amortisation(b)   1,003 6,599 6,952 11,446
Supply of goods and services(b)   8,319 70,464 69,855 124,029
Other operating expenses(a)   518 4,206 4,150 7,236
Total gross operating expenses   13,155 100,255 100,062 176,434
Superannuation interest expense   481 4,477 4,534 7,715
Interest expenses(b)   1,426 10,169 10,235 18,215
Current transfers          
Current grants   17,182 93,278 93,500 149,813
Subsidy expenses   998 6,984 6,935 12,136
Personal benefits   10,579 75,895 76,094 128,282
Total current transfers   28,758 176,157 176,529 290,232
Capital transfers          
Mutually agreed write-downs   82 884 945 1,416
Other capital grants   629 1,809 1,879 9,168
Total capital transfers   711 2,693 2,824 10,584
Total expenses 3 44,531 293,751 294,184 503,180
Net operating balance   -9,682 -19,895 -18,576 7,968
Other economic flows          
- included in operating result          
Net write-downs of assets   -9 -3,256 -3,741 -6,933
Assets recognised for the first time   8 77 192 201
Actuarial revaluations   0 0 47 81
Net foreign exchange gains   -2,335 -2,180 -1 -92
Net swap interest received   43 -205 -268 -210
Market valuation of debt   -16,692 -10,803 -4,684 -1,129
Other gains/(losses)   5,603 7,700 3,191 5,131
Total other economic flows
- included in operating result
  -13,381 -8,666 -5,264 -2,950
Operating Result(c)   -23,064 -28,561 -23,840 5,018
Non-owner movements in equity          
Revaluation of equity investments   -1 11 -6 -3,928
Actuarial revaluations   0 0 0 1,879
Other economic revaluations   -169 1,956 1,266 195
Total other economic flows
- included in equity
  -170 1,968 1,260 -1,853
Comprehensive result
- Total change in net worth
  -23,234 -26,594 -22,580 3,164
Net operating balance   -9,682 -19,895 -18,576 7,968
Net acquisition of non-financial assets (b)          
Purchases of non-financial assets   1,297 8,718 8,716 16,868
less Sales of non-financial assets   32 113 75 1,219
less Depreciation   1,003 6,599 6,952 11,446
plus Change in inventories   65 23 59 -40
plus Other movements in non-financial assets   -3 29 24 -3
Total net acquisition of non-financial assets   323 2,058 1,773 4,161
Fiscal balance (Net lending/borrowing)(d)   -10,006 -21,953 -20,349 3,807

*As published in the 2019-20 MYEFO.
(a) Consistent with the 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) Includes impacts resulting from the implementation of AASB 16 Leases.
(c) Operating result under Australian Accounting Standards.
(d) The term fiscal balance is not used by the ABS.

Australian Government general government sector balance sheet

  ACTUAL
as at 31 January 2020
$m
MYEFO ESTIMATE*
as at 30 June 2020
$m
Assets    
Financial assets    
Cash and deposits 9,836 7,204
Advances paid 80,303 85,155
Investments, loans and placements 184,954 198,528
Other receivables 60,218 58,577
Equity investments    
Investments in other public sector entities 57,941 55,640
Equity accounted investments 3,555 3,677
Investments - shares 71,085 73,969
Total financial assets 467,892 482,751
Non-financial assets    
Land 11,955 11,824
Buildings 43,055 43,415
Plant, equipment and infrastructure 86,762 87,832
Inventories 8,885 8,488
Intangibles 8,773 9,105
Investment properties 197 160
Biological assets 22 21
Heritage and cultural assets 11,783 11,695
Assets held for sale 303 231
Other non-financial assets 65 32
Total non-financial assets(a) 171,799 172,803
Total assets 639,691 655,554
Liabilities    
Interest bearing liabilities    
Deposits held 371 388
Government securities 666,347 645,907
Loans 19,021 17,759
Lease liabilities(a) 19,565 19,139
Total interest bearing liabilities 705,304 683,193
Provisions and payables    
Superannuation liability(b) 421,231 230,774
Other employee liabilities 26,677 26,663
Suppliers payables 6,584 7,579
Personal benefits payables 2,656 3,753
Subsidies payables 4,366 645
Grants payables 2,370 4,051
Other payables 3,372 2,186
Provisions 36,888 42,752
Total provisions and payables 504,145 318,404
Total liabilities 1,209,449 1,001,597
Net worth(c) -569,758 -346,042
Net financial worth(d) -741,557 -518,845
Net financial liabilities(e) 799,498 574,486
Net debt(f) 430,211 392,305

