Australian Government General Government Sector Monthly Financial Statements October 2020
Senator the Hon. Simon Birmingham
Minister for Finance, Minister for Trade, Tourism and Investment
Leader of the Government in the Senate
Senator for South Australia
KEY POINTS
- The Monthly Financial Statements for October 2020 report the budget position against the expected monthly profile for the 2020-21 financial year through to 31 October 2020, based on the 2020-21 Budget estimates published in October 2020.
- The October 2020 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 October 2020 was a deficit of $104.1 billion against the 2020-21 Budget profile deficit of $107.6 billion.
- The fiscal balance for the 2020-21 financial year to 31 October 2020 was a deficit of $104.9 billion against the 2020-21 Budget profile deficit of $106.4 billion.
| AGGREGATES | ACTUAL 2020-2021 October $b | ACTUAL 2020-2021 YTD October $b | Budget Profile 2020-2021 YTD October $b | BUDGET ESTIMATE* 2020-2021 FULL YEAR $b |
|---|---|---|---|---|
| Revenue | 41.8 | 152.0 | 152.9 | 472.4 |
| Expenses | 52.8 | 255.5 | 258.8 | 670.3 |
| Net operating balance | -11.0 | -103.5 | -105.8 | -197.9 |
| Net capital investment | 1.8 | 1.4 | 0.5 | 7.8 |
| Fiscal balance | -12.7 | -104.9 | -106.4 | -205.7 |
| Receipts(a) | 41.6 | 155.4 | 155.8 | 463.8 |
| Payments(b) | 64.8 | 259.4 | 263.4 | 677.4 |
| Underlying cash balance | -23.2 | -104.1 | -107.6 | -213.7 |
| Headline cash balance | -23.7 | -106.0 | -110.2 | -230.0 |
| Total assets | 733.0 | 696.0 | ||
| Total liabilities | 1,506.9 | 1,353.4 | ||
| Net worth(c) | -773.8 | -657.4 | ||
| Net debt(d) | 602.0 | 703.2 |
*As published in the 2020-21 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 October 2020 was a deficit of $104.1 billion, which is $3.6 billion lower than the 2020-21 Budget profile deficit of $107.6 billion.
- Receipts
Total receipts were $0.5 billion lower than the 2020-21 Budget profile. - Payments
Total payments were $4.0 billion lower than the 2020-21 Budget profile.
Net Operating Balance
The net operating balance for the year to 31 October 2020 was a deficit of $103.5 billion, which is $2.4 billion lower than the 2020-21 Budget profile deficit of $105.8 billion. The difference results from lower than expected revenue and expenses.
Fiscal Balance
The fiscal balance for the year to 31 October 2020 was a deficit of $104.9 billion, which is $1.5 billion lower than the 2020-21 Budget profile deficit of $106.4 billion. The difference results from lower than expected revenue and expenses, and higher than expected net capital investment.
Assets and Liabilities
As at 31 October 2020:
- net worth is negative $773.8 billion;
- net debt is $602.0 billion; and
- net financial liabilities are $1,014.0 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 October $m | ACTUAL 2020-2021 YTD October $m | Budget Profile 2020-2021 YTD October $m | BUDGET ESTIMATE* 2020-2021 FULL YEAR $m | |
|---|---|---|---|---|---|
| Revenue | |||||
| Taxation revenue | 1,2 | 37,053 | 138,475 | 140,584 | 434,913 |
| Sales of goods and services | 1,394 | 5,417 | 5,373 | 15,874 | |
| Interest income | 376 | 1,122 | 1,392 | 4,181 | |
| Dividend income | 370 | 1,907 | 1,758 | 6,419 | |
| Other | 2,634 | 5,103 | 3,805 | 11,054 | |
| Total revenue | 41,827 | 152,024 | 152,912 | 472,442 | |
