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MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements December 2021

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

Date: Friday, 28 January 2022

KEY POINTS

  • The Monthly Financial Statements for December 2021 report the budget position against the expected monthly profile for the 2021-22 financial year through to 31 December 2021, based on the 2021-22 Mid-Year Economic and Fiscal Outlook (MYEFO) estimates published in December 2021.
  • The December 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 31 December 2021 was a deficit of $37.3 billion against the MYEFO profile deficit of $45.8 billion.
  • The fiscal balance for the 2021-22 financial year to 31 December 2021 was a deficit of $33.1 billion against the MYEFO profile deficit of $41.0 billion.
AGGREGATES ACTUAL
2021-2022
December
$b
ACTUAL
2021-2022
YTD December
$b
MYEFO Profile
2021-2022
YTD December
$b
MYEFO ESTIMATE*
2021-2022
FULL YEAR
$b
Receipts(a) 59.1 279.0 272.4 532.1
Payments(b) 54.6 316.3 318.2 631.4
Underlying cash balance 4.5 -37.3 -45.8 -99.2
Headline cash balance 3.1 -35.5 -44.3 -106.1
Revenue 54.7 277.4 273.4 542.5
Expenses 52.0 310.3 313.3 633.8
Net operating balance 2.7 -32.9 -39.9 -91.3
Net capital investment -0.1 0.3 1.1 11.6
Fiscal balance 2.8 -33.1 -41.0 -102.9
Total assets   745.4   759.5
Total liabilities   1,485.0   1,391.9
Net worth(c)   -739.6   -632.4
Net debt(d)   605.9   673.4

*As published in the 2021-22 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 31 December 2021 was a deficit of $37.3 billion, which is $8.5 billion lower than the 2021-22 MYEFO profile deficit of $45.8 billion.

  • Receipts
    Total receipts were $6.6 billion higher than the 2021-22 MYEFO profile.
  • Payments
    Total payments were $1.9 billion lower than the 2021-22 MYEFO profile.

Net Operating Balance

The net operating balance for the financial year to 31 December 2021 was a deficit of $32.9 billion, which is $7.0 billion lower than the 2021-22 MYEFO profile deficit of $39.9 billion. The difference results from higher than expected revenue and lower than expected expenses.

Fiscal Balance

The fiscal balance for the financial year to 31 December 2021 was a deficit of $33.1 billion, which is $7.9 billion lower than the 2021-22 MYEFO profile deficit of $41.0 billion. The difference results from higher than expected revenue and lower than expected expenses and net capital investment.

Assets and Liabilities

As at 31 December 2021:

  • net worth is negative $739.6 billion;
  • net debt is $605.9 billion; and
  • net financial liabilities are $983.3 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
December
$m
ACTUAL
2021-2022
YTD December
$m
MYEFO Profile
2021-2022
YTD December
$m
MYEFO ESTIMATE*
2021-2022
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 51,452 256,677 253,521 504,041
Sales of goods and services   532 8,821 8,863 17,424
Interest income   257 1,587 1,976 3,619
Dividend and distribution income   1,061 4,111 3,316 5,178
Other   1,400 6,173 5,745 12,266
Total revenue   54,703 277,369 273,422 542,528
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,839 11,457 11,526 23,102
Superannuation   1,052 6,165 6,095 12,091
Depreciation and amortisation   906 5,572 5,826 11,651
Supply of goods and services   13,861 78,174 79,619 175,257
Other operating expenses(a)   676 4,300 4,217 8,785
Total gross operating expenses   18,334 105,668 107,282 230,886
Superannuation interest expense   748 4,487 4,487 8,974
Interest expenses   1,602 9,311 9,430 20,070
Current transfers          
Current grants   17,173 92,798 93,058 182,118
Subsidy expenses   1,474 9,296 9,313 18,938
Personal benefits   11,508 84,262 85,015 152,282
Total current transfers   30,155 186,357 187,386 353,338
Capital transfers          
Mutually agreed write-downs   336 1,435 1,186 2,734
Other capital grants   862 2,994 3,559 17,836
Total capital transfers   1,198 4,429 4,745 20,570
Total expenses 3 52,038 310,252 313,330 633,838
Net operating balance   2,665 -32,883 -39,908 -91,310
Other economic flows          
- included in operating result          
Net write-downs of assets   -87 -3,442 -2,949 -7,828
Assets recognised for the first time   37 89 63 242
Actuarial revaluations   0 0 0 109
Net foreign exchange gains   -106 53 0 48
Net swap interest received   -42 -393 -325 -343
Market valuation of debt   411 17,890 22,238 22,484
Other gains/(losses)   1,046 3,760 3,905 6,983
Total other economic flows
- included in operating result
  1,259 17,958 22,932 21,695
Operating Result(b)   3,924 -14,926 -16,976 -69,616
Non-owner movements in equity          
Revaluation of equity investments   1 0 -1 -3,174
Actuarial revaluations   0 0 0 -22,072
Other economic revaluations   12 555 857 720
Total other economic flows
- included in equity
  13 555 856 -24,526
Comprehensive result
- Total change in net worth
  3,938 -14,371 -16,119 -94,141
Net operating balance   2,665 -32,883 -39,908 -91,310
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,243 6,864 7,700 23,518
less Sales of non-financial assets   19 1,057 758 930
less Depreciation   906 5,572 5,826 11,651
plus Change in inventories   -412 49 41 682
plus Other movements in non-financial assets   -47 -21 -25 -26
Total net acquisition of non-financial assets   -142 262 1,133 11,593
Fiscal balance (Net lending/borrowing)(c)   2,807 -33,145 -41,041 -102,903

