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22/12/2024

Australian Government General Government Sector Monthly Financial Statements May 2020

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

MC 81/20
Friday, 26 June 2020

KEY POINTS

  • The Monthly Financial Statements for May 2020 report the budget position against the expected monthly profile for the 2019-20 financial year through to 31 May 2020, based on the 2019-20 Mid-Year Economic and Fiscal Outlook (MYEFO) estimates published in December 2019.
  • The May 2020 year-to-date results include the impact of the Australian Government’s response to COVID-19.
  • The underlying cash balance for the 2019-20 financial year to 31 May 2020 was a deficit of $64,914 million against the 2019-20 MYEFO profile deficit of $4,046 million.
  • The fiscal balance for the 2019-20 financial year to 31 May 2020 was a deficit of $68,454 million against the 2019-20 MYEFO profile surplus of $2,976 million.
AGGREGATES(a) ACTUAL
2019-2020
May
$m 		ACTUAL
2019-2020
YTD May
$m 		MYEFO Profile
2019-2020
YTD May
$m 		MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue 43,870 447,598 465,734 511,148
Expenses 79,545 512,128 460,314 503,180
Net operating balance -35,675 -64,530 5,420 7,968
Net capital investment 1,641 3,924 2,443 4,161
Fiscal balance -37,316 -68,454 2,976 3,807
Receipts(b) 40,406 428,984 457,207 502,472
less Payments(c) 65,035 489,120 456,212 491,976
less Net Future Fund earnings 290 4,779 5,040 5,468
Underlying cash balance(d) -24,920 -64,914 -4,046 5,028
Headline cash balance -26,526 -72,009 -10,916 -2,841
Total assets 700,743 655,554
Total liabilities 1,324,952 1,001,597
Net worth(e) -624,209 -346,042
Net debt(f) 463,654 392,305

*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 May 2020 was a deficit of $64,914 million, which is $60,869 million higher than the 2019-20 MYEFO profile deficit of $4,046 million.

  • Receipts
    Total receipts were $28,223 million lower than the 2019-20 MYEFO profile, relating to lower taxation receipts ($26,838 million), mainly driven by company tax receipts (around $13.0 billion), individuals and other withholding tax receipts (around $5.9 billion), GST (around $4.9 billion) and superannuation funds tax receipts (around $1.6 billion). 
  • Payments
    Total payments were $32,908 million higher than the 2019-20 MYEFO profile, primarily reflecting the Australian Government’s response to COVID-19 including the following key decisions:
    • Boosting cash flow for employers
    • JobKeeper payments – eligible workers receive a fortnightly payment of $1,500 (before tax) through their employer
    • Economic stimulus payments – a one-off $750 stimulus payment to pensioners, social security, veteran and other income support recipients and eligible concession card holders
    • Coronavirus supplement - $550 a fortnight for eligible income support recipients
    • National Medical Stockpile – Purchase of Masks, Other Personal Protective Equipment and Pharmaceuticals
    • National partnership agreement on a joint COVID-19 public health response
    • Partnership with the private health sector to ensure viability and capacity during the COVID-19 response.

Net Operating Balance

The net operating balance for the year to 31 May 2020 was a deficit of $64,530 million, which is $69,950 million worse than the 2019-20 MYEFO profile surplus of $5,420 million. The difference results from lower than expected revenue and higher expenses.

Fiscal Balance

The fiscal balance for the year to 31 May 2020 was a deficit of $68,454 million, which is $71,431 million worse than the 2019-20 MYEFO profile surplus of $2,976 million. The difference results from revenue being $18,136 million lower than expected, expenses being $51,814 million higher than expected and higher net capital investment.

Assets and Liabilities

As at 31 May 2020:

  • net worth is negative $624,209 million;
  • net debt is $463,654 million; and
  • net financial liabilities are $859,443 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
May
$m 		ACTUAL
2019-2020
YTD May
$m 		MYEFO Profile
2019-2020
YTD May
$m 		MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Revenue
Taxation revenue 1, 2 41,376 414,651 433,006 472,815
Sales of goods and services 1,307 14,023 13,657 14,980
Interest income 265 3,453 4,400 5,247
Dividend income 238 4,771 4,849 6,383
Other 684 10,700 9,821 11,723
Total revenue 43,870 447,598 465,734 511,148
Expenses
Gross operating expenses
Wages and salaries(a) 1,867 18,963 19,243 21,366
Superannuation 1,080 11,364 11,258 12,357
Depreciation and amortisation(b) 1,012 10,971 10,972 11,446
Supply of goods and services(b) 11,145 113,137 113,062 124,029
Other operating expenses(a) 698 7,011 6,508 7,236
Total gross operating expenses 15,802 161,446 161,043 176,434
Superannuation interest expense 640 7,036 7,047 7,715
Interest expenses(b) 1,498 16,112 16,070 18,215
Current transfers
Current grants 13,395 140,715 138,301 149,813
Subsidy expenses 31,741 48,966 10,975 12,136
Personal benefits 15,091 130,030 118,141 128,282
Total current transfers 60,228 319,711 267,417 290,232
Capital transfers
Mutually agreed write-downs -77 3,063 1,347 1,416
Other capital grants 1,454 4,761 7,391 9,168
Total capital transfers 1,377 7,824 8,738 10,584
Total expenses 3 79,545 512,128 460,314 503,180
Net operating balance -35,675 -64,530 5,420 7,968
Other economic flows
- included in operating result
Net write-downs of assets -1,611 -13,593 -6,981 -6,933
Assets recognised for the first time 10 123 347 201
Actuarial revaluations 0 0 74 81
Net foreign exchange gains 965 -4,923 -2 -92
Net swap interest received -62 -927 -268 -210
Market valuation of debt -798 -10,047 -1,804 -1,129
Other gains/(losses) 245 7,949 4,798 5,131
Total other economic flows
- included in operating result 		-1,252 -21,417 -3,835 -2,950
Operating Result(c) -36,927 -85,946 1,585 5,018
Non-owner movements in equity
Revaluation of equity investments 0 -10 -7 -3,928
Actuarial revaluations 0 0 0 1,879
Other economic revaluations 3,996 4,912 353 195
Total other economic flows
- included in equity 		3,996 4,902 346 -1,853
Comprehensive result
- Total change in net worth 		-32,931 -81,045 1,931 3,164
Net operating balance -35,675 -64,530 5,420 7,968
Net acquisition of non-financial assets (b)
Purchases of non-financial assets 2,004 14,032 14,393 16,868
less Sales of non-financial assets 12 1,197 1,068 1,219
less Depreciation 1,012 10,971 10,972 11,446
plus Change in inventories 664 2,029 78 -40
plus Other movements in non-financial assets -3 31 12 -3
Total net acquisition of non-financial assets 1,641 3,924 2,443 4,161
Fiscal balance (Net lending/borrowing)(d) -37,316 -68,454 2,976 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 May 2020
$m 		MYEFO ESTIMATE*
as at 30 June 2020
$m
Assets
Financial assets
Cash and deposits 8,619 7,204
Advances paid 84,681 85,155
Investments, loans and placements 238,285 198,528
Other receivables 72,815 58,577
Equity investments
Investments in other public sector entities 58,232 55,640
Equity accounted investments 3,524 3,677
Investments - shares 57,585 73,969
Total financial assets 523,741 482,751
Non-financial assets
Land 11,872 11,824
Buildings 42,525 43,415
Plant, equipment and infrastructure 90,571 87,832
Inventories 10,751 8,488
Intangibles 8,877 9,105
Investment properties 200 160
Biological assets 20 21
Heritage and cultural assets 11,821 11,695
Assets held for sale 298 231
Other non-financial assets 67 32
Total non-financial assets(a) 177,002 172,803
Total assets 700,743 655,554
Liabilities
Interest bearing liabilities
Deposits held 303 388
Government securities 756,187 645,907
Loans 19,428 17,759
Lease liabilities(a) 19,320 19,139
Total interest bearing liabilities 795,239 683,193
Provisions and payables
Superannuation liability(b) 424,711 230,774
Other employee liabilities 26,943 26,663
Suppliers payables 9,875 7,579
Personal benefits payables 4,514 3,753
Subsidies payables 1,294 645
Grants payables 2,042 4,051
Other payables 2,790 2,186
Provisions 57,545 42,752
Total provisions and payables 529,713 318,404
Total liabilities 1,324,952 1,001,597
Net worth(c) -624,209 -346,042
Net financial worth(d) -801,211 -518,845
Net financial liabilities(e) 859,443 574,486
Net debt(f) 463,654 392,305

