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06/10/2024

Australian Government General Government Sector Monthly Financial Statements May 2021

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

SB 42/21
Friday, 25 June 2021

KEY POINTS

  • The Monthly Financial Statements for May 2021 report the budget position against the expected monthly profile for the 2020-21 financial year through to 31 May 2021, based on the 2020-21 Revised Budget estimate published in the 2021-22 Budget in May 2021.
  • The May 2021 year to date results include the impact of the Australian Government’s response to COVID-19.
  • The underlying cash balance for the 2020-21 financial year to 31 May 2021 was a deficit of $125.4 billion against the Revised Budget profile deficit of $139.3 billion.
  • The fiscal balance for the 2020-21 financial year to 31 May 2021 was a deficit of $121.6 billion against the Revised Budget profile deficit of $137.5 billion.
AGGREGATES ACTUAL
2020-2021
May
$b 		ACTUAL
2020-2021
YTD May
$b 		Revised Budget Profile
2020-2021
YTD May
$b 		REVISED BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$b
Revenue 55.3 473.7 463.6 504.9
Expenses 48.5 590.7 595.1 659.4
Net operating balance 6.8 -117.0 -131.4 -154.5
Net capital investment 0.4 4.6 6.0 8.6
Fiscal balance 6.4 -121.6 -137.5 -163.2
Receipts(a) 53.8 469.7 460.1 499.8
Payments(b) 47.4 595.1 599.4 660.8
Underlying cash balance 6.4 -125.4 -139.3 -161.0
Headline cash balance 8.4 -129.0 -143.9 -168.2
Total assets 727.9 693.2
Total liabilities 1,459.1 1,279.7
Net worth(c) -731.2 -586.5
Net debt(d) 583.0 617.5

*As published in the 2021-22 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 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 May 2021 was a deficit of $125.4 billion, which is $13.9 billion lower than the 2020-21 Revised Budget profile deficit of $139.3 billion.

  • Receipts
    Total receipts were $9.6 billion higher than the 2020-21 Revised Budget profile.
  • Payments
    Total payments were $4.3 billion lower than the 2020-21 Revised Budget profile.

Net Operating Balance

The net operating balance for the financial year to 31 May 2021 was a deficit of $117.0 billion, which is $14.4 billion lower than the 2020-21 Revised Budget profile deficit of $131.4 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 May 2021 was a deficit of $121.6 billion, which is $15.9 billion lower than the 2020-21 Revised Budget profile deficit of $137.5 billion. The difference results from higher than expected revenue, and lower than expected expenses and net capital investment.

Assets and Liabilities

As at 31 May 2021:

  • net worth is negative $731.2 billion;
  • net debt is $583.0 billion; and
  • net financial liabilities are $973.6 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
2020-2021
May
$m 		ACTUAL
2020-2021
YTD May
$m 		Revised Budget Profile
2020-2021
YTD May
$m 		REVISED BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Revenue
Taxation revenue 1, 2 52,920 437,956 429,312 465,771
Sales of goods and services 925 14,717 14,662 15,947
Interest income(a) -314 2,473 2,658 2,901
Dividend income 445 6,223 5,858 8,038
Other 1,285 12,291 11,158 12,231
Total revenue 55,260 473,660 463,648 504,888
Expenses
Gross operating expenses
Wages and salaries(b) 1,834 19,557 19,635 21,779
Superannuation 1,059 11,418 11,256 12,387
Depreciation and amortisation 972 10,487 10,700 11,851
Supply of goods and services 12,564 125,877 128,205 144,601
Other operating expenses(b) 789 7,167 7,145 8,405
Total gross operating expenses 17,218 174,506 176,940 199,021
Superannuation interest expense 584 6,420 6,420 7,004
Interest expenses(c) 1,717 17,119 17,127 19,812
Current transfers
Current grants 14,147 145,603 146,217 167,111
Subsidy expenses 1,560 85,498 85,814 86,892
Personal benefits 11,601 150,873 151,688 161,889
Total current transfers 27,309 381,975 383,719 415,892
Capital transfers
Mutually agreed write-downs(c) 183 2,712 2,718 2,954
Other capital grants 1,441 7,941 8,167 14,755
Total capital transfers 1,624 10,652 10,885 17,709
Total expenses 3 48,451 590,672 595,091 659,437
Net operating balance 6,809 -117,012 -131,443 -154,549
Other economic flows
- included in operating result
Net write-downs of assets -527 -4,612 -3,070 -4,003
Assets recognised for the first time 32 123 97 195
Actuarial revaluations 0 -5 -5 126
Net foreign exchange gains -17 -491 45 -479
Net swap interest received 15 1,261 1,137 1,148
Market valuation of debt -1,187 36,194 37,465 37,494
Other gains/(losses) 4,068 22,441 16,587 15,502
Total other economic flows
- included in operating result 		2,384 54,910 52,254 49,984
Operating Result(d) 9,193 -62,102 -79,190 -104,565
Non-owner movements in equity
Revaluation of equity investments 0 -7 4 -10,149
Actuarial revaluations 0 0 0 -1,242
Other economic revaluations 13 -1,852 -2,196 -2,614
Total other economic flows
- included in equity 		13 -1,858 -2,192 -14,005
Comprehensive result
- Total change in net worth 		9,206 -63,960 -81,382 -118,570
Net operating balance 6,809 -117,012 -131,443 -154,549
Net acquisition of non-financial assets
Purchases of non-financial assets 1,333 12,974 14,639 18,318
less Sales of non-financial assets 16 186 199 228
less Depreciation 972 10,487 10,700 11,851
plus Change in inventories 41 2,234 2,265 2,381
plus Other movements in non-financial assets -1 19 19 0
Total net acquisition of non-financial assets 384 4,554 6,024 8,620
Fiscal balance (Net lending/borrowing)(e) 6,425 -121,566 -137,467 -163,169