| Expenses | |||||
| Gross operating expenses | |||||
| Wages and salaries(a) | 1,779 | 7,224 | 7,095 | 21,593 | |
| Superannuation | 1,014 | 4,158 | 4,244 | 12,433 | |
| Depreciation and amortisation | 928 | 3,696 | 3,997 | 12,037 | |
| Supply of goods and services | 11,294 | 44,966 | 46,134 | 150,520 | |
| Other operating expenses(a) | 748 | 2,966 | 2,892 | 8,342 | |
| Total gross operating expenses | 15,764 | 63,009 | 64,362 | 204,925 | |
| Superannuation interest expense | 584 | 2,335 | 2,370 | 7,004 | |
| Interest expenses(b) | 1,470 | 6,093 | 6,062 | 19,821 | |
| Current transfers | |||||
| Current grants | 14,597 | 56,436 | 56,975 | 157,257 | |
| Subsidy expenses | 6,393 | 61,498 | 61,814 | 99,546 | |
| Personal benefits | 13,602 | 63,573 | 65,007 | 165,845 | |
| Total current transfers | 34,592 | 181,507 | 183,796 | 422,649 | |
| Capital transfers | |||||
| Mutually agreed write-downs | -24 | 1,434 | 780 | 1,496 | |
| Other capital grants | 415 | 1,117 | 1,385 | 14,435 | |
| Total capital transfers | 391 | 2,551 | 2,165 | 15,931 | |
| Total expenses | 3 | 52,801 | 255,494 | 258,754 | 670,330 |
| Net operating balance | -10,974 | -103,469 | -105,842 | -197,888 | |
| Other economic flows | |||||
| - included in operating result | |||||
| Net write-downs of assets | 163 | -477 | -1,469 | -5,859 | |
| Assets recognised for the first time | 29 | 74 | 58 | 173 | |
| Actuarial revaluations | 0 | 0 | 0 | 111 | |
| Net foreign exchange gains | -92 | -75 | 11 | -59 | |
| Net swap interest received | 79 | 704 | 473 | 0 | |
| Market valuation of debt | 307 | -4,235 | 852 | 5,815 | |
| Other gains/(losses)(b) | 612 | 1,308 | 1,239 | 7,639 | |
| Total other economic flows - included in operating result | 1,098 | -2,702 | 1,163 | 7,821 | |
| Operating Result(c) | -9,876 | -106,171 | -104,679 | -190,068 | |
| Non-owner movements in equity | |||||
| Revaluation of equity investments | -1 | -2 | 0 | -4,415 | |
| Actuarial revaluations | 0 | 0 | 0 | 54 | |
| Other economic revaluations | -125 | -2,766 | -476 | -269 | |
| Total other economic flows - included in equity | -126 | -2,768 | -475 | -4,630 | |
| Comprehensive result - Total change in net worth | -10,002 | -108,940 | -105,155 | -194,698 | |
| Net operating balance | -10,974 | -103,469 | -105,842 | -197,888 | |
| Net acquisition of non-financial assets | |||||
| Purchases of non-financial assets | 1,529 | 4,058 | 4,510 | 18,904 | |
| less Sales of non-financial assets | 6 | 39 | 46 | 467 | |
| less Depreciation | 928 | 3,696 | 3,997 | 12,037 | |
| plus Change in inventories | 1,159 | 1,059 | 53 | 1,422 | |
| plus Other movements in non-financial assets | 7 | 21 | 10 | -4 | |
| Total net acquisition of non-financial assets | 1,760 | 1,403 | 530 | 7,818 | |
| Fiscal balance (Net lending/borrowing)(d) | -12,735 | -104,873 | -106,372 | -205,706 |
*As published in the 2020-21 Budget.
(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) From 2020-21, the value of Debt Not Expected to be Repaid on initial recognition of income contingent concessional loans is reported as Other Financing costs rather than as a valuation adjustment. This change is consistent with Australian Accounting Standards and brings the accounting treatment of income contingent concessional loans into line with other concessional loans.
