Australian Government General Government Sector Monthly Financial Statements December 2022

Senator the Hon Katy Gallagher
Minister for Finance
Minister for the Public Service
Minister for Women

KG 01/23
Friday, 27 January 2023

KEY POINTS

The Monthly Financial Statements for December 2022 report the budget position against the expected monthly profile for the 2022-23 financial year through to 31 December 2022, based on the 2022-23 October Budget estimates.
The underlying cash balance for the 2022-23 financial year to 31 December 2022 was a deficit of $14.7 billion against the 2022-23 October Budget profile deficit of $26.2 billion.
The fiscal balance for the 2022-23 financial year to 31 December 2022 was a deficit of $7.4 billion against the 2022-23 October Budget profile deficit of $19.7 billion.

AGGREGATES(a)	ACTUAL 2022-2023 December $b	ACTUAL 2022-2023 YTD December $b	October Budget Profile 2022-2023 YTD December $b	OCTOBER BUDGET ESTIMATE* 2022-2023 FULL YEAR $b
Receipts(b)	54.4	298.2	289.4	607.2
Payments(c)	57.3	312.9	315.7	644.1
Underlying cash balance	-2.9	-14.7	-26.2	-36.9
Headline cash balance	-6.1	-19.8	-32.4	-49.6
Revenue	51.1	305.9	298.5	625.0
Expenses	55.3	310.6	314.3	650.9
Net operating balance	-4.2	-4.8	-15.9	-25.9
Net capital investment	0.9	2.7	3.8	12.8
Fiscal balance	-5.0	-7.4	-19.7	-38.7
Total assets		748.8		766.0
Total liabilities		1,327.9		1,321.6
Net worth(d)		-579.0		-555.7
Net debt(e)		525.4		572.2

^{_{*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 principal payments of lease liabilities.

(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 December 2022 was a deficit of $14.7 billion, which is $11.5 billion lower than the 2022-23 October Budget profile deficit of $26.2 billion.

Receipts
Total receipts were $8.8 billion higher than the 2022-23 October Budget profile.

Payments
Total payments were $2.8 billion lower than the 2022-23 October Budget profile.

Net Operating Balance

The net operating balance for the financial year to 31 December 2022 was a deficit of $4.8 billion, which is $11.1 billion lower than the 2022-23 October Budget profile deficit of $15.9 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 December 2022 was a deficit of $7.4 billion, which is $12.3 billion lower than the 2022-23 October Budget profile deficit of $19.7 billion. The difference results from higher than expected revenue and lower than expected expenses and net capital investment.

Assets and Liabilities

As at 31 December 2022:

net worth is negative $579.0 billion;
net debt is $525.4 billion; and
net financial liabilities are $815.9 billion.

Senator the Hon Katy Gallagher Minister for Finance Minister for the Public Service Minister for Women	Mary Wiley-Smith Acting Secretary Department of Finance
Media Contact
Patrick Cronan	0432 758 224