*As published in the 2021-22 Budget.
(a) This movement in May relates to an adjustment to year to date Interest income from that previously reported for April 2021.
(b) 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.
(c) From the 2020-21 Budget, the value of Debt Not Expected to be Repaid (DNER) on initial recognition of income contingent concessional loans was reported as an expense. The expense is now reported as a mutually agreed write-down, which is a form of capital transfer. It was previously recorded in other financing costs.
(d) Operating result under Australian Accounting Standards.
(e) The term fiscal balance is not used by the ABS.

Australian Government general government sector balance sheet

ACTUAL
as at 31 May 2021
$m 		REVISED BUDGET ESTIMATE
*
as at 30 June 2021
$m
Assets
Financial assets
Cash and deposits(a) 67,906 46,693
Advances paid 81,524 82,235
Investments, loans and placements(a) 180,551 181,717
Other receivables 71,468 67,065
Equity investments
Investments in other public sector entities 65,045 55,821
Equity accounted investments 3,454 3,528
Investments - shares 80,624 72,829
Total financial assets 550,572 509,888
Non-financial assets
Land 11,869 11,817
Buildings 42,502 43,970
Plant, equipment and infrastructure 89,348 93,468
Inventories 11,679 11,710
Intangibles 9,408 9,821
Investment properties 214 210
Biological assets 23 28
Heritage and cultural assets 11,961 11,979
Assets held for sale 254 250
Other non-financial assets 56 37
Total non-financial assets 177,314 183,290
Total assets 727,886 693,178
Liabilities
Interest bearing liabilities
Deposits held 497 484
Government securities 876,384 891,811
Loans 16,756 16,345
Lease liabilities 19,367 19,527
Total interest bearing liabilities 913,005 928,166
Provisions and payables
Superannuation liability(b) 438,454 243,455
Other employee liabilities 32,884 33,124
Suppliers payables 9,799 8,507
Personal benefits payables 3,623 3,137
Subsidies payables 760 1,090
Grants payables 2,541 4,332
Other payables 4,151 3,302
Provisions 53,909 54,560
Total provisions and payables 546,121 351,507
Total liabilities 1,459,125 1,279,673
Net worth(c) -731,239 -586,495
Net financial worth(d) -908,553 -769,785
Net financial liabilities(e) 973,598 825,606
Net debt(f) 583,023 617,521

*As published in the 2021-22 Budget.
(a) The Australian Office of Financial Management has moved from primarily using term deposits to a cash management account for investing cash for short-term liquidity management. This has resulted in a decrease in Investments, loans and placements and an increase in cash and deposits.
(b) 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 Australian Accounting Standards, the superannuation liability for the 2020-21 Monthly Financial Statements was calculated using the spot rates on long-term government bonds as at 30 June 2020 that best matched each individual scheme’s liability duration. These rates were between 1.0 and 1.7 per cent per annum.
(c) Net worth equals total assets minus total liabilities.
(d) Net financial worth equals total financial assets minus total liabilities.
(e) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.
(f) 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
2020-2021
May
$m 		ACTUAL
2020-2021
YTD May
$m 		Revised Budget Profile
2020-2021
YTD May
$m 		REVISED BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Cash receipts from operating activities
Taxes received 51,223 429,766 421,244 459,470
Receipts from sales of goods and services 536 16,170 15,931 16,381
Interest receipts 198 2,480 2,667 2,995
Dividends and income tax equivalents 373 8,752 8,447 8,493
Other receipts 1,473 12,388 11,635 12,259
Total operating receipts 53,804 469,556 459,923 499,596
Cash payments for operating activities
Payments for employees(b) -2,574 -29,119 -29,329 -32,100
Payments for goods and services -11,822 -124,502 -125,622 -140,017
Grants and subsidies paid -17,159 -252,452 -253,193 -281,234
Interest paid -3,130 -16,081 -16,062 -17,121
Personal benefit payments -11,013 -152,294 -152,989 -163,952
Other payments(b) -440 -6,772 -6,800 -7,873
Total operating payments -46,138 -581,220 -583,996 -642,297
Net cash flows from operating activities 7,665 -111,664 -124,072 -142,701
Cash flows from investments in non-financial assets
Sales of non-financial assets 13 178 186 235
Purchases of non-financial assets -1,018 -11,593 -13,100 -16,056
Net cash flows from investments in non-financial assets -1,005 -11,416 -12,914 -15,821
Net cash flows from investments in financial assets for policy purposes 1,948 -3,669 -4,671 -7,286
Net cash flows from investments in financial assets for liquidity purposes -1,372 58,903 59,028 60,898
Cash flows from financing activities
Borrowing (net) -19,557 131,594 134,871 147,912
Other financing (net) -917 -5,296 -5,407 -5,763
Net cash flows from financing activities -20,474 126,299 129,464 142,150
Net increase/(decrease) in cash held -13,238 58,453 46,834 37,240
GFS cash surplus(+)/deficit(-)(c) 6,660 -123,080 -136,986 -158,522
plus Net cash flows from financing activities for leases(d) -211 -2,291 -2,277 -2,430
Equals underlying cash balance(e) 6,450 -125,371 -139,264 -160,952
plus Net cash flows from investments in financial assets for policy purposes 1,948 -3,669 -4,671 -7,286
Equals headline cash balance 8,397 -129,041 -143,935 -168,238

