Media Releases → 2021

MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements September 2021

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

Date: Friday, 29 October 2021

KEY POINTS

  • The Monthly Financial Statements for September 2021 report the budget position against the expected monthly profile for the 2021-22 financial year through to 30 September 2021, based on the 2021-22 Budget estimates published in May 2021.
  • The September 2021 year to date results include the impact of the Australian Government’s response to COVID-19.
  • The underlying cash balance for the 2021-22 financial year to 30 September 2021 was a deficit of $31.7 billion against the Budget profile deficit of $39.4 billion.
  • The fiscal balance for the 2021-22 financial year to 30 September 2021 was a deficit of $31.8 billion against the Budget profile deficit of $43.3 billion.
AGGREGATES ACTUAL
2021-2022
September
$b
ACTUAL
2021-2022
YTD September
$b
Budget Profile
2021-2022
YTD September
$b
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$b
Receipts(a) 40.3 122.6 103.1 482.1
Payments(b) 49.9 154.3 142.5 588.7
Underlying cash balance -9.7 -31.7 -39.4 -106.6
Headline cash balance -9.5 -30.6 -42.3 -117.0
Revenue 36.4 121.2 104.0 496.6
Expenses 49.8 154.9 146.4 589.3
Net operating balance -13.4 -33.6 -42.4 -92.7
Net capital investment -0.5 -1.9 0.9 10.3
Fiscal balance -12.8 -31.8 -43.3 -103.0
Total assets   731.1   743.8
Total liabilities   1,487.9   1,421.8
Net worth(c)   -756.9   -678.0
Net debt(d)   619.8   729.0

*As published in the 2021-22 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 30 September 2021 was a deficit of $31.7 billion, which is $7.8 billion lower than the 2021-22 Budget profile deficit of $39.4 billion.

  • Receipts
    Total receipts were $19.5 billion higher than the 2021-22 Budget profile.
  • Payments
    Total payments were $11.7 billion higher than the 2021-22 Budget profile.

Net Operating Balance

The net operating balance for the financial year to 30 September 2021 was a deficit of $33.6 billion, which is $8.8 billion lower than the 2021-22 Budget profile deficit of $42.4 billion. The difference results from higher than expected revenue and expenses.

Fiscal Balance

The fiscal balance for the financial year to 30 September 2021 was a deficit of $31.8 billion, which is $11.5 billion lower than the 2021-22 Budget profile deficit of $43.3 billion. The difference results from higher than expected revenue and expenses, and lower than expected net capital investment.

Assets and Liabilities

As at 30 September 2021:

  • net worth is negative $756.9 billion;
  • net debt is $619.8 billion; and
  • net financial liabilities are $998.3 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
2021-2022
September
$m
ACTUAL
2021-2022
YTD September
$m
Budget Profile
2021-2022
YTD September
$m
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 33,799 111,551 94,759 456,972
Sales of goods and services   555 4,412 4,368 17,175
Interest income   299 824 928 3,621
Dividend and distribution income   844 1,926 863 7,265
Other   921 2,534 3,078 11,588
Total revenue   36,420 121,247 103,996 496,621
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,991 5,798 5,674 22,440
Superannuation   974 3,094 1,749 6,973
Depreciation and amortisation   953 2,814 3,083 12,154
Supply of goods and services   13,281 38,305 37,147 161,315
Other operating expenses(a)   696 2,091 2,097 8,891
Total gross operating expenses   17,894 52,102 49,750 211,772
Superannuation interest expense   646 2,027 2,505 10,018
Interest expenses   1,513 4,622 4,702 19,519
Current transfers          
Current grants   11,952 43,693 43,768 170,580
Subsidy expenses   1,487 4,412 4,515 17,364
Personal benefits   15,750 46,386 38,507 140,253
Total current transfers   29,189 94,491 86,789 328,198
Capital transfers          
Mutually agreed write-downs   178 687 632 2,746
Other capital grants   371 946 2,015 17,080
Total capital transfers   549 1,634 2,647 19,826
Total expenses 3 49,792 154,875 146,393 589,334
Net operating balance   -13,373 -33,628 -42,396 -92,713
Other economic flows          
- included in operating result          
Net write-downs of assets   -507 -1,451 -1,377 -6,351
Assets recognised for the first time   23 37 45 200
Actuarial revaluations   0 0 0 124
Net foreign exchange gains   18 79 0 -352
Net swap interest received   -181 -376 0 0
Market valuation of debt   18,220 2,558 77 260
Other gains/(losses)   -3,019 855 1,984 8,030
Total other economic flows
- included in operating result
  14,554 1,703 729 1,910
Operating Result(b)   1,181 -31,925 -41,668 -90,804
Non-owner movements in equity          
Revaluation of equity investments   0 0 2 -230
Actuarial revaluations   0 0 0 -375
Other economic revaluations   610 299 -181 -88
Total other economic flows
- included in equity
  610 299 -179 -694
Comprehensive result
- Total change in net worth
  1,791 -31,626 -41,846 -91,497
Net operating balance   -13,373 -33,628 -42,396 -92,713
Net acquisition of non-financial assets          
Purchases of non-financial assets   544 2,124 4,149 22,325
less Sales of non-financial assets   296 1,010 67 281
less Depreciation   953 2,814 3,083 12,154
plus Change in inventories   171 -170 -108 440
plus Other movements in non-financial assets   6 15 19 0
Total net acquisition of non-financial assets   -529 -1,855 910 10,330
Fiscal balance (Net lending/borrowing)(c)   -12,844 -31,773 -43,306 -103,043

