Media Releases → 2020

MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements October 2020

Senator the Hon. Simon Birmingham
Minister for Finance, Minister for Trade, Tourism and Investment
Leader of the Government in the Senate
Senator for South Australia

Date: Friday, 27 November 2020

KEY POINTS

  • The Monthly Financial Statements for October 2020 report the budget position against the expected monthly profile for the 2020-21 financial year through to 31 October 2020, based on the 2020-21 Budget estimates published in October 2020.
  • The October 2020 year-to-date results include the impact of the Australian Government’s response to COVID-19.
  • The underlying cash balance for the 2020-21 financial year to 31 October 2020 was a deficit of $104.1 billion against the 2020-21 Budget profile deficit of $107.6 billion.
  • The fiscal balance for the 2020-21 financial year to 31 October 2020 was a deficit of $104.9 billion against the 2020-21 Budget profile deficit of $106.4 billion.
AGGREGATES ACTUAL
2020-2021
October
$b
ACTUAL
2020-2021
YTD October
$b
Budget Profile
2020-2021
YTD October
$b
BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$b
Revenue 41.8 152.0 152.9 472.4
Expenses 52.8 255.5 258.8 670.3
Net operating balance -11.0 -103.5 -105.8 -197.9
Net capital investment 1.8 1.4 0.5 7.8
Fiscal balance -12.7 -104.9 -106.4 -205.7
Receipts(a) 41.6 155.4 155.8 463.8
Payments(b) 64.8 259.4 263.4 677.4
Underlying cash balance -23.2 -104.1 -107.6 -213.7
Headline cash balance -23.7 -106.0 -110.2 -230.0
Total assets   733.0   696.0
Total liabilities   1,506.9   1,353.4
Net worth(c)   -773.8   -657.4
Net debt(d)   602.0   703.2

*As published in the 2020-21 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 cash flows from financing activities for leases.
(c) Net worth is calculated as total assets minus total liabilities.
(d) Net debt is the sum of interest bearing liabilities less the sum of selected financial assets (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 October 2020 was a deficit of $104.1 billion, which is $3.6 billion lower than the 2020-21 Budget profile deficit of $107.6 billion.

  • Receipts
    Total receipts were $0.5 billion lower than the 2020-21 Budget profile.
  • Payments
    Total payments were $4.0 billion lower than the 2020-21 Budget profile.

Net Operating Balance

The net operating balance for the year to 31 October 2020 was a deficit of $103.5 billion, which is $2.4 billion lower than the 2020-21 Budget profile deficit of $105.8 billion. The difference results from lower than expected revenue and expenses.

Fiscal Balance

The fiscal balance for the year to 31 October 2020 was a deficit of $104.9 billion, which is $1.5 billion lower than the 2020-21 Budget profile deficit of $106.4 billion. The difference results from lower than expected revenue and expenses, and higher than expected net capital investment.

Assets and Liabilities

As at 31 October 2020:

  • net worth is negative $773.8 billion;
  • net debt is $602.0 billion; and
  • net financial liabilities are $1,014.0 billion.
Senator the Hon. Simon Birmingham
Minister for Finance
Rosemary Huxtable PSM
Secretary
Department of Finance
Media Contact  
Benn Ayre      0428 342 325

 

