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22/12/2024

Australian Government General Government Sector Monthly Financial Statements July, August and September 2020

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

MC 102/20
Friday, 23 October 2020

KEY POINTS

  • The Monthly Financial Statements for July, August and September 2020 report the budget position against the expected monthly profile for the 2020-21 financial year through to 30 September 2020, based on the 2020-21 Budget estimates published in October 2020. 
  • The July, August and September 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 30 September 2020 was a deficit of $80.9 billion against the 2020-21 Budget profile deficit of $83.3 billion.
  • The fiscal balance for the 2020-21 financial year to 30 September 2020 was a deficit of $92.1 billion against the 2020-21 Budget profile deficit of $92.0 billion.
AGGREGATES ACTUAL
2020-2021
July
$b 		ACTUAL
2020-2021
YTD August
$b 		ACTUAL
2020-2021
September
$b 		ACTUAL
2020-2021
YTD September
$b 		Budget Profile
2020-2021
YTD September
$b 		BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$b
Revenue 37.4 76.8 33.3 110.2 110.0 472.4
Expenses 74.4 135.7 67.0 202.7 202.2 670.3
Net operating balance -37.0 -58.9 -33.6 -92.5 -92.2 -197.9
Net capital investment -0.6 -0.5 0.2 -0.4 -0.1 7.8
Fiscal balance -36.3 -58.3 -33.8 -92.1 -92.0 -205.7
Receipts(a) 37.3 76.4 37.4 113.8 113.6 463.8
Payments(b) 70.3 131.5 63.1 194.6 196.9 677.4
Underlying cash balance -33.0 -55.1 -25.7 -80.9 -83.3 -213.7
Headline cash balance -33.4 -56.1 -26.2 -82.4 -85.0 -230.0
Total assets 708.7 713.0 738.5 696.0
Total liabilities 1,415.2 1,432.3 1,502.3 1,353.4
Net worth(c) -706.5 -719.3 -763.8 -657.4
Net debt(d) 532.1 547.4 580.8 703.2

*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 30 September 2020 was a deficit of $80.9 billion, which is $2.5 billion lower than the 2020-21 Budget profile deficit of $83.3 billion.

  • Receipts
    Total receipts were $0.2 billion higher than the 2020-21 Budget profile.
  • Payments
    Total payments were $2.3 billion lower than the 2020-21 Budget profile.

Net Operating Balance

The net operating balance for the year to 30 September 2020 was a deficit of $92.5 billion, which is $0.3 billion higher than the 2020-21 Budget profile deficit of $92.2 billion. The difference results from higher than expected revenue and expenses.

Fiscal Balance

The fiscal balance for the year to 30 September 2020 was a deficit of $92.1 billion, which is $0.1 billion higher than the 2020-21 Budget profile deficit of $92.0 billion. The difference results from higher than expected revenue and expenses, and lower than expected net capital investment.

Assets and Liabilities

As at 30 September 2020:

