Media Releases → 2021

MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements February 2021

Senator the Hon. Simon Birmingham
Minister for Finance
Leader of the Government in the Senate
Senator for South Australia

Date: Friday, 26 March 2021

KEY POINTS

  • The Monthly Financial Statements for February 2021 report the budget position against the expected monthly profile for the 2020-21 financial year through to 28 February 2021, based on the 2020-21 Mid-Year Economic and Fiscal Outlook (MYEFO) estimates published in December 2020.
  • The February 2021 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 28 February 2021 was a deficit of $134.6 billion against the MYEFO profile deficit of $157.7 billion.
  • The fiscal balance for the 2020-21 financial year to 28 February 2021 was a deficit of $132.6 billion against the MYEFO profile deficit of $160.4 billion.
AGGREGATES ACTUAL
2020-2021
February
$b
ACTUAL
2020-2021
YTD February
$b
MYEFO Profile
2020-2021
YTD February
$b
MYEFO ESTIMATE*
2020-2021
FULL YEAR
$b
Revenue 45.4 321.1 307.6 482.1
Expenses 43.7 450.8 463.6 667.3
Net operating balance 1.7 -129.7 -156.1 -185.2
Net capital investment 0.2 3.0 4.3 8.8
Fiscal balance 1.6 -132.6 -160.4 -193.9
Receipts(a) 40.3 317.2 306.5 473.1
Payments(b) 41.1 451.9 464.2 670.9
Underlying cash balance -0.7 -134.6 -157.7 -197.7
Headline cash balance -1.4 -139.0 -166.1 -214.9
Total assets   709.1   684.2
Total liabilities   1,452.0   1,330.8
Net worth(c)   -742.9   -646.5
Net debt(d)   583.3   691.9

*As published in the 2020-21 MYEFO.
(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 28 February 2021 was a deficit of $134.6 billion, which is $23.1 billion lower than the 2020-21 MYEFO profile deficit of $157.7 billion.

  • Receipts
    Total receipts were $10.7 billion higher than the 2020-21 MYEFO profile.
  • Payments
    Total payments were $12.3 billion lower than the 2020-21 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 28 February 2021 was a deficit of $129.7 billion, which is $26.4 billion lower than the 2020-21 MYEFO profile deficit of $156.1 billion. The difference results from higher than expected revenue and lower than expected expenses.

Fiscal Balance

The fiscal balance for the year to 28 February 2021 was a deficit of $132.6 billion, which is $27.8 billion lower than the 2020-21 MYEFO profile deficit of $160.4 billion. The difference results from higher than expected revenue, and lower than expected expenses and net capital investment.

Assets and Liabilities

As at 28 February 2021:

  • net worth is negative $742.9 billion;
  • net debt is $583.3 billion; and
  • net financial liabilities are $985.1 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
February
$m
ACTUAL
2020-2021
YTD February
$m
MYEFO Profile
2020-2021
YTD February
$m
MYEFO ESTIMATE*
2020-2021
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 42,605 295,946 282,869 441,842
Sales of goods and services   1,340 10,530 10,428 15,765
Interest income   302 2,249 2,818 4,161
Dividend income   343 4,172 3,117 8,203
Other   840 8,243 8,325 12,165
Total revenue   45,430 321,140 307,557 482,136
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,721 13,968 14,212 21,665
Superannuation   1,033 8,308 8,295 12,427
Depreciation and amortisation   957 7,563 8,058 12,087
Supply of goods and services   10,630 89,148 92,231 151,369
Other operating expenses(a)   579 5,081 5,360 8,322
Total gross operating expenses   14,919 124,069 128,156 205,870
Superannuation interest expense   584 4,669 4,669 7,004
Interest expenses(b)   1,505 12,917 12,885 20,596
Current transfers          
Current grants   11,119 108,488 109,750 160,505
Subsidy expenses   2,585 80,090 81,341 88,718
Personal benefits   12,296 114,748 120,288 168,222
Total current transfers   26,000 303,326 311,379 417,446
Capital transfers          
Mutually agreed write-downs   71 1,903 1,889 2,286
Other capital grants   605 3,908 4,672 14,119
Total capital transfers   677 5,811 6,562 16,405
Total expenses 3 43,684 450,792 463,650 667,321
Net operating balance   1,746 -129,652 -156,093 -185,185
Other economic flows          
- included in operating result          
Net write-downs of assets   -1,148 -3,129 -2,581 -4,618
Assets recognised for the first time   16 82 115 173
Actuarial revaluations   0 0 0 111
Net foreign exchange gains   -717 -465 -1 -278
Net swap interest received   151 1,132 678 608
Market valuation of debt   37,914 48,193 2,323 4,501
Other gains/(losses)(b)   172 8,765 5,824 5,377
Total other economic flows
- included in operating result
  36,388 54,579 6,357 5,873
Operating Result(c)   38,134 -75,073 -149,736 -179,311
Non-owner movements in equity          
Revaluation of equity investments   -1 3 1 -4,201
Actuarial revaluations   0 0 0 54
Other economic revaluations   73 -556 60 -326
Total other economic flows
- included in equity
  72 -553 61 -4,473
Comprehensive result
- Total change in net worth
  38,206 -75,626 -149,675 -183,785
Net operating balance   1,746 -129,652 -156,093 -185,185
Net acquisition of non-financial assets          
Purchases of non-financial assets   918 8,885 11,205 18,813
less Sales of non-financial assets   20 149 114 274
less Depreciation   957 7,563 8,058 12,087
plus Change in inventories   239 1,780 1,300 2,310
plus Other movements in non-financial assets   0 20 16 -4
Total net acquisition of non-financial assets   179 2,973 4,348 8,758
Fiscal balance (Net lending/borrowing)(d)   1,567 -132,625 -160,441 -193,942

*As published in the 2020-21 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) 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 28 February 2021
$m
MYEFO ESTIMATE*
as at 30 June 2021
$m
Assets    
Financial assets    
Cash and deposits 9,397 6,115
Advances paid 82,365 87,370
Investments, loans and placements 230,111 204,339
Other receivables 72,607 67,649
Equity investments    
Investments in other public sector entities 64,565 63,987
Equity accounted investments 3,473 3,547
Investments - shares 68,993 67,391
Total financial assets 531,511 500,397
Non-financial assets    
Land 11,750 11,743
Buildings 42,336 43,671
Plant, equipment and infrastructure 90,363 93,954
Inventories 11,413 11,814
Intangibles 9,240 10,145
Investment properties 223 218
Biological assets 27 28
Heritage and cultural assets 11,965 11,992
Assets held for sale 239 241
Other non-financial assets 58 34
Total non-financial assets 177,613 183,840
Total assets 709,124 684,236
Liabilities    
Interest bearing liabilities    
Deposits held 355 484
Government securities 868,717 953,548
Loans 16,887 16,775
Lease liabilities 19,169 18,907
Total interest bearing liabilities 905,128 989,714
Provisions and payables    
Superannuation liability(a) 436,092 236,687
Other employee liabilities 32,840 33,099
Suppliers payables 6,816 8,428
Personal benefits payables 3,779 3,105
Subsidies payables 721 1,000
Grants payables 2,699 3,972
Other payables 5,201 2,687
Provisions 58,754 52,061
Total provisions and payables 546,902 341,037
Total liabilities 1,452,029 1,330,751
Net worth(b) -742,905 -646,515
Net financial worth(c) -920,518 -830,355
Net financial liabilities(d) 985,083 894,342
Net debt(e) 583,254 691,891

