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MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements February 2020

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

Date: Friday, 27 March 2020

KEY POINTS

  • The Monthly Financial Statements for February 2020 report the budget position against the expected monthly profile for the 2019-20 financial year through to 29 February 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 29 February 2020 was a deficit of $16,269 million against the 2019-20 MYEFO profile deficit of $13,657 million.
  • The fiscal balance for the 2019-20 financial year to 29 February 2020 was a deficit of $11,444 million against the 2019-20 MYEFO profile deficit of $11,287 million.
AGGREGATES(a) ACTUAL
2019-2020
February
$m
ACTUAL
2019-2020
YTD February
$m
MYEFO Profile
2019-2020
YTD February
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue 47,888 321,743 324,909 511,148
Expenses 38,613 332,364 334,051 503,180
Net operating balance 9,274 -10,621 -9,142 7,968
Net capital investment -1,235 823 2,145 4,161
Fiscal balance 10,509 -11,444 -11,287 3,807
Receipts(b) 46,522 313,346 318,930 502,472
less Payments(c) 35,833 325,940 328,863 491,976
less Net Future Fund earnings 348 3,676 3,724 5,468
Underlying cash balance(d) 10,341 -16,269 -13,657 5,028
Headline cash balance 9,558 -20,411 -18,044 -2,841
Total assets   656,826   655,554
Total liabilities   1,225,086   1,001,597
Net worth(e)   -568,260   -346,042
Net debt(f)   424,164   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 29 February 2020 was a deficit of $16,269 million, which is $2,612 million higher than the 2019-20 MYEFO profile deficit of $13,657 million.

  • Receipts
    Total receipts were $5,584 million lower than the 2019-20 MYEFO profile.
  • Payments
    Total payments were $2,924 million lower than the 2019-20 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 29 February 2020 was a deficit of $10,621 million, which is $1,479 million higher than the 2019-20 MYEFO profile deficit of $9,142 million. The difference results from lower than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 29 February 2020 was a deficit of $11,444 million, which is $157 million higher than the 2019-20 MYEFO profile deficit of $11,287 million. The difference results from lower than expected revenue, lower expenses and lower net capital investment.

Assets and Liabilities

As at 29 February 2020:

