Media Releases → 2021

MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements November 2021

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

Date: Friday, 24 December 2021

KEY POINTS

  • The Monthly Financial Statements for November 2021 report the budget position against the expected monthly profile for the 2021-22 financial year through to 30 November 2021, based on the 2021-22 Budget estimates published in May 2021.
  • The 2021-22 Mid-Year Economic and Fiscal Outlook (MYEFO) was released on Thursday, 16 December 2021. Commencing with the December 2021 monthly financial statements, which will be released in January 2022, the budget position will be reported against the expected monthly profile based on the updated estimates outlined in the 2021-22 MYEFO.
  • The November 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 November 2021 was a deficit of $41.8 billion against the Budget profile deficit of $55.9 billion.
  • The fiscal balance for the 2021-22 financial year to 30 November 2021 was a deficit of $36.0 billion against the Budget profile deficit of $55.2 billion.
AGGREGATES ACTUAL
2021-2022
November
$b
ACTUAL
2021-2022
YTD November
$b
Budget Profile
2021-2022
YTD November
$b
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$b
Receipts(a) 57.0 219.9 185.6 482.1
Payments(b) 54.8 261.7 241.5 588.7
Underlying cash balance 2.1 -41.8 -55.9 -106.6
Headline cash balance 1.7 -38.6 -60.4 -117.0
Revenue 55.5 222.7 190.3 496.6
Expenses 49.3 258.2 243.7 589.3
Net operating balance 6.2 -35.5 -53.4 -92.7
Net capital investment 1.2 0.4 1.9 10.3
Fiscal balance 5.0 -36.0 -55.2 -103.0
Total assets   749.5   743.8
Total liabilities   1,493.0   1,421.8
Net worth(c)   -743.5   -678.0
Net debt(d)   607.3   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 November 2021 was a deficit of $41.8 billion, which is $14.1 billion lower than the 2021-22 Budget profile deficit of $55.9 billion.

  • Receipts
    Total receipts were $34.3 billion higher than the 2021-22 Budget profile.
  • Payments
    Total payments were $20.2 billion higher than the 2021-22 Budget profile.

Net Operating Balance

The net operating balance for the financial year to 30 November 2021 was a deficit of $35.5 billion, which is $17.8 billion lower than the 2021-22 Budget profile deficit of $53.4 billion. The difference results from higher than expected revenue, partially offset by higher than expected expenses.

Fiscal Balance

The fiscal balance for the financial year to 30 November 2021 was a deficit of $36.0 billion, which is $19.3 billion lower than the 2021-22 Budget profile deficit of $55.2 billion. The difference results from higher than expected revenue and lower than expected net capital investment, partially offset by higher expenses.

Assets and Liabilities

As at 30 November 2021:

  • net worth is negative $743.5 billion;
  • net debt is $607.3 billion; and
  • net financial liabilities are $987.2 billion.
Senator the Hon. Simon Birmingham
Minister for Finance
Nathan Williamson
A/g Secretary
Department of Finance
Media Contact  
Benn Ayre      0428 342 325

 

