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MEDIA RELEASE

Australian Government General Government Sector Monthly Financial Statements October 2022

SENATOR THE HON KATY GALLAGHER
Minister for Finance
Minister for the Public Service
Minister for Women

Date: Friday, 25 November 2022

KEY POINTS

  • The Monthly Financial Statements for October 2022 report the budget position against the expected monthly profile for the 2022-23 financial year through to 31 October 2022, based on the 2022-23 March Budget estimates.
  • The 2022-23 October Budget was released on 25 October 2022. Commencing with the November 2022 monthly financial statements, the budget position will be reported against the expected monthly profile based on the updated estimates outlined in the 2022-23 October Budget.
  • The underlying cash balance for the 2022-23 financial year to 31 October 2022 was a deficit of $20.7 billion.
  • The fiscal balance for the 2022-23 financial year to 31 October 2022 was a deficit of $13.5 billion.
AGGREGATES(a) ACTUAL
2022-2023
October
$b
ACTUAL
2022-2023
YTD October
$b
MARCH BUDGET
ESTIMATE*
2022-2023
FULL YEAR
$b
OCTOBER BUDGET
ESTIMATE^
2022-2023
FULL YEAR
$b
Receipts(b) 46.8 183.2 547.6 607.2
Payments(c) 52.3 203.9 625.6 644.1
Underlying cash balance -5.6 -20.7 -78.0 -36.9
Headline cash balance -5.8 -22.4 -90.8 -49.6
Revenue 54.8 192.3 560.9 625.0
Expenses 52.2 204.7 628.5 650.9
Net operating balance 2.6 -12.4 -67.5 -25.9
Net capital investment 0.3 1.1 11.3 12.8
Fiscal balance 2.3 -13.5 -78.8 -38.7
Total assets   749.0 777.2 766.0
Total liabilities   1,343.3 1,434.8 1,321.6
Net worth(d)   -594.3 -657.5 -555.7
Net debt(e)   533.5 714.9 572.2

*As published in the 2022-23 March Budget.
^As published in the 2022-23 October Budget.
(a) Discrepancies in tables between totals and sums of components are due to rounding. 
(b) Cash receipts for operating activities and sales of non-financial assets.
(c) Cash payments for operating activities, purchases of non-financial assets and net cash flows from financing activities for leases.
(d) Net worth is calculated as total assets minus total liabilities.
(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).

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 2022 was a deficit of $20.7 billion.

  • Receipts
    Total receipts were $183.2 billion.
  • Payments
    Total payments were $203.9 billion.

Net Operating Balance

The net operating balance for the financial year to 31 October 2022 was a deficit of $12.4 billion.

Fiscal Balance

The fiscal balance for the financial year to 31 October 2022 was a deficit of $13.5 billion.

Assets and Liabilities

As at 31 October 2022:

  • net worth is negative $594.3 billion;
  • net debt is $533.5 billion; and
  • net financial liabilities are $827.3 billion.
Senator the Hon Katy Gallagher
Minister for Finance
Minister for the Public Service
Minister for Women
Jenny Wilkinson PSM
Secretary
Department of Finance
Media Contact  
Patrick Cronan   0432 758 224