  • net worth is negative $568,260 million;
  • net debt is $424,164 million; and
  • net financial liabilities are $797,525 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
February
$m
ACTUAL
2019-2020
YTD February
$m
MYEFO Profile
2019-2020
YTD February
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue          
Taxation revenue 1,2 44,971 297,419 300,894 472,815
Sales of goods and services   1,317 10,116 9,924 14,980
Interest income   312 2,582 2,997 5,247
Dividend income   438 3,696 3,565 6,383
Other   850 7,931 7,529 11,723
Total revenue   47,888 321,743 324,909 511,148
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,683 13,420 13,908 21,366
Superannuation   1,031 8,280 7,985 12,357
Depreciation and amortisation(b)   1,055 7,654 7,953 11,446
Supply of goods and services(b)   9,768 80,232 79,663 124,029
Other operating expenses(a)   621 4,828 4,721 7,236
Total gross operating expenses   14,159 114,414 114,230 176,434
Superannuation interest expense   640 5,117 5,162 7,715
Interest expenses(b)   1,392 11,561 11,655 18,215
Current transfers          
Current grants   10,752 104,030 104,799 149,813
Subsidy expenses   974 7,957 7,930 12,136
Personal benefits   9,973 85,868 85,993 128,282
Total current transfers   21,698 197,855 198,722 290,232
Capital transfers          
Mutually agreed write-downs   221 1,105 1,020 1,416
Other capital grants   503 2,312 3,263 9,168
Total capital transfers   724 3,417 4,283 10,584
Total expenses 3 38,613 332,364 334,051 503,180
Net operating balance   9,274 -10,621 -9,142 7,968
Other economic flows          
- included in operating result          
Net write-downs of assets   -1,056 -4,312 -4,554 -6,933
Assets recognised for the first time   28 105 231 201
Actuarial revaluations   0 0 54 81
Net foreign exchange gains   -2,158 -4,338 -1 -92
Net swap interest received   -88 -292 -268 -210
Market valuation of debt   -4,717 -15,520 -3,971 -1,129
Other gains/(losses)   289 7,989 3,366 5,131
Total other economic flows
- included in operating result
  -7,702 -16,368 -5,145 -2,950
Operating Result(c)   1,573 -26,989 -14,286 5,018
Non-owner movements in equity          
Revaluation of equity investments   3 14 -6 -3,928
Actuarial revaluations   0 0 0 1,879
Other economic revaluations   -78 1,878 755 195
Total other economic flows
- included in equity
  -75 1,892 748 -1,853
Comprehensive result
- Total change in net worth
  1,497 -25,096 -13,538 3,164
Net operating balance   9,274 -10,621 -9,142 7,968
Net acquisition of non-financial assets (b)          
Purchases of non-financial assets   850 9,568 10,096 16,868
less Sales of non-financial assets   1,034 1,147 84 1,219
less Depreciation   1,055 7,654 7,953 11,446
plus Change in inventories   -0 23 64 -40
plus Other movements in non-financial assets   4 34 22 -3
Total net acquisition of non-financial assets   -1,235 823 2,145 4,161
Fiscal balance (Net lending/borrowing)(d)   10,509 -11,444 -11,287 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 29 February 2020
$m
MYEFO ESTIMATE*
as at 30 June 2020
$m
Assets    
Financial assets    
Cash and deposits 9,671 7,204
Advances paid 81,615 85,155
Investments, loans and placements 201,974 198,528
Other receivables 63,148 58,577
Equity investments    
Investments in other public sector entities 57,978 55,640
Equity accounted investments 3,557 3,677
Investments - shares 67,597 73,969
Total financial assets 485,540 482,751
Non-financial assets    
Land 11,939 11,824
Buildings 42,754 43,415
Plant, equipment and infrastructure 86,559 87,832
Inventories 8,880 8,488
Intangibles 8,923 9,105
Investment properties 199 160
Biological assets 21 21
Heritage and cultural assets 11,682 11,695
Assets held for sale 261 231
Other non-financial assets 69 32
Total non-financial assets(a) 171,286 172,803
Total assets 656,826 655,554
Liabilities    
Interest bearing liabilities    
Deposits held 329 388
Government securities 676,583 645,907
Loans 21,299 17,759
Lease liabilities(a) 19,214 19,139
Total interest bearing liabilities 717,424 683,193
Provisions and payables    
Superannuation liability(b) 422,125 230,774
Other employee liabilities 26,810 26,663
Suppliers payables 6,964 7,579
Personal benefits payables 2,966 3,753
Subsidies payables 767 645
Grants payables 2,393 4,051
Other payables 2,829 2,186
Provisions 42,808 42,752
Total provisions and payables 507,662 318,404
Total liabilities 1,225,086 1,001,597
Net worth(c) -568,260 -346,042
Net financial worth(d) -739,546 -518,845
Net financial liabilities(e) 797,525 574,486
Net debt(f) 424,164 392,305