(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 October 2020 $m | BUDGET ESTIMATE* as at 30 June 2021 $m | |
|---|---|---|
| Assets | ||
| Financial assets | ||
| Cash and deposits | 11,111 | 5,780 |
| Advances paid | 82,138 | 87,054 |
| Investments, loans and placements | 265,259 | 218,509 |
| Other receivables | 67,305 | 67,027 |
| Equity investments | ||
| Investments in other public sector entities | 63,623 | 63,617 |
| Equity accounted investments | 3,447 | 3,547 |
| Investments - shares | 63,561 | 67,416 |
| Total financial assets | 556,445 | 512,949 |
| Non-financial assets | ||
| Land | 11,742 | 11,742 |
| Buildings | 42,616 | 43,521 |
| Plant, equipment and infrastructure | 89,698 | 94,047 |
| Inventories | 10,814 | 11,047 |
| Intangibles | 9,196 | 10,135 |
| Investment properties | 215 | 218 |
| Biological assets | 28 | 28 |
| Heritage and cultural assets | 11,974 | 11,994 |
| Assets held for sale | 246 | 241 |
| Other non-financial assets | 58 | 34 |
| Total non-financial assets | 176,588 | 183,007 |
| Total assets | 733,032 | 695,956 |
| Liabilities | ||
| Interest bearing liabilities | ||
| Deposits held | 344 | 484 |
| Government securities | 923,519 | 978,283 |
| Loans | 17,355 | 16,928 |
| Lease liabilities | 19,333 | 18,893 |
| Total interest bearing liabilities | 960,550 | 1,014,588 |
| Provisions and payables | ||
| Superannuation liability(a) | 433,119 | 236,690 |
| Other employee liabilities | 32,628 | 33,097 |
| Suppliers payables | 6,618 | 8,033 |
| Personal benefits payables | 3,565 | 3,146 |
| Subsidies payables | 1,097 | 998 |
| Grants payables | 2,118 | 2,908 |
| Other payables | 6,332 | 2,351 |
| Provisions | 60,837 | 51,575 |
| Total provisions and payables | 546,313 | 338,798 |
| Total liabilities | 1,506,864 | 1,353,385 |
| Net worth(b) | -773,831 | -657,429 |
| Net financial worth(c) | -950,419 | -840,436 |
| Net financial liabilities(d) | 1,014,042 | 904,053 |
| Net debt(e) | 602,042 | 703,245 |
*As published in the 2020-21 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 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.
(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 2020-2021 October $m | ACTUAL 2020-2021 YTD October $m | Budget Profile 2020-2021 YTD October $m | BUDGET ESTIMATE* 2020-2021 FULL YEAR $m | |
|---|---|---|---|---|
| Cash receipts from operating activities | ||||
| Taxes received | 35,785 | 138,000 | 138,570 | 424,643 |
| Receipts from sales of goods and services | 3,392 | 7,196 | 7,063 | 16,538 |
| Interest receipts | 360 | 1,185 | 1,503 | 4,133 |
| Dividends and income tax equivalents | 338 | 4,465 | 4,335 | 6,837 |
| Other receipts | 1,701 | 4,453 | 4,305 | 11,140 |
| Total operating receipts | 41,577 | 155,299 | 155,776 | 463,291 |
| Cash payments for operating activities | ||||
| Payments for employees(b) | -3,238 | -11,371 | -11,280 | -32,530 |
| Payments for goods and services | -11,525 | -46,486 | -47,058 | -148,237 |
| Grants and subsidies paid | -30,781 | -124,791 | -126,015 | -285,970 |
| Interest paid | -3,233 | -4,702 | -4,873 | -17,230 |
| Personal benefit payments | -14,047 | -65,097 | -66,729 | -166,482 |
| Other payments(b) | -563 | -2,306 | -2,553 | -7,543 |
| Total operating payments | -63,387 | -254,754 | -258,508 | -657,992 |
| Net cash flows from operating activities | -21,810 | -99,455 | -102,732 | -194,701 |
| Cash flows from investments in non-financial assets | ||||
| Sales of non-financial assets | 11 | 56 | 46 | 473 |
| Purchases of non-financial assets | -1,156 | -3,817 | -4,104 | -17,075 |
| Net cash flows from investments in non-financial assets | -1,145 | -3,761 | -4,058 | -16,601 |
| Net cash flows from investments in financial assets for policy purposes | -496 | -1,993 | -2,595 | -16,375 |