*As published in the 2021-22 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) Operating result under Australian Accounting Standards.
(c) The term fiscal balance is not used by the ABS.

Australian Government general government sector balance sheet

  ACTUAL
as at 30 September 2021
$m
BUDGET ESTIMATE
as at 30 June 2022
$m
Assets    
Financial assets    
Cash and deposits 52,226 61,795
Advances paid 79,580 85,655
Investments, loans and placements 208,365 188,218
Other receivables 65,101 73,678
Equity investments    
Investments in other public sector entities 61,757 58,649
Equity accounted investments 3,690 3,892
Investments - shares 80,610 79,311
Total financial assets 551,330 551,198
Non-financial assets    
Land 12,068 11,871
Buildings 42,747 45,056
Plant, equipment and infrastructure 92,205 100,662
Inventories 10,404 11,744
Intangibles 9,861 10,796
Investment properties 206 217
Biological assets 32 16
Heritage and cultural assets 11,848 11,986
Assets held for sale 297 248
Other non-financial assets 55 37
Total non-financial assets 179,722 192,634
Total assets 731,052 743,832
Liabilities    
Interest bearing liabilities    
Deposits held 438 484
Government securities 912,954 1,028,091
Loans 27,579 16,125
Lease liabilities 19,044 19,991
Total interest bearing liabilities 960,015 1,064,691
Provisions and payables    
Superannuation liability(a) 409,265 247,892
Other employee liabilities 37,705 33,839
Suppliers payables 7,378 9,226
Personal benefits payables 2,886 2,998
Subsidies payables 833 1,482
Grants payables 5,963 4,026
Other payables 6,200 3,136
Provisions 57,663 54,534
Total provisions and payables 527,893 357,133
Total liabilities 1,487,908 1,421,824
Net worth(b) -756,856 -677,992
Net financial worth(c) -936,578 -870,626
Net financial liabilities(d) 998,336 929,275
Net debt(e) 619,843 729,023