Australian Government general government sector operating statement

  Note ACTUAL
2021-2022
November
$m
ACTUAL
2021-2022
YTD November
$m
Budget Profile
2021-2022
YTD November
$m
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 53,084 205,225 174,211 456,972
Sales of goods and services   713 8,289 7,938 17,175
Interest income   247 1,329 1,547 3,621
Dividend and distribution income   413 3,050 1,552 7,265
Other   1,005 4,773 5,059 11,588
Total revenue   55,463 222,666 190,307 496,621
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,934 9,618 9,401 22,440
Superannuation   993 5,113 2,931 6,973
Depreciation and amortisation   999 4,667 5,075 12,154
Supply of goods and services   12,891 64,312 62,528 161,315
Other operating expenses(a)   776 3,624 3,585 8,891
Total gross operating expenses   17,594 87,334 83,520 211,772
Superannuation interest expense   748 3,739 4,174 10,018
Interest expenses   1,527 7,709 7,843 19,519
Current transfers          
Current grants   15,084 75,625 73,570 170,580
Subsidy expenses   1,783 7,822 7,210 17,364
Personal benefits   11,655 72,754 62,026 140,253
Total current transfers   28,522 156,201 142,806 328,198
Capital transfers          
Mutually agreed write-downs   152 1,099 1,036 2,746
Other capital grants   759 2,132 4,313 17,080
Total capital transfers   912 3,231 5,349 19,826
Total expenses 3 49,302 258,214 243,692 589,334
Net operating balance   6,161 -35,549 -53,385 -92,713
Other economic flows          
- included in operating result          
Net write-downs of assets   -519 -3,355 -2,346 -6,351
Assets recognised for the first time   2 52 75 200
Actuarial revaluations   0 0 0 124
Net foreign exchange gains   204 159 0 -352
Net swap interest received   26 -351 0 0
Market valuation of debt   -20,459 17,479 160 260
Other gains/(losses)   3,519 2,714 3,291 8,030
Total other economic flows
- included in operating result
  -17,226 16,699 1,180 1,910
Operating Result(b)   -11,066 -18,850 -52,205 -90,804
Non-owner movements in equity          
Revaluation of equity investments   0 -1 3 -230
Actuarial revaluations   0 0 0 -375
Other economic revaluations   147 542 -139 -88
Total other economic flows
- included in equity
  147 542 -136 -694
Comprehensive result
- Total change in net worth
  -10,919 -18,308 -52,341 -91,497
Net operating balance   6,161 -35,549 -53,385 -92,713
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,862 5,621 7,177 22,325
less Sales of non-financial assets   20 1,037 87 281
less Depreciation   999 4,667 5,075 12,154
plus Change in inventories   350 461 -183 440
plus Other movements in non-financial assets   4 25 22 0
Total net acquisition of non-financial assets   1,197 404 1,854 10,330
Fiscal balance (Net lending/borrowing)(c)   4,964 -35,952 -55,239 -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 November 2021
$m
BUDGET ESTIMATE
*
as at 30 June 2022
$m
Assets    
Financial assets    
Cash and deposits 61,316 61,795
Advances paid 77,043 85,655
Investments, loans and placements 215,250 188,218
Other receivables 68,962 73,678
Equity investments    
Investments in other public sector entities 62,436 58,649
Equity accounted investments 3,712 3,892
Investments - shares 79,521 79,311
Total financial assets 568,240 551,198
Non-financial assets    
Land 12,097 11,871
Buildings 42,849 45,056
Plant, equipment and infrastructure 93,066 100,662
Inventories 10,831 11,744
Intangibles 9,964 10,796
Investment properties 207 217
Biological assets 30 16
Heritage and cultural assets 11,848 11,986
Assets held for sale 291 248
Other non-financial assets 65 37
Total non-financial assets 181,249 192,634
Total assets 749,489 743,832
Liabilities    
Interest bearing liabilities    
Deposits held 383 484
Government securities 914,158 1,028,091
Loans 27,603 16,125
Lease liabilities 18,799 19,991
Total interest bearing liabilities 960,943 1,064,691
Provisions and payables    
Superannuation liability(a) 411,126 247,892
Other employee liabilities 38,314 33,839
Suppliers payables 10,521 9,226
Personal benefits payables 3,303 2,998
Subsidies payables 931 1,482
Grants payables 2,333 4,026
Other payables 6,949 3,136
Provisions 58,580 54,534
Total provisions and payables 532,058 357,133
Total liabilities 1,493,000 1,421,824
Net worth(b) -743,511 -677,992
Net financial worth(c) -924,760 -870,626
Net financial liabilities(d) 987,196 929,275
Net debt(e) 607,334 729,023