*As published in the 2021-22 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 cash flows from financing activities, are deducted in the calculation of the underlying cash balance to maintain consistency of measure following the implementation of AASB 16 Leases.
(e) The term underlying cash balance is not used by the ABS.

Note 1: Income Tax

ACTUAL
2020-2021
May
$m 		ACTUAL
2020-2021
YTD May
$m 		Revised Budget Profile
2020-2021
YTD May
$m 		REVISED BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Individuals and other withholding taxes
Gross income tax withholding 20,385 203,847 200,855 217,500
Gross other individuals 7,937 47,054 46,050 49,500
less Refunds 1,903 34,874 34,694 36,000
Total individuals and other withholding taxation 26,419 216,027 212,210 231,000
Fringe benefits tax 99 3,827 3,931 4,040
Company tax 11,375 88,454 86,150 94,300
Superannuation fund taxes 1,301 11,928 11,247 11,680
Petroleum resource rent tax 1 774 848 840
Total income taxation revenue 39,194 321,010 314,386 341,860

*As published in the 2021-22 Budget.

Note 2: Indirect Tax

ACTUAL
2020-2021
May
$m 		ACTUAL
2020-2021
YTD May
$m 		Revised Budget Profile
2020-2021
YTD May
$m 		REVISED BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Goods and services tax 8,670 68,197 66,582 71,080
Wine equalisation tax 90 977 949 1,070
Luxury car tax 90 769 727 800
Excise duty 2,414 22,505 22,257 23,930
Customs duty 1,522 16,865 17,009 18,830
Other indirect tax 938 7,633 7,402 8,201
Total indirect taxation revenue 13,725 116,946 114,926 123,911

*As published in the 2021-22 Budget.

Note 3: Total expenses by function

ACTUAL
2020-2021
May
$m 		ACTUAL
2020-2021
YTD May
$m 		REVISED BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Expenses by function
General public services 2,499 28,219 33,037
Defence 3,290 29,472 33,375
Public order and safety 577 5,929 6,712
Education 2,426 39,502 42,604
Health 7,561 85,333 94,533
Social security and welfare 16,199 204,061 225,394
Housing and community amenities 656 4,620 6,953
Recreation and culture 375 3,553 4,405
Fuel and energy 601 7,627 9,090
Agriculture, forestry and fishing 220 2,616 4,014
Mining, manufacturing and construction 455 3,136 4,394
Transport and communication 1,248 7,915 13,828
Other economic affairs 1,376 81,472 83,819
Other purposes
Public debt interest 1,593 15,657 17,123
Nominal superannuation interest 584 6,420 7,004
General purpose inter-government transactions 8,775 65,121 75,250
Natural disaster relief 18 18 748
Contingency reserve 0 0 -2,845
Total expenses 48,451 590,672 659,437

*As published in the 2021-22 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.

AASB 16 Leases (AASB 16)

The new Australian Accounting Standard, AASB 16, applied to all Australian Government entities from 1 July 2019. AASB 16 introduced a single lease accounting framework for lessees and removed the distinction between operating and finance leases. As a result, new assets and liabilities have been recognised on the balance sheet for leases that were previously accounted for as operating expenses. The reduction in operating lease expenses is replaced with the depreciation charge for the right-of-use assets and interest expense on the lease liabilities.

The implementation of AASB 16 has implications for a number of budget aggregates, in particular, net debt and net financial worth due to the recognition of the new lease liabilities. To maintain consistency in the measurement of the underlying cash balance, the principal payments on lease liabilities which are recognised as cash flows from financing activities, have been included in the calculation following the implementation of AASB 16.

For General Government Sector financial reporting, the implementation of AASB 16 has been reflected in the 2019-20 MYEFO estimates and in the Australian Government General Government Sector Monthly Financial Statements from the December 2019 reporting period.

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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