Australian Government general government sector operating statement

  Note ACTUAL
2022-2023
October
$m
ACTUAL
2022-2023
YTD October
$m
March
Budget Profile
2022-2023
YTD October
$m
MARCH BUDGET
ESTIMATE*
2022-2023
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 48,884 175,001 151,711 520,959
Sales of goods and services   3,306 8,404 7,979 18,326
Interest income   606 2,134 1,267 3,751
Dividend and distribution income   234 1,613 1,808 5,292
Other   1,780 5,191 3,833 12,619
Total revenue   54,809 192,342 166,597 560,947
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,931 7,778 7,727 23,367
Superannuation   758 3,040 2,371 7,064
Depreciation and amortisation   934 3,872 3,903 12,462
Supply of goods and services   14,007 55,167 56,520 173,327
Other operating expenses(a)   940 3,030 3,019 9,277
Total gross operating expenses   18,570 72,887 73,539 225,497
Superannuation interest expense   1,022 4,088 4,151 12,453
Interest expenses   1,941 7,393 6,864 21,481
Current transfers          
Current grants   17,022 61,810 63,112 186,084
Subsidy expenses   1,510 4,962 4,617 15,892
Personal benefits   11,183 50,329 49,288 141,860
Total current transfers   29,715 117,102 117,017 343,836
Capital transfers          
Mutually agreed write-downs   173 1,168 958 2,915
Other capital grants   784 2,095 3,886 22,287
Total capital transfers   957 3,263 4,845 25,202
Total expenses 3 52,205 204,733 206,416 628,469
Net operating balance   2,604 -12,391 -39,819 -67,522
Other economic flows          
- included in operating result          
Net write-downs of assets   -1,950 -3,425 -3,347 -7,491
Assets recognised for the first time   10 84 -6 251
Actuarial revaluations   0 1 28 83
Net foreign exchange gains   -15 167 0 -55
Net swap interest received   -453 -1,064 0 0
Market valuation of debt   -9,242 2,812 -1,078 -3,364
Other gains/(losses)   4,156 1,811 3,060 9,340
Total other economic flows
- included in operating result
  -7,495 386 -1,343 -1,235
Operating Result(b)   -4,891 -12,005 -41,162 -68,757
Non-owner movements in equity          
Revaluation of equity investments   0 0 0 6,348
Actuarial revaluations   0 0 0 -190
Other economic revaluations   958 -584 102 60
Total other economic flows
- included in equity
  958 -584 102 6,218
Comprehensive result
- Total change in net worth
  -3,933 -12,589 -41,060 -62,539
Net operating balance   2,604 -12,391 -39,819 -67,522
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,394 4,807 5,955 22,842
less Sales of non-financial assets   3 70 13 119
less Depreciation   934 3,872 3,903 12,462
plus Change in inventories   -109 233 128 1,064
plus Other movements in non-financial assets   -3 -1 11 -6
Total net acquisition of non-financial assets   345 1,097 2,178 11,319
Fiscal balance (Net lending/borrowing)(c)   2,259 -13,488 -41,997 -78,841

*As published in the 2022-23 March Budget.
(a) Consistent with the Australian Bureau of Statistics' (ABS) Government Finance Statistics (GFS) classification, other employee related expenses are classified separately from wages and salaries 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 October 2022
$m
MARCH BUDGET
ESTIMATE*
as at 30 June 2023
$m
Assets    
Financial assets    
Cash and deposits 62,368 36,061
Advances paid 72,969 86,550
Investments, loans and placements 224,833 216,979
Other receivables 82,095 69,848
Equity investments    
Investments in other public sector entities 38,810 69,644
Equity accounted investments 4,857 4,109
Investments - shares 68,875 92,275
Total financial assets 554,808 575,465
Non-financial assets    
Land 12,720 12,680
Buildings 45,494 47,855
Plant, equipment and infrastructure 99,579 105,313
Inventories 11,815 11,877
Intangibles 11,400 11,636
Investment properties 207 216
Biological assets 15 21
Heritage and cultural assets 12,635 11,880
Assets held for sale 307 279
Other non-financial assets 21 7
Total non-financial assets 194,193 201,765
Total assets 749,001 777,230
Liabilities    
Interest bearing liabilities    
Deposits held 385 598
Government securities 843,381 1,004,288
Loans 31,193 29,583
Lease liabilities 18,696 20,068
Total interest bearing liabilities 893,654 1,054,537
Provisions and payables    
Superannuation liability(a) 324,751 257,862
Other employee liabilities 35,445 39,209
Suppliers payables 8,325 12,936
Personal benefits payables 3,436 2,968
Subsidies payables 1,108 991
Grants payables 3,425 3,509
Other payables 11,862 2,652
Provisions 61,341 60,110
Total provisions and payables 449,693 380,237
Total liabilities 1,343,347 1,434,773
Net worth(b) -594,346 -657,543
Net financial worth(c) -788,539 -859,308
Net financial liabilities(d) 827,350 928,953
Net debt(e) 533,484 714,947

