Media Releases → 2020

MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements April 2020

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

Date: Friday, 29 May 2020

KEY POINTS

  • The Monthly Financial Statements for April 2020 report the budget position against the expected monthly profile for the 2019-20 financial year through to 30 April 2020, based on the 2019-20 Mid-Year Economic and Fiscal Outlook (MYEFO) estimates published in December 2019.
  • The April 2020 year-to-date results includes the impact of the Australian Government’s response to COVID-19.
  • The underlying cash balance for the 2019-20 financial year to 30 April 2020 was a deficit of $39,995 million against the 2019-20 MYEFO profile deficit of $7,602 million.
  • The fiscal balance for the 2019-20 financial year to 30 April 2020 was a deficit of $31,138 million against the 2019-20 MYEFO profile deficit of $4,590 million.
AGGREGATES(a) ACTUAL
2019-2020
April
$m
ACTUAL
2019-2020
YTD April
$m
MYEFO Profile
2019-2020
YTD April
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue 44,231 403,728 414,787 511,148
Expenses 52,651 432,583 416,943 503,180
Net operating balance -8,420 -28,855 -2,156 7,968
Net capital investment 746 2,283 2,434 4,161
Fiscal balance -9,166 -31,138 -4,590 3,807
Receipts(b) 39,968 388,578 409,069 502,472
less Payments(c) 57,313 424,085 412,070 491,976
less Net Future Fund earnings 291 4,488 4,602 5,468
Underlying cash balance(d) -17,635 -39,995 -7,602 5,028
Headline cash balance -18,715 -45,483 -13,599 -2,841
Total assets   656,399   655,554
Total liabilities   1,247,677   1,001,597
Net worth(e)   -591,277   -346,042
Net debt(f)   441,251   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 30 April 2020 was a deficit of $39,995 million, which is $32,392 million higher than the 2019-20 MYEFO profile deficit of $7,602 million.

  • Receipts
    Total receipts were $20,491 million lower than the 2019-20 MYEFO profile, relating to lower taxation receipts ($19,801 million), driven by below profile collections across both income and indirect taxes.
  • Payments
    Total payments were $12,015 million higher than the 2019-20 MYEFO profile, primarily reflecting the Australian Government’s response to COVID-19 including the following key decisions:
    • Boosting cash flow for employers
    • Economic stimulus payments – a one-off $750 stimulus payment to pensioners, social security, veteran and other income support recipients and eligible concession card holders
    • National Medical Stockpile – Purchase of Masks, Other Personal Protective Equipment and Pharmaceuticals
    • National partnership agreement on a joint COVID-19 public health response
    • Partnership with private health sector to ensure viability and capacity during the COVID-19 response.

Net Operating Balance

The net operating balance for the year to 30 April 2020 was a deficit of $28,855 million, which is $26,699 million higher than the 2019-20 MYEFO profile deficit of $2,156 million. The difference results from lower than expected revenue and higher expenses.

Fiscal Balance

The fiscal balance for the year to 30 April 2020 was a deficit of $31,138 million, which is $26,548 million higher than the 2019-20 MYEFO profile deficit of $4,590 million. The difference results from lower than expected revenue, higher expenses and lower net capital investment.

Assets and Liabilities

As at 30 April 2020:

