Australian Government General Government Sector Monthly Financial Statements October 2018

Senator the Hon. Mathias Cormann
Minister for Finance and the Public Service
Leader of the Government in the Senate

MC 78/18
Friday, 23 November 2018

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KEY POINTS

  • The underlying cash balance for the 2018-19 financial year to 31 October 2018 was a deficit of $15,336 million.
  • The fiscal balance for the 2018-19 financial year to 31 October 2018 was a deficit of $9,526 million.

AGGREGATES

ACTUAL
2018-2019
October
$m
ACTUAL
2018-2019
YTD October
$m
Budget Profile
2018-2019
YTD October
$m
BUDGET
ESTIMATE*
2018-2019
FULL YEAR
$m
Revenue 42,912 150,372 143,855 486,141
Expenses 41,913 159,747 163,318 488,584
Net operating balance 999 -9,375 -19,464 -2,443
Net capital investment 375 151 1,633 4,989
Fiscal balance 624 -9,526 -21,096 -7,431
Receipts(a) 39,146 146,720 140,161 473,745
less Payments(b) 43,212 160,011 163,130 484,648
less Net Future Fund earnings 744 2,046 1,180 3,559
Underlying cash balance(c) -4,811 -15,336 -24,149 -14,462
Headline cash balance -4,935 -17,520 -26,950 -27,562
Total assets   548,802   567,956
Total liabilities   978,820   905,565
Net worth(d)   -430,018   -337,609
Net debt(e)   354,537   349,851

*As published in the 2018-19 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 acquisition of assets under finance leases.
(c) Excludes net Future Fund earnings. Consistent with Budget documents, the net adjustment for the Future Fund is shown separately.
(d) Net worth is calculated as total assets minus total liabilities.
(e) Net debt equals the sum of interest bearing liabilities (deposits held, government securities, loans and other borrowing), minus the sum of cash and deposits, advances paid, and investments, loans and placements.

Care needs to be taken when comparing monthly or cumulative data across years and to full-year estimates, as revenue and expenses vary from month to month.

 

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 31 October 2018 was a deficit of $15,336 million, which is $8,813 million lower than the 2018-19 Budget profile deficit of $24,149 million.

  • Receipts
    Total receipts were $6,559 million higher than the 2018-19 Budget profile.
  • Payments
    Total payments were $3,119 million lower than the 2018-19 Budget profile.

Net Operating Balance

The net operating balance for the year to 31 October 2018 was a deficit of $9,375 million, which is $10,089 million better than the 2018-19 Budget profile deficit of $19,464 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 October 2018 was a deficit of $9,526 million, which is $11,571 million better than the 2018-19 Budget profile deficit of $21,096 million. As with the net operating balance, the difference primarily results from higher than expected revenue, lower expenses and lower net capital investments.

Assets and Liabilities

As at 31 October 2018:
• net worth is negative $430,018 million;
• net debt is $354,537 million; and
• net financial liabilities are $633,672 million.

Senator the Hon. Mathias Cormann
Minister for Finance and the Public Service
Rosemary Huxtable PSM
Secretary
Department of Finance
Media Contact  
Karen Wu      0428 350 139

 

Australian Government general government sector operating statement 

 NoteACTUAL
2018-2019
October
$m
ACTUAL
2018-2019
YTD October
$m
Budget Profile
2018-2019
YTD October
$m
BUDGET
ESTIMATE*
2018-2019
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 39,780 139,388 133,142 452,001
Sales of goods and services   991 4,258 4,793 14,490
Interest income   376 1,312 1,401 4,442
Dividend income   780 2,058 1,167 4,126
Other   985 3,356 3,351 11,082
Total revenue   42,912 150,372 143,855 486,141
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,699 6,598 6,664 20,411
Superannuation   673 2,512 2,398 6,022
Depreciation and amortisation   786 2,920 3,013 9,023
Supply of goods and services   9,416 37,208 39,439 119,633
Other operating expenses(a)   687 2,194 2,088 6,045
Total gross operating expenses   13,261 51,432 53,603 161,134
Superannuation interest expense   806 3,226 3,260 10,648
Interest expenses   1,487 5,964 6,219 19,045
Current transfers          
Current grants   14,446 50,242 50,494 149,042
Subsidy expenses   970 3,827 3,906 12,055
Personal benefits   10,460 43,795 43,938 126,429
Total current transfers   25,876 97,864 98,338 287,525
Capital transfers          
Mutually agreed write-downs   109 470 517 1,494
Other capital grants   373 791 1,382 8,738
Total capital transfers   482 1,260 1,899 10,232
Total expenses 3 41,913 159,747 163,318 488,584
Net operating balance   999 -9,375 -19,464 -2,443
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -2,005 -3,302 -3,119 -8,867
Assets recognised for the first time   16 66 67 200
Actuarial revaluations   6 23 14 41
Net foreign exchange gains   -551 -1,126 0 130
Net swap interest received   -93 -311 0 0
Market valuation of debt   -1,381 900 515 1,315
Other gains/(losses)   -1,494 371 1,727 3,633
Total other economic flows
   - included in operating result
  -5,502 -3,379 -797 -3,547
Operating Result (b)   -4,503 -12,754 -20,261 -5,990
Non-owner movements in equity          
Revaluation of equity investments   0 1 -40 -6,091
Actuarial revaluations   0 0 0 81
Other economic revaluations   460 870 4,380 -377
Total other economic flows
   - included in equity
  460 872 4,340 -6,387
Comprehensive result - Total change in net worth   -4,043 -11,882 -15,921 -12,377
Net operating balance   999 -9,375 -19,464 -2,443
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,102 3,134 4,204 14,222
less Sales of non-financial assets   5 41 82 287
less Depreciation   786 2,920 3,013 9,023
plus Change in inventories   42 -72 509 75
plus Other movements in non-financial assets   22 48 15 1
Total net acquisition of non-financial assets   375 151 1,633 4,989
Fiscal balance (Net lending/borrowing)(c)   624 -9,526 -21,096 -7,431

*As published in the 2018-19 Budget.
(a) Consistent with 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 October 2018
$m
BUDGET ESTIMATE*
as at
30 June 2019
$m
Assets    
Financial assets    
Cash and deposits 5,553 5,875
Advances paid 59,246 73,041
Investments, loans and placements 172,409 183,513
Other receivables 56,609 55,983
Equity investments    
Investments in other public sector entities 58,650 51,976
Equity accounted investments 136 331
Investments - shares 51,196 51,928
Total financial assets 403,798 422,648
Non-financial assets    
Land 11,577 10,650
Buildings 26,529 26,622
Plant, equipment and infrastructure 78,611 78,346
Inventories 8,517 7,874
Intangibles 7,863 9,819
Investment property 27 159
Biological assets 31 54
Heritage and cultural assets 11,602 11,636
Assets held for sale 167 85
Other non-financial assets 81 62
Total non-financial assets 145,004 145,308
Total assets 548,802 567,956
Liabilities    
Interest bearing liabilities    
Deposits held 368 218
Government securities 572,376 594,437
Loans 17,486 16,090
Other borrowing 1,514 1,534
Total interest bearing liabilities 591,744 612,280
Provisions and payables    
Superannuation liability(a) 316,254 223,564
Other employee liabilities 20,328 18,902
Suppliers payables 6,362 8,203
Personal benefits payables 3,285 3,038
Subsidies payables 637 1,114
Grants payables 2,407 3,072
Other payables 2,242 2,236
Provisions 35,560 33,157
Total provisions and payables 387,076 293,285
Total liabilities 978,820 905,565
Net worth(b) -430,018 -337,609
Net financial worth(c) -575,022 -482,917
Net financial liabilities(d) 633,672 534,893
Net debt(e) 354,537 349,851

*As published in the 2018-19 Budget.
(a) For budget reporting purposes, a discount rate applied by actuaries in preparing Long Term Cost Reports is used to value the superannuation liability. This reduces the volatility in reported liabilities that would occur from year to year if the long-term government bond rate were used. Consistent with Australian Accounting Standards, the long-term government bond rate as at 30 June, that best matches each individual scheme's liability duration, is used to calculate the superannuation liability for the purpose of actuals reporting.
(b) Net worth is calculated as 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 equals the sum of interest bearing liabilities (deposits held, government securities, loans and other borrowing), minus the sum of cash and deposits, advances paid, and investments, loans and placements.

 

Australian Government general government sector cash flow statement (a)

 ACTUAL
2018-2019
October
$m
ACTUAL
2018-2019
YTD October
$m
Budget Profile
2018-2019
YTD October
$m
BUDGET
ESTIMATE*
2018-2019
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 35,708 133,737 128,796 440,480
Receipts from sales of goods and services 861 3,873 4,686 14,551
Interest receipts 439 1,540 1,108 4,257
Dividends and income tax equivalents 813 2,820 1,420 3,970
Other receipts 1,315 4,714 4,068 9,767
Total operating receipts 39,137 146,683 140,078 473,026
Cash payments for operating activities        
Payments for employees -2,595 -9,208 -9,407 -29,718
Payments for goods and services -8,463 -37,688 -39,250 -117,209
Grants and subsidies paid -15,789 -55,750 -56,519 -169,900
Interest paid -3,850 -6,877 -5,987 -18,749
Personal benefit payments -11,001 -45,004 -45,731 -129,372
Other payments -724 -2,261 -2,096 -5,717
Total operating payments -42,421 -156,788 -158,990 -470,664
Net cash flows from operating activities -3,285 -10,104 -18,911 2,362
Cash flows from investments in
    non-financial assets
       
Sales of non-financial assets 9 37 82 720
Purchases of non-financial assets -791 -3,221 -4,140 -13,984
Net cash flows from investments in
    non-financial assets
-782 -3,184 -4,058 -13,265
Net cash flows from investments in
    financial assets for policy purposes
-868 -4,230 -3,981 -16,659
Cash flows from investments in
    financial assets for liquidity purposes
       
Increase in investments 12,094 18,383 18,599 1,359
Net cash flows from investments in
    financial assets for liquidity purposes
12,094 18,383 18,599 1,359
Cash flows from financing activities        
Borrowing (net) -6,495 -685 7,277 29,358
Other financing (net) -1,002 -1,413 -1,144 -2,643
Net cash flows from financing activities -7,497 -2,098 6,133 26,715
Net increase/(decrease) in cash held -338 -1,232 -2,218 512
GFS cash surplus(+)/deficit(-)(b) -4,067 -13,288 -22,969 -10,903
less Finance leases and similar arrangements(c) 0 2 0 0
less Net Future Fund earnings 744 2,046 1,180 3,559
Equals underlying cash balance(d) -4,811 -15,336 -24,149 -14,462
plus Net cash flows from investments in
    financial assets for policy purposes
-868 -4,230 -3,981 -16,659
plus Net Future Fund earnings 744 2,046 1,180 3,559
Equals headline cash balance -4,935 -17,520 -26,950 -27,562

*As published in the 2018-19 Budget.
(a) A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(c) The acquisition of assets under finance leases worsens the underlying cash balance. The disposal of assets previously held under finance leases improves the underlying cash balance.
(d) The term underlying cash balance is not used by the Australian Bureau of Statistics.

 

Note 1: Income Tax

 ACTUAL
2018-2019
October
$m
ACTUAL
2018-2019
YTD October
$m
Budget Profile
2018-2019
YTD October
$m
BUDGET
ESTIMATE*
2018-2019
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 16,315 67,125 65,659 203,800
Gross other individuals 5,837 16,013 15,835 49,600
less Refunds 3,268 18,788 19,500 30,500
Total individuals and other withholding taxation 18,885 64,350 61,994 222,900
Fringe benefits tax 900 1,737 1,905 4,310
Company tax 7,053 28,859 25,347 91,200
Superannuation fund taxes 1,009 4,019 3,942 10,360
Petroleum resource rent tax 373 578 741 1,420
Total income taxation revenue 28,219 99,543 93,930 330,190

*As published in the 2018-19 Budget.

 

Note 2: Indirect Tax

 ACTUAL
2018-2019
October
$m
ACTUAL
2018-2019
YTD October
$m
Budget Profile
2018-2019
YTD October
$m
BUDGET ESTIMATE*
2018-2019
FULL YEAR
$m
Goods and services tax 7,674 23,713 23,462 70,310
Wine equalisation tax 75 293 276 1,010
Luxury car tax 54 230 240 740
Excise duty 2,247 8,004 7,855 23,120
Customs duty 843 4,794 4,530 16,500
Other indirect tax 668 2,809 2,849 10,131
Total indirect taxation revenue 11,561 39,845 39,213 121,811

*As published in the 2018-19 Budget.

 

Note 3: Total expenses by function

 ACTUAL
2018-2019
October
$m
ACTUAL
2018-2019
YTD October
$m
BUDGET
ESTIMATE*
2018-2019
FULL YEAR
$m
Expenses by function      
General public services 1,822 10,373 23,065
Defence 2,548 9,862 31,215
Public order and safety 437 1,885 5,324
Education 4,616 12,879 34,736
Health 6,765 23,449 78,825
Social security and welfare 14,859 58,160 175,971
Housing and community amenities 266 1,166 5,382
Recreation and culture 445 1,177 3,638
Fuel and energy 673 2,436 7,541
Agriculture, forestry and fishing 182 724 3,070
Mining, manufacturing and construction 225 944 3,260
Transport and communication 308 1,169 9,062
Other economic affairs 805 3,134 9,471
Other purposes      
Public debt interest 1,450 5,813 17,811
Nominal superannuation interest 806 3,226 10,648
General purpose inter-government transactions 5,706 23,349 69,446
Natural disaster relief 0 0 17
Contingency reserve 0 0 101
Total expenses 41,913 159,747 488,584

*As published in the 2018-19 Budget.

 

NOTES:

Australian Accounting Standard 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 the Australian Accounting Standards Board 1049 – Whole of Government and General Government Sector Financial Reporting (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 http://aofm.gov.au/cgs-quarterly/.

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.

Last updated: 23 November 2018