*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
November
$m
ACTUAL
2021-2022
YTD November
$m
Budget Profile
2021-2022
YTD November
$m
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 54,766 198,192 168,833 445,599
Receipts from sales of goods and services 767 8,350 7,702 17,364
Interest receipts 175 1,268 1,349 3,063
Dividends, distributions and income tax equivalents 336 5,917 3,653 5,829
Other receipts(b) 902 5,790 3,996 9,916
Total operating receipts 56,945 219,516 185,532 481,771
Cash payments for operating activities        
Payments for employees(b)(c) -2,834 -15,371 -14,137 -35,292
Payments for goods and services -13,195 -65,968 -61,369 -159,044
Grants and subsidies paid -21,997 -90,411 -85,946 -206,165
Interest paid -2,713 -7,110 -7,102 -17,789
Personal benefit payments -11,878 -72,952 -62,586 -140,966
Other payments(c) -734 -3,021 -3,451 -8,219
Total operating payments -53,352 -254,833 -234,591 -567,475
Net cash flows from operating activities 3,594 -35,317 -49,059 -85,704
Cash flows from investments in non-financial assets        
Sales of non-financial assets 14 375 87 282
Purchases of non-financial assets -1,259 -5,768 -5,823 -18,786
Net cash flows from investments in non-financial assets -1,245 -5,393 -5,735 -18,504
Net cash flows from investments in financial assets for policy purposes -418 3,239 -4,535 -10,428
Net cash flows from investments in financial assets for liquidity purposes 336 -4,587 -2,427 -3,513
Cash flows from financing activities        
Borrowing (net) 11,315 44,993 68,233 140,204
Other financing (net) -893 -4,032 -3,123 -6,952
Net cash flows from financing activities 10,422 40,962 65,111 133,252
Net increase/(decrease) in cash held 12,688 -1,096 3,355 15,102
GFS cash surplus(+)/deficit(-)(d) 2,348 -40,710 -54,794 -104,209
plus Net cash flows from financing activities for leases(e) -220 -1,098 -1,085 -2,411
Equals underlying cash balance(f) 2,128 -41,808 -55,879 -106,619
plus Net cash flows from investments in financial assets for policy purposes -418 3,239 -4,535 -10,428
Equals headline cash balance 1,710 -38,569 -60,414 -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.
(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
November
$m
ACTUAL
2021-2022
YTD November
$m
Budget Profile
2021-2022
YTD November
$m
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 21,657 96,576 89,190 218,700  
Gross other individuals 2,899 22,633 19,654 48,500  
less Refunds 3,112 27,469 31,093 42,300  
Total individuals and other withholding taxation 21,443 91,740 77,752 224,900  
Fringe benefits tax 117 1,512 2,000 4,090  
Company tax 11,295 45,621 32,709 84,200  
Superannuation fund taxes 6,184 12,204 6,387 15,280  
Petroleum resource rent tax 1 886 523 1,050  
Total income taxation revenue 39,039 151,963 119,370 329,520  

*As published in the 2021-22 Budget.

Note 2: Indirect Tax

  ACTUAL
2021-2022
November
$m
ACTUAL
2021-2022
YTD November
$m
Budget Profile
2021-2022
YTD November
$m
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
 
Goods and services tax 8,681 32,795 33,288 74,130  
Wine equalisation tax 102 443 408 1,050  
Luxury car tax 64 376 277 680  
Excise duty 2,485 10,174 10,442 24,840  
Customs duty 1,670 6,248 7,487 18,420  
Other indirect tax 1,042 3,225 2,939 8,332  
Total indirect taxation revenue 14,045 53,261 54,841 127,452  

*As published in the 2021-22 Budget.

Note 3: Total expenses by function

  ACTUAL
2021-2022
November
$m
ACTUAL
2021-2022
YTD November
$m
BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Expenses by function      
General public services 2,279 11,783 26,070
Defence 3,148 14,158 34,473
Public order and safety 626 2,903 6,652
Education 1,711 18,623 42,799
Health 9,237 44,015 98,283
Social security and welfare 16,745 100,730 209,975
Housing and community amenities 540 2,474 7,869
Recreation and culture 321 1,693 4,532
Fuel and energy 731 3,638 9,638
Agriculture, forestry and fishing 194 1,139 4,483
Mining, manufacturing and construction 277 1,386 4,354
Transport and communication 595 1,755 14,460
Other economic affairs 4,280 9,347 14,640
Other purposes      
Public debt interest 1,486 7,483 18,196
Nominal superannuation interest 748 3,739 10,018
General purpose inter-government transactions 6,383 33,276 77,509
Natural disaster relief 2 73 327
Contingency reserve 0 0 5,055
Total expenses 49,302 258,214 589,334

*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]