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22/12/2024

Australian Government General Government Sector Monthly Financial Statements July and August 2021

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

SB 74/21
Friday, 1 October 2021

KEY POINTS

  • The Monthly Financial Statements for July and August 2021 report the budget position against the expected monthly profile for the 2021-22 financial year through to 31 August 2021, based on the 2021-22 Budget estimate published in the 2021-22 Budget in May 2021.
  • The July and August 2021 year to date results include the impact of the Australian Government’s response to COVID-19.
  • The underlying cash balance for the 2021-22 financial year to 31 August 2021 was a deficit of $22.0 billion against the Budget profile deficit of $28.1 billion.
  • The fiscal balance for the 2021-22 financial year to 31 August 2021 was a deficit of $18.9 billion against the Budget profile deficit of $29.4 billion.
AGGREGATES ACTUAL
2021-2022
YTD July
$b 		ACTUAL
2021-2022
August
$b 		ACTUAL
2021-2022
YTD August
$b 		Budget Profile
2021-2022
YTD August
$b 		BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$b
Receipts(a) 38.5 43.8 82.3 70.2 482.1
Payments(b) 53.4 51.0 104.3 98.3 588.7
Underlying cash balance -14.8 -7.2 -22.0 -28.1 -106.6
Headline cash balance -14.2 -6.9 -21.1 -30.0 -117.0
Revenue 39.4 45.4 84.8 72.9 496.6
Expenses 52.0 53.1 105.1 102.0 589.3
Net operating balance -12.6 -7.7 -20.3 -29.1 -92.7
Net capital investment -1.2 -0.2 -1.3 0.4 10.3
Fiscal balance -11.4 -7.5 -18.9 -29.4 -103.0
Total assets 720.0 741.7 743.8
Total liabilities 1,477.5 1,500.3 1,421.8
Net worth(c) -757.5 -758.6 -678.0
Net debt(d) 623.3 626.3 729.0

*As published in the 2021-22 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 31 August 2021 was a deficit of $22.0 billion, which is $6.1 billion lower than the 2021-22 Budget profile deficit of $28.1 billion.

  • Receipts
    Total receipts were $12.1 billion higher than the 2021-22 Budget profile.
  • Payments
    Total payments were $6.1 billion higher than the 2021-22 Budget profile.

Net Operating Balance

The net operating balance for the financial year to 31 August 2021 was a deficit of $20.3 billion, which is $8.8 billion lower than the 2021-22 Budget profile deficit of $29.1 billion. The difference results from higher than expected revenue and expenses.

Fiscal Balance

The fiscal balance for the financial year to 31 August 2021 was a deficit of $18.9 billion, which is $10.5 billion lower than the 2021-22 Budget profile deficit of $29.4 billion. The difference results from higher than expected revenue and expenses, and lower than expected net capital investment.

Assets and Liabilities

As at 31 August 2021:

  • net worth is negative $758.6 billion;
  • net debt is $626.3 billion; and
  • net financial liabilities are $999.7 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
2021-2022
YTD July
$m 		ACTUAL
2021-2022
August
$m 		ACTUAL
2021-2022
YTD August
$m 		Budget Profile
2021-2022
YTD August
$m 		BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Revenue
Taxation revenue 1, 2 34,437 43,315 77,752 65,686 456,972
Sales of goods and services 3,328 528 3,856 3,725 17,175
Interest income 250 275 525 617 3,621
Dividend and distribution income 579 503 1,082 572 7,265
Other 834 778 1,612 2,306 11,588
Total revenue 39,427 45,400 84,827 72,906 496,621
Expenses
Gross operating expenses
Wages and salaries(a) 1,845 1,962 3,807 3,782 22,440
Superannuation 1,052 1,068 2,121 1,153 6,973
Depreciation and amortisation 835 1,027 1,861 2,083 12,154
Supply of goods and services 11,763 13,260 25,024 25,022 161,315
Other operating expenses(a) 694 701 1,394 1,394 8,891
Total gross operating expenses 16,190 18,018 34,207 33,434 211,772
Superannuation interest expense 690 690 1,380 1,670 10,018
Interest expenses 1,542 1,567 3,108 3,159 19,519
Current transfers
Current grants 17,393 14,348 31,741 32,074 170,580
Subsidy expenses 1,329 1,596 2,925 3,113 17,364
Personal benefits 14,536 16,101 30,637 26,766 140,253
Total current transfers 33,257 32,045 65,302 61,952 328,198
Capital transfers
Mutually agreed write-downs 307 202 509 421 2,746
Other capital grants 4 571 575 1,334 17,080
Total capital transfers 311 773 1,084 1,755 19,826
Total expenses 3 51,989 53,093 105,082 101,970 589,334
Net operating balance -12,562 -7,693 -20,255 -29,064 -92,713
Other economic flows
- included in operating result
Net write-downs of assets -447 -496 -944 -1,156 -6,351
Assets recognised for the first time 7 6 13 30 200
Actuarial revaluations 0 0 0 0 124
Net foreign exchange gains 75 -14 61 0 -352
Net swap interest received -42 -152 -194 0 0
Market valuation of debt -15,652 -10 -15,662 41 260
Other gains/(losses) -2,881 6,755 3,874 1,336 8,030
Total other economic flows
- included in operating result 		-18,940 6,088 -12,852 251 1,910
Operating Result(b) -31,502 -1,605 -33,107 -28,813 -90,804
Non-owner movements in equity
Revaluation of equity investments 0 0 0 2 -230
Actuarial revaluations 0 0 0 0 -375
Other economic revaluations -753 443 -311 -202 -88
Total other economic flows
- included in equity 		-754 443 -311 -200 -694
Comprehensive result
- Total change in net worth 		-32,256 -1,162 -33,418 -29,013 -91,497
Net operating balance -12,562 -7,693 -20,255 -29,064 -92,713
Net acquisition of non-financial assets
Purchases of non-financial assets 605 975 1,580 2,568 22,325
less Sales of non-financial assets 686 28 714 57 281
less Depreciation 835 1,027 1,861 2,083 12,154
plus Change in inventories -257 -84 -341 -62 440
plus Other movements in non-financial assets 3 6 10 18 0
Total net acquisition of non-financial assets -1,169 -158 -1,327 384 10,330
Fiscal balance (Net lending/borrowing)(c) -11,393 -7,535 -18,928 -29,448 -103,043

*As published in the 2021-22 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) 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 July 2021
$m 		ACTUAL
as at 31 August 2021
$m 		BUDGET ESTIMATE
as at 30 June 2022
$m
Assets
Financial assets
Cash and deposits 53,347 56,266 61,795
Advances paid 80,369 79,908 85,655
Investments, loans and placements 191,103 209,066 188,218
Other receivables 68,041 68,997 73,678
Equity investments
Investments in other public sector entities 61,214 61,162 58,649
Equity accounted investments 3,593 3,644 3,892
Investments - shares 82,249 82,750 79,311
Total financial assets 539,917 561,794 551,198
Non-financial assets
Land 12,046 12,074 11,871
Buildings 43,033 42,719 45,056
Plant, equipment and infrastructure 92,024 92,177 100,662
Inventories 10,526 10,420 11,744
Intangibles 9,792 9,809 10,796
Investment properties 197 197 217
Biological assets 34 34 16
Heritage and cultural assets 11,825 11,819 11,986
Assets held for sale 570 557 248
Other non-financial assets 45 51 37
Total non-financial assets 180,091 179,857 192,634
Total assets 720,009 741,651 743,832
Liabilities
Interest bearing liabilities
Deposits held 518 459 484
Government securities 913,171 924,397 1,028,091
Loans 15,094 27,564 16,125
Lease liabilities 19,349 19,124 19,991
Total interest bearing liabilities 948,131 971,543 1,064,691
Provisions and payables
Superannuation liability(a) 407,488 408,430 247,892
Other employee liabilities 33,428 33,837 33,839
Suppliers payables 8,534 8,283 9,226
Personal benefits payables 3,442 3,505 2,998
Subsidies payables 889 871 1,482
Grants payables 6,255 6,181 4,026
Other payables 5,695 5,261 3,136
Provisions 63,633 62,385 54,534
Total provisions and payables 529,363 528,755 357,133
Total liabilities 1,477,494 1,500,298 1,421,824
Net worth(b) -757,485 -758,647 -677,992
Net financial worth(c) -937,576 -938,504 -870,626
Net financial liabilities(d) 998,791 999,666 929,275
Net debt(e) 623,311 626,303 729,023

*As published in the 2021-22 Budget.
(a) For budget reporting purposes, a discount rate of CPI plus 2.5 per cent determined by actuaries in preparing the latest 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 2021-22 Monthly Financial Statements was calculated using the spot rates on long-term government bonds as at 30 June 2021 that best matched each individual scheme’s liability duration. These rates were between 1.6 and 2.3 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
2021-2022
YTD July
$m 		ACTUAL
2021-2022
August
$m 		ACTUAL
2021-2022
YTD August
$m 		Budget Profile
2021-2022
YTD August
$m 		BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Cash receipts from operating activities
Taxes received 33,388 41,300 74,688 63,688 445,599
Receipts from sales of goods and services 2,887 978 3,865 3,593 17,364
Interest receipts 373 248 621 553 3,063
Dividends, distributions and income tax equivalents 607 494 1,101 575 5,829
Other receipts(b) 1,251 762 2,013 1,771 9,916
Total operating receipts 38,507 43,782 82,289 70,180 481,771
Cash payments for operating activities
Payments for employees(b)(c) -2,980 -2,940 -5,919 -5,849 -35,292
Payments for goods and services -14,165 -12,917 -27,083 -24,749 -159,044
Grants and subsidies paid -19,322 -16,781 -36,104 -37,046 -206,165
Interest paid -552 -439 -992 -621 -17,789
Personal benefit payments -14,361 -16,224 -30,585 -26,524 -140,966
Other payments(c) -782 -476 -1,258 -1,398 -8,219
Total operating payments -52,163 -49,778 -101,941 -96,187 -567,475
Net cash flows from operating activities -13,656 -5,996 -19,652 -26,007 -85,704
Cash flows from investments in non-financial assets
Sales of non-financial assets 26 23 49 57 282
Purchases of non-financial assets -1,012 -956 -1,967 -1,595 -18,786
Net cash flows from investments in non-financial assets -985 -933 -1,918 -1,538 -18,504
Net cash flows from investments in financial assets for policy purposes 647 296 943 -1,964 -10,428
Net cash flows from investments in financial assets for liquidity purposes -2,732 -117 -2,849 -2,016 -3,513
Cash flows from financing activities
Borrowing (net) 8,299 10,047 18,346 27,317 140,204
Other financing (net) -637 -378 -1,015 -674 -6,952
Net cash flows from financing activities 7,662 9,669 17,331 26,642 133,252
Net increase/(decrease) in cash held -9,064 2,919 -6,145 -4,883 15,102
GFS cash surplus(+)/deficit(-)(d) -14,641 -6,929 -21,570 -27,545 -104,209
plus Net cash flows from financing activities for leases(e) -201 -231 -431 -507 -2,411
Equals underlying cash balance(f) -14,842 -7,160 -22,002 -28,053 -106,619
plus Net cash flows from investments in financial assets for policy purposes 647 296 943 -1,964 -10,428
Equals headline cash balance -14,195 -6,864 -21,059 -30,017 -117,047

*As published in the 2021-22 Budget.
(a) A positive number denotes a cash inflow; a negative number denotes a cash outflow.
(b) As result of a voluntary accounting policy change, the pass-through of defined benefit member superannuation receipts and payments are reported on a gross basis in the cash flow statement. It was previously reported on a net basis. This change has no net impact to the underlying cash balance for 2021-22.
(c) Consistent with the ABS GFS classification, other employee related payments are classified separately from wages and salaries under other payments.
(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.
(f) The term underlying cash balance is not used by the ABS.

Note 1: Income Tax

ACTUAL
2021-2022
YTD July
$m 		ACTUAL
2021-2022
August
$m 		ACTUAL
2021-2022
YTD August
$m 		Budget Profile
2021-2022
YTD August
$m 		BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Individuals and other withholding taxes
Gross income tax withholding 16,703 21,433 38,136 35,818 218,700
Gross other individuals 5,649 4,449 10,098 8,786 48,500
less Refunds 9,383 6,815 16,197 18,224 42,300
Total individuals and other withholding taxation 12,970 19,067 32,037 26,381 224,900
Fringe benefits tax 649 119 767 954 4,090
Company tax 9,895 9,109 19,004 13,738 84,200
Superannuation fund taxes 1,838 1,665 3,503 2,051 15,280
Petroleum resource rent tax 74 321 395 224 1,050
Total income taxation revenue 25,426 30,281 55,707 43,348 329,520

*As published in the 2021-22 Budget.

Note 2: Indirect Tax

ACTUAL
2021-2022
YTD July
$m 		ACTUAL
2021-2022
August
$m 		ACTUAL
2021-2022
YTD August
$m 		Budget Profile
2021-2022
YTD August
$m 		BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Goods and services tax 5,479 8,592 14,071 13,664 74,130
Wine equalisation tax 78 101 180 154 1,050
Luxury car tax 102 73 176 118 680
Excise duty 1,837 2,108 3,946 4,103 24,840
Customs duty 1,092 1,337 2,429 3,064 18,420
Other indirect tax 423 822 1,245 1,235 8,332
Total indirect taxation revenue 9,011 13,034 22,046 22,338 127,452

*As published in the 2021-22 Budget.

Note 3: Total expenses by function

ACTUAL
2021-2022
YTD July
$m 		ACTUAL
2021-2022
August
$m 		ACTUAL
2021-2022
YTD August
$m 		BUDGET
ESTIMATE*
2021-2022
FULL YEAR
$m
Expenses by function
General public services 2,373 2,540 4,913 26,070
Defence 2,354 2,816 5,170 34,473
Public order and safety 737 494 1,231 6,652
Education 5,881 2,333 8,213 42,799
Health 8,306 8,849 17,154 98,283
Social security and welfare 20,977 21,387 42,365 209,975
Housing and community amenities 291 572 863 7,869
Recreation and culture 395 347 742 4,532
Fuel and energy 714 761 1,474 9,638
Agriculture, forestry and fishing 188 235 423 4,483
Mining, manufacturing and construction 279 298 577 4,354
Transport and communication 133 268 401 14,460
Other economic affairs 1,058 1,413 2,471 14,640
Other purposes
Public debt interest 1,501 1,506 3,008 18,196
Nominal superannuation interest 690 690 1,380 10,018
General purpose inter-government transactions 6,106 8,540 14,646 77,509
Natural disaster relief 7 45 52 327
Contingency reserve 0 0 0 5,055
Total expenses 51,989 53,093 105,082 589,334

*As published in the 2021-22 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.

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