| Net cash flows from investments in financial assets for liquidity purposes | 12,738 | -26,347 | 9,890 | 27,799 |
| Cash flows from financing activities | ||||
| Borrowing (net) | 15,553 | 134,752 | 100,292 | 203,311 |
| Other financing (net) | -1,196 | -1,537 | -1,462 | -7,105 |
| Net cash flows from financing activities | 14,357 | 133,214 | 98,830 | 196,206 |
| Net increase/(decrease) in cash held | 3,644 | 1,658 | -666 | -3,673 |
| GFS cash surplus(+)/deficit(-)(c) | -22,955 | -103,216 | -106,790 | -211,303 |
| plus Net cash flows from financing activities for leases(d) | -242 | -836 | -814 | -2,351 |
| Equals underlying cash balance(e) | -23,197 | -104,052 | -107,605 | -213,654 |
| plus Net cash flows from investments in financial assets for policy purposes | -496 | -1,993 | -2,595 | -16,375 |
| Equals headline cash balance | -23,693 | -106,046 | -110,200 | -230,029 |
*As published in the 2020-21 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) 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 October $m | ACTUAL 2020-2021 YTD October $m | Budget Profile 2020-2021 YTD October $m | BUDGET ESTIMATE* 2020-2021 FULL YEAR $m | ||
|---|---|---|---|---|---|
| Individuals and other withholding taxes | |||||
| Gross income tax withholding | 17,920 | 74,475 | 74,986 | 212,300 | |
| Gross other individuals | 5,106 | 16,323 | 17,496 | 47,300 | |
| less Refunds | 3,655 | 23,180 | 23,573 | 37,400 | |
| Total individuals and other withholding taxation | 19,371 | 67,618 | 68,910 | 222,200 | |
| Fringe benefits tax | 845 | 1,840 | 1,844 | 3,880 | |
| Company tax | 5,350 | 26,476 | 28,336 | 86,200 | |
| Superannuation fund taxes | 1,166 | 3,322 | 2,813 | 8,180 | |
| Petroleum resource rent tax | 123 | 292 | 459 | 870 | |
| Total income taxation revenue | 26,856 | 99,548 | 102,363 | 321,330 |
*As published in the 2020-21 Budget.
Note 2: Indirect Tax
| ACTUAL 2020-2021 October $m | ACTUAL 2020-2021 YTD October $m | Budget Profile 2020-2021 YTD October $m | BUDGET ESTIMATE* 2020-2021 FULL YEAR $m | ||
|---|---|---|---|---|---|
| Goods and services tax | 6,424 | 22,593 | 22,343 | 62,970 | |
| Wine equalisation tax | 70 | 315 | 312 | 1,060 | |
| Luxury car tax | 56 | 224 | 207 | 540 | |
| Excise duty | 1,867 | 7,684 | 7,536 | 22,760 | |
| Customs duty | 1,309 | 5,714 | 5,799 | 18,840 | |
| Other indirect tax | 471 | 2,396 | 2,024 | 7,413 | |
| Total indirect taxation revenue | 10,197 | 38,927 | 38,221 | 113,583 |
*As published in the 2020-21 Budget.
Note 3: Total expenses by function
| ACTUAL 2020-2021 October $m | ACTUAL 2020-2021 YTD October $m | BUDGET ESTIMATE* 2020-2021 FULL YEAR $m | |
|---|---|---|---|
| Expenses by function | |||
| General public services | 2,520 | 9,722 | 31,764 |
| Defence | 2,658 | 10,147 | 34,415 |
| Public order and safety | 479 | 2,114 | 6,212 |
| Education | 5,969 | 16,330 | 41,742 |
| Health | 7,820 | 31,712 | 93,771 |
| Social security and welfare | 18,634 | 83,814 | 227,529 |
| Housing and community amenities | 469 | 1,538 | 7,086 |
| Recreation and culture | 305 | 1,239 | 4,364 |
| Fuel and energy | 726 | 2,750 | 8,771 |
| Agriculture, forestry and fishing | 202 | 881 | 3,913 |
| Mining, manufacturing and construction | 240 | 911 | 3,306 |
| Transport and communication | 299 | 1,361 | 13,060 |
| Other economic affairs | 5,935 | 59,523 | 97,948 |
| Other purposes | |||
| Public debt interest | 1,326 | 5,525 | 16,804 |
| Nominal superannuation interest | 584 | 2,335 | 7,004 |
| General purpose inter-government transactions | 4,637 | 25,593 | 64,092 |
| Natural disaster relief | 0 | 0 | 482 |
| Contingency reserve | 0 | 0 | 8,068 |
| Total expenses | 52,801 | 255,494 | 670,330 |
*As published in the 2020-21 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: