Australian Government General Government Sector Monthly Financial Statements January 2020
Senator the Hon. Mathias Cormann
Minister for Finance
Leader of the Government in the Senate
Senator for Western Australia
KEY POINTS
- The Monthly Financial Statements for January 2020 report the budget position against the expected monthly profile for the 2019-20 financial year through to 31 January 2020, based on the 2019-20 Mid-Year Economic and Fiscal Outlook (MYEFO) estimates published in December 2019.
- The underlying cash balance for the 2019-20 financial year to 31 January 2020 was a deficit of $26,610 million against the 2019-20 MYEFO profile deficit of $22,885 million.
- The fiscal balance for the 2019-20 financial year to 31 January 2020 was a deficit of $21,953 million against the 2019-20 MYEFO profile deficit of $20,349 million.
| AGGREGATES(a) | ACTUAL 2019-2020 January $m | ACTUAL 2019-2020 YTD January $m | MYEFO Profile 2019-2020 YTD January $m | MYEFO ESTIMATE* 2019-2020 FULL YEAR $m |
|---|---|---|---|---|
| Revenue | 34,849 | 273,856 | 275,608 | 511,148 |
| Expenses | 44,531 | 293,751 | 294,184 | 503,180 |
| Net operating balance | -9,682 | -19,895 | -18,576 | 7,968 |
| Net capital investment | 323 | 2,058 | 1,773 | 4,161 |
| Fiscal balance | -10,006 | -21,953 | -20,349 | 3,807 |
| Receipts(b) | 30,660 | 266,824 | 271,623 | 502,472 |
| less Payments(c) | 41,730 | 290,107 | 291,223 | 491,976 |
| less Net Future Fund earnings | 369 | 3,328 | 3,284 | 5,468 |
| Underlying cash balance(d) | -11,440 | -26,610 | -22,885 | 5,028 |
| Headline cash balance | -11,868 | -29,969 | -26,333 | -2,841 |
| Total assets | 639,691 | 655,554 | ||
| Total liabilities | 1,209,449 | 1,001,597 | ||
| Net worth(e) | -569,758 | -346,042 | ||
| Net debt(f) | 430,211 | 392,305 |
*As published in the 2019-20 MYEFO.
(a) Includes impacts resulting from the implementation of AASB 16 Leases.
(b) Cash receipts for operating activities and sales of non-financial assets.
(c) Cash payments for operating activities, purchases of non-financial assets and net cash flows from financing activities for leases.
(d) Excludes net Future Fund earnings. Consistent with Budget documents, the net adjustment for the Future Fund is shown separately.
(e) Net worth is calculated as total assets minus total liabilities.
(f) 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. 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 January 2020 was a deficit of $26,610 million, which is $3,725 million higher than the 2019-20 MYEFO profile deficit of $22,885 million.
- Receipts
Total receipts were $4,798 million lower than the 2019-20 MYEFO profile. - Payments
Total payments were $1,117 million lower than the 2019-20 MYEFO profile.
Net Operating Balance
The net operating balance for the year to 31 January 2020 was a deficit of $19,895 million, which is $1,319 million higher than the 2019-20 MYEFO profile deficit of $18,576 million. The difference results from lower than expected revenue and lower expenses.
Fiscal Balance
The fiscal balance for the year to 31 January 2020 was a deficit of $21,953 million, which is $1,604 million higher than the 2019-20 MYEFO profile deficit of $20,349 million. The difference results from lower than expected revenue, lower expenses and higher net capital investment.
