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22/12/2024

Australian Government General Government Sector Monthly Financial Statements December 2020

Print version [315 KB]

Senator the Hon. Simon Birmingham
Minister for Finance
Leader of the Government in the Senate

SB 04/21
Friday, 29 January 2021

KEY POINTS

  • The Monthly Financial Statements for December 2020 report the budget position against the expected monthly profile for the 2020-21 financial year through to 31 December 2020, based on the 2020-21 Mid-Year Economic and Fiscal Outlook (MYEFO) estimates published in December 2020.
  • The December 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 December 2020 was a deficit of $116.0 billion against the MYEFO profile deficit of $125.5 billion.
  • The fiscal balance for the 2020-21 financial year to 31 December 2020 was a deficit of $117.4 billion against the MYEFO profile deficit of $124.2 billion.
AGGREGATES ACTUAL
2020-2021
December
$b 		ACTUAL
2020-2021
YTD December
$b 		MYEFO Profile
2020-2021
YTD December
$b 		MYEFO ESTIMATE*
2020-2021
FULL YEAR
$b
Revenue 44.2 241.6 239.5 482.1
Expenses 52.1 357.1 361.0 667.3
Net operating balance -7.9 -115.5 -121.5 -185.2
Net capital investment 0.3 1.9 2.7 8.8
Fiscal balance -8.2 -117.4 -124.2 -193.9
Receipts(a) 46.6 246.7 241.0 473.1
Payments(b) 53.2 362.7 366.6 670.9
Underlying cash balance -6.6 -116.0 -125.5 -197.7
Headline cash balance -6.0 -118.5 -131.1 -214.9
Total assets 714.3 684.2
Total liabilities 1,487.1 1,330.8
Net worth(c) -772.9 -646.5
Net debt(d) 611.1 691.9

*As published in the 2020-21 MYEFO.
(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 December 2020 was a deficit of $116.0 billion, which is $9.5 billion lower than the 2020-21 MYEFO profile deficit of $125.5 billion.

  • Receipts
    Total receipts were $5.6 billion higher than the 2020-21 MYEFO profile.
  • Payments
    Total payments were $3.9 billion lower than the 2020-21 MYEFO profile.

Net Operating Balance

The net operating balance for the year to 31 December 2020 was a deficit of $115.5 billion, which is $6.0 billion lower than the 2020-21 MYEFO profile deficit of $121.5 billion. The difference results from higher than expected revenue and lower than expected expenses.

Fiscal Balance

The fiscal balance for the year to 31 December 2020 was a deficit of $117.4 billion, which is $6.8 billion lower than the 2020-21 MYEFO profile deficit of $124.2 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 2020:

  • net worth is negative $772.9 billion;
  • net debt is $611.1 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
December
$m 		ACTUAL
2020-2021
YTD December
$m 		MYEFO Profile
2020-2021
YTD December
$m 		MYEFO ESTIMATE*
2020-2021
FULL YEAR
$m
Revenue
Taxation revenue 1, 2 40,503 221,905 220,323 441,842
Sales of goods and services 1,306 7,982 7,994 15,765
Interest income 280 1,675 2,154 4,161
Dividend income 1,362 3,493 2,496 8,203
Other 710 6,528 6,527 12,165
Total revenue 44,160 241,584 239,495 482,136
Expenses
Gross operating expenses
Wages and salaries(a) 1,722 10,736 10,770 21,665
Superannuation 1,074 6,263 6,227 12,427
Depreciation and amortisation 943 5,656 5,584 12,087
Supply of goods and services 13,344 69,564 69,961 151,369
Other operating expenses(a) 615 4,309 4,311 8,322
Total gross operating expenses 17,697 96,527 96,854 205,870
Superannuation interest expense 584 3,502 3,502 7,004
Interest expenses(b) 2,248 9,803 9,729 20,596
Current transfers
Current grants 11,734 78,548 78,568 160,505
Subsidy expenses 5,105 73,108 73,825 88,718
Personal benefits 13,738 91,118 93,919 168,222
Total current transfers 30,577 242,774 246,312 417,446
Capital transfers
Mutually agreed write-downs 212 1,830 1,682 2,286
Other capital grants 746 2,627 2,879 14,119
Total capital transfers 959 4,457 4,561 16,405
Total expenses 3 52,064 357,062 360,958 667,321
Net operating balance -7,904 -115,478 -121,464 -185,185
Other economic flows
- included in operating result
Net write-downs of assets -340 -1,324 -1,933 -4,618
Assets recognised for the first time 43 136 125 173
Actuarial revaluations 0 0 0 111
Net foreign exchange gains 125 282 23 -278
Net swap interest received 97 826 678 608
Market valuation of debt 3,377 2,904 1,178 4,501
Other gains/(losses)(b) 676 7,511 5,998 5,377
Total other economic flows
- included in operating result 		3,976 10,336 6,068 5,873
Operating Result(c) -3,927 -105,143 -115,396 -179,311
Non-owner movements in equity
Revaluation of equity investments 0 1 0 -4,201
Actuarial revaluations 0 0 0 54
Other economic revaluations -40 -466 -806 -326
Total other economic flows
- included in equity 		-40 -465 -806 -4,473
Comprehensive result
- Total change in net worth 		-3,967 -105,608 -116,202 -183,785
Net operating balance -7,904 -115,478 -121,464 -185,185
Net acquisition of non-financial assets
Purchases of non-financial assets 1,356 6,801 6,976 18,813
less Sales of non-financial assets 24 91 84 274
less Depreciation 943 5,656 5,584 12,087
plus Change in inventories -103 837 1,369 2,310
plus Other movements in non-financial assets -2 20 15 -4
Total net acquisition of non-financial assets 284 1,911 2,693 8,758
Fiscal balance (Net lending/borrowing)(d) -8,188 -117,390 -124,157 -193,942

*As published in the 2020-21 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) 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 December 2020
$m 		MYEFO ESTIMATE*
as at 30 June 2021
$m
Assets
Financial assets
Cash and deposits 7,905 6,115
Advances paid 81,167 87,370
Investments, loans and placements 242,337 204,339
Other receivables 70,348 67,649
Equity investments
Investments in other public sector entities 64,237 63,987
Equity accounted investments 3,461 3,547
Investments - shares 67,943 67,391
Total financial assets 537,398 500,397
Non-financial assets
Land 11,731 11,743
Buildings 42,598 43,671
Plant, equipment and infrastructure 90,249 93,954
Inventories 10,560 11,814
Intangibles 9,204 10,145
Investment properties 219 218
Biological assets 27 28
Heritage and cultural assets 11,962 11,992
Assets held for sale 254 241
Other non-financial assets 57 34
Total non-financial assets 176,862 183,840
Total assets 714,261 684,236
Liabilities
Interest bearing liabilities
Deposits held 418 484
Government securities 905,791 953,548
Loans 16,883 16,775
Lease liabilities 19,375 18,907
Total interest bearing liabilities 942,468 989,714
Provisions and payables
Superannuation liability(a) 434,479 236,687
Other employee liabilities 32,984 33,099
Suppliers payables 5,583 8,428
Personal benefits payables 3,596 3,105
Subsidies payables 914 1,000
Grants payables 2,011 3,972
Other payables 5,597 2,687
Provisions 59,516 52,061
Total provisions and payables 544,680 341,037
Total liabilities 1,487,148 1,330,751
Net worth(b) -772,887 -646,515
Net financial worth(c) -949,749 -830,355
Net financial liabilities(d) 1,013,986 894,342
Net debt(e) 611,059 691,891

*As published in the 2020-21 MYEFO.
(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
December
$m 		ACTUAL
2020-2021
YTD December
$m 		MYEFO Profile
2020-2021
YTD December
$m 		MYEFO ESTIMATE*
2020-2021
FULL YEAR
$m
Cash receipts from operating activities
Taxes received 42,212 222,304 218,744 433,500
Receipts from sales of goods and services 2,211 10,108 8,333 16,233
Interest receipts 165 1,549 2,018 3,709
Dividends and income tax equivalents 1,399 6,103 5,104 7,115
Other receipts 581 6,530 6,758 12,295
Total operating receipts 46,569 246,594 240,957 472,853
Cash payments for operating activities
Payments for employees(b) -2,408 -16,338 -16,116 -32,600
Payments for goods and services -13,722 -71,383 -72,056 -148,265
Grants and subsidies paid -17,989 -162,038 -162,613 -276,728
Interest paid -966 -8,713 -8,850 -17,174
Personal benefit payments -15,772 -93,277 -95,846 -168,985
Other payments(b) -884 -3,688 -3,756 -7,520
Total operating payments -51,741 -355,437 -359,237 -651,271
Net cash flows from operating activities -5,172 -108,842 -118,280 -178,419
Cash flows from investments in non-financial assets
Sales of non-financial assets 26 90 93 280
Purchases of non-financial assets -1,229 -6,019 -6,123 -17,270
Net cash flows from investments in non-financial assets -1,203 -5,929 -6,030 -16,989
Net cash flows from investments in financial assets for policy purposes 576 -2,477 -5,524 -17,145
Net cash flows from investments in financial assets for liquidity purposes 4,384 -7,512 -4,390 38,608
Cash flows from financing activities
Borrowing (net) 1,708 125,815 135,298 176,924
Other financing (net) -106 -2,603 -2,517 -6,317
Net cash flows from financing activities 1,603 123,212 132,780 170,607
Net increase/(decrease) in cash held 189 -1,548 -1,443 -3,338
GFS cash surplus(+)/deficit(-)(c) -6,374 -114,771 -124,310 -195,408
plus Net cash flows from financing activities for leases(d) -217 -1,248 -1,236 -2,339
Equals underlying cash balance(e) -6,591 -116,019 -125,547 -197,747
plus Net cash flows from investments in financial assets for policy purposes 576 -2,477 -5,524 -17,145
Equals headline cash balance -6,015 -118,496 -131,070 -214,892

*As published in the 2020-21 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 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) 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
December
$m 		ACTUAL
2020-2021
YTD December
$m 		MYEFO Profile
2020-2021
YTD December
$m 		MYEFO ESTIMATE*
2020-2021
FULL YEAR
$m
Individuals and other withholding taxes
Gross income tax withholding 19,063 112,083 112,316 212,400
Gross other individuals 1,565 21,858 21,774 46,900
less Refunds 1,471 27,496 27,476 37,400
Total individuals and other withholding taxation 19,157 106,444 106,614 221,900
Fringe benefits tax 11 1,964 2,019 3,880
Company tax 10,514 45,675 44,845 89,100
Superannuation fund taxes 2,596 7,295 6,895 8,740
Petroleum resource rent tax 52 420 357 770
Total income taxation revenue 32,329 161,799 160,730 324,390

*As published in the 2020-21 MYEFO.

Note 2: Indirect Tax

ACTUAL
2020-2021
December
$m 		ACTUAL
2020-2021
YTD December
$m 		MYEFO Profile
2020-2021
YTD December
$m 		MYEFO ESTIMATE*
2020-2021
FULL YEAR
$m
Goods and services tax 4,415 34,503 34,263 65,750
Wine equalisation tax 101 524 515 1,060
Luxury car tax 71 354 334 610
Excise duty 2,081 12,182 11,966 23,400
Customs duty 1,023 8,596 8,769 19,090
Other indirect tax 484 3,949 3,746 7,542
Total indirect taxation revenue 8,174 60,107 59,593 117,452

*As published in the 2020-21 MYEFO.

Note 3: Total expenses by function

ACTUAL
2020-2021
December
$m 		ACTUAL
2020-2021
YTD December
$m 		MYEFO ESTIMATE*
2020-2021
FULL YEAR
$m
Expenses by function
General public services 3,236 15,416 32,618
Defence 2,639 15,484 34,407
Public order and safety 419 3,035 6,253
Education 2,574 20,919 43,318
Health 7,865 47,705 95,119
Social security and welfare 21,143 123,149 230,519
Housing and community amenities 352 2,210 6,871
Recreation and culture 371 1,898 4,393
Fuel and energy 737 4,185 8,899
Agriculture, forestry and fishing 290 1,397 3,982
Mining, manufacturing and construction 298 1,465 3,609
Transport and communication 883 3,161 13,337
Other economic affairs 4,716 70,245 87,070
Other purposes
Public debt interest 1,369 8,186 17,051
Nominal superannuation interest 584 3,502 7,004
General purpose inter-government transactions 4,588 35,106 67,199
Natural disaster relief 0 0 266
Contingency reserve 0 0 5,403
Total expenses 52,064 357,062 667,321

*As published in the 2020-21 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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