Australian Government general government sector operating statement

	Note	ACTUAL 2022-2023 December $m	ACTUAL 2022-2023 YTD December $m	October Budget Profile 2022-2023 YTD December $m	OCTOBER BUDGET ESTIMATE* 2022-2023 FULL YEAR $m
Revenue
Taxation revenue	1, 2	48,356	281,680	275,222	577,868
Sales of goods and services		726	9,823	9,606	18,371
Interest income		720	4,211	3,813	8,192
Dividend and distribution income		501	2,508	2,635	5,695
Other		789	7,648	7,178	14,891
Total revenue		51,093	305,871	298,455	625,016
Expenses
Gross operating expenses
Wages and salaries(a)		1,884	11,679	11,780	24,201
Superannuation		763	4,573	4,512	8,912
Depreciation and amortisation		1,039	5,891	5,913	12,111
Supply of goods and services		14,952	84,597	86,108	176,526
Other operating expenses(a)		660	4,587	4,445	9,186
Total gross operating expenses		19,298	111,327	112,759	230,936
Superannuation interest expense		1,022	6,132	6,132	12,264
Interest expenses		2,082	11,788	11,735	26,188
Current transfers
Current grants		18,234	93,960	95,578	196,498
Subsidy expenses		1,514	8,177	7,895	16,213
Personal benefits		12,170	74,165	74,233	146,940
Total current transfers		31,918	176,302	177,706	359,651
Capital transfers
Mutually agreed write-downs		234	1,555	1,539	2,676
Other capital grants		726	3,540	4,468	19,207
Total capital transfers		960	5,095	6,007	21,883
Total expenses	3	55,280	310,644	314,339	650,922
Net operating balance		-4,187	-4,773	-15,885	-25,905
Other economic flows
- included in operating result
Net write-downs of assets		-183	-3,906	-4,232	-8,004
Assets recognised for the first time		-2	102	116	204
Actuarial revaluations		0	1	-61	83
Net foreign exchange gains		-135	-177	-25	-573
Net swap interest received		-148	-1,414	-988	0
Market valuation of debt		21,585	13,461	3,339	-2,434
Other gains/(losses)		-4,901	-488	2,219	4,761
Total other economic flows - included in operating result		16,216	7,580	369	-5,962
Operating Result(b)		12,029	2,807	-15,516	-31,867
Non-owner movements in equity
Revaluation of equity investments		0	0	0	-92
Actuarial revaluations		0	0	0	-19,774
Other economic revaluations		55	-1,032	402	5
Total other economic flows - included in equity		55	-1,032	402	-19,860
Comprehensive result - Total change in net worth		12,084	1,774	-15,114	-51,728
Net operating balance		-4,187	-4,773	-15,885	-25,905
Net acquisition of non-financial assets
Purchases of non-financial assets		1,445	7,552	9,298	23,317
less Sales of non-financial assets		10	111	2	206
less Depreciation		1,039	5,891	5,913	12,111
plus Change in inventories		456	1,118	470	1,788
plus Other movements in non-financial assets		1	3	-3	-6
Total net acquisition of non-financial assets		853	2,671	3,850	12,781
Fiscal balance (Net lending/borrowing)(c)		-5,041	-7,444	-19,735	-38,686

_{^{*As published in the 2022-23 October 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 December 2022 $m	OCTOBER BUDGET ESTIMATE* as at 30 June 2023 $m
Assets
Financial assets
Cash and deposits	63,121	54,975
Advances paid	73,290	76,622
Investments, loans and placements	214,948	225,772
Other receivables	85,413	74,640
Equity investments
Investments in other public sector entities	41,141	43,757
Equity accounted investments	4,819	4,175
Investments - shares	70,368	80,564
Total financial assets	553,101	560,506
Non-financial assets
Land	12,908	12,876
Buildings	45,687	48,082
Plant, equipment and infrastructure	100,137	106,034
Inventories	12,334	12,895
Intangibles	11,498	12,511
Investment properties	208	207
Biological assets	15	16
Heritage and cultural assets	12,632	12,645
Assets held for sale	305	177
Other non-financial assets	25	16
Total non-financial assets	195,747	205,460
Total assets	748,849	765,966
Liabilities
Interest bearing liabilities
Deposits held	344	406
Government securities	827,968	877,947
Loans	29,881	32,204
Lease liabilities	18,536	18,997
Total interest bearing liabilities	876,729	929,554
Provisions and payables
Superannuation liability(a)	325,876	271,366
Other employee liabilities	35,332	35,535
Suppliers payables	6,654	10,908
Personal benefits payables	3,461	3,044
Subsidies payables	1,249	884
Grants payables	2,058	2,997
Other payables	14,547	4,240
Provisions	61,969	63,101
Total provisions and payables	451,146	392,076
Total liabilities	1,327,875	1,321,631
Net worth(b)	-579,027	-555,665
Net financial worth(c)	-774,774	-761,125
Net financial liabilities(d)	815,915	804,882
Net debt(e)	525,369	572,185

