Australian Government General Government Sector Monthly Financial Statements March 2019

Tuesday, 23 April 2019

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KEY POINTS

  • The underlying cash balance for the 2018-19 financial year to 31 March 2019 was a deficit of $8,073 million.
  • The fiscal balance for the 2018-19 financial year to 31 March 2019 was a deficit of $4,574 million.

AGGREGATES

ACTUAL
2018-2019
March
$m
ACTUAL
2018-2019
YTD March
$m
MYEFO Profile
2018-2019
YTD March
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Revenue 37,332 354,493 353,625 493,288
Expenses 38,902 357,145 359,786 488,363
Net operating balance -1,569 -2,652 -6,160 4,926
Net capital investment 180 1,922 3,283 6,826
Fiscal balance -1,749 -4,574 -9,443 -1,901
Receipts(a) 38,530 346,519 345,975 482,084
less Payments(b) 35,356 349,125 353,290 483,370
less Net Future Fund earnings 590 5,468 5,362 3,886
Underlying cash balance(c) 2,583 -8,073 -12,677 -5,172
Headline cash balance 2,451 -13,429 -19,519 -18,329
Total assets   565,361   580,554
Total liabilities   1,015,917   901,307
Net worth(d)   -450,556   -320,753
Net debt(e)   376,718   351,948

*As published in the 2018-19 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 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.

Comparators for the March 2019 monthly financial statements are based on the 2018-19 Mid-Year Economic and Fiscal Outlook (MYEFO) published in December 2018. The 2018-19 estimates that were revised as part of the 2019-20 Budget (released on 2 April 2019) will be used as the basis for comparison for the April and May 2019 monthly financial statements.

 

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 31 March 2019 was a deficit of $8,073 million, which is $4,604 million lower than the 2018-19 MYEFO profile deficit of $12,677 million.

  • Receipts
    Total receipts were $544 million higher than the 2018-19 MYEFO profile.
  • Payments
    Total payments were $4,165 million lower than the 2018-19 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 31 March 2019 was a deficit of $2,652 million, which is $3,509 million lower than the 2018-19 MYEFO profile deficit of $6,160 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 March 2019 was a deficit of $4,574 million, which is $4,869 million lower than the 2018-19 MYEFO profile deficit of $9,443 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 March 2019:
• net worth is negative $450,556 million;
• net debt is $376,718 million; and
• net financial liabilities are $656,411 million.

Rosemary Huxtable PSM
Secretary
Department of Finance

Media Contact
Media Enquiries  (02) 6215 2665


Australian Government general government sector operating statement

 NoteACTUAL
2018-2019
March
$m
ACTUAL
2018-2019
YTD March
$m
MYEFO Profile
2018-2019
YTD March
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 34,365 328,230 327,939 457,997
Sales of goods and services   1,111 9,559 9,450 14,024
Interest income   379 3,290 3,276 4,810
Dividend income   594 5,435 5,155 4,648
Other   882 7,980 7,805 11,809
Total revenue   37,332 354,493 353,625 493,288
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,674 14,622 15,054 20,551
Superannuation   785 6,899 6,542 9,291
Depreciation and amortisation   820 6,581 6,485 8,606
Supply of goods and services   10,205 83,892 84,245 118,012
Other operating expenses(a)   610 5,093 4,927 6,677
Total gross operating expenses   14,095 117,086 117,252 163,136
Superannuation interest expense   787 7,084 7,126 9,446
Interest expenses   1,516 13,457 13,595 18,498
Current transfers          
Current grants   10,543 111,958 112,504 149,036
Subsidy expenses   982 8,676 8,635 11,491
Personal benefits   10,326 94,409 94,989 125,837
Total current transfers   21,852 215,043 216,127 286,364
Capital transfers          
Mutually agreed write-downs   61 915 1,051 1,450
Other capital grants   591 3,560 4,635 9,469
Total capital transfers   653 4,475 5,686 10,919
Total expenses 3 38,902 357,145 359,786 488,363
Net operating balance   -1,569 -2,652 -6,160 4,926
Other economic flows          
- included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -374 -5,315 -5,736 -8,202
Assets recognised for the first time   6 117 150 200
Actuarial revaluations   -46 0 52 70
Net foreign exchange gains   28 -946 64 -269
Net swap interest received   -55 -445 -355 -218
Market valuation of debt   -10,925 -27,124 -2,876 -2,282
Other gains/(losses)   1,561 2,839 -751 7,491
Total other economic flows
   - included in operating result
  -9,806 -30,874 -9,451 -3,211
Operating Result (b)   -11,376 -33,526 -15,612 1,715
Non-owner movements in equity          
Revaluation of equity investments   -7 -6 235 -3,529
Actuarial revaluations   0 0 0 -5,794
Other economic revaluations   2,341 1,111 72 -76
Total other economic flows - included in equity   2,334 1,105 307 -9,399
Comprehensive result
 - Total change in net worth
  -9,042 -32,421 -15,305 -7,685
Net operating balance   -1,569 -2,652 -6,160 4,926
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,083 8,615 9,849 15,556
less Sales of non-financial assets   45 159 155 285
less Depreciation   820 6,581 6,485 8,606
plus Change in inventories   -39 -8 55 159
plus Other movements in non-financial assets   1 54 18 2
Total net acquisition of non-financial assets   180 1,922 3,283 6,826
Fiscal balance (Net lending/borrowing)(c)   -1,749 -4,574 -9,443 -1,901

*As published in the 2018-19 MYEFO.
(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 March 2019
$m
MYEFO ESTIMATE*
as at
30 June 2019
$m
Assets    
Financial assets    
Cash and deposits 6,420 5,849
Advances paid 64,933 72,662
Investments, loans and placements 176,455 174,371
Other receivables 54,807 54,623
Equity investments    
Investments in other public sector entities 59,258 56,251
Equity accounted investments 120 265
Investments - shares 56,771 66,355
Total financial assets 418,764 430,375
Non-financial assets    
Land 11,590 11,492
Buildings 26,736 27,078
Plant, equipment and infrastructure 79,847 81,751
Inventories 8,429 8,437
Intangibles 7,931 9,397
Investment properties 171 173
Biological assets 18 36
Heritage and cultural assets 11,618 11,599
Assets held for sale 170 181
Other non-financial assets 87 34
Total non-financial assets 146,597 150,178
Total assets 565,361 580,554
Liabilities    
Interest bearing liabilities    
Deposits held 317 381
Government securities 606,019 586,341
Loans 16,658 16,615
Other borrowing 1,532 1,493
Total interest bearing liabilities 624,526 604,830
Provisions and payables    
Superannuation liability(a) 320,814 223,589
Other employee liabilities 20,255 20,175
Suppliers payables 6,093 7,392
Personal benefits payables 3,257 3,359
Subsidies payables 502 508
Grants payables 2,613 3,710
Other payables 1,961 2,176
Provisions 35,894 35,568
Total provisions and payables 391,391 296,477
Total liabilities 1,015,917 901,307
Net worth(b) -450,556 -320,753
Net financial worth(c) -597,153 -470,932
Net financial liabilities(d) 656,411 527,182
Net debt(e) 376,718 351,948

*As published in the 2018-19 MYEFO.
(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 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 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
March
$m
ACTUAL
2018-2019
YTD March
$m
MYEFO Profile
2018-2019
YTD March
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 36,033 319,485 319,634 447,645
Receipts from sales of goods and services 1,192 9,138 9,257 14,180
Interest receipts 290 2,940 2,903 4,397
Dividends and income tax equivalents 606 6,358 5,785 4,390
Other receipts 364 8,022 7,808 10,751
Total operating receipts 38,486 345,943 345,386 481,363
Cash payments for operating activities        
Payments for employees -2,252 -20,941 -21,190 -30,191
Payments for goods and services -9,187 -83,459 -84,317 -117,058
Grants and subsidies paid -11,782 -124,847 -126,396 -169,851
Interest paid -596 -11,403 -11,496 -18,385
Personal benefit payments -9,762 -95,016 -95,906 -126,483
Other payments -472 -5,052 -4,808 -6,286
Total operating payments -34,052 -340,718 -344,112 -468,255
Net cash flows from operating activities 4,433 5,225 1,274 13,108
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 44 576 588 720
Purchases of non-financial assets -1,303 -8,405 -9,178 -15,115
Net cash flows from investments in 
   non-financial assets
-1,260 -7,828 -8,590 -14,395
Net cash flows from investments in 
   financial assets for policy purposes
-723 -10,823 -12,203 -17,042
Cash flows from investments in 
   financial assets for liquidity purposes
       