  • net worth is negative $591,277 million;
  • net debt is $441,251 million; and
  • net financial liabilities are $821,334 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
April
$m
ACTUAL
2019-2020
YTD April
$m
MYEFO Profile
2019-2020
YTD April
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 41,665 373,275 384,974 472,815
Sales of goods and services   1,323 12,717 12,458 14,980
Interest income   260 3,188 3,934 5,247
Dividend income   277 4,533 4,470 6,383
Other   706 10,016 8,951 11,723
Total revenue   44,231 403,728 414,787 511,148
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,869 17,096 17,470 21,366
Superannuation   1,024 10,284 10,173 12,357
Depreciation and amortisation(b)   1,265 9,959 9,963 11,446
Supply of goods and services(b)   10,406 101,992 101,043 124,029
Other operating expenses(a)   717 6,313 5,914 7,236
Total gross operating expenses   15,280 145,644 144,563 176,434
Superannuation interest expense   640 6,396 6,419 7,715
Interest expenses(b)   1,517 14,613 14,621 18,215
Current transfers          
Current grants   12,233 127,319 127,179 149,813
Subsidy expenses   8,208 17,225 9,972 12,136
Personal benefits   13,082 114,939 107,420 128,282
Total current transfers   33,523 259,483 244,572 290,232
Capital transfers          
Mutually agreed write-downs   1,453 3,139 1,226 1,416
Other capital grants   240 3,307 5,541 9,168
Total capital transfers   1,692 6,446 6,768 10,584
Total expenses 3 52,651 432,583 416,943 503,180
Net operating balance   -8,420 -28,855 -2,156 7,968
Other economic flows          
- included in operating result          
Net write-downs of assets   -5,700 -11,981 -6,451 -6,933
Assets recognised for the first time   12 113 307 201
Actuarial revaluations   0 0 68 81
Net foreign exchange gains   2,195 -5,887 -2 -92
Net swap interest received   -223 -864 -268 -210
Market valuation of debt   3,507 -9,248 -2,506 -1,129
Other gains/(losses)   3,156 7,703 4,620 5,131
Total other economic flows
- included in operating result
  2,947 -20,165 -4,231 -2,950
Operating Result(c)   -5,473 -49,020 -6,386 5,018
Non-owner movements in equity          
Revaluation of equity investments   -32 -10 -7 -3,928
Actuarial revaluations   0 0 0 1,879
Other economic revaluations   -876 917 1,835 195
Total other economic flows
- included in equity
  -908 906 1,828 -1,853
Comprehensive result
- Total change in net worth
  -6,380 -48,113 -4,558 3,164
Net operating balance   -8,420 -28,855 -2,156 7,968
Net acquisition of non-financial assets (b)          
Purchases of non-financial assets   1,279 12,028 13,365 16,868
less Sales of non-financial assets   7 1,184 1,059 1,219
less Depreciation   1,265 9,959 9,963 11,446
plus Change in inventories   741 1,365 73 -40
plus Other movements in non-financial assets   -1 34 18 -3
Total net acquisition of non-financial assets   746 2,283 2,434 4,161
Fiscal balance (Net lending/borrowing)(d)   -9,166 -31,138 -4,590 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 30 April 2020
$m
MYEFO ESTIMATE*
as at 30 June 2020
$m
Assets    
Financial assets    
Cash and deposits 10,213 7,204
Advances paid 83,324 85,155
Investments, loans and placements 203,416 198,528
Other receivables 68,654 58,577
Equity investments    
Investments in other public sector entities 58,128 55,640
Equity accounted investments 3,519 3,677
Investments - shares 57,217 73,969
Total financial assets 484,471 482,751
Non-financial assets    
Land 11,823 11,824
Buildings 43,030 43,415
Plant, equipment and infrastructure 85,735 87,832
Inventories 10,136 8,488
Intangibles 8,849 9,105
Investment properties 200 160
Biological assets 20 21
Heritage and cultural assets 11,809 11,695
Assets held for sale 256 231
Other non-financial assets 69 32
Total non-financial assets(a) 171,928 172,803
Total assets 656,399 655,554
Liabilities    
Interest bearing liabilities    
Deposits held 370 388
Government securities 697,963 645,907
Loans 20,448 17,759
Lease liabilities(a) 19,422 19,139
Total interest bearing liabilities 738,203 683,193
Provisions and payables    
Superannuation liability(b) 423,850 230,774
Other employee liabilities 26,557 26,663
Suppliers payables 6,090 7,579
Personal benefits payables 3,419 3,753
Subsidies payables 1,248 645
Grants payables 2,166 4,051
Other payables 3,294 2,186
Provisions 42,849 42,752
Total provisions and payables 509,473 318,404
Total liabilities 1,247,677 1,001,597
Net worth(c) -591,277 -346,042
Net financial worth(d) -763,206 -518,845
Net financial liabilities(e) 821,334 574,486
Net debt(f) 441,251 392,305

