Media Release

Australian Government General Government Sector Monthly Financial Statements November 2018

MC 95/18

Senator the Hon. Mathias Cormann
Minister for Finance and the Public Service
Leader of the Government in the Senate
Senator for Western Australia

21 December 2018

KEY POINTS

  • The underlying cash balance for the 2018-19 financial year to 30 November 2018 was a deficit of $12,497 million.
  • The fiscal balance for the 2018-19 financial year to 30 November 2018 was a deficit of $3,885 million.
AGGREGATES

ACTUAL
2018-2019
November
$m
ACTUAL
2018-2019
YTD November
$m
Budget Profile
2018-2019
YTD November
$m
BUDGET ESTIMATE*
2018-2019
Full Year
$m
Revenue 43,889 194,261 186,264 486,141
Expenses 37,820 197,567 200,980 488,584
Net operating balance 6,068 -3,307 -14,716 -2,443
Net capital investment 428 578 1,982 4,989
Fiscal balance 5,641 -3,885 -16,698 -7,431
Receipts(a) 43,505 190,225 182,315 473,745
less Payments(b) 40,185 200,196 201,767 484,648
less Net Future Fund earnings 481 2,527 1,486 3,559
Underlying cash balance(c) 2,839 -12,497 -20,938 -14,462
Headline cash balance 1,993 -15,527 -25,474 -27,562
Total assets   557,380   567,956
Total liabilities   983,062   905,565
Net worth(d)   -425,682   -337,609
Net debt(e)   349,452   349,851

*As published in the 2018-19 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 acquisition of assets under finance leases.
(c) Excludes net Future Fund earnings. Consistent with Budget documents, the net adjustment for the Future Fund is shown separately.
(d) Net worth is calculated as total assets minus total liabilities.
(e) 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.

Care needs to be taken when comparing monthly or cumulative data across years and to full-year estimates, as revenue and expenses vary from month to month.

Comparators for the November 2018 monthly financial statements are based on the 2018-19 Budget published in May 2018. From the December 2018 monthly financial statements, the comparators will be based on updated estimates from the 2018-19 Mid-Year Economic and Fiscal Outlook.

 

FISCAL OUTCOMES

Underlying Cash Balance

The underlying cash balance for the financial year to 30 November 2018 was a deficit of $12,497 million, which is $8,441 million lower than the 2018-19 Budget profile deficit of $20,938 million.

  • Receipts
    Total receipts were $7,910 million higher than the 2018-19 Budget profile.
  • Payments
    Total payments were $1,571 million lower than the 2018-19 Budget profile.

Net Operating Balance

The net operating balance for the year to 30 November 2018 was a deficit of $3,307 million, which is $11,410 million better than the 2018-19 Budget profile deficit of $14,716 million. The difference primarily results from higher than expected revenue and lower expenses.

Fiscal Balance

The fiscal balance for the year to 30 November 2018 was a deficit of $3,885 million, which is $12,813 million better than the 2018-19 Budget profile deficit of $16,698 million. As with the net operating balance, the difference primarily results from higher than expected revenue, lower expenses and lower net capital investments.

Assets and Liabilities

As at 30 November 2018:
• net worth is negative $425,682 million;
• net debt is $349,452 million; and
• net financial liabilities are $629,910 million.

Senator the Hon. Mathias Cormann
Minister for Finance and the Public Service
Rosemary Huxtable PSM
Secretary
Department of Finance
Media Contact  
Karen Wu      0428 350 139

 

Australian Government general government sector operating statement 

 NoteACTUAL
2018-2019
November
$m
ACTUAL
2018-2019
YTD November
$m
Budget Profile
2018-2019
YTD November
$m
BUDGET
ESTIMATE*
2018-2019
FULL YEAR
$m
Revenue          
Taxation revenue 1, 2 40,797 180,185 172,865 452,001
Sales of goods and services   1,043 5,300 5,962 14,490
Interest income   513 1,825 1,731 4,442
Dividend income   475 2,533 1,420 4,126
Other   1,062 4,418 4,285 11,082
Total revenue   43,889 194,261 186,264 486,141
Expenses          
Gross operating expenses          
Wages and salaries(a)   1,694 8,292 8,576 20,411
Superannuation   534 3,047 3,023 6,022
Depreciation and amortisation   676 3,596 3,765 9,023
Supply of goods and services   9,450 46,659 49,074 119,633
Other operating expenses(a)   645 2,839 2,571 6,045
Total gross operating expenses   13,000 64,432 67,010 161,134
Superannuation interest expense   806 4,032 4,076 10,648
Interest expenses   1,427 7,392 7,728 19,045
Current transfers          
Current grants   10,911 61,154 60,664 149,042
Subsidy expenses   965 4,792 4,879 12,055
Personal benefits   10,132 53,926 54,058 126,429
Total current transfers   22,008 119,872 119,601 287,525
Capital transfers          
Mutually agreed write-downs   124 593 650 1,494
Other capital grants   455 1,246 1,916 8,738
Total capital transfers   579 1,840 2,566 10,232
Total expenses 3 37,820 197,567 200,980 488,584
Net operating balance   6,068 -3,307 -14,716 -2,443
Other economic flows          
  - included in operating result          
Net write-downs of assets (including bad and doubtful debts)   -2,633 -5,857 -3,966 -8,867
Assets recognised for the first time   77 143 83 200
Actuarial revaluations   6 29 17 41
Net foreign exchange gains   1,201 75 0 130
Net swap interest received   -44 -355 0 0
Market valuation of debt   -357 544 637 1,315
Other gains/(losses)   173 544 2,163 3,633
Total other economic flows
  - included in operating result
  -1,575 -4,877 -1,065 -3,547
Operating Result (b)   4,493 -8,184 -15,781 -5,990
Non-owner movements in equity          
Revaluation of equity investments   0 1 -40 -6,091
Actuarial revaluations   0 0 0 81
Other economic revaluations   -234 636 4,236 -377
Total other economic flows - included in equity   -234 637 4,196 -6,387
Comprehensive result
  - Total change in net worth
  4,259 -7,546 -11,586 -12,377
Net operating balance   6,068 -3,307 -14,716 -2,443
Net acquisition of non-financial assets          
Purchases of non-financial assets   1,137 4,271 5,305 14,222
less Sales of non-financial assets   19 60 89 287
less Depreciation   676 3,596 3,765 9,023
plus Change in inventories   3 -68 514 75
plus Other movements in non-financial assets   -17 31 17 1
Total net acquisition of non-financial assets   428 578 1,982 4,989
Fiscal balance (Net lending/borrowing)(c)   5,641 -3,885 -16,698 -7,431

*As published in the 2018-19 Budget.
(a) Consistent with 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
30 November 2018
$m
BUDGET ESTIMATE*
as at
30 June 2019
$m
Assets    
Financial assets    
Cash and deposits 8,468 5,875
Advances paid 60,675 73,041
Investments, loans and placements 176,442 183,513
Other receivables 57,175 55,983
Equity investments    
Investments in other public sector entities 58,708 51,976
Equity accounted investments 134 331
Investments - shares 50,260 51,928
Total financial assets 411,860 422,648
Non-financial assets    
Land 11,604 10,650
Buildings 26,528 26,622
Plant, equipment and infrastructure 79,010 78,346
Inventories 8,600 7,874
Intangibles 7,916 9,819
Investment property 15 159
Biological assets 21 54
Heritage and cultural assets 11,604 11,636
Assets held for sale 159 85
Other non-financial assets 64 62
Total non-financial assets 145,521 145,308
Total assets 557,380 567,956
Liabilities    
Interest bearing liabilities    
Deposits held 324 218
Government securities 576,795 594,437
Loans 16,404 16,090
Other borrowing 1,513 1,534
Total interest bearing liabilities 595,036 612,280
Provisions and payables    
Superannuation liability(a) 316,900 223,564
Other employee liabilities 19,971 18,902
Suppliers payables 8,472 8,203
Personal benefits payables 2,357 3,038
Subsidies payables 649 1,114
Grants payables 2,226 3,072
Other payables 2,205 2,236
Provisions 35,246 33,157
Total provisions and payables 388,026 293,285
Total liabilities 983,062 905,565
Net worth(b) -425,682 -337,609
Net financial worth(c) -571,202 -482,917
Net financial liabilities(d) 629,910 534,893
Net debt(e) 349,452 349,851

*As published in the 2018-19 Budget.
(a) For budget reporting purposes, a discount rate applied by actuaries in preparing Long Term Cost Reports is used to value the superannuation liability. This reduces the volatility in reported liabilities that would occur from year to year if the long-term government bond rate were used. Consistent with Australian Accounting Standards, the long-term government bond rate as at 30 June, that best matches each individual scheme's liability duration, is used to calculate the superannuation liability for the purpose of actuals reporting.
(b) Net worth is calculated as 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 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
2018-2019
November
$m
ACTUAL
2018-2019
YTD November
$m
Budget Profile
2018-2019
YTD November
$m
BUDGET
ESTIMATE*
2018-2019
FULL YEAR
$m
Cash receipts from operating activities        
Taxes received 40,496 174,232 167,578 440,480
Receipts from sales of goods and services 1,256 5,129 5,871 14,551
Interest receipts 256 1,796 1,944 4,257
Dividends and income tax equivalents 419 3,239 1,673 3,970
Other receipts 1,063 5,777 5,160 9,767
Total operating receipts 43,489 190,173 182,225 473,026
Cash payments for operating activities        
Payments for employees -2,855 -12,063 -11,604 -29,718
Payments for goods and services -10,120 -47,808 -49,024 -117,209
Grants and subsidies paid -12,630 -68,380 -68,240 -169,900
Interest paid -2,229 -9,106 -8,612 -18,749
Personal benefit payments -10,705 -55,710 -56,528 -129,372
Other payments -528 -2,789 -2,607 -5,717
Total operating payments -39,068 -195,856 -196,614 -470,664
Net cash flows from operating activities 4,421 -5,683 -14,389 2,362
Cash flows from investments in
   non-financial assets
       
Sales of non-financial assets 15 52 89 720
Purchases of non-financial assets -1,117 -4,338 -5,153 -13,984
Net cash flows from investments in
   non-financial assets
-1,101 -4,285 -5,063 -13,265
Net cash flows from investments in
   financial assets for policy purposes
-1,327 -5,557 -6,022 -16,659
Cash flows from investments in
   financial assets for liquidity purposes
       
Increase in investments -3,862 14,521 14,432 1,359
Net cash flows from investments in
   financial assets for liquidity purposes
-3,862 14,521 14,432 1,359
Cash flows from financing activities        
Borrowing (net) 5,465 4,780 9,924 29,358
Other financing (net) -681 -2,094 -1,472 -2,643
Net cash flows from financing activities 4,784 2,687 8,452 26,715
Net increase/(decrease) in cash held 2,915 1,683 -2,591 512
GFS cash surplus(+)/deficit(-)(b) 3,320 -9,969 -19,452 -10,903
less Finance leases and similar arrangements(c) 0 2 0 0
less Net Future Fund earnings 481 2,527 1,486 3,559
Equals underlying cash balance(d) 2,839 -12,497 -20,938 -14,462
plus Net cash flows from investments in
financial assets for policy purposes
-1,327 -5,557 -6,022 -16,659
plus Net Future Fund earnings 481 2,527 1,486 3,559
Equals headline cash balance 1,993 -15,527 -25,474 -27,562

*As published in the 2018-19 Budget.
(a) A positive number denotes a cash inflow; a negative sign denotes a cash outflow.
(b) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets.
(c) The acquisition of assets under finance leases worsens the underlying cash balance. The disposal of assets previously held under finance leases improves the underlying cash balance.
(d) The term underlying cash balance is not used by the Australian Bureau of Statistics.

 

Note 1: Income Tax

 ACTUAL
2018-2019
November
$m
ACTUAL
2018-2019
YTD November
$m
Budget Profile
2018-2019
YTD November
$m
BUDGET
ESTIMATE*
2018-2019
FULL YEAR
$m
Individuals and other withholding taxes        
Gross income tax withholding 18,649 85,775 83,798 203,800
Gross other individuals 3,363 19,376 18,741 49,600
less Refunds 2,289 21,077 21,898 30,500
Total individuals and other withholding taxation 19,723 84,073 80,642 222,900
Fringe benefits tax 62 1,799 1,954 4,310
Company tax 8,822 37,681 33,431 91,200
Superannuation fund taxes 1,428 5,446 5,096 10,360
Petroleum resource rent tax -85 493 741 1,420
Total income taxation revenue 29,950 129,493 121,863 330,190

*As published in the 2018-19 Budget.

 

Note 2: Indirect Tax

 ACTUAL
2018-2019
November
$m
ACTUAL
2018-2019
YTD November
$m
Budget Profile
2018-2019
YTD November
$m
BUDGET
ESTIMATE*
2018-2019
FULL YEAR
$m
Goods and services tax 6,705 30,418 30,797 70,310
Wine equalisation tax 95 388 376 1,010
Luxury car tax 56 286 302 740
Excise duty 1,899 9,904 9,740 23,120
Customs duty 950 5,744 5,631 16,500
Other indirect tax 1,141 3,951 4,157 10,131
Total indirect taxation revenue 10,847 50,692 51,002 121,811

*As published in the 2018-19 Budget.

 

Note 3: Total expenses by function

 ACTUAL
2018-2019
November
$m
ACTUAL
2018-2019
YTD November
$m
BUDGET
ESTIMATE*
2018-2019
FULL YEAR
$m
Expenses by function      
General public services 1,706 12,079 23,065
Defence 2,466 12,328 31,215
Public order and safety 384 2,270 5,324
Education 1,732 14,611 34,736
Health 7,203 30,652 78,825
Social security and welfare 13,109 71,268 175,971
Housing and community amenities 467 1,633 5,382
Recreation and culture 273 1,450 3,638
Fuel and energy 626 3,062 7,541
Agriculture, forestry and fishing 205 929 3,070
Mining, manufacturing and construction 243 1,188 3,260
Transport and communication 442 1,612 9,062
Other economic affairs 765 3,899 9,471
Other purposes      
Public debt interest 1,400 7,213 17,811
Nominal superannuation interest 806 4,032 10,648
General purpose inter-government transactions 5,993 29,342 69,446
Natural disaster relief 0 0 17
Contingency reserve 0 0 101
Total expenses 37,820 197,567 488,584

*As published in the 2018-19 Budget.

 

NOTES:

Australian Accounting Standard 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 the Australian Accounting Standards Board 1049 – Whole of Government and General Government Sector Financial Reporting (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 http://aofm.gov.au/cgs-quarterly/.

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.

[ENDS]

Media Contact(s): 

Karen Wu - 0428 350 139

Senator the Hon Mathias Cormann, Minister for Finance, Perth