*As published in the 2021-22 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) 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 31 December 2021
$m
MYEFO ESTIMATE*
as at 30 June 2022
$m
Assets    
Financial assets    
Cash and deposits 60,568 57,497
Advances paid 78,202 82,967
Investments, loans and placements 212,103 205,481
Other receivables 66,682 65,103
Equity investments    
Investments in other public sector entities 62,657 61,792
Equity accounted investments 3,725 4,037
Investments - shares 80,446 90,724
Total financial assets 564,383 567,601
Non-financial assets    
Land 12,093 12,188
Buildings 42,784 46,330
Plant, equipment and infrastructure 93,351 98,724
Inventories 10,423 10,891
Intangibles 9,989 11,100
Investment properties 198 213
Biological assets 30 23
Heritage and cultural assets 11,844 11,869
Assets held for sale 289 562
Other non-financial assets 19 14
Total non-financial assets 181,020 191,914
Total assets 745,403 759,515
Liabilities    
Interest bearing liabilities    
Deposits held 560 598
Government securities 910,007 969,411
Loans 27,532 29,501
Lease liabilities 18,655 19,823
Total interest bearing liabilities 956,753 1,019,332
Provisions and payables    
Superannuation liability(a) 411,625 250,958
Other employee liabilities 38,513 38,371
Suppliers payables 6,130 11,131
Personal benefits payables 2,891 2,977
Subsidies payables 891 995
Grants payables 2,180 4,314
Other payables 5,954 2,464
Provisions 60,039 61,349
Total provisions and payables 528,223 372,559
Total liabilities 1,484,976 1,391,891
Net worth(b) -739,574 -632,376
Net financial worth(c) -920,593 -824,290
Net financial liabilities(d) 983,250 886,082
Net debt(e) 605,881 673,387