Australian Government general government sector operating statement

  Note ACTUAL
2020-2021
October
$m
ACTUAL
2020-2021
YTD October
$m
Budget Profile
2020-2021
YTD October
$m
BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Revenue          
Taxation revenue 1,2 37,053 138,475 140,584 434,913
Sales of goods and services   1,394 5,417 5,373 15,874
Interest income   376 1,122 1,392 4,181
Dividend income   370 1,907 1,758 6,419
Other   2,634 5,103 3,805 11,054
Total revenue   41,827 152,024 152,912 472,442
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,779 7,224 7,095 21,593
Superannuation   1,014 4,158 4,244 12,433
Depreciation and amortisation   928 3,696 3,997 12,037
Supply of goods and services   11,294 44,966 46,134 150,520
Other operating expenses(a)   748 2,966 2,892 8,342
Total gross operating expenses   15,764 63,009 64,362 204,925
Superannuation interest expense   584 2,335 2,370 7,004
Interest expenses(b)   1,470 6,093 6,062 19,821
Current transfers          
Current grants   14,597 56,436 56,975 157,257
Subsidy expenses   6,393 61,498 61,814 99,546
Personal benefits   13,602 63,573 65,007 165,845
Total current transfers   34,592 181,507 183,796 422,649
Capital transfers          
Mutually agreed write-downs   -24 1,434 780 1,496
Other capital grants   415 1,117 1,385 14,435
Total capital transfers   391 2,551 2,165 15,931
Total expenses 3 52,801 255,494 258,754 670,330
Net operating balance   -10,974 -103,469 -105,842 -197,888
Other economic flows          
- included in operating result          
Net write-downs of assets   163 -477 -1,469 -5,859
Assets recognised for the first time   29 74 58 173
Actuarial revaluations   0 0 0 111
Net foreign exchange gains   -92 -75 11 -59
Net swap interest received   79 704 473 0
Market valuation of debt   307 -4,235 852 5,815
Other gains/(losses)(b)   612 1,308 1,239 7,639
Total other economic flows
- included in operating result
  1,098 -2,702 1,163 7,821
Operating Result(c)   -9,876 -106,171 -104,679 -190,068
Non-owner movements in equity          
Revaluation of equity investments   -1 -2 0 -4,415
Actuarial revaluations   0 0 0 54
Other economic revaluations   -125 -2,766 -476 -269
Total other economic flows
- included in equity
  -126 -2,768 -475 -4,630
Comprehensive result
- Total change in net worth
  -10,002 -108,940 -105,155 -194,698
Net operating balance   -10,974 -103,469 -105,842 -197,888
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,529 4,058 4,510 18,904
less Sales of non-financial assets   6 39 46 467
less Depreciation   928 3,696 3,997 12,037
plus Change in inventories   1,159 1,059 53 1,422
plus Other movements in non-financial assets   7 21 10 -4
Total net acquisition of non-financial assets   1,760 1,403 530 7,818
Fiscal balance (Net lending/borrowing)(d)   -12,735 -104,873 -106,372 -205,706

*As published in the 2020-21 Budget.
(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) From 2020-21, the value of Debt Not Expected to be Repaid on initial recognition of income contingent concessional loans is reported as Other Financing costs rather than as a valuation adjustment. This change is consistent with Australian Accounting Standards and brings the accounting treatment of income contingent concessional loans into line with other concessional loans.
(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 October 2020
$m
BUDGET ESTIMATE*
as at 30 June 2021
$m
Assets    
Financial assets    
Cash and deposits 11,111 5,780
Advances paid 82,138 87,054
Investments, loans and placements 265,259 218,509
Other receivables 67,305 67,027
Equity investments    
Investments in other public sector entities 63,623 63,617
Equity accounted investments 3,447 3,547
Investments - shares 63,561 67,416
Total financial assets 556,445 512,949
Non-financial assets    
Land 11,742 11,742
Buildings 42,616 43,521
Plant, equipment and infrastructure 89,698 94,047
Inventories 10,814 11,047
Intangibles 9,196 10,135
Investment properties 215 218
Biological assets 28 28
Heritage and cultural assets 11,974 11,994
Assets held for sale 246 241
Other non-financial assets 58 34
Total non-financial assets 176,588 183,007
Total assets 733,032 695,956
Liabilities    
Interest bearing liabilities    
Deposits held 344 484
Government securities 923,519 978,283
Loans 17,355 16,928
Lease liabilities 19,333 18,893
Total interest bearing liabilities 960,550 1,014,588
Provisions and payables    
Superannuation liability(a) 433,119 236,690
Other employee liabilities 32,628 33,097
Suppliers payables 6,618 8,033
Personal benefits payables 3,565 3,146
Subsidies payables 1,097 998
Grants payables 2,118 2,908
Other payables 6,332 2,351
Provisions 60,837 51,575
Total provisions and payables 546,313 338,798
Total liabilities 1,506,864 1,353,385
Net worth(b) -773,831 -657,429
Net financial worth(c) -950,419 -840,436
Net financial liabilities(d) 1,014,042 904,053
Net debt(e) 602,042 703,245

*As published in the 2020-21 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 Australian Accounting Standards, the superannuation liability for the 2020-21 Monthly Financial Statements was calculated using the spot rates on long-term government bonds as at 30 June 2020 that best matched each individual scheme’s liability duration. These rates were between 1.0 and 1.7 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 is the sum of interest bearing liabilities less the sum of selected financial assets (cash and deposits, advances paid, and investments, loans and placements).