Assets and Liabilities
As at 31 January 2020:
- net worth is negative $569,758 million;
- net debt is $430,211 million; and
- net financial liabilities are $799,498 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 January $m | ACTUAL 2019-2020 YTD January $m | MYEFO Profile 2019-2020 YTD January $m | MYEFO ESTIMATE* 2019-2020 FULL YEAR $m | |
|---|---|---|---|---|---|
| Revenue | |||||
| Taxation revenue | 1,2 | 32,523 | 252,448 | 254,473 | 472,815 |
| Sales of goods and services | 1,193 | 8,799 | 8,726 | 14,980 | |
| Interest income | 81 | 2,270 | 2,541 | 5,247 | |
| Dividend income | 317 | 3,258 | 3,185 | 6,383 | |
| Other | 735 | 7,081 | 6,684 | 11,723 | |
| Total revenue | 34,849 | 273,856 | 275,608 | 511,148 | |
| Expenses | |||||
| Gross operating expenses | |||||
| Wages and salaries(a) | 1,613 | 11,737 | 12,198 | 21,366 | |
| Superannuation | 1,702 | 7,248 | 6,908 | 12,357 | |
| Depreciation and amortisation(b) | 1,003 | 6,599 | 6,952 | 11,446 | |
| Supply of goods and services(b) | 8,319 | 70,464 | 69,855 | 124,029 | |
| Other operating expenses(a) | 518 | 4,206 | 4,150 | 7,236 | |
| Total gross operating expenses | 13,155 | 100,255 | 100,062 | 176,434 | |
| Superannuation interest expense | 481 | 4,477 | 4,534 | 7,715 | |
| Interest expenses(b) | 1,426 | 10,169 | 10,235 | 18,215 | |
| Current transfers | |||||
| Current grants | 17,182 | 93,278 | 93,500 | 149,813 | |
| Subsidy expenses | 998 | 6,984 | 6,935 | 12,136 | |
| Personal benefits | 10,579 | 75,895 | 76,094 | 128,282 | |
| Total current transfers | 28,758 | 176,157 | 176,529 | 290,232 | |
| Capital transfers | |||||
| Mutually agreed write-downs | 82 | 884 | 945 | 1,416 | |
| Other capital grants | 629 | 1,809 | 1,879 | 9,168 | |
| Total capital transfers | 711 | 2,693 | 2,824 | 10,584 | |
| Total expenses | 3 | 44,531 | 293,751 | 294,184 | 503,180 |
| Net operating balance | -9,682 | -19,895 | -18,576 | 7,968 | |
| Other economic flows | |||||
| - included in operating result | |||||
| Net write-downs of assets | -9 | -3,256 | -3,741 | -6,933 | |
| Assets recognised for the first time | 8 | 77 | 192 | 201 | |
| Actuarial revaluations | 0 | 0 | 47 | 81 | |
| Net foreign exchange gains | -2,335 | -2,180 | -1 | -92 | |
| Net swap interest received | 43 | -205 | -268 | -210 | |
| Market valuation of debt | -16,692 | -10,803 | -4,684 | -1,129 | |
| Other gains/(losses) | 5,603 | 7,700 | 3,191 | 5,131 | |
| Total other economic flows - included in operating result | -13,381 | -8,666 | -5,264 | -2,950 | |
| Operating Result(c) | -23,064 | -28,561 | -23,840 | 5,018 | |
| Non-owner movements in equity | |||||
| Revaluation of equity investments | -1 | 11 | -6 | -3,928 | |
| Actuarial revaluations | 0 | 0 | 0 | 1,879 | |
| Other economic revaluations | -169 | 1,956 | 1,266 | 195 | |
| Total other economic flows - included in equity | -170 | 1,968 | 1,260 | -1,853 | |
| Comprehensive result - Total change in net worth | -23,234 | -26,594 | -22,580 | 3,164 | |
| Net operating balance | -9,682 | -19,895 | -18,576 | 7,968 | |
| Net acquisition of non-financial assets (b) | |||||
| Purchases of non-financial assets | 1,297 | 8,718 | 8,716 | 16,868 | |
| less Sales of non-financial assets | 32 | 113 | 75 | 1,219 | |
| less Depreciation | 1,003 | 6,599 | 6,952 | 11,446 | |
| plus Change in inventories | 65 | 23 | 59 | -40 | |
| plus Other movements in non-financial assets | -3 | 29 | 24 | -3 | |
| Total net acquisition of non-financial assets | 323 | 2,058 | 1,773 | 4,161 | |
| Fiscal balance (Net lending/borrowing)(d) | -10,006 | -21,953 | -20,349 | 3,807 |
*As published in the 2019-20 MYEFO.
(a) 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.
(b) Includes impacts resulting from the implementation of AASB 16 Leases.
(c) Operating result under Australian Accounting Standards.
(d) The term fiscal balance is not used by the ABS.