  • net worth is negative $763.8 billion;
  • net debt is $580.8 billion; and
  • net financial liabilities are $1,002.3 billion.
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
2020-2021
July
$m 		ACTUAL
2020-2021
YTD August
$m 		ACTUAL
2020-2021
September
$m 		ACTUAL
2020-2021
YTD September
$m 		Budget Profile
2020-2021
YTD September
$m 		BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Revenue
Taxation revenue 1,2 34,397 70,651 30,771 101,422 101,063 434,913
Sales of goods and services 1,421 2,699 1,324 4,023 4,009 15,874
Interest income 323 627 120 746 1,053 4,181
Dividend income 508 1,126 411 1,537 1,411 6,419
Other 778 1,746 724 2,470 2,473 11,054
Total revenue 37,427 76,848 33,349 110,197 110,010 472,442
Expenses
Gross operating expenses
Wages and salaries(a) 1,812 3,611 1,834 5,444 5,387 21,593
Superannuation 1,063 2,104 1,040 3,144 3,125 12,433
Depreciation and amortisation 892 2,016 751 2,768 2,711 12,037
Supply of goods and services 12,004 22,344 11,327 33,672 34,014 150,520
Other operating expenses(a) 664 1,413 804 2,217 2,156 8,342
Total gross operating expenses 16,435 31,488 15,756 47,245 47,393 204,925
Superannuation interest expense 606 1,211 540 1,751 1,790 7,004
Interest expenses(b) 1,466 2,939 1,683 4,623 4,572 19,821
Current transfers
Current grants 19,385 31,461 10,377 41,838 42,004 157,257
Subsidy expenses 15,019 31,201 23,904 55,105 55,215 99,546
Personal benefits 20,466 35,923 14,048 49,971 49,832 165,845
Total current transfers 54,870 98,585 48,329 146,914 147,051 422,649
Capital transfers
Mutually agreed write-downs 1,008 1,096 362 1,457 617 1,496
Other capital grants 32 410 292 702 737 14,435
Total capital transfers 1,040 1,506 654 2,160 1,354 15,931
Total expenses 3 74,416 135,730 66,962 202,692 202,161 670,330
Net operating balance -36,988 -58,882 -33,613 -92,495 -92,151 -197,888
Other economic flows
- included in operating result
Net write-downs of assets -333 -725 85 -640 -791 -5,859
Assets recognised for the first time 0 23 21 45 44 173
Actuarial revaluations 0 0 0 0 0 111
Net foreign exchange gains 1,273 2,074 -2,057 16 23 -59
Net swap interest received 220 490 135 625 473 0
Market valuation of debt -3,599 4,469 -9,011 -4,542 141 5,815
Other gains/(losses)(b) -792 -1,662 2,358 696 478 7,639
Total other economic flows
- included in operating result 		-3,230 4,669 -8,469 -3,800 367 7,821
Operating Result(c) -40,219 -54,213 -42,082 -96,295 -91,784 -190,068
Non-owner movements in equity
Revaluation of equity investments 0 0 -1 -1 0 -4,415
Actuarial revaluations 0 0 0 0 0 54
Other economic revaluations -1,429 -235 -2,407 -2,642 -538 -269
Total other economic flows
- included in equity 		-1,429 -235 -2,407 -2,642 -538 -4,630
Comprehensive result
- Total change in net worth 		-41,648 -54,448 -44,490 -98,937 -92,322 -194,698
Net operating balance -36,988 -58,882 -33,613 -92,495 -92,151 -197,888
Net acquisition of non-financial assets
Purchases of non-financial assets 452 1,662 868 2,529 2,843 18,904
less Sales of non-financial assets 13 20 13 33 34 467
less Depreciation 892 2,016 751 2,768 2,711 12,037
plus Change in inventories -201 -177 77 -100 -249 1,422
plus Other movements in non-financial assets 5 10 4 14 7 -4
Total net acquisition of non-financial assets -648 -542 184 -357 -144 7,818
Fiscal balance (Net lending/borrowing)(d) -36,340 -58,341 -33,797 -92,138 -92,007 -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 July 2020
$m 		ACTUAL
as at 31 August 2020
$m 		ACTUAL
as at 30 September 2020
$m 		BUDGET ESTIMATE
*
as at 30 June 2021
$m
Assets
Financial assets
Cash and deposits 10,699 9,336 7,467 5,780
Advances paid 81,769 81,831 81,918 87,054
Investments, loans and placements 238,863 244,438 278,153 218,509
Other receivables 74,846 74,047 68,636 67,027
Equity investments
Investments in other public sector entities 64,141 64,500 63,400 63,617
Equity accounted investments 3,411 3,257 3,436 3,547
Investments - shares 59,883 60,595 60,410 67,416
Total financial assets 533,611 538,004 563,419 512,949
Non-financial assets
Land 11,724 11,764 11,741 11,742
Buildings 42,942 42,812 42,550 43,521
Plant, equipment and infrastructure 89,001 89,000 89,388 94,047
Inventories 9,820 9,821 9,694 11,047
Intangibles 9,090 9,015 9,158 10,135
Investment properties 216 218 214 218
Biological assets 30 29 28 28
Heritage and cultural assets 11,918 12,018 11,975 11,994
Assets held for sale 262 265 248 241
Other non-financial assets 42 48 51 34
Total non-financial assets 175,045 174,989 175,047 183,007
Total assets 708,656 712,993 738,466 695,956
Liabilities
Interest bearing liabilities
Deposits held 329 296 315 484
Government securities 825,690 845,490 911,341 978,283
Loans 17,780 17,784 17,302 16,928
Lease liabilities 19,593 19,415 19,422 18,893
Total interest bearing liabilities 863,393 882,985 948,381 1,014,588
Provisions and payables
Superannuation liability(a) 430,600 431,512 432,382 236,690
Other employee liabilities 32,448 32,818 33,068 33,097
Suppliers payables 7,566 6,520 6,261 8,033
Personal benefits payables 4,453 4,535 4,120 3,146
Subsidies payables 793 1,154 1,120 998
Grants payables 2,321 2,176 2,299 2,908
Other payables 4,898 4,211 6,163 2,351
Provisions 68,722 66,420 68,502 51,575
Total provisions and payables 551,802 549,348 553,915 338,798
Total liabilities 1,415,195 1,432,333 1,502,296 1,353,385
Net worth(b) -706,540 -719,340 -763,829 -657,429
Net financial worth(c) -881,585 -894,329 -938,876 -840,436
Net financial liabilities(d) 945,725 958,828 1,002,276 904,053
Net debt(e) 532,062 547,379 580,843 703,245