^{_{*As published in the 2022-23 October 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 December $m	ACTUAL 2022-2023 YTD December $m	October Budget Profile 2022-2023 YTD December $m	OCTOBER BUDGET ESTIMATE* 2022-2023 FULL YEAR $m
Cash receipts from operating activities
Taxes received	49,753	272,993	266,875	562,858
Receipts from sales of goods and services	2,061	11,522	9,846	18,550
Interest receipts	289	2,857	2,714	5,275
Dividends, distributions and income tax equivalents	573	2,747	2,740	5,677
Other receipts	1,686	7,916	7,126	14,533
Total operating receipts	54,361	298,034	289,301	606,893
Cash payments for operating activities
Payments for employees(b)	-3,569	-19,228	-19,151	-38,601
Payments for goods and services	-16,965	-89,257	-88,595	-174,888
Grants and subsidies paid	-20,689	-106,942	-108,992	-233,753
Interest paid	-1,129	-9,348	-9,218	-18,910
Personal benefit payments	-12,235	-75,008	-75,134	-147,190
Other payments(b)	-445	-4,176	-4,213	-8,486
Total operating payments	-55,031	-303,959	-305,302	-621,828
Net cash flows from operating activities	-670	-5,925	-16,002	-14,934
Cash flows from investments in non-financial assets
Sales of non-financial assets	3	162	133	336
Purchases of non-financial assets	-2,024	-7,686	-9,078	-19,825
Net cash flows from investments in non-financial assets	-2,022	-7,525	-8,945	-19,490
Net cash flows from investments in financial assets for policy purposes	-3,140	-5,086	-6,190	-12,720
Net cash flows from investments in financial assets for liquidity purposes	1,922	-3,678	-3,965	-17,780
Cash flows from financing activities
Borrowing (net)	4,450	-4,560	-451	32,084
Other financing (net)	-301	-4,868	-4,636	-6,947
Net cash flows from financing activities	4,148	-9,427	-5,087	25,137
Net increase/(decrease) in cash held	238	-31,641	-40,188	-39,788
GFS cash surplus(+)/deficit(-)(c)	-2,692	-13,450	-24,947	-34,424
plus Principal payments of lease liabilities(d)	-220	-1,256	-1,298	-2,427
Equals underlying cash balance(e)	-2,912	-14,706	-26,244	-36,851
plus Net cash flows from investments in financial assets for policy purposes	-3,140	-5,086	-6,190	-12,720
Equals headline cash balance	-6,052	-19,792	-32,434	-49,572

_{^{*As published in the 2022-23 October 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) 'Net cash flows from financing activities for leases' has been renamed to 'principal payments of lease liabilities'. Principal payments of 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 December $m	ACTUAL 2022-2023 YTD December $m	October Budget Profile 2022-2023 YTD December $m	OCTOBER BUDGET ESTIMATE* 2022-2023 FULL YEAR $m
Individuals and other withholding taxes
Gross income tax withholding	23,320	133,234	130,104	262,800
Gross other individuals	2,369	29,747	30,248	65,600
less Refunds	1,506	32,135	32,219	41,800
Total individuals and other withholding taxation	24,183	130,846	128,133	286,600
Fringe benefits tax	11	1,759	1,775	3,440
Company tax	13,628	68,818	66,040	129,900
Superannuation fund taxes	1,418	8,259	8,499	12,670
Petroleum resource rent tax	3	1,436	1,428	2,790
Total income taxation revenue	39,243	211,118	205,874	435,400

^{_{*As published in the}}_{^{2022-23 October Budget.}}

Note 2: Indirect Tax

	ACTUAL 2022-2023 December $m	ACTUAL 2022-2023 YTD December $m	October Budget Profile 2022-2023 YTD December $m	OCTOBER BUDGET ESTIMATE* 2022-2023 FULL YEAR $m
Goods and services tax	4,420	43,507	42,709	86,820
Wine equalisation tax	104	568	570	1,210
Luxury car tax	83	580	548	1,120
Excise duty	2,369	11,923	12,022	26,070
Customs duty	1,325	8,865	8,623	16,820
Other indirect tax	812	5,118	4,875	10,428
Total indirect taxation revenue	9,113	70,563	69,348	142,468

^{_{*As published in the}}_{^{2022-23 October Budget.}}

Note 3: Total expenses by function

	ACTUAL 2022-2023 December $m	ACTUAL 2022-2023 YTD December $m	OCTOBER BUDGET ESTIMATE* 2022-2023 FULL YEAR $m
Expenses by function
General public services	2,243	13,233	30,280
Defence	3,064	19,330	38,303
Public order and safety	574	3,844	7,148
Education	2,439	21,999	46,317
Health	7,768	51,486	109,694
Social security and welfare	20,664	113,551	228,791
Housing and community amenities	443	2,588	7,826
Recreation and culture	405	2,183	4,880
Fuel and energy	784	3,822	9,134
Agriculture, forestry and fishing	225	1,518	5,034
Mining, manufacturing and construction	322	1,900	4,945
Transport and communication	876	3,332	15,351
Other economic affairs	1,056	7,037	13,920
Other purposes
Public debt interest	1,906	10,877	22,421
Nominal superannuation interest	1,022	6,132	12,264
General purpose inter-government transactions	11,456	46,308	90,259
Natural disaster relief	33	1,503	3,554
Contingency reserve	0	0	801
Total expenses	55,280	310,644	650,922

_{^{*As published in the 2022-23 October 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.