Australian Government general government sector cash flow statement(a)

  ACTUAL
2020-2021
October
$m
ACTUAL
2020-2021
YTD October
$m
Budget Profile
2020-2021
YTD October
$m
BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 35,785 138,000 138,570 424,643
Receipts from sales of goods and services 3,392 7,196 7,063 16,538
Interest receipts 360 1,185 1,503 4,133
Dividends and income tax equivalents 338 4,465 4,335 6,837
Other receipts 1,701 4,453 4,305 11,140
Total operating receipts 41,577 155,299 155,776 463,291
Cash payments for operating activities        
Payments for employees(b) -3,238 -11,371 -11,280 -32,530
Payments for goods and services -11,525 -46,486 -47,058 -148,237
Grants and subsidies paid -30,781 -124,791 -126,015 -285,970
Interest paid -3,233 -4,702 -4,873 -17,230
Personal benefit payments -14,047 -65,097 -66,729 -166,482
Other payments(b) -563 -2,306 -2,553 -7,543
Total operating payments -63,387 -254,754 -258,508 -657,992
Net cash flows from operating activities -21,810 -99,455 -102,732 -194,701
Cash flows from investments in non-financial assets        
Sales of non-financial assets 11 56 46 473
Purchases of non-financial assets -1,156 -3,817 -4,104 -17,075
Net cash flows from investments in non-financial assets -1,145 -3,761 -4,058 -16,601
Net cash flows from investments in financial assets for policy purposes -496 -1,993 -2,595 -16,375
Net cash flows from investments in financial assets for liquidity purposes 12,738 -26,347 9,890 27,799
Cash flows from financing activities        
Borrowing (net) 15,553 134,752 100,292 203,311
Other financing (net) -1,196 -1,537 -1,462 -7,105
Net cash flows from financing activities 14,357 133,214 98,830 196,206
Net increase/(decrease) in cash held 3,644 1,658 -666 -3,673
GFS cash surplus(+)/deficit(-)(c) -22,955 -103,216 -106,790 -211,303
plus Net cash flows from financing activities for leases(d) -242 -836 -814 -2,351
Equals underlying cash balance(e) -23,197 -104,052 -107,605 -213,654
plus Net cash flows from investments in financial assets for policy purposes -496 -1,993 -2,595 -16,375
Equals headline cash balance -23,693 -106,046 -110,200 -230,029

*As published in the 2020-21 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) 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.
(e) The term underlying cash balance is not used by the ABS.

Note 1: Income Tax

  ACTUAL
2020-2021
October
$m
ACTUAL
2020-2021
YTD October
$m
Budget Profile
2020-2021
YTD October
$m
BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 17,920 74,475 74,986 212,300  
Gross other individuals 5,106 16,323 17,496 47,300  
less Refunds 3,655 23,180 23,573 37,400  
Total individuals and other withholding taxation 19,371 67,618 68,910 222,200  
Fringe benefits tax 845 1,840 1,844 3,880  
Company tax 5,350 26,476 28,336 86,200  
Superannuation fund taxes 1,166 3,322 2,813 8,180  
Petroleum resource rent tax 123 292 459 870  
Total income taxation revenue 26,856 99,548 102,363 321,330  

*As published in the 2020-21 Budget.

Note 2: Indirect Tax

  ACTUAL
2020-2021
October
$m
ACTUAL
2020-2021
YTD October
$m
Budget Profile
2020-2021
YTD October
$m
BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
 
Goods and services tax 6,424 22,593 22,343 62,970  
Wine equalisation tax 70 315 312 1,060  
Luxury car tax 56 224 207 540  
Excise duty 1,867 7,684 7,536 22,760  
Customs duty 1,309 5,714 5,799 18,840  
Other indirect tax 471 2,396 2,024 7,413  
Total indirect taxation revenue 10,197 38,927 38,221 113,583  

*As published in the 2020-21 Budget.

Note 3: Total expenses by function

  ACTUAL
2020-2021
October
$m
ACTUAL
2020-2021
YTD October
$m
BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Expenses by function      
General public services 2,520 9,722 31,764
Defence 2,658 10,147 34,415
Public order and safety 479 2,114 6,212
Education 5,969 16,330 41,742
Health 7,820 31,712 93,771
Social security and welfare 18,634 83,814 227,529
Housing and community amenities 469 1,538 7,086
Recreation and culture 305 1,239 4,364
Fuel and energy 726 2,750 8,771
Agriculture, forestry and fishing 202 881 3,913
Mining, manufacturing and construction 240 911 3,306
Transport and communication 299 1,361 13,060
Other economic affairs 5,935 59,523 97,948
Other purposes      
Public debt interest 1,326 5,525 16,804
Nominal superannuation interest 584 2,335 7,004
General purpose inter-government transactions 4,637 25,593 64,092
Natural disaster relief 0 0 482
Contingency reserve 0 0 8,068
Total expenses 52,801 255,494 670,330

*As published in the 2020-21 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 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]