*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 AAS, 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
July
$m 		ACTUAL
2020-2021
YTD August
$m 		ACTUAL
2020-2021
September
$m 		ACTUAL
2020-2021
YTD September
$m 		Budget Profile
2020-2021
YTD September
$m 		BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Cash receipts from operating activities
Taxes received 33,062 69,898 32,316 102,214 101,621 424,643
Receipts from sales of goods and services 2,398 3,337 467 3,804 4,205 16,538
Interest receipts 378 651 174 824 1,146 4,133
Dividends and income tax equivalents 515 1,075 3,052 4,127 3,985 6,837
Other receipts 914 1,385 1,367 2,752 2,603 11,140
Total operating receipts 37,268 76,346 37,376 113,722 113,560 463,291
Cash payments for operating activities
Payments for employees(b) -2,723 -5,497 -2,636 -8,133 -8,343 -32,530
Payments for goods and services -13,658 -23,526 -11,434 -34,960 -35,601 -148,237
Grants and subsidies paid -30,809 -62,525 -31,485 -94,011 -95,132 -285,970
Interest paid -696 -814 -656 -1,470 -1,529 -17,230
Personal benefit payments -20,786 -35,851 -15,199 -51,050 -51,104 -166,482
Other payments(b) -1,039 -1,189 -555 -1,743 -1,774 -7,543
Total operating payments -69,711 -129,402 -61,965 -191,367 -193,483 -657,992
Net cash flows from operating activities -32,444 -53,055 -24,590 -77,645 -79,922 -194,701
Cash flows from investments in non-financial assets
Sales of non-financial assets 16 27 18 45 40 473
Purchases of non-financial assets -361 -1,661 -1,000 -2,661 -2,837 -17,075
Net cash flows from investments in non-financial assets -345 -1,634 -982 -2,616 -2,796 -16,601
Net cash flows from investments in financial assets for policy purposes -397 -999 -499 -1,497 -1,644 -16,375
Net cash flows from investments in financial assets for liquidity purposes -1,928 -7,259 -31,826 -39,085 -922 27,799
Cash flows from financing activities
Borrowing (net) 36,348 62,889 56,310 119,199 81,922 203,311
Other financing (net) 11 -59 -283 -342 -300 -7,105
Net cash flows from financing activities 36,359 62,830 56,027 118,857 81,622 196,206
Net increase/(decrease) in cash held 1,246 -117 -1,870 -1,986 -3,662 -3,673
GFS cash surplus(+)/deficit(-)(c) -32,788 -54,689 -25,572 -80,261 -82,719 -211,303
plus Net cash flows from financing activities for leases(d) -189 -428 -166 -594 -631 -2,351
Equals underlying cash balance(e) -32,977 -55,118 -25,738 -80,856 -83,349 -213,654
plus Net cash flows from investments in financial assets for policy purposes -397 -999 -499 -1,497 -1,644 -16,375
Equals headline cash balance -33,374 -56,116 -26,237 -82,353 -84,993 -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
July
$m 		ACTUAL
2020-2021
YTD August
$m 		ACTUAL
2020-2021
September
$m 		ACTUAL
2020-2021
YTD September
$m 		Budget Profile
2020-2021
YTD September
$m 		BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Individuals and other withholding taxes
Gross income tax withholding 17,828 37,609 18,946 56,555 56,555 212,300
Gross other individuals 5,734 9,858 1,359 11,217 11,217 47,300
less Refunds 8,936 15,301 4,224 19,525 19,525 37,400
Total individuals and other withholding taxation 14,626 32,165 16,081 48,247 48,247 222,200
Fringe benefits tax 819 967 28 995 995 3,880
Company tax 8,531 14,326 6,799 21,126 21,112 86,200
Superannuation fund taxes 736 1,773 383 2,156 2,156 8,180
Petroleum resource rent tax -5 129 40 169 169 870
Total income taxation revenue 24,707 49,360 23,332 72,692 72,678 321,330

