Media Releases → 2020

MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements March 2020

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

Date: Friday, 24 April 2020

KEY POINTS

  • The Monthly Financial Statements for March 2020 report the budget position against the expected monthly profile for the 2019-20 financial year through to 31 March 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 March 2020 was a deficit of $22,359 million against the 2019-20 MYEFO profile deficit of $12,454 million.
  • The fiscal balance for the 2019-20 financial year to 31 March 2020 was a deficit of $21,972 million against the 2019-20 MYEFO profile deficit of $13,764 million.
AGGREGATES(a) ACTUAL
2019-2020
March
$m
ACTUAL
2019-2020
YTD March
$m
MYEFO Profile
2019-2020
YTD March
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue 37,753 359,497 364,237 511,148
Expenses 47,567 379,932 375,898 503,180
Net operating balance -9,814 -20,435 -11,662 7,968
Net capital investment 714 1,537 2,102 4,161
Fiscal balance -10,528 -21,972 -13,764 3,807
Receipts(b) 35,264 348,610 359,917 502,472
less Payments(c) 40,832 366,772 368,208 491,976
less Net Future Fund earnings 522 4,197 4,163 5,468
Underlying cash balance(d) -6,090 -22,359 -12,454 5,028
Headline cash balance -6,357 -26,768 -17,748 -2,841
Total assets   655,900   655,554
Total liabilities   1,240,797   1,001,597
Net worth(e)   -584,897   -346,042
Net debt(f)   429,646   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 March 2020 was a deficit of $22,359 million, which is $9,906 million higher than the 2019-20 MYEFO profile deficit of $12,454 million.

  • Receipts
    Total receipts were $11,307 million lower than the 2019-20 MYEFO profile.
  • Payments
    Total payments were $1,436 million lower than the 2019-20 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 31 March 2020 was a deficit of $20,435 million, which is $8,773 million higher than the 2019-20 MYEFO profile deficit of $11,662 million. The difference results from lower than expected revenue and higher expenses.

Fiscal Balance

The fiscal balance for the year to 31 March 2020 was a deficit of $21,972 million, which is $8,208 million higher than the 2019-20 MYEFO profile deficit of $13,764 million. The difference results from lower than expected revenue, higher expenses and lower net capital investment.

Assets and Liabilities

As at 31 March 2020:

  • net worth is negative $584,897 million;
  • net debt is $429,646 million; and
  • net financial liabilities are $814,952 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
March
$m
ACTUAL
2019-2020
YTD March
$m
MYEFO Profile
2019-2020
YTD March
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 34,191 331,610 337,435 472,815
Sales of goods and services   1,278 11,394 11,134 14,980
Interest income   346 2,927 3,474 5,247
Dividend income   560 4,256 3,956 6,383
Other   1,379 9,310 8,238 11,723
Total revenue   37,753 359,497 364,237 511,148
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,807 15,228 15,684 21,366
Superannuation   980 9,259 9,071 12,357
Depreciation and amortisation(b)   1,041 8,695 8,958 11,446
Supply of goods and services(b)   11,354 91,586 90,554 124,029
Other operating expenses(a)   768 5,596 5,314 7,236
Total gross operating expenses   15,950 130,364 129,581 176,434
Superannuation interest expense   640 5,757 5,791 7,715
Interest expenses(b)   1,536 13,097 13,170 18,215
Current transfers          
Current grants   11,056 115,086 115,951 149,813
Subsidy expenses   1,060 9,017 8,960 12,136
Personal benefits   15,989 101,857 96,854 128,282
Total current transfers   28,105 225,960 221,764 290,232
Capital transfers          
Mutually agreed write-downs   582 1,687 1,133 1,416
Other capital grants   755 3,067 4,460 9,168
Total capital transfers   1,337 4,754 5,593 10,584
Total expenses 3 47,567 379,932 375,898 503,180
Net operating balance   -9,814 -20,435 -11,662 7,968
Other economic flows          
- included in operating result          
Net write-downs of assets   -1,969 -6,281 -5,479 -6,933
Assets recognised for the first time   -4 102 270 201
Actuarial revaluations   0 0 61 81
Net foreign exchange gains   -3,744 -8,082 -1 -92
Net swap interest received   -349 -642 -268 -210
Market valuation of debt   2,765 -12,756 -3,216 -1,129
Other gains/(losses)   -3,442 4,547 4,444 5,131
Total other economic flows
- included in operating result
  -6,744 -23,112 -4,189 -2,950
Operating Result(c)   -16,558 -43,547 -15,851 5,018
Non-owner movements in equity          
Revaluation of equity investments   7 21 -6 -3,928
Actuarial revaluations   0 0 0 1,879
Other economic revaluations   -86 1,793 964 195
Total other economic flows
- included in equity
  -79 1,814 958 -1,853
Comprehensive result
- Total change in net worth
  -16,637 -41,733 -14,893 3,164
Net operating balance   -9,814 -20,435 -11,662 7,968
Net acquisition of non-financial assets (b)          
Purchases of non-financial assets   1,182 10,749 12,020 16,868
less Sales of non-financial assets   30 1,177 1,050 1,219
less Depreciation   1,041 8,695 8,958 11,446
plus Change in inventories   602 624 70 -40
plus Other movements in non-financial assets   1 35 21 -3
Total net acquisition of non-financial assets   714 1,537 2,102 4,161
Fiscal balance (Net lending/borrowing)(d)   -10,528 -21,972 -13,764 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 March 2020
$m
MYEFO ESTIMATE*
as at 30 June 2020
$m
Assets    
Financial assets    
Cash and deposits 9,216 7,204
Advances paid 81,933 85,155
Investments, loans and placements 206,849 198,528
Other receivables 64,552 58,577
Equity investments    
Investments in other public sector entities 58,093 55,640
Equity accounted investments 3,539 3,677
Investments - shares 59,756 73,969
Total financial assets 483,938 482,751
Non-financial assets    
Land 11,759 11,824
Buildings 42,791 43,415
Plant, equipment and infrastructure 86,816 87,832
Inventories 9,413 8,488
Intangibles 8,822 9,105
Investment properties 199 160
Biological assets 20 21
Heritage and cultural assets 11,816 11,695
Assets held for sale 256 231
Other non-financial assets 70 32
Total non-financial assets(a) 171,962 172,803
Total assets 655,900 655,554
Liabilities    
Interest bearing liabilities    
Deposits held 313 388
Government securities 682,947 645,907
Loans 25,220 17,759
Lease liabilities(a) 19,165 19,139
Total interest bearing liabilities 727,645 683,193
Provisions and payables    
Superannuation liability(b) 423,096 230,774
Other employee liabilities 27,183 26,663
Suppliers payables 5,838 7,579
Personal benefits payables 3,212 3,753
Subsidies payables 815 645
Grants payables 2,425 4,051
Other payables 3,778 2,186
Provisions 46,806 42,752
Total provisions and payables 513,152 318,404
Total liabilities 1,240,797 1,001,597
Net worth(c) -584,897 -346,042
Net financial worth(d) -756,859 -518,845
Net financial liabilities(e) 814,952 574,486
Net debt(f) 429,646 392,305

