Australian Government General Government Sector Monthly Financial Statements October 2019

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

MC 85/19
Friday, 22 November 2019

KEY POINTS

  • The Monthly Financial Statements for October 2019 report the budget position against the expected monthly profile for the 2019-20 financial year through the year to 31 October 2019.
  • The underlying cash balance for the 2019-20 financial year to 31 October 2019 was a deficit of $14,723 million, which is $425 million lower (better) than expected at the time of the 2019-20 Budget. This is a further $306 million improvement compared to the position against the Budget profile at the end of September.
  • Net debt as at 31 October 2019 was $394,770 million, which is $6,979 million lower than the balance at the end of September, largely driven by a change in Australian Government Securities on issue and investments held.
AGGREGATES ACTUAL
2019-2020
October
$m
ACTUAL
2019-2020
YTD October
$m
Budget Profile
2019-2020
YTD October
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue 44,330 154,934 155,309 513,763
Expenses 42,654 168,466 167,184 500,872
Net operating balance 1,676 -13,532 -11,875 12,891
Net capital investment 808 249 1,536 4,749
Fiscal balance 869 -13,781 -13,411 8,142
Receipts(a) 45,113 153,183 152,358 505,521
less Payments(b) 45,460 166,034 165,803 493,327
less Net Future Fund earnings 523 1,872 1,703 5,140
Underlying cash balance(c) -871 -14,723 -15,148 7,054
Headline cash balance -1,276 -15,782 -18,517 -4,388
Total assets 606,577 611,012
Total liabilities 1,167,953 944,336
Net worth(d) -561,376 -333,324
Net debt(e) 394,770 361,040

*As published in the 2019-20 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.

Monthly results are generally volatile due to timing differences between revenue and receipts, and expenses and payments. Historically, expenses and payments exceed revenue and receipts in the first half of the financial year. Therefore, 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 2019 was a deficit of $14,723 million, which is $425 million lower than the 2019-20 Budget profile deficit of $15,148 million.

  • Receipts
    Total receipts were $825 million higher than the 2019-20 Budget profile.
  • Payments
    Total payments were $231 million higher than the 2019-20 Budget profile.

Net Operating Balance

The net operating balance for the year to 31 October 2019 was a deficit of $13,532 million, which is $1,657 million higher than the 2019-20 Budget profile deficit of $11,875 million. The difference results from lower than expected revenue and higher expenses.

Fiscal Balance

The fiscal balance for the year to 31 October 2019 was a deficit of $13,781 million, which is $370 million higher than the 2019-20 Budget profile deficit of $13,411 million. The difference results from lower than expected revenue, higher expenses and lower net capital investment.

Assets and Liabilities

As at 31 October 2019:
• net worth is negative $561,376 million;
• net debt is $394,770 million; and
• net financial liabilities are $771,212 million.

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

 

Australian Government general government sector operating statement

Note ACTUAL
2019-2020
October
$m
ACTUAL
2019-2020
YTD October
$m
Budget Profile
2019-2020
YTD October
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue
Taxation revenue 1, 2 41,189 142,944 144,855 476,596
Sales of goods and services 634 4,480 4,310 15,757
Interest income 406 1,488 1,455 6,009
Dividend income 569 1,845 1,685 6,112
Other 1,533 4,178 3,004 9,290
Total revenue 44,330 154,934 155,309 513,763
Expenses
Gross operating expenses
Wages and salaries(a) 1,744 6,845 6,996 21,348
Superannuation 662 2,792 1,996 5,907
Depreciation and amortisation 544 2,842 2,762 8,505
Supply of goods and services 10,455 42,281 40,889 125,566
Other operating expenses(a) 622 2,490 2,328 6,873
Total gross operating expenses 14,028 57,250 54,971 168,199
Superannuation interest expense 719 2,877 3,709 11,127
Interest expenses 1,450 5,778 5,838 19,264
Current transfers
Current grants 14,341 53,014 52,474 150,408
Subsidy expenses 1,016 3,990 4,135 12,661
Personal benefits 10,680 44,457 44,846 128,972
Total current transfers 26,036 101,461 101,454 292,040
Capital transfers
Mutually agreed write-downs 133 554 506 1,368
Other capital grants 289 547 706 8,874
Total capital transfers 421 1,101 1,212 10,241
Total expenses 3 42,654 168,466 167,184 500,872
Net operating balance 1,676 -13,532 -11,875 12,891
Other economic flows
- included in operating result
Net write-downs of assets -573 -1,911 -2,599 -7,996
Assets recognised for the first time 5 38 59 190
Actuarial revaluations 7 27 18 54
Net foreign exchange gains 688 -824 0 61
Net swap interest received -73 -283 0 0
Market valuation of debt 5,482 -4,408 1,858 5,040
Other gains/(losses) -991 2,034 602 3,090
Total other economic flows
- included in operating result
4,544 -5,328 -62 439
Operating Result(b) 6,220 -18,860 -11,937 13,330
Non-owner movements in equity
Revaluation of equity investments -3 -3 0 -6,017
Actuarial revaluations 0 0 0 262
Other economic revaluations 1,085 945 175 -10
Total other economic flows
- included in equity
1,082 942 175 -5,765
Comprehensive result
- Total change in net worth
7,302 -17,918 -11,762 7,565
Net operating balance 1,676 -13,532 -11,875 12,891
Net acquisition of non-financial assets
Purchases of non-financial assets 1,365 3,334 4,283 14,425
less Sales of non-financial assets 16 40 28 1,171
less Depreciation 544 2,842 2,762 8,505
plus Change in inventories -3 -230 25 3
plus Other movements in non-financial assets 6 27 18 -3
Total net acquisition of non-financial assets 808 249 1,536 4,749
Fiscal balance (Net lending/borrowing)(c) 869 -13,781 -13,411 8,142