*As published in the 2020-21 Budget.

Note 2: Indirect Tax

ACTUAL
2020-2021
July
$m 		ACTUAL
2020-2021
YTD August
$m 		ACTUAL
2020-2021
September
$m 		ACTUAL
2020-2021
YTD September
$m 		Budget Profile
2020-2021
YTD September
$m 		BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Goods and services tax 5,177 11,896 4,273 16,169 16,169 62,970
Wine equalisation tax 69 166 80 245 245 1,060
Luxury car tax 84 127 40 168 168 540
Excise duty 1,904 3,986 1,832 5,817 5,817 22,760
Customs duty 2,090 3,928 477 4,405 4,404 18,840
Other indirect tax 366 1,189 736 1,925 1,581 7,413
Total indirect taxation revenue 9,690 21,291 7,438 28,730 28,385 113,583

*As published in the 2020-21 Budget.

Note 3: Total expenses by function

ACTUAL
2020-2021
July
$m 		ACTUAL
2020-2021
YTD August
$m 		ACTUAL
2020-2021
September
$m 		ACTUAL
2020-2021
YTD September
$m 		BUDGET
ESTIMATE*
2020-2021
FULL YEAR
$m
Expenses by function
General public services 2,405 4,748 2,454 7,202 31,764
Defence 2,737 5,297 2,192 7,489 34,415
Public order and safety 684 1,190 444 1,634 6,212
Education 5,143 7,683 2,678 10,362 41,742
Health 8,393 16,264 7,628 23,892 93,771
Social security and welfare 26,493 45,920 19,260 65,180 227,529
Housing and community amenities 331 685 384 1,069 7,086
Recreation and culture 394 690 244 934 4,364
Fuel and energy 660 1,321 702 2,023 8,771
Agriculture, forestry and fishing 201 406 274 680 3,913
Mining, manufacturing and construction 203 420 251 671 3,306
Transport and communication 244 599 462 1,062 13,060
Other economic affairs 14,766 30,137 23,451 53,588 97,948
Other purposes
Public debt interest 1,446 2,871 1,328 4,199 16,804
Nominal superannuation interest 606 1,211 540 1,751 7,004
General purpose inter-government transactions 9,712 16,287 4,669 20,957 64,092
Natural disaster relief 0 0 0 0 482
Contingency reserve 0 0 0 0 8,068
Total expenses 74,416 135,730 66,962 202,692 670,330

*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:
http://data.gov.au/dataset/australian-government-general-government-sector-monthly-financial-statements-tables-and-data.

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