Australian Government General Government Sector Monthly Financial Statements December 2019

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Senator the Hon. Mathias Cormann
Minister for Finance
Leader of the Government in the Senate

MC 05/20
Friday, 31 January 2020

KEY POINTS

  • The Monthly Financial Statements for December 2019 report the budget position against the expected monthly profile for the 2019-20 financial year through to 31 December 2019, 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 December 2019 was a deficit of $15,170 million against the 2019-20 MYEFO profile deficit of $14,049 million.
  • The fiscal balance for the 2019-20 financial year to 31 December 2019 was a deficit of $11,947 million against the 2019-20 MYEFO profile deficit of $11,296 million.
  • Net debt as at 31 December 2019 was $403,036 million. The movement in net debt and net financial worth relative to the balance at the end of November primarily reflects the impact of the new Australian Accounting Standard AASB 16 – Leases, which was implemented for the first time in the December 2019 reporting period.
AGGREGATES(a) ACTUAL
2019-2020
December
$m
ACTUAL
2019-2020
YTD December
$m
MYEFO Profile
2019-2020
YTD December
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue 39,951 239,007 240,064 511,148
Expenses 41,380 249,220 249,834 503,180
Net operating balance -1,429 -10,213 -9,770 7,968
Net capital investment 1,068 1,734 1,526 4,161
Fiscal balance -2,497 -11,947 -11,296 3,807
Receipts(b) 40,664 236,165 236,474 502,472
less Payments(c) 41,431 248,376 247,676 491,976
less Net Future Fund earnings 556 2,958 2,847 5,468
Underlying cash balance(d) -1,322 -15,170 -14,049 5,028
Headline cash balance -2,649 -18,101 -15,822 -2,841
Total assets 638,368 655,554
Total liabilities 1,185,187 1,001,597
Net worth(e) -546,819 -346,042
Net debt(f) 403,036 392,305

*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 December 2019 was a deficit of $15,170 million, which is $1,121 million higher than the 2019-20 MYEFO profile deficit of $14,049 million.

  • Receipts
    Total receipts were $309 million lower than the 2019-20 MYEFO profile.
  • Payments
    Total payments were $701 million higher than the 2019-20 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 31 December 2019 was a deficit of $10,213 million, which is $443 million higher than the 2019-20 MYEFO profile deficit of $9,770 million. The difference results from lower than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 31 December 2019 was a deficit of $11,947 million, which is $651 million higher than the 2019-20 MYEFO profile deficit of $11,296 million. The difference results from lower than expected revenue, lower expenses and higher net capital investment.

Assets and Liabilities

As at 31 December 2019:

  • net worth is negative $546,819 million;
  • net debt is $403,036 million; and
  • net financial liabilities are $776,394 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
December
$m
ACTUAL
2019-2020
YTD December
$m
MYEFO Profile
2019-2020
YTD December
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue
Taxation revenue 1,2 36,591 219,926 221,823 472,815
Sales of goods and services 1,550 7,606 7,422 14,980
Interest income 386 2,189 2,087 5,247
Dividend income 534 2,941 2,792 6,383
Other 889 6,346 5,940 11,723
Total revenue 39,951 239,007 240,064 511,148
Expenses
Gross operating expenses
Wages and salaries(a) 1,606 10,124 10,441 21,366
Superannuation 726 5,546 5,823 12,357
Depreciation and amortisation(b) 1,810 5,596 5,940 11,446
Supply of goods and services(b) 9,733 62,145 61,678 124,029
Other operating expenses(a) 504 3,689 3,604 7,236
Total gross operating expenses 14,379 87,100 87,486 176,434
Superannuation interest expense 719 3,996 3,906 7,715
Interest expenses(b) 1,589 8,743 8,734 18,215
Current transfers
Current grants 12,646 76,096 75,974 149,813
Subsidy expenses 999 5,986 5,931 12,136
Personal benefits 10,574 65,317 65,601 128,282
Total current transfers 24,219 147,399 147,506 290,232
Capital transfers
Mutually agreed write-downs 190 802 891 1,416
Other capital grants 284 1,180 1,311 9,168
Total capital transfers 474 1,982 2,202 10,584
Total expenses 3 41,380 249,220 249,834 503,180
Net operating balance -1,429 -10,213 -9,770 7,968
Other economic flows
- included in operating result
Net write-downs of assets -930 -3,247 -3,618 -6,933
Assets recognised for the first time 12 69 162 201
Actuarial revaluations 0 0 41 81
Net foreign exchange gains 1,765 155 -1 -92
Net swap interest received 21 -247 -268 -210
Market valuation of debt 15,002 5,889 -5,443 -1,129
Other gains/(losses) -2,325 2,096 3,068 5,131
Total other economic flows
- included in operating result
13,546 4,715 -6,060 -2,950
Operating Result(c) 12,116 -5,498 -15,830 5,018
Non-owner movements in equity
Revaluation of equity investments 15 12 -6 -3,928
Actuarial revaluations 0 0 0 1,879
Other economic revaluations 849 2,125 1,259 195
Total other economic flows
- included in equity
864 2,138 1,253 -1,853
Comprehensive result
- Total change in net worth
12,981 -3,360 -14,577 3,164
Net operating balance -1,429 -10,213 -9,770 7,968
Net acquisition of non-financial assets (b)
Purchases of non-financial assets 2,796 7,421 7,556 16,868
less Sales of non-financial assets 30 81 67 1,219
less Depreciation 1,810 5,596 5,940 11,446
plus Change in inventories 109 -42 -45 -40
plus Other movements in non-financial assets 3 32 22 -3
Total net acquisition of non-financial assets 1,068 1,734 1,526 4,161
Fiscal balance (Net lending/borrowing)(d) -2,497 -11,947 -11,296 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 December 2019
$m
MYEFO ESTIMATE*
as at 30 June 2020
$m
Assets
Financial assets
Cash and deposits 12,141 7,204
Advances paid 79,597 85,155
Investments, loans and placements 185,873 198,528
Other receivables 58,491 58,577
Equity investments
Investments in other public sector entities 57,861 55,640
Equity accounted investments 3,545 3,677
Investments - shares 69,146 73,969
Total financial assets 466,653 482,751
Non-financial assets
Land 11,950 11,824
Buildings 43,269 43,415
Plant, equipment and infrastructure 86,575 87,832
Inventories 8,869 8,488
Intangibles 8,672 9,105
Investment properties 197 160
Biological assets 22 21
Heritage and cultural assets 11,782 11,695
Assets held for sale 312 231
Other non-financial assets 67 32
Total non-financial assets(a) 171,715 172,803
Total assets 638,368 655,554
Liabilities
Interest bearing liabilities
Deposits held 384 388
Government securities 642,527 645,907
Loans 18,069 17,759
Lease liabilities(a) 19,667 19,139
Total interest bearing liabilities 680,646 683,193
Provisions and payables
Superannuation liability(b) 419,778 230,774
Other employee liabilities 26,655 26,663
Suppliers payables 5,650 7,579
Personal benefits payables 3,011 3,753
Subsidies payables 4,258 645
Grants payables 3,286 4,051
Other payables 4,206 2,186
Provisions 37,695 42,752
Total provisions and payables 504,540 318,404
Total liabilities 1,185,187 1,001,597
Net worth(c) -546,819 -346,042
Net financial worth(d) -718,533 -518,845
Net financial liabilities(e) 776,394 574,486
Net debt(f) 403,036 392,305