*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
March
$m
ACTUAL
2019-2020
YTD March
$m
MYEFO Profile
2019-2020
YTD March
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 31,473 316,955 328,336 463,791
Receipts from sales of goods and services 880 11,196 11,565 15,142
Interest receipts 196 2,772 3,480 5,134
Dividends and income tax equivalents 526 5,963 5,632 6,792
Other receipts 1,209 10,116 9,437 9,949
Total operating receipts 34,284 347,002 358,450 500,809
Cash payments for operating activities        
Payments for employees(b) -2,320 -22,353 -22,093 -31,152
Payments for goods and services(c) -12,084 -94,564 -92,962 -122,024
Grants and subsidies paid -12,705 -127,241 -129,408 -170,400
Interest paid(c) -369 -9,217 -9,327 -16,564
Personal benefit payments -10,823 -97,463 -97,753 -128,416
Other payments(b) -685 -5,109 -5,541 -6,768
Total operating payments -38,985 -355,947 -357,085 -475,325
Net cash flows from operating activities -4,701 -8,945 1,365 25,483
Cash flows from investments in non-financial assets        
Sales of non-financial assets 980 1,608 1,468 1,663
Purchases of non-financial assets -1,553 -9,163 -9,392 -14,304
Net cash flows from investments in non-financial assets -573 -7,554 -7,925 -12,641
Net cash flows from investments in financial assets for policy purposes -788 -8,606 -9,457 -13,336
Net cash flows from investments in financial assets for liquidity purposes -1,486 -11,963 -14,760 -15,923
Cash flows from financing activities        
Borrowing (net) 7,895 41,755 29,560 20,271
Other financing (net)(c) -803 -4,075 -3,638 -5,257
Net cash flows from financing activities 7,092 37,680 25,922 15,014
Net increase/(decrease) in cash held -455 612 -4,855 -1,403
GFS cash surplus(+)/deficit(-)(d) -5,274 -16,499 -6,560 12,842
plus Net cash flows from financing activities for leases(e) -294 -1,663 -1,731 -2,347
less Net Future Fund earnings 522 4,197 4,163 5,468
Equals underlying cash balance(f) -6,090 -22,359 -12,454 5,028
plus Net cash flows from investments in financial assets for policy purposes -788 -8,606 -9,457 -13,336
plus Net Future Fund earnings 522 4,197 4,163 5,468
Equals headline cash balance -6,357 -26,768 -17,748 -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
March
$m
ACTUAL
2019-2020
YTD March
$m
MYEFO Profile
2019-2020
YTD March
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 18,000 163,195 163,944 220,300  
Gross other individuals 5,249 33,317 33,627 52,900  
less Refunds 1,381 32,022 32,045 36,800  
Total individuals and other withholding taxation 21,867 164,489 165,526 236,400  
Fringe benefits tax 16 2,884 2,880 4,040  
Company tax 4,319 64,942 68,869 99,800  
Superannuation fund taxes 234 5,647 6,369 8,460  
Petroleum resource rent tax -5 850 880 1,130  
Total income taxation revenue 26,432 238,812 244,524 349,830  

*As published in the 2019-20 MYEFO.

Note 2: Indirect Tax

  ACTUAL
2019-2020
March
$m
ACTUAL
2019-2020
YTD March
$m
MYEFO Profile
2019-2020
YTD March
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
 
Goods and services tax 3,287 51,464 50,581 67,230  
Wine equalisation tax 59 807 825 1,110  
Luxury car tax 57 492 497 670  
Excise duty 2,155 18,059 18,294 23,900  
Customs duty 1,629 14,809 15,902 20,800  
Other indirect tax 572 7,168 6,812 9,275  
Total indirect taxation revenue 7,759 92,798 92,911 122,985  

*As published in the 2019-20 MYEFO.

Note 3: Total expenses by function

  ACTUAL
2019-2020
March
$m
ACTUAL
2019-2020
YTD March
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Expenses by function      
General public services 2,587 21,944 30,157
Defence 2,873 22,991 32,783
Public order and safety 586 4,637 5,966
Education 2,667 30,306 35,846
Health 7,187 61,779 83,425
Social security and welfare 20,344 140,786 180,782
Housing and community amenities 741 3,699 5,715
Recreation and culture 338 2,798 3,989
Fuel and energy 712 5,977 8,161
Agriculture, forestry and fishing 228 1,753 3,025
Mining, manufacturing and construction 251 2,072 3,073
Transport and communication 813 3,430 8,671
Other economic affairs 762 7,168 10,250
Other purposes      
Public debt interest 1,458 12,715 16,746
Nominal superannuation interest 640 5,757 7,715
General purpose inter-government transactions 5,379 52,047 68,547
Natural disaster relief 1 74 38
Contingency reserve 0 0 -1,707
Total expenses 47,567 379,932 503,180

*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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