*As published in the 2020-21 MYEFO.
(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
February
$m
ACTUAL
2020-2021
YTD February
$m
MYEFO Profile
2020-2021
YTD February
$m
MYEFO ESTIMATE*
2020-2021
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 38,535 288,876 278,335 433,500
Receipts from sales of goods and services 613 11,953 11,530 16,233
Interest receipts 144 1,876 2,579 3,709
Dividends and income tax equivalents 280 6,736 5,720 7,115
Other receipts 729 7,660 8,224 12,295
Total operating receipts 40,301 317,101 306,389 472,853
Cash payments for operating activities        
Payments for employees(b) -2,223 -20,746 -20,659 -32,600
Payments for goods and services -10,632 -89,715 -91,921 -148,265
Grants and subsidies paid -15,171 -202,706 -206,181 -276,728
Interest paid -114 -9,356 -9,391 -17,174
Personal benefit payments -11,057 -114,884 -120,005 -168,985
Other payments(b) -736 -5,022 -4,973 -7,520
Total operating payments -39,934 -442,428 -453,130 -651,271
Net cash flows from operating activities 367 -125,327 -146,741 -178,419
Cash flows from investments in non-financial assets        
Sales of non-financial assets 31 138 111 280
Purchases of non-financial assets -913 -7,764 -9,519 -17,270
Net cash flows from investments in non-financial assets -882 -7,626 -9,408 -16,989
Net cash flows from investments in financial assets for policy purposes -705 -4,312 -8,386 -17,145
Net cash flows from investments in financial assets for liquidity purposes -9,265 8,069 8,769 38,608
Cash flows from financing activities        
Borrowing (net) 9,140 132,111 157,877 176,924
Other financing (net) -135 -2,972 -3,112 -6,317
Net cash flows from financing activities 9,005 129,139 154,765 170,607
Net increase/(decrease) in cash held -1,480 -57 -1,002 -3,338
GFS cash surplus(+)/deficit(-)(c) -515 -132,953 -156,149 -195,408
plus Net cash flows from financing activities for leases(d) -211 -1,691 -1,579 -2,339
Equals underlying cash balance(e) -725 -134,643 -157,728 -197,747
plus Net cash flows from investments in financial assets for policy purposes -705 -4,312 -8,386 -17,145
Equals headline cash balance -1,430 -138,955 -166,115 -214,892

*As published in the 2020-21 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 classified separately from wages and salaries 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
February
$m
ACTUAL
2020-2021
YTD February
$m
MYEFO Profile
2020-2021
YTD February
$m
MYEFO ESTIMATE*
2020-2021
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 19,517 146,140 144,532 212,400  
Gross other individuals 2,901 26,394 26,226 46,900  
less Refunds 1,231 30,075 30,640 37,400  
Total individuals and other withholding taxation 21,187 142,459 140,118 221,900  
Fringe benefits tax 146 2,873 2,818 3,880  
Company tax 6,741 59,078 56,800 89,100  
Superannuation fund taxes 632 8,037 6,758 8,740  
Petroleum resource rent tax 101 580 592 770  
Total income taxation revenue 28,807 213,028 207,086 324,390  

*As published in the 2020-21 MYEFO.

Note 2: Indirect Tax

  ACTUAL
2020-2021
February
$m
ACTUAL
2020-2021
YTD February
$m
MYEFO Profile
2020-2021
YTD February
$m
MYEFO ESTIMATE*
2020-2021
FULL YEAR
$m
 
Goods and services tax 8,760 48,192 42,286 65,750  
Wine equalisation tax 124 734 719 1,060  
Luxury car tax 69 510 419 610  
Excise duty 1,836 15,763 15,390 23,400  
Customs duty 1,704 12,036 11,927 19,090  
Other indirect tax 1,304 5,683 5,042 7,542  
Total indirect taxation revenue 13,798 82,918 75,783 117,452  

*As published in the 2020-21 MYEFO.

Note 3: Total expenses by function

  ACTUAL
2020-2021
February
$m
ACTUAL
2020-2021
YTD February
$m
MYEFO ESTIMATE*
2020-2021
FULL YEAR
$m
Expenses by function      
General public services 2,458 20,968 32,618
Defence 2,629 20,302 34,407
Public order and safety 509 3,929 6,253
Education 2,484 33,183 43,318
Health 7,359 61,748 95,119
Social security and welfare 16,261 153,507 230,519
Housing and community amenities 365 3,007 6,871
Recreation and culture 319 2,533 4,393
Fuel and energy 706 5,594 8,899
Agriculture, forestry and fishing 194 1,813 3,982
Mining, manufacturing and construction 309 2,064 3,609
Transport and communication 445 4,282 13,337
Other economic affairs 2,202 76,507 87,070
Other purposes      
Public debt interest 1,302 10,884 17,051
Nominal superannuation interest 584 4,669 7,004
General purpose inter-government transactions 5,561 45,801 67,199
Natural disaster relief 0 0 266
Contingency reserve 0 0 5,403
Total expenses 43,684 450,792 667,321

*As published in the 2020-21 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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