Colour head shot of Katy Gallagher, current Minister for Finance.

Senator the Hon Katy Gallagher

Minister for Finance

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

Date

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)54.4298.2289.4607.2
Payments(c)57.3312.9315.7644.1
Underlying cash balance-2.9-14.7-26.2-36.9
Headline cash balance-6.1-19.8-32.4-49.6
Revenue51.1305.9298.5625.0
Expenses55.3310.6314.3650.9
Net operating balance-4.2-4.8-15.9-25.9
Net capital investment0.92.73.812.8
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

 NoteACTUAL
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 revenue1, 248,356281,680275,222577,868
Sales of goods and services 7269,8239,60618,371
Interest income 7204,2113,8138,192
Dividend and distribution income 5012,5082,6355,695
Other 7897,6487,17814,891
Total revenue 51,093305,871298,455625,016
Expenses     
Gross operating expenses     
Wages and salaries(a) 1,88411,67911,78024,201
Superannuation 7634,5734,5128,912
Depreciation and amortisation 1,0395,8915,91312,111
Supply of goods and services 14,95284,59786,108176,526
Other operating expenses(a) 6604,5874,4459,186
Total gross operating expenses 19,298111,327112,759230,936
Superannuation interest expense 1,0226,1326,13212,264
Interest expenses 2,08211,78811,73526,188
Current transfers     
Current grants 18,23493,96095,578196,498
Subsidy expenses 1,5148,1777,89516,213
Personal benefits 12,17074,16574,233146,940
Total current transfers 31,918176,302177,706359,651
Capital transfers     
Mutually agreed write-downs 2341,5551,5392,676
Other capital grants 7263,5404,46819,207
Total capital transfers 9605,0956,00721,883
Total expenses355,280310,644314,339650,922
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 -2102116204
Actuarial revaluations 01-6183
Net foreign exchange gains -135-177-25-573
Net swap interest received -148-1,414-9880
Market valuation of debt 21,58513,4613,339-2,434
Other gains/(losses) -4,901-4882,2194,761
Total other economic flows
- included in operating result
 16,2167,580369-5,962
Operating Result(b) 12,0292,807-15,516-31,867
Non-owner movements in equity     
Revaluation of equity investments 000-92
Actuarial revaluations 000-19,774
Other economic revaluations 55-1,0324025
Total other economic flows
- included in equity
 55-1,032402-19,860
Comprehensive result
- Total change in net worth
 12,0841,774-15,114-51,728
Net operating balance -4,187-4,773-15,885-25,905
Net acquisition of non-financial assets     
Purchases of non-financial assets 1,4457,5529,29823,317
less Sales of non-financial assets 101112206
less Depreciation 1,0395,8915,91312,111
plus Change in inventories 4561,1184701,788
plus Other movements in non-financial assets 13-3-6
Total net acquisition of non-financial assets 8532,6713,85012,781
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 deposits63,12154,975
Advances paid73,29076,622
Investments, loans and placements214,948225,772
Other receivables85,41374,640
Equity investments  
Investments in other public sector entities41,14143,757
Equity accounted investments4,8194,175
Investments - shares70,36880,564
Total financial assets553,101560,506
Non-financial assets  
Land12,90812,876
Buildings45,68748,082
Plant, equipment and infrastructure100,137106,034
Inventories12,33412,895
Intangibles11,49812,511
Investment properties208207
Biological assets1516
Heritage and cultural assets12,63212,645
Assets held for sale305177
Other non-financial assets2516
Total non-financial assets195,747205,460
Total assets748,849765,966
Liabilities  
Interest bearing liabilities  
Deposits held344406
Government securities827,968877,947
Loans29,88132,204
Lease liabilities18,53618,997
Total interest bearing liabilities876,729929,554
Provisions and payables  
Superannuation liability(a)325,876271,366
Other employee liabilities35,33235,535
Suppliers payables6,65410,908
Personal benefits payables3,4613,044
Subsidies payables1,249884
Grants payables2,0582,997
Other payables14,5474,240
Provisions61,96963,101
Total provisions and payables451,146392,076
Total liabilities1,327,8751,321,631
Net worth(b)-579,027-555,665
Net financial worth(c)-774,774-761,125
Net financial liabilities(d)815,915804,882
Net debt(e)525,369572,185

*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 received49,753272,993266,875562,858
Receipts from sales of goods and services2,06111,5229,84618,550
Interest receipts2892,8572,7145,275
Dividends, distributions and income tax equivalents5732,7472,7405,677
Other receipts1,6867,9167,12614,533
Total operating receipts54,361298,034289,301606,893
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 assets3162133336
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 purposes1,922-3,678-3,965-17,780
Cash flows from financing activities    
Borrowing (net)4,450-4,560-45132,084
Other financing (net)-301-4,868-4,636-6,947
Net cash flows from financing activities4,148-9,427-5,08725,137
Net increase/(decrease) in cash held238-31,641-40,188-39,788
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 withholding23,320133,234130,104262,800 
Gross other individuals2,36929,74730,24865,600 
less Refunds1,50632,13532,21941,800 
Total individuals and other withholding taxation24,183130,846128,133286,600 
Fringe benefits tax111,7591,7753,440 
Company tax13,62868,81866,040129,900 
Superannuation fund taxes1,4188,2598,49912,670 
Petroleum resource rent tax31,4361,4282,790 
Total income taxation revenue39,243211,118205,874435,400 

*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 tax4,42043,50742,70986,820 
Wine equalisation tax1045685701,210 
Luxury car tax835805481,120 
Excise duty2,36911,92312,02226,070 
Customs duty1,3258,8658,62316,820 
Other indirect tax8125,1184,87510,428 
Total indirect taxation revenue9,11370,56369,348142,468 

*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 services2,24313,23330,280
Defence3,06419,33038,303
Public order and safety5743,8447,148
Education2,43921,99946,317
Health7,76851,486109,694
Social security and welfare20,664113,551228,791
Housing and community amenities4432,5887,826
Recreation and culture4052,1834,880
Fuel and energy7843,8229,134
Agriculture, forestry and fishing2251,5185,034
Mining, manufacturing and construction3221,9004,945
Transport and communication8763,33215,351
Other economic affairs1,0567,03713,920
Other purposes   
Public debt interest1,90610,87722,421
Nominal superannuation interest1,0226,13212,264
General purpose inter-government transactions11,45646,30890,259
Natural disaster relief331,5033,554
Contingency reserve00801
Total expenses55,280310,644650,922

*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 .

[ENDS]