Australian Government general government sector balance sheet
| ACTUAL as at 31 January 2020 $m | MYEFO ESTIMATE* as at 30 June 2020 $m | |
|---|---|---|
| Assets | ||
| Financial assets | ||
| Cash and deposits | 9,836 | 7,204 |
| Advances paid | 80,303 | 85,155 |
| Investments, loans and placements | 184,954 | 198,528 |
| Other receivables | 60,218 | 58,577 |
| Equity investments | ||
| Investments in other public sector entities | 57,941 | 55,640 |
| Equity accounted investments | 3,555 | 3,677 |
| Investments - shares | 71,085 | 73,969 |
| Total financial assets | 467,892 | 482,751 |
| Non-financial assets | ||
| Land | 11,955 | 11,824 |
| Buildings | 43,055 | 43,415 |
| Plant, equipment and infrastructure | 86,762 | 87,832 |
| Inventories | 8,885 | 8,488 |
| Intangibles | 8,773 | 9,105 |
| Investment properties | 197 | 160 |
| Biological assets | 22 | 21 |
| Heritage and cultural assets | 11,783 | 11,695 |
| Assets held for sale | 303 | 231 |
| Other non-financial assets | 65 | 32 |
| Total non-financial assets(a) | 171,799 | 172,803 |
| Total assets | 639,691 | 655,554 |
| Liabilities | ||
| Interest bearing liabilities | ||
| Deposits held | 371 | 388 |
| Government securities | 666,347 | 645,907 |
| Loans | 19,021 | 17,759 |
| Lease liabilities(a) | 19,565 | 19,139 |
| Total interest bearing liabilities | 705,304 | 683,193 |
| Provisions and payables | ||
| Superannuation liability(b) | 421,231 | 230,774 |
| Other employee liabilities | 26,677 | 26,663 |
| Suppliers payables | 6,584 | 7,579 |
| Personal benefits payables | 2,656 | 3,753 |
| Subsidies payables | 4,366 | 645 |
| Grants payables | 2,370 | 4,051 |
| Other payables | 3,372 | 2,186 |
| Provisions | 36,888 | 42,752 |
| Total provisions and payables | 504,145 | 318,404 |
| Total liabilities | 1,209,449 | 1,001,597 |
| Net worth(c) | -569,758 | -346,042 |
| Net financial worth(d) | -741,557 | -518,845 |
| Net financial liabilities(e) | 799,498 | 574,486 |
| Net debt(f) | 430,211 | 392,305 |
*As published in the 2019-20 MYEFO.
(a) Includes impacts from implementation of AASB 16 Leases.
(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 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.
(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 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 January $m | ACTUAL 2019-2020 YTD January $m | MYEFO Profile 2019-2020 YTD January $m | MYEFO ESTIMATE* 2019-2020 FULL YEAR $m | |
|---|---|---|---|---|
| Cash receipts from operating activities | ||||
| Taxes received | 27,106 | 240,851 | 245,911 | 463,791 |
| Receipts from sales of goods and services | 1,763 | 9,672 | 9,987 | 15,142 |
| Interest receipts | 265 | 2,453 | 2,711 | 5,134 |
| Dividends and income tax equivalents | 332 | 5,090 | 4,865 | 6,792 |
| Other receipts | 727 | 8,242 | 7,659 | 9,949 |
| Total operating receipts | 30,193 | 266,307 | 271,134 | 500,809 |
| Cash payments for operating activities | ||||
| Payments for employees(b) | -2,345 | -17,485 | -17,640 | -31,152 |
| Payments for goods and services(c) | -7,233 | -72,820 | -72,965 | -122,024 |
| Grants and subsidies paid | -19,519 | -102,240 | -102,584 | -170,400 |
| Interest paid(c) | -544 | -8,693 | -8,781 | -16,564 |
| Personal benefit payments | -10,536 | -76,936 | -77,343 | -128,416 |
| Other payments(b) | -521 | -3,957 | -3,997 | -6,768 |
| Total operating payments | -40,698 | -282,131 | -283,309 | -475,325 |
| Net cash flows from operating activities | -10,505 | -15,824 | -12,175 | 25,483 |
| Cash flows from investments in non-financial assets | ||||
| Sales of non-financial assets | 467 | 517 | 489 | 1,663 |
| Purchases of non-financial assets | -728 | -6,798 | -6,572 | -14,304 |
| Net cash flows from investments in non-financial assets | -261 | -6,281 | -6,082 | -12,641 |
| Net cash flows from investments in financial assets for policy purposes | -797 | -6,687 | -6,733 | -13,336 |
| Net cash flows from investments in financial assets for liquidity purposes | 3,315 | 3,368 | 4,551 | -15,923 |
| Cash flows from financing activities | ||||
| Borrowing (net) | 6,353 | 29,632 | 22,866 | 20,271 |
| Other financing (net)(c) | -407 | -2,974 | -3,259 | -5,257 |
| Net cash flows from financing activities | 5,946 | 26,658 | 19,607 | 15,014 |
| Net increase/(decrease) in cash held | -2,302 | 1,234 | -833 | -1,403 |
| GFS cash surplus(+)/deficit(-)(d) | -10,766 | -22,105 | -18,258 | 12,842 |
| plus Net cash flows from financing activities for leases(e) | -305 | -1,178 | -1,343 | -2,347 |
| less Net Future Fund earnings | 369 | 3,328 | 3,284 | 5,468 |
| Equals underlying cash balance(f) | -11,440 | -26,610 | -22,885 | 5,028 |
| plus Net cash flows from investments in financial assets for policy purposes | -797 | -6,687 | -6,733 | -13,336 |
| plus Net Future Fund earnings | 369 | 3,328 | 3,284 | 5,468 |
| Equals headline cash balance | -11,868 | -29,969 | -26,333 | -2,841 |
*As published in the 2019-20 MYEFO.
(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) Include impacts from implementation of AASB 16 Leases.
(d) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(e) 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.
(f) The term underlying cash balance is not used by the ABS.
Note 1: Income Tax
| ACTUAL 2019-2020 January $m | ACTUAL 2019-2020 YTD January $m | MYEFO Profile 2019-2020 YTD January $m | MYEFO ESTIMATE* 2019-2020 FULL YEAR $m | ||
|---|---|---|---|---|---|
| Individuals and other withholding taxes | |||||
| Gross income tax withholding | 16,362 | 124,795 | 126,092 | 220,300 | |
| Gross other individuals | 2,062 | 23,811 | 24,313 | 52,900 | |
| less Refunds | 1,464 | 29,489 | 29,601 | 36,800 | |
| Total individuals and other withholding taxation | 16,960 | 119,116 | 120,804 | 236,400 | |
| Fringe benefits tax | 652 | 2,659 | 2,670 | 4,040 | |
| Company tax | 7,490 | 53,860 | 53,891 | 99,800 | |
| Superannuation fund taxes(a) | -916 | 4,858 | 5,198 | 8,460 | |
| Petroleum resource rent tax | 197 | 786 | 880 | 1,130 | |
| Total income taxation revenue | 24,382 | 181,278 | 183,442 | 349,830 |
*As published in the 2019-20 MYEFO.
(a) The negative movement in Superannuation fund taxes for January reflects a higher amount of refunds issued for the month.
Note 2: Indirect Tax
| ACTUAL 2019-2020 January $m | ACTUAL 2019-2020 YTD January $m | MYEFO Profile 2019-2020 YTD January $m | MYEFO ESTIMATE* 2019-2020 FULL YEAR $m | ||
|---|---|---|---|---|---|
| Goods and services tax | 4,288 | 38,836 | 37,909 | 67,230 | |
| Wine equalisation tax | 104 | 621 | 651 | 1,110 | |
| Luxury car tax | 52 | 384 | 384 | 670 | |
| Excise duty | 1,678 | 14,137 | 14,117 | 23,900 | |
| Customs duty | 1,470 | 11,926 | 12,758 | 20,800 | |
| Other indirect tax | 549 | 5,266 | 5,212 | 9,275 | |
| Total indirect taxation revenue | 8,141 | 71,170 | 71,030 | 122,985 |
*As published in the 2019-20 MYEFO.
Note 3: Total expenses by function
| ACTUAL 2019-2020 January $m | ACTUAL 2019-2020 YTD January $m | MYEFO ESTIMATE* 2019-2020 FULL YEAR $m | |
|---|---|---|---|
| Expenses by function | |||
| General public services | 4,394 | 16,938 | 30,157 |
| Defence | 1,460 | 17,380 | 32,783 |
| Public order and safety | 708 | 3,586 | 5,966 |
| Education | 7,685 | 25,785 | 35,846 |
| Health | 6,556 | 47,932 | 83,425 |
| Social security and welfare | 13,167 | 106,775 | 180,782 |
| Housing and community amenities | 409 | 2,559 | 5,715 |
| Recreation and culture | 191 | 1,687 | 3,989 |
| Fuel and energy | 631 | 4,577 | 8,161 |
| Agriculture, forestry and fishing | 243 | 1,382 | 3,025 |
| Mining, manufacturing and construction | 228 | 1,586 | 3,073 |
| Transport and communication | 748 | 2,634 | 8,671 |
| Other economic affairs | 768 | 5,533 | 10,250 |
| Other purposes | |||
| Public debt interest | 1,436 | 9,899 | 16,746 |
| Nominal superannuation interest | 481 | 4,477 | 7,715 |
| General purpose inter-government transactions | 5,373 | 40,969 | 68,547 |
| Natural disaster relief | 53 | 53 | 38 |
| Contingency reserve | 0 | 0 | -1,707 |
| Total expenses | 44,531 | 293,751 | 503,180 |
*As published in the 2019-20 MYEFO.
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 .