*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
December
$m
ACTUAL
2019-2020
YTD December
$m
MYEFO Profile
2019-2020
YTD December
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Cash receipts from operating activities
Taxes received 37,651 213,745 214,416 463,791
Receipts from sales of goods and services 1,019 7,909 8,251 15,142
Interest receipts 314 2,188 2,359 5,134
Dividends and income tax equivalents 574 4,758 4,475 6,792
Other receipts 1,094 7,515 6,920 9,949
Total operating receipts 40,652 236,115 236,422 500,809
Cash payments for operating activities
Payments for employees(b) -2,595 -15,140 -15,128 -31,152
Payments for goods and services(c) -10,722 -65,587 -64,666 -122,024
Grants and subsidies paid -12,890 -82,721 -82,697 -170,400
Interest paid(c) -1,013 -8,149 -8,229 -16,564
Personal benefit payments -11,164 -66,400 -66,898 -128,416
Other payments(b) -498 -3,436 -3,376 -6,768
Total operating payments -38,882 -241,434 -240,994 -475,325
Net cash flows from operating activities 1,770 -5,319 -4,572 25,483
Cash flows from investments in non-financial assets
Sales of non-financial assets 12 50 52 1,663
Purchases of non-financial assets -1,676 -6,070 -5,536 -14,304
Net cash flows from investments in non-financial assets -1,664 -6,020 -5,484 -12,641
Net cash flows from investments in financial assets for policy purposes -1,882 -5,890 -4,620 -13,336
Net cash flows from investments in financial assets for liquidity purposes -1,338 53 -989 -15,923
Cash flows from financing activities
Borrowing (net) 6,967 23,279 19,525 20,271
Other financing (net)(c) -525 -2,567 -2,858 -5,257
Net cash flows from financing activities 6,441 20,712 16,667 15,014
Net increase/(decrease) in cash held 3,327 3,536 1,002 -1,403
GFS cash surplus(+)/deficit(-)(d) 106 -11,339 -10,056 12,842
plus Net cash flows from financing activities for leases(e) -873 -873 -1,146 -2,347
less Net Future Fund earnings 556 2,958 2,847 5,468
Equals underlying cash balance(f) -1,322 -15,170 -14,049 5,028
plus Net cash flows from investments in financial assets for policy purposes -1,882 -5,890 -4,620 -13,336
plus Net Future Fund earnings 556 2,958 2,847 5,468
Equals headline cash balance -2,649 -18,101 -15,822 -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.

Note 1: Income Tax

ACTUAL
2019-2020
December
$m
ACTUAL
2019-2020
YTD December
$m
MYEFO Profile
2019-2020
YTD December
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Individuals and other withholding taxes
Gross income tax withholding 18,107 108,432 108,070 220,300
Gross other individuals 1,434 21,749 22,486 52,900
less Refunds 1,289 28,025 28,022 36,800
Total individuals and other withholding taxation 18,252 102,156 102,535 236,400
Fringe benefits tax 90 2,007 1,964 4,040
Company tax 8,394 46,371 46,887 99,800
Superannuation fund taxes 1,268 5,774 5,993 8,460
Petroleum resource rent tax -6 588 587 1,130
Total income taxation revenue 27,998 156,896 157,966 349,830

*As published in the 2019-20 MYEFO.

Note 2: Indirect Tax

ACTUAL
2019-2020
December
$m
ACTUAL
2019-2020
YTD December
$m
MYEFO Profile
2019-2020
YTD December
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Goods and services tax 4,332 34,548 34,724 67,230
Wine equalisation tax 97 517 535 1,110
Luxury car tax 52 332 328 670
Excise duty 2,415 12,459 12,368 23,900
Customs duty 1,047 10,456 11,291 20,800
Other indirect tax 650 4,717 4,610 9,275
Total indirect taxation revenue 8,593 63,029 63,857 122,985

*As published in the 2019-20 MYEFO.

Note 3: Total expenses by function

ACTUAL
2019-2020
December
$m
ACTUAL
2019-2020
YTD December
$m
MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Expenses by function
General public services 1,739 12,544 30,157
Defence 2,213 15,919 32,783
Public order and safety 428 2,878 5,966
Education 2,733 18,099 35,846
Health 6,265 41,376 83,425
Social security and welfare 17,209 93,608 180,782
Housing and community amenities 350 2,150 5,715
Recreation and culture 227 1,496 3,989
Fuel and energy 670 3,946 8,161
Agriculture, forestry and fishing 177 1,139 3,025
Mining, manufacturing and construction 239 1,357 3,073
Transport and communication 440 1,886 8,671
Other economic affairs 752 4,765 10,250
Other purposes
Public debt interest 1,566 8,463 16,746
Nominal superannuation interest 718 3,996 7,715
General purpose inter-government transactions 5,655 35,596 68,547
Natural disaster relief 0 0 38
Contingency reserve 0 0 -1,707
Total expenses 41,380 249,220 503,180

*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.


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