Increase in investments 4,614 12,577 24,576 8,905
Net cash flows from investments in 
   financial assets for liquidity purposes
4,614 12,577 24,576 8,905
Cash flows from financing activities        
Borrowing (net) -8,511 2,395 2,839 11,254
Other financing (net) -105 -1,909 -1,917 -2,764
Net cash flows from financing activities -8,616 487 922 8,490
Net increase/(decrease) in cash held -1,551 -362 5,979 -934
GFS cash surplus(+)/deficit(-)(b) 3,174 -2,604 -7,316 -1,286
less Finance leases and similar arrangements(c) 0 2 0 0
less Net Future Fund earnings 590 5,468 5,362 3,886
Equals underlying cash balance(d) 2,583 -8,073 -12,677 -5,172
plus Net cash flows from investments in
   financial assets for policy purposes
-723 -10,823 -12,203 -17,042
plus Net Future Fund earnings 590 5,468 5,362 3,886
Equals headline cash balance 2,451 -13,429 -19,519 -18,329

*As published in the 2018-19 MYEFO.
(a) A positive number denotes a cash inflow; a negative number 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
March
$m
ACTUAL
2018-2019
YTD March
$m
MYEFO Profile
2018-2019
YTD March
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 17,173 154,506 154,584 207,600
Gross other individuals 4,317 31,875 30,666 49,500
less Refunds 1,091 25,455 25,668 30,000
Total individuals and other withholding taxation 20,399 160,926 159,582 227,100
Fringe benefits tax 28 2,771 2,717 3,930
Company tax 6,005 66,154 66,861 94,500
Superannuation fund taxes 705 9,674 8,645 10,670
Petroleum resource rent tax 75 900 1,020 1,480
Total income taxation revenue 27,211 240,425 238,824 337,680

*As published in the 2018-19 MYEFO.

 

Note 2: Indirect Tax

 ACTUAL
2018-2019
March
$m
ACTUAL
2018-2019
YTD March
$m
MYEFO Profile
2018-2019
YTD March
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Goods and services tax 3,412 50,339 51,728 69,180
Wine equalisation tax 52 753 779 1,050
Luxury car tax 63 500 521 700
Excise duty 1,738 17,584 17,561 23,385
Customs duty 1,282 11,775 11,797 16,750
Other indirect tax 606 6,854 6,728 9,252
Total indirect taxation revenue 7,154 87,805 89,115 120,317

*As published in the 2018-19 MYEFO.

 

Note 3: Total expenses by function

 ACTUAL
2018-2019
March
$m
ACTUAL
2018-2019
YTD March
$m
MYEFO
ESTIMATE*
2018-2019
FULL YEAR
$m
Expenses by function      
General public services 1,794 20,557 26,193
Defence 2,954 23,102 30,594
Public order and safety 576 4,285 5,544
Education 1,804 29,027 35,170
Health 6,898 56,425 80,183
Social security and welfare 13,851 125,817 174,684
Housing and community amenities 320 3,205 5,647
Recreation and culture 328 2,681 3,949
Fuel and energy 624 5,556 7,716
Agriculture, forestry and fishing 224 1,706 3,196
Mining, manufacturing and construction 225 2,042 2,915
Transport and communication 614 3,901 8,455
Other economic affairs 748 6,938 10,039
Other purposes      
Public debt interest 1,466 12,928 17,235
Nominal superannuation interest 787 7,084 9,446
General purpose inter-government transactions 5,575 51,780 68,953
Natural disaster relief 111 111 153
Contingency reserve 0 0 -1,706
Total expenses 38,902 357,145 488,363

*As published in the 2018-19 MYEFO.

 

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 April 2019