*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
February
$m
ACTUAL
2019-2020
YTD February
$m
MYEFO Profile
2019-2020
YTD February
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 44,631 285,482 290,787 463,791
Receipts from sales of goods and services 645 10,316 10,752 15,142
Interest receipts 123 2,576 3,078 5,134
Dividends and income tax equivalents 347 5,437 5,244 6,792
Other receipts 665 8,907 8,568 9,949
Total operating receipts 46,411 312,718 318,430 500,809
Cash payments for operating activities        
Payments for employees(b) -2,549 -20,034 -20,028 -31,152
Payments for goods and services(c) -9,660 -82,481 -82,513 -122,024
Grants and subsidies paid -12,295 -114,536 -116,069 -170,400
Interest paid(c) -155 -8,848 -8,970 -16,564
Personal benefit payments -9,704 -86,640 -86,978 -128,416
Other payments(b) -467 -4,425 -4,953 -6,768
Total operating payments -34,831 -316,962 -319,509 -475,325
Net cash flows from operating activities 11,580 -4,244 -1,079 25,483
Cash flows from investments in non-financial assets        
Sales of non-financial assets 111 628 500 1,663
Purchases of non-financial assets -812 -7,610 -7,817 -14,304
Net cash flows from investments in non-financial assets -701 -6,982 -7,317 -12,641
Net cash flows from investments in financial assets for policy purposes -1,131 -7,818 -8,111 -13,336
Net cash flows from investments in financial assets for liquidity purposes -13,845 -10,477 -9,922 -15,923
Cash flows from financing activities        
Borrowing (net) 4,228 33,860 26,231 20,271
Other financing (net)(c) -299 -3,273 -3,453 -5,257
Net cash flows from financing activities 3,929 30,588 22,778 15,014
Net increase/(decrease) in cash held -167 1,067 -3,652 -1,403
GFS cash surplus(+)/deficit(-)(d) 10,879 -11,225 -8,397 12,842
plus Net cash flows from financing activities for leases(e) -190 -1,368 -1,537 -2,347
less Net Future Fund earnings 348 3,676 3,724 5,468
Equals underlying cash balance(f) 10,341 -16,269 -13,657 5,028
plus Net cash flows from investments in financial assets for policy purposes -1,131 -7,818 -8,111 -13,336
plus Net Future Fund earnings 348 3,676 3,724 5,468
Equals headline cash balance 9,558 -20,411 -18,044 -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
February
$m
ACTUAL
2019-2020
YTD February
$m
MYEFO Profile
2019-2020
YTD February
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 20,400 145,195 145,399 220,300  
Gross other individuals 4,258 28,068 29,063 52,900  
less Refunds 1,152 30,641 30,723 36,800  
Total individuals and other withholding taxation 23,506 142,622 143,739 236,400  
Fringe benefits tax 209 2,868 2,861 4,040  
Company tax 6,762 60,622 62,534 99,800  
Superannuation fund taxes 555 5,413 5,952 8,460  
Petroleum resource rent tax 69 855 880 1,130  
Total income taxation revenue 31,102 212,380 215,966 349,830  

*As published in the 2019-20 MYEFO.

Note 2: Indirect Tax

  ACTUAL
2019-2020
February
$m
ACTUAL
2019-2020
YTD February
$m
MYEFO Profile
2019-2020
YTD February
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
 
Goods and services tax 9,340 48,176 47,011 67,230  
Wine equalisation tax 127 747 759 1,110  
Luxury car tax 51 435 436 670  
Excise duty 1,767 15,904 15,921 23,900  
Customs duty 1,254 13,180 14,623 20,800  
Other indirect tax 1,330 6,596 6,179 9,275  
Total indirect taxation revenue 13,869 85,039 84,928 122,985  

*As published in the 2019-20 MYEFO.

Note 3: Total expenses by function

  ACTUAL
2019-2020
February
$m
ACTUAL
2019-2020
YTD February
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Expenses by function      
General public services 2,419 19,357 30,157
Defence 2,738 20,118 32,783
Public order and safety 465 4,051 5,966
Education 1,854 27,639 35,846
Health 6,661 54,593 83,425
Social security and welfare 13,667 120,442 180,782
Housing and community amenities 398 2,957 5,715
Recreation and culture 773 2,460 3,989
Fuel and energy 688 5,265 8,161
Agriculture, forestry and fishing 143 1,525 3,025
Mining, manufacturing and construction 235 1,821 3,073
Transport and communication -17 2,617 8,671
Other economic affairs 872 6,406 10,250
Other purposes      
Public debt interest 1,358 11,257 16,746
Nominal superannuation interest 640 5,117 7,715
General purpose inter-government transactions 5,699 46,668 68,547
Natural disaster relief 20 73 38
Contingency reserve 0 0 -1,707
Total expenses 38,613 332,364 503,180

*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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