*As published in the 2021-22 Budget.
(a) For budget reporting purposes, a discount rate of CPI plus 2.5 per cent determined by actuaries in preparing the latest 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 2021-22 Monthly Financial Statements was calculated using the spot rates on long-term government bonds as at 30 June 2021 that best matched each individual scheme’s liability duration. These rates were between 1.6 and 2.3 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
2021-2022
September
$m
ACTUAL
2021-2022
YTD September
$m
Budget Profile
2021-2022
YTD September
$m
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 34,151 108,840 92,559 445,599
Receipts from sales of goods and services 593 4,458 4,112 17,364
Interest receipts 214 835 824 3,063
Dividends, distributions and income tax equivalents 3,612 4,713 2,962 5,829
Other receipts(b) 1,387 3,400 2,571 9,916
Total operating receipts 39,957 122,246 103,028 481,771
Cash payments for operating activities        
Payments for employees(b)(c) -3,764 -9,684 -8,768 -35,292
Payments for goods and services -13,445 -40,528 -36,657 -159,044
Grants and subsidies paid -14,070 -50,174 -50,889 -206,165
Interest paid -80 -1,071 -1,012 -17,789
Personal benefit payments -16,345 -46,930 -39,393 -140,966
Other payments(c) -538 -1,796 -2,064 -8,219
Total operating payments -48,242 -150,183 -138,784 -567,475
Net cash flows from operating activities -8,285 -27,937 -35,755 -85,704
Cash flows from investments in non-financial assets        
Sales of non-financial assets 300 349 67 282
Purchases of non-financial assets -1,457 -3,424 -3,058 -18,786
Net cash flows from investments in non-financial assets -1,157 -3,075 -2,991 -18,504
Net cash flows from investments in financial assets for policy purposes 166 1,108 -2,825 -10,428
Net cash flows from investments in financial assets for liquidity purposes 247 -2,601 -2,790 -3,513
Cash flows from financing activities        
Borrowing (net) 5,641 23,987 40,933 140,204
Other financing (net) -652 -1,667 -839 -6,952
Net cash flows from financing activities 4,989 22,319 40,093 133,252
Net increase/(decrease) in cash held -4,040 -10,185 -4,269 15,102
GFS cash surplus(+)/deficit(-)(d) -9,441 -31,012 -38,747 -104,209
plus Net cash flows from financing activities for leases(e) -229 -660 -703 -2,411
Equals underlying cash balance(f) -9,670 -31,672 -39,450 -106,619
plus Net cash flows from investments in financial assets for policy purposes 166 1,108 -2,825 -10,428
Equals headline cash balance -9,505 -30,563 -42,275 -117,047

*As published in the 2021-22 Budget.
(a) A positive number denotes a cash inflow; a negative number denotes a cash outflow.
(b) As result of a voluntary accounting policy change, the pass-through of defined benefit member superannuation receipts and payments are reported on a gross basis in the cash flow statement. It was previously reported on a net basis. This change has no net impact to the underlying cash balance for 2021-22.
(c) Consistent with the ABS GFS classification, other employee related payments are classified separately from wages and salaries under other payments.
(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.
(f) The term underlying cash balance is not used by the ABS.

Note 1: Income Tax

  ACTUAL
2021-2022
September
$m
ACTUAL
2021-2022
YTD September
$m
Budget Profile
2021-2022
YTD September
$m
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 20,118 58,254 54,357 218,700  
Gross other individuals 2,199 12,297 10,708 48,500  
less Refunds 4,487 20,684 23,306 42,300  
Total individuals and other withholding taxation 17,830 49,867 41,760 224,900  
Fringe benefits tax 24 791 1,008 4,090  
Company tax 7,615 26,619 18,643 84,200  
Superannuation fund taxes 991 4,494 2,800 15,280  
Petroleum resource rent tax -33 362 224 1,050  
Total income taxation revenue 26,426 82,133 64,435 329,520  

*As published in the 2021-22 Budget.

Note 2: Indirect Tax

  ACTUAL
2021-2022
September
$m
ACTUAL
2021-2022
YTD September
$m
Budget Profile
2021-2022
YTD September
$m
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
 
Goods and services tax 3,982 18,053 18,078 74,130  
Wine equalisation tax 85 264 229 1,050  
Luxury car tax 67 243 169 680  
Excise duty 1,859 5,804 6,014 24,840  
Customs duty 893 3,322 4,169 18,420  
Other indirect tax 488 1,733 1,663 8,332  
Total indirect taxation revenue 7,373 29,419 30,324 127,452  

*As published in the 2021-22 Budget.

Note 3: Total expenses by function

  ACTUAL
2021-2022
September
$m
ACTUAL
2021-2022
YTD September
$m
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Expenses by function      
General public services 2,292 7,204 26,070
Defence 2,878 8,048 34,473
Public order and safety 562 1,793 6,652
Education 2,132 10,345 42,799
Health 8,831 25,986 98,283
Social security and welfare 21,191 63,556 209,975
Housing and community amenities 488 1,351 7,869
Recreation and culture 347 1,089 4,532
Fuel and energy 690 2,164 9,638
Agriculture, forestry and fishing 209 632 4,483
Mining, manufacturing and construction 262 839 4,354
Transport and communication 300 701 14,460
Other economic affairs 1,366 3,837 14,640
Other purposes      
Public debt interest 1,467 4,475 18,196
Nominal superannuation interest 646 2,027 10,018
General purpose inter-government transactions 6,117 20,763 77,509
Natural disaster relief 13 65 327
Contingency reserve 0 0 5,055
Total expenses 49,792 154,875 589,334

*As published in the 2021-22 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.

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]