*As published in the 2019-20 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 2019
$m
BUDGET ESTIMATE*
as at 30 June 2020
$m
Assets
Financial assets
Cash and deposits 9,465 5,342
Advances paid 77,108 83,302
Investments, loans and placements 180,977 188,358
Other receivables 59,242 57,430
Equity investments
Investments in other public sector entities 57,635 48,324
Equity accounted investments 3,511 3,562
Investments - shares 66,438 70,034
Total financial assets 454,376 456,352
Non-financial assets
Land 11,933 11,484
Buildings 27,084 27,589
Plant, equipment and infrastructure 83,504 86,178
Inventories 8,674 8,045
Intangibles 8,738 9,353
Investment properties 196 193
Biological assets 24 14
Heritage and cultural assets 11,689 11,594
Assets held for sale 298 179
Other non-financial assets 62 31
Total non-financial assets 152,201 154,660
Total assets 606,577 611,012
Liabilities
Interest bearing liabilities
Deposits held 328 381
Government securities 642,849 619,463
Loans 17,621 16,731
Other borrowing 1,521 1,466
Total interest bearing liabilities 662,319 638,042
Provisions and payables
Superannuation liability(a) 417,711 230,748
Other employee liabilities 26,172 20,591
Suppliers payables 7,222 6,809
Personal benefits payables 2,499 3,746
Subsidies payables 3,962 1,210
Grants payables 2,022 3,927
Other payables 4,945 2,202
Provisions 41,100 37,060
Total provisions and payables 505,634 306,294
Total liabilities 1,167,953 944,336
Net worth(b) -561,376 -333,324
Net financial worth(c) -713,577 -487,984
Net financial liabilities(d) 771,212 536,308
Net debt(e) 394,770 361,040

*As published in the 2019-20 Budget.
(a) For budget reporting purposes, a discount rate of 5 per cent determined
 by actuaries in preparing the 2017 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 AAS, the superannuation liability for the 2019-20 Monthly Financial Statements was calculated using the spot rates on long-term government bonds as at 30 June 2019 that best matched each individual scheme's liability duration. These rates were between 1.4 and 1.9 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 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
2019-2020
October
$m
ACTUAL
2019-2020
YTD October
$m
Budget Profile
2019-2020
YTD October
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
Cash receipts from operating activities
Taxes received 38,623 136,260 137,156 466,397
Receipts from sales of goods and services 2,401 6,221 4,534 15,745
Interest receipts 512 1,583 1,844 5,701
Dividends and income tax equivalents 664 3,661 1,677 6,165
Other receipts 2,895 5,424 7,111 9,897
Total operating receipts 45,095 153,149 152,322 503,906
Cash payments for operating activities
Payments for employees(b) -3,324 -10,154 -10,224 -31,101
Payments for goods and services -10,154 -42,056 -40,487 -123,277
Grants and subsidies paid -15,487 -58,042 -57,445 -171,775
Interest paid -3,712 -4,812 -4,936 -16,638
Personal benefit payments -11,363 -45,300 -46,084 -129,783
Other payments(b) -541 -2,500 -2,499 -6,493
Total operating payments -44,581 -162,864 -161,675 -479,066
Net cash flows from operating activities 514 -9,715 -9,353 24,840
Cash flows from investments in non-financial assets
Sales of non-financial assets 18 34 36 1,615
Purchases of non-financial assets -869 -3,170 -4,128 -14,261
Net cash flows from investments in non-financial assets -850 -3,136 -4,093 -12,647
Net cash flows from investments in financial assets for policy purposes -929 -2,931 -5,071 -16,581
Net cash flows from investments in financial assets for liquidity purposes 11,612 6,086 13,018 -12,248
Cash flows from financing activities
Borrowing (net) -7,707 11,966 2,753 16,945
Other financing (net) -782 -1,326 -967 -2,531
Net cash flows from financing activities -8,489 10,640 1,786 14,414
Net increase/(decrease) in cash held 1,858 944 -3,712 -2,222
GFS cash surplus(+)/deficit(-)(c) -336 -12,851 -13,445 12,193
less Finance leases and similar arrangements(d) 11 0 0 0
less Net Future Fund earnings 523 1,872 1,703 5,140
Equals underlying cash balance(e) -871 -14,723 -15,148 7,054
plus Net cash flows from investments in financial assets for policy purposes -929 -2,931 -5,071 -16,581
plus Net Future Fund earnings 523 1,872 1,703 5,140
Equals headline cash balance -1,276 -15,782 -18,517 -4,388