*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
May
$m 		ACTUAL
2019-2020
YTD May
$m 		MYEFO Profile
2019-2020
YTD May
$m 		MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Cash receipts from operating activities
Taxes received 38,553 392,793 419,631 463,791
Receipts from sales of goods and services 864 13,566 14,055 15,142
Interest receipts 301 3,306 4,296 5,134
Dividends and income tax equivalents 208 6,558 6,525 6,792
Other receipts 471 11,142 11,209 9,949
Total operating receipts 40,397 427,365 455,717 500,809
Cash payments for operating activities
Payments for employees(b) -2,684 -28,228 -28,639 -31,152
Payments for goods and services(c) -11,145 -116,642 -114,713 -122,024
Grants and subsidies paid -32,262 -179,945 -157,145 -170,400
Interest paid(c) -2,706 -15,723 -15,983 -16,564
Personal benefit payments -14,262 -128,584 -119,221 -128,416
Other payments(b) -432 -6,253 -6,448 -6,768
Total operating payments -63,491 -475,374 -442,149 -475,325
Net cash flows from operating activities -23,095 -48,009 13,568 25,483
Cash flows from investments in non-financial assets
Sales of non-financial assets 9 1,619 1,490 1,663
Purchases of non-financial assets -1,327 -11,705 -11,948 -14,304
Net cash flows from investments in non-financial assets -1,318 -10,086 -10,459 -12,641
Net cash flows from investments in financial assets for policy purposes -1,897 -11,874 -11,911 -13,336
Net cash flows from investments in financial assets for liquidity purposes -33,676 -46,678 -3,930 -15,923
Cash flows from financing activities
Borrowing (net) 59,176 122,355 16,864 20,271
Other financing (net)(c) -785 -5,694 -5,091 -5,257
Net cash flows from financing activities 58,391 116,661 11,773 15,014
Net increase/(decrease) in cash held -1,594 14 -959 -1,403
GFS cash surplus(+)/deficit(-)(d) -24,412 -58,095 3,109 12,842
plus Net cash flows from financing activities for leases(e) -217 -2,041 -2,115 -2,347
less Net Future Fund earnings 290 4,779 5,040 5,468
Equals underlying cash balance(f) -24,920 -64,914 -4,046 5,028
plus Net cash flows from investments in financial assets for policy purposes -1,897 -11,874 -11,911 -13,336
plus Net Future Fund earnings 290 4,779 5,040 5,468
Equals headline cash balance -26,526 -72,009 -10,916 -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
May
$m 		ACTUAL
2019-2020
YTD May
$m 		MYEFO Profile
2019-2020
YTD May
$m 		MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Individuals and other withholding taxes
Gross income tax withholding 18,720 200,574 201,833 220,300
Gross other individuals 6,395 45,212 49,706 52,900
less Refunds 1,420 34,781 35,507 36,800
Total individuals and other withholding taxation 23,696 211,005 216,032 236,400
Fringe benefits tax 133 3,774 4,029 4,040
Company tax 7,582 79,301 88,985 99,800
Superannuation fund taxes 363 6,440 7,882 8,460
Petroleum resource rent tax 15 1,109 1,143 1,130
Total income taxation revenue 31,790 301,629 318,072 349,830

*As published in the 2019-20 MYEFO.

Note 2: Indirect Tax

ACTUAL
2019-2020
May
$m 		ACTUAL
2019-2020
YTD May
$m 		MYEFO Profile
2019-2020
YTD May
$m 		MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Goods and services tax 5,554 63,791 63,968 67,230
Wine equalisation tax 71 954 1,001 1,110
Luxury car tax 33 581 613 670
Excise duty 1,649 21,405 22,009 23,900
Customs duty 1,449 17,951 18,881 20,800
Other indirect tax 833 8,340 8,461 9,275
Total indirect taxation revenue 9,587 113,023 114,934 122,985

*As published in the 2019-20 MYEFO.

Note 3: Total expenses by function

ACTUAL
2019-2020
May
$m 		ACTUAL
2019-2020
YTD May
$m 		MYEFO ESTIMATE*
2019-2020
FULL YEAR
$m
Expenses by function
General public services 2,217 26,928 30,157
Defence 3,397 29,729 32,783
Public order and safety 520 5,688 5,966
Education 3,039 36,463 35,846
Health 7,931 77,507 83,425
Social security and welfare 18,950 176,920 180,782
Housing and community amenities 439 4,595 5,715
Recreation and culture 329 3,457 3,989
Fuel and energy 676 7,316 8,161
Agriculture, forestry and fishing 226 2,190 3,025
Mining, manufacturing and construction 254 2,651 3,073
Transport and communication 1,133 5,209 8,671
Other economic affairs 31,362 46,406 10,250
Other purposes
Public debt interest 1,432 15,547 16,746
Nominal superannuation interest 640 7,036 7,715
General purpose inter-government transactions 6,990 64,401 68,547
Natural disaster relief 9 85 38
Contingency reserve 0 0 -1,707
Total expenses 79,545 512,128 503,180

*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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