*As published in the 2019-20 MYEFO.
(a) Includes impacts from implementation of AASB 16 Leases.
(b) 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.
(c) Net worth equals total assets minus total liabilities.
(d) Net financial worth equals total financial assets minus total liabilities.
(e) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(f) 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
January
$m
ACTUAL
2019-2020
YTD January
$m
MYEFO Profile
2019-2020
YTD January
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 27,106 240,851 245,911 463,791
Receipts from sales of goods and services 1,763 9,672 9,987 15,142
Interest receipts 265 2,453 2,711 5,134
Dividends and income tax equivalents 332 5,090 4,865 6,792
Other receipts 727 8,242 7,659 9,949
Total operating receipts 30,193 266,307 271,134 500,809
Cash payments for operating activities        
Payments for employees(b) -2,345 -17,485 -17,640 -31,152
Payments for goods and services(c) -7,233 -72,820 -72,965 -122,024
Grants and subsidies paid -19,519 -102,240 -102,584 -170,400
Interest paid(c) -544 -8,693 -8,781 -16,564
Personal benefit payments -10,536 -76,936 -77,343 -128,416
Other payments(b) -521 -3,957 -3,997 -6,768
Total operating payments -40,698 -282,131 -283,309 -475,325
Net cash flows from operating activities -10,505 -15,824 -12,175 25,483
Cash flows from investments in non-financial assets        
Sales of non-financial assets 467 517 489 1,663
Purchases of non-financial assets -728 -6,798 -6,572 -14,304
Net cash flows from investments in non-financial assets -261 -6,281 -6,082 -12,641
Net cash flows from investments in financial assets for policy purposes -797 -6,687 -6,733 -13,336
Net cash flows from investments in financial assets for liquidity purposes 3,315 3,368 4,551 -15,923
Cash flows from financing activities        
Borrowing (net) 6,353 29,632 22,866 20,271
Other financing (net)(c) -407 -2,974 -3,259 -5,257
Net cash flows from financing activities 5,946 26,658 19,607 15,014
Net increase/(decrease) in cash held -2,302 1,234 -833 -1,403
GFS cash surplus(+)/deficit(-)(d) -10,766 -22,105 -18,258 12,842
plus Net cash flows from financing activities for leases(e) -305 -1,178 -1,343 -2,347
less Net Future Fund earnings 369 3,328 3,284 5,468
Equals underlying cash balance(f) -11,440 -26,610 -22,885 5,028
plus Net cash flows from investments in financial assets for policy purposes -797 -6,687 -6,733 -13,336
plus Net Future Fund earnings 369 3,328 3,284 5,468
Equals headline cash balance -11,868 -29,969 -26,333 -2,841

*As published in the 2019-20 MYEFO.
(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) Include impacts from implementation of AASB 16 Leases.
(d) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(e) Principal payments on lease liabilities, which are cash flows from financing activities, are deducted in the calculation of the underlying cash balance to maintain consistency of measure following the implementation of AASB 16 Leases.
(f) The term underlying cash balance is not used by the ABS.

Note 1: Income Tax

  ACTUAL
2019-2020
January
$m
ACTUAL
2019-2020
YTD January
$m
MYEFO Profile
2019-2020
YTD January
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 16,362 124,795 126,092 220,300  
Gross other individuals 2,062 23,811 24,313 52,900  
less Refunds 1,464 29,489 29,601 36,800  
Total individuals and other withholding taxation 16,960 119,116 120,804 236,400  
Fringe benefits tax 652 2,659 2,670 4,040  
Company tax 7,490 53,860 53,891 99,800  
Superannuation fund taxes(a) -916 4,858 5,198 8,460  
Petroleum resource rent tax 197 786 880 1,130  
Total income taxation revenue 24,382 181,278 183,442 349,830  

*As published in the 2019-20 MYEFO.
(a) The negative movement in Superannuation fund taxes for January reflects a higher amount of refunds issued for the month.

Note 2: Indirect Tax

  ACTUAL
2019-2020
January
$m
ACTUAL
2019-2020
YTD January
$m
MYEFO Profile
2019-2020
YTD January
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
 
Goods and services tax 4,288 38,836 37,909 67,230  
Wine equalisation tax 104 621 651 1,110  
Luxury car tax 52 384 384 670  
Excise duty 1,678 14,137 14,117 23,900  
Customs duty 1,470 11,926 12,758 20,800  
Other indirect tax 549 5,266 5,212 9,275  
Total indirect taxation revenue 8,141 71,170 71,030 122,985  

*As published in the 2019-20 MYEFO.

Note 3: Total expenses by function

  ACTUAL
2019-2020
January
$m
ACTUAL
2019-2020
YTD January
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Expenses by function      
General public services 4,394 16,938 30,157
Defence 1,460 17,380 32,783
Public order and safety 708 3,586 5,966
Education 7,685 25,785 35,846
Health 6,556 47,932 83,425
Social security and welfare 13,167 106,775 180,782
Housing and community amenities 409 2,559 5,715
Recreation and culture 191 1,687 3,989
Fuel and energy 631 4,577 8,161
Agriculture, forestry and fishing 243 1,382 3,025
Mining, manufacturing and construction 228 1,586 3,073
Transport and communication 748 2,634 8,671
Other economic affairs 768 5,533 10,250
Other purposes      
Public debt interest 1,436 9,899 16,746
Nominal superannuation interest 481 4,477 7,715
General purpose inter-government transactions 5,373 40,969 68,547
Natural disaster relief 53 53 38
Contingency reserve 0 0 -1,707
Total expenses 44,531 293,751 503,180

*As published in the 2019-20 MYEFO.

 

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 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.

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.

The implementation of AASB 16 has implications for a number of budget aggregates, in particular, net debt and net financial worth due to the recognition of the new lease liabilities. To maintain consistency in the measurement of the underlying cash balance, the principal payments on lease liabilities which are recognised as cash flows from financing activities, have been included in the calculation following the implementation of AASB 16.

For General Government Sector financial reporting, the implementation of AASB 16 has been reflected in the 2019-20 MYEFO estimates and 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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