*As published in the 2019-20 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 reported under other payments.
(c) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(d) 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.
(e) The term underlying cash balance is not used by the ABS.

Note 1: Income Tax

ACTUAL
2019-2020
October
$m
ACTUAL
2019-2020
YTD October
$m
Budget Profile
2019-2020
YTD October
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
Individuals and other withholding taxes
Gross income tax withholding 18,266 71,525 71,102 219,800
Gross other individuals 5,976 17,099 16,112 51,200
less Refunds 3,925 24,174 23,253 36,900
Total individuals and other withholding taxation 20,317 64,451 63,961 234,100
Fringe benefits tax 901 1,857 1,839 4,040
Company tax 7,691 29,518 31,115 100,600
Superannuation fund taxes 869 3,638 3,853 9,750
Petroleum resource rent tax 299 596 804 1,290
Total income taxation revenue 30,077 100,060 101,572 349,780

*As published in the 2019-20 Budget.

Note 2: Indirect Tax

ACTUAL
2019-2020
October
$m
ACTUAL
2019-2020
YTD October
$m
Budget Profile
2019-2020
YTD October
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
Goods and services tax 7,246 23,215 23,561 69,630
Wine equalisation tax 72 320 291 1,100
Luxury car tax 54 228 207 640
Excise duty 1,795 8,116 8,248 24,140
Customs duty 1,329 8,226 7,938 21,120
Other indirect tax 615 2,779 3,039 10,185
Total indirect taxation revenue 11,112 42,884 43,283 126,815

*As published in the 2019-20 Budget.

Note 3: Total expenses by function

ACTUAL
2019-2020
October
$m
ACTUAL
2019-2020
YTD October
$m
BUDGET
ESTIMATE*
2019-2020
FULL YEAR
$m
Expenses by function
General public services 2,069 7,666 23,614
Defence 2,381 10,882 32,243
Public order and safety 497 2,012 5,919
Education 4,938 13,558 36,350
Health 6,929 28,016 81,777
Social security and welfare 15,098 62,414 180,125
Housing and community amenities 367 1,386 5,907
Recreation and culture 163 1,096 3,849
Fuel and energy 660 2,632 8,171
Agriculture, forestry and fishing 208 766 2,871
Mining, manufacturing and construction 215 883 3,422
Transport and communication 480 1,027 9,038
Other economic affairs 852 3,239 9,297
Other purposes
Public debt interest 1,401 5,549 17,037
Nominal superannuation interest 719 2,877 11,127
General purpose inter-government transactions 5,677 24,463 70,328
Natural disaster relief 0 0 11
Contingency reserve 0 0 -216
Total expenses 42,654 168,466 500,872

*As published in the 2019-20 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.

Australian Accounting Standard 16 – Leases

The new Australian Accounting Standard AASB 16 Leases (AASB 16), applies to all Australian Government entities from 1 July 2019. The effect of AASB 16 is to introduce a single lease accounting framework. This is achieved by removing the current distinction between operating and finance leases. As a result, leases that were previously accounted for as operating expenses and payments will be included as additional assets and liabilities on the balance sheet. For whole of Government and General Government Sector Financial Reporting, the implementation of AASB 16 will be reflected in the 2019-20 Mid-Year Economic and Fiscal Outlook estimates, and in the Australian Government General Government Sector Monthly Financial Statements from December 2019.

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.


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