*As published in the 2021-22 MYEFO.
(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
December
$m
ACTUAL
2021-2022
YTD December
$m
MYEFO Profile
2021-2022
YTD December
$m
MYEFO ESTIMATE*
2021-2022
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 53,370 251,562 248,202 490,487
Receipts from sales of goods and services 2,133 10,483 8,701 17,520
Interest receipts 185 1,453 1,744 2,732
Dividends, distributions and income tax equivalents 1,094 7,010 6,107 7,980
Other receipts(b) 2,326 8,116 7,537 13,139
Total operating receipts 59,108 278,624 272,289 531,859
Cash payments for operating activities        
Payments for employees(b)(c) -3,095 -18,466 -18,678 -36,681
Payments for goods and services -15,277 -81,245 -80,992 -172,036
Grants and subsidies paid -19,474 -109,885 -110,878 -221,836
Interest paid -1,494 -8,604 -8,541 -17,496
Personal benefit payments -12,718 -85,669 -86,337 -152,756
Other payments(c) -729 -3,750 -3,812 -8,248
Total operating payments -52,786 -307,619 -309,238 -609,053
Net cash flows from operating activities 6,322 -28,995 -36,948 -77,194
Cash flows from investments in non-financial assets        
Sales of non-financial assets 19 394 97 271
Purchases of non-financial assets -1,639 -7,407 -7,701 -19,877
Net cash flows from investments in non-financial assets -1,620 -7,013 -7,604 -19,606
Net cash flows from investments in financial assets for policy purposes -1,377 1,862 1,563 -6,888
Net cash flows from investments in financial assets for liquidity purposes -151 -4,738 -3,266 -2,979
Cash flows from financing activities        
Borrowing (net) -4,168 40,825 40,627 108,996
Other financing (net) 246 -3,785 -3,742 -7,243
Net cash flows from financing activities -3,922 37,040 36,885 101,753
Net increase/(decrease) in cash held -748 -1,843 -9,371 -4,914
GFS cash surplus(+)/deficit(-)(d) 4,702 -36,008 -44,553 -96,801
plus Net cash flows from financing activities for leases(e) -210 -1,308 -1,280 -2,447
Equals underlying cash balance(f) 4,492 -37,316 -45,833 -99,247
plus Net cash flows from investments in financial assets for policy purposes -1,377 1,862 1,563 -6,888
Equals headline cash balance 3,115 -35,454 -44,270 -106,135

*As published in the 2021-22 MYEFO.
(a) A positive number denotes a cash inflow; a negative number denotes a cash outflow.
(b) As a 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. This 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 financing cash payments, 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
December
$m
ACTUAL
2021-2022
YTD December
$m
MYEFO Profile
2021-2022
YTD December
$m
MYEFO ESTIMATE*
2021-2022
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 21,155 117,730 116,355 229,700  
Gross other individuals 2,004 24,638 24,244 53,800  
less Refunds 1,474 28,943 28,952 38,700  
Total individuals and other withholding taxation 21,685 113,425 111,647 244,800  
Fringe benefits tax 14 1,526 1,549 3,160  
Company tax 13,634 59,255 58,098 102,700  
Superannuation fund taxes 6,684 18,888 18,716 23,230  
Petroleum resource rent tax 11 897 886 1,470  
Total income taxation revenue 42,027 193,991 190,896 375,360  

*As published in the 2021-22 MYEFO.

Note 2: Indirect Tax

  ACTUAL
2021-2022
December
$m
ACTUAL
2021-2022
YTD December
$m
MYEFO Profile
2021-2022
YTD December
$m
MYEFO ESTIMATE*
2021-2022
FULL YEAR
$m
 
Goods and services tax 4,981 37,776 37,900 76,410  
Wine equalisation tax 130 573 542 1,160  
Luxury car tax 68 444 422 770  
Excise duty 2,163 12,337 12,207 24,850  
Customs duty 1,574 7,822 7,729 17,190  
Other indirect tax 509 3,734 3,825 8,301  
Total indirect taxation revenue 9,425 62,687 62,625 128,681  

*As published in the 2021-22 MYEFO.

Note 3: Total expenses by function

  ACTUAL
2021-2022
December
$m
ACTUAL
2021-2022
YTD December
$m
MYEFO ESTIMATE*
2021-2022
FULL YEAR
$m
Expenses by function      
General public services 2,603 14,386 33,264
Defence 2,934 17,091 35,201
Public order and safety 514 3,417 6,766
Education 2,463 21,086 43,378
Health 8,317 52,333 105,706
Social security and welfare 19,091 119,822 226,241
Housing and community amenities 582 3,057 8,139
Recreation and culture 324 2,017 4,567
Fuel and energy 743 4,382 9,770
Agriculture, forestry and fishing 261 1,400 4,456
Mining, manufacturing and construction 281 1,666 4,259
Transport and communication 869 2,624 15,312
Other economic affairs 4,475 13,822 23,519
Other purposes      
Public debt interest 1,550 9,032 17,862
Nominal superannuation interest 748 4,487 8,974
General purpose inter-government transactions 6,276 39,551 78,324
Natural disaster relief 7 80 582
Contingency reserve 0 0 7,518
Total expenses 52,038 310,252 633,838

*As published in the 2021-22 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.

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]