*As published in the 2022-23 March Budget.
(a) For budget reporting purposes, a discount rate of 5.0 per cent determined by actuaries 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 2022-23 Monthly Financial Statements was calculated using the spot rates on long-term government bonds as at 30 June 2022 that best matched each individual scheme’s liability duration. These rates were between 3.7 and 3.9 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
2022-2023
October
$m
ACTUAL
2022-2023
YTD October
$m
March
Budget Profile
2022-2023
YTD October
$m
MARCH BUDGET
ESTIMATE*
2022-2023
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 40,775 164,706 146,179 508,400
Receipts from sales of goods and services 2,722 8,796 7,577 18,346
Interest receipts 615 2,042 1,307 2,820
Dividends, distributions and income tax equivalents 382 1,846 1,805 5,284
Other receipts 2,287 5,609 4,101 12,535
Total operating receipts 46,782 183,000 160,969 547,384
Cash payments for operating activities        
Payments for employees(b) -2,655 -12,535 -12,191 -37,127
Payments for goods and services -14,052 -58,586 -57,077 -172,351
Grants and subsidies paid -19,091 -68,957 -71,534 -226,249
Interest paid -3,476 -4,666 -4,590 -17,894
Personal benefit payments -10,760 -50,688 -49,303 -142,214
Other payments(b) -1,096 -3,101 -2,908 -8,556
Total operating payments -51,130 -198,533 -197,603 -604,392
Net cash flows from operating activities -4,349 -15,533 -36,634 -57,008
Cash flows from investments in non-financial assets        
Sales of non-financial assets 3 155 100 248
Purchases of non-financial assets -1,023 -4,500 -5,323 -18,759
Net cash flows from investments in non-financial assets -1,020 -4,345 -5,223 -18,511
Net cash flows from investments in financial assets for policy purposes -244 -1,684 -2,543 -12,857
Net cash flows from investments in financial assets for liquidity purposes -4,188 -6,170 -4,690 -4,754
Cash flows from financing activities        
Borrowing (net) 5,456 -1,028 28,734 74,288
Other financing (net) -2,118 -3,635 -2,568 -7,302
Net cash flows from financing activities 3,337 -4,663 26,166 66,986
Net increase/(decrease) in cash held -6,464 -32,394 -22,925 -26,145
GFS cash surplus(+)/deficit(-)(c) -5,369 -19,878 -41,857 -75,519
plus Net cash flows from financing activities for leases(d) -188 -840 -863 -2,443
Equals underlying cash balance(e) -5,557 -20,718 -42,720 -77,961
plus Net cash flows from investments in financial assets for policy purposes -244 -1,684 -2,543 -12,857
Equals headline cash balance -5,801 -22,402 -45,263 -90,819

*As published in the 2022-23 March 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 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 financing cash payments, are deducted in the calculation of the underlying cash balance to maintain consistency of measure following the implementation of AASB 16.
(e) The term underlying cash balance is not used by the ABS.

Note 1: Income Tax

  ACTUAL
2022-2023
October
$m
ACTUAL
2022-2023
YTD October
$m
March
Budget Profile
2022-2023
YTD October
$m
MARCH BUDGET
ESTIMATE*
2022-2023
FULL YEAR
$m
 
Individuals and other withholding taxes          
Gross income tax withholding 20,372 85,075 81,444 252,100  
Gross other individuals 8,782 23,806 16,801 59,100  
less Refunds 4,241 27,351 26,579 41,100  
Total individuals and other withholding taxation 24,912 81,530 71,666 270,100  
Fringe benefits tax 792 1,580 1,683 3,580  
Company tax 9,285 40,254 29,662 92,200  
Superannuation fund taxes 1,305 5,239 5,816 15,690  
Petroleum resource rent tax 788 1,428 1,228 2,440  
Total income taxation revenue 37,083 130,030 110,056 384,010  

*As published in the 2022-23 March Budget.

Note 2: Indirect Tax

  ACTUAL
2022-2023
October
$m
ACTUAL
2022-2023
YTD October
$m
March
Budget Profile
2022-2023
YTD October
$m
MARCH BUDGET
ESTIMATE*
2022-2023
FULL YEAR
$m
 
Goods and services tax 6,691 27,825 25,451 82,460  
Wine equalisation tax 73 353 367 1,190  
Luxury car tax 82 404 292 880  
Excise duty 2,400 7,234 7,347 25,640  
Customs duty 1,557 5,854 5,420 16,920  
Other indirect tax 998 3,301 2,777 9,859  
Total indirect taxation revenue 11,801 44,971 41,655 136,949  

*As published in the 2022-23 March Budget.

Note 3: Total expenses by function

  ACTUAL
2022-2023
October
$m
ACTUAL
2022-2023
YTD October
$m
MARCH BUDGET
ESTIMATE*
2022-2023
FULL YEAR
$m
Expenses by function      
General public services 2,076 8,697 26,518
Defence 3,443 12,694 38,268
Public order and safety 626 2,531 7,014
Education 6,376 16,944 44,788
Health 7,890 34,900 105,754
Social security and welfare 17,907 74,891 221,685
Housing and community amenities 519 1,664 8,221
Recreation and culture 376 1,442 4,493
Fuel and energy 801 2,239 9,381
Agriculture, forestry and fishing 311 1,022 4,810
Mining, manufacturing and construction 336 1,234 4,781
Transport and communication 610 1,753 18,915
Other economic affairs 1,164 4,643 13,155
Other purposes      
Public debt interest 1,856 7,130 19,817
Nominal superannuation interest 1,022 4,088 12,453
General purpose inter-government transactions 6,820 27,452 86,161
Natural disaster relief 73 1,409 763
Contingency reserve 0 0 1,491
Total expenses 52,205 204,733 628,469

*As published in the 2022-23 March 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]