*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
April
$m
ACTUAL
2019-2020
YTD April
$m
MYEFO Profile
2019-2020
YTD April
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 37,285 354,240 374,042 463,791
Receipts from sales of goods and services 1,505 12,702 13,228 15,142
Interest receipts 233 3,005 3,874 5,134
Dividends and income tax equivalents 388 6,351 6,148 6,792
Other receipts 555 10,671 10,299 9,949
Total operating receipts 39,967 386,968 407,590 500,809
Cash payments for operating activities        
Payments for employees(b) -3,191 -25,544 -25,232 -31,152
Payments for goods and services(c) -10,933 -105,497 -103,074 -122,024
Grants and subsidies paid -20,442 -147,683 -142,794 -170,400
Interest paid(c) -3,800 -13,017 -13,327 -16,564
Personal benefit payments -16,859 -114,322 -108,974 -128,416
Other payments(b) -711 -5,820 -6,200 -6,768
Total operating payments -55,936 -411,883 -399,601 -475,325
Net cash flows from operating activities -15,969 -24,914 7,989 25,483
Cash flows from investments in non-financial assets        
Sales of non-financial assets 1 1,610 1,479 1,663
Purchases of non-financial assets -1,216 -10,378 -10,546 -14,304
Net cash flows from investments in non-financial assets -1,214 -8,769 -9,067 -12,641
Net cash flows from investments in financial assets for policy purposes -1,371 -9,977 -10,598 -13,336
Net cash flows from investments in financial assets for liquidity purposes -1,039 -13,002 -3,683 -15,923
Cash flows from financing activities        
Borrowing (net) 21,424 63,180 13,527 20,271
Other financing (net)(c) -834 -4,909 -4,415 -5,257
Net cash flows from financing activities 20,590 58,270 9,112 15,014
Net increase/(decrease) in cash held 997 1,609 -6,247 -1,403
GFS cash surplus(+)/deficit(-)(d) -17,184 -33,683 -1,077 12,842
plus Net cash flows from financing activities for leases(e) -161 -1,824 -1,924 -2,347
less Net Future Fund earnings 291 4,488 4,602 5,468
Equals underlying cash balance(f) -17,635 -39,995 -7,602 5,028
plus Net cash flows from investments in financial assets for policy purposes -1,371 -9,977 -10,598 -13,336
plus Net Future Fund earnings 291 4,488 4,602 5,468
Equals headline cash balance -18,715 -45,483 -13,599 -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
April
$m
ACTUAL
2019-2020
YTD April
$m
MYEFO Profile
2019-2020
YTD April
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 18,660 181,854 183,047 220,300  
Gross other individuals 5,500 38,817 41,766 52,900  
less Refunds 1,340 33,362 33,606 36,800  
Total individuals and other withholding taxation 22,819 187,309 191,206 236,400  
Fringe benefits tax 756 3,640 3,763 4,040  
Company tax 6,777 71,719 77,982 99,800  
Superannuation fund taxes 430 6,077 7,252 8,460  
Petroleum resource rent tax 244 1,094 1,143 1,130  
Total income taxation revenue 31,027 269,839 281,347 349,830  

*As published in the 2019-20 MYEFO.

Note 2: Indirect Tax

  ACTUAL
2019-2020
April
$m
ACTUAL
2019-2020
YTD April
$m
MYEFO Profile
2019-2020
YTD April
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
 
Goods and services tax 6,774 58,238 57,233 67,230  
Wine equalisation tax 77 884 902 1,110  
Luxury car tax 56 548 560 670  
Excise duty 1,697 19,756 20,138 23,900  
Customs duty 1,694 16,503 17,370 20,800  
Other indirect tax 339 7,507 7,424 9,275  
Total indirect taxation revenue 10,638 103,436 103,628 122,985  

*As published in the 2019-20 MYEFO.

Note 3: Total expenses by function

  ACTUAL
2019-2020
April
$m
ACTUAL
2019-2020
YTD April
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Expenses by function      
General public services 2,767 24,711 30,157
Defence 3,341 26,332 32,783
Public order and safety 531 5,168 5,966
Education 3,118 33,424 35,846
Health 7,797 69,576 83,425
Social security and welfare 17,184 157,970 180,782
Housing and community amenities 457 4,155 5,715
Recreation and culture 331 3,129 3,989
Fuel and energy 663 6,640 8,161
Agriculture, forestry and fishing 210 1,964 3,025
Mining, manufacturing and construction 325 2,396 3,073
Transport and communication 645 4,076 8,671
Other economic affairs 7,876 15,044 10,250
Other purposes      
Public debt interest 1,400 14,115 16,746
Nominal superannuation interest 640 6,396 7,715
General purpose inter-government transactions 5,364 57,411 68,547
Natural disaster relief 2 76 38
Contingency reserve 0 0 -1,707
Total expenses 52,651 432,583 503,180

*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 .

[ENDS]