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Finance—Final budget outcome for 2019-20


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Final Budget Outcome 2019-20

September 2020

Statement by

The Honourable Josh Frydenberg MP Treasurer of the Commonwealth of Australia and Senator the Honourable Mathias Cormann Minister for Finance of the Commonwealth of Australia

For the information of honourable members

© Commonwealth of Australia 2020

ISSN: 2205-6750 (Print) 2205-6769 (Online)

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iii

NOTES

(a) The following definitions are used in this Budget Paper:

- ‘real’ means adjusted for the effect of inflation;

- real growth in expenses and payments is calculated using the Consumer Price Index (CPI) as the deflator; and

- one billion is equal to one thousand million.

(b) Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components are due to rounding:

- figures under $100,000 are rounded to the nearest thousand;

- figures $100,000 and over are generally rounded to the nearest tenth of a million;

- figures midway between rounding points are rounded up; and

- the percentage changes in statistical tables are calculated using unrounded data.

(c) For the budget balance, a negative sign indicates a deficit while no sign indicates a surplus.

(d) The following notations are used:

- nil

na not applicable (unless otherwise specified)

.. not zero, but rounded to zero

$m millions of dollars

$b billions of dollars

NEC/nec not elsewhere classified

iv

(e) The Australian Capital Territory and the Northern Territory are referred to as ‘the territories’. References to the ‘states’ or ‘each state’ include the territories. The following abbreviations are used for the names of the states, where appropriate:

NSW New South Wales

VIC Victoria

QLD Queensland

WA Western Australia

SA South Australia

TAS Tasmania

ACT Australian Capital Territory

NT Northern Territory

(f) In this paper the term Commonwealth refers to the Commonwealth of Australia. The term is used when referring to the legal entity of the Commonwealth of Australia.

The term Australian Government is used when referring to the Government and the decisions and activities made by the Government on behalf of the Commonwealth of Australia.

v

Contents

Preface ................................................................................................ vi

Part 1: Australian Government Budget Outcome 2019-20 ........................... 1 Overview ....................................................................................................................... 1

Underlying cash balance ................................................................................................. 3

Net operating balance ..................................................................................................... 8

Headline cash balance .................................................................................................. 13

Net debt, net financial worth and net worth ................................................................... 14

Part 2: Australian Government Financial Statements ................................ 17 Australian Government Financial Statements ............................................................... 18

Financial reporting standards and budget concepts ..................................................... 48

Part 3: Australia’s Federal Financial Relations .......................................... 57

Overview of payments to the states .............................................................................. 57

Payments for specific purposes .................................................................................... 57

General revenue assistance ......................................................................................... 62

Payments to the states .................................................................................................. 67

Appendix A: Expenses by Function and Sub-function .............................. 83

Appendix B: Historical Australian Government Data ................................ 87

vi

Preface

The Final Budget Outcome for 2019-20 has been prepared in a manner consistent with the Charter of Budget Honesty Act 1998 (the Charter). The Charter requires that the Government provide a final budget outcome report no later than three months after the end of the financial year. Consistent with these requirements, this report encompasses Australian Government general government sector fiscal outcomes for the 2019-20 financial year and is based on external reporting standards.

• Part 1 provides the general government sector budget aggregates for 2019-20 together with an analysis of the Final Budget Outcome for 2019-20. This includes summary analysis of cash flows, revenue, expenses, net capital investment and the balance sheet (net debt, net financial worth and net worth).

• Part 2 presents the Australian Government financial statements for 2019-20 with the Australian Bureau of Statistics’ (ABS) Government Finance Statistics (GFS) as the basis for accounting policy, except for where the Government has decided to depart because Australian Accounting Standards provide a better conceptual treatment for presenting information of relevance to users of public sector financial reports. This data covers the general government sector as well as the Australian Government public corporations sectors.

• Part 3 provides details for 2019-20 on Australia’s Federal Financial Relations, updated from that contained in the 2019-20 Mid-Year Economic and Fiscal Update Appendix C Australia’s Federal Relations.

Appendix A contains expenses data on a functional and sub-functional basis. Historical Australian Government data are presented in Appendix B.

1

Part 1: Australian Government Budget Outcome 2019-20

Overview

In 2019-20, the Australian Government general government sector recorded an underlying cash deficit of $85.3 billion (4.3 per cent of gross domestic product (GDP)). The net operating balance was in deficit by $92.3 billion (4.7 per cent of GDP).

The global COVID-19 pandemic has caused severe contractions in economic activity and the Government has provided critical and unprecedented support to Australian households, businesses and industries affected since March 2020.

The Final Budget Outcome for 2019-20 is broadly consistent with the July 2020 Economic and Fiscal Update (July Update). The final outcome for the 2019-20 underlying cash balance is an improvement of $0.5 billion from the preliminary expected outcome at the July Update. The final outcome for net debt was $491.2 billion at the end of 2019-20, $3.0 billion higher than the preliminary estimate included in the July Update.

Table 1: Australian Government general government sector budget aggregates since the July 2020 Economic and Fiscal Update Economic 2019-20 Change on

and Fiscal Outcome Economic

Update and Fiscal

Update

$b $b $b

Receipts 469.5 469.4 -0.1

Per cent of GDP 23.6 23.7

Payments(a) 550.0 549.6 -0.3

Per cent of GDP 27.7 27.7

Net Future Fund earnings 5.3 5.0 -0.3

Underlying cash balance(b) -85.8 -85.3 0.5

Per cent of GDP -4.3 -4.3

Net debt(c) 488.2 491.2 3.0

Per cent of GDP 24.6 24.8

(a) Equivalent to cash payments for operating activities, purchases of non-financial assets and net cash flows from financing activities for leases. (b) Excludes net Future Fund earnings. (c) 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).

The underlying cash deficit for 2019-20 of $85.3 billion compares with a forecast surplus of $5.0 billion at the time of the 2019-20 Mid-Year Economic and Fiscal Outlook (MYEFO). This deterioration in the underlying cash balance was the result of higher total payments ($57.7 billion) and lower total receipts ($33.1 billion) compared to the MYEFO estimates. Net Future Fund earnings, which are excluded from the underlying cash balance, were $0.4 billion lower than expected at the time of the 2019-20 MYEFO.

Final Budget Outcome 2019-20

2

In net operating terms, the outcome for 2019-20 was a deficit of $92.3 billion compared with the surplus of $8.0 billion estimated at the time of the 2019-20 MYEFO, with expenses $75.4 billion higher and revenue $24.9 billion lower than the 2019-20 MYEFO estimates.

As outlined in detail in the July Update, economic outcomes deteriorated significantly in the first half of 2020 due to the COVID-19 pandemic. Real GDP fell by 0.2 per cent in 2019-20 with growth in household consumption and business investment substantially lower than forecast at MYEFO. In contrast, public final demand and net exports were stronger than forecast. Higher public final demand reflected increased government spending in response to COVID-19, while a key factor in the higher contribution of net exports was international travel bans resulting in a large fall in services imports that exceeded the fall in services exports over the first half of 2020. Nominal GDP grew by 1.7 per cent in 2019-20.

Reflecting the contraction in economic activity, labour market conditions weakened substantially in the first half of 2020. Employment fell by 4.3 per cent through the year to the June quarter 2020 and the participation rate fell from a record high of 66.1 per cent in the September quarter 2019 to 63.4 per cent in the June quarter 2020. The unemployment rate increased to 7.0 per cent in the June quarter 2020. The Wage Price Index increased by 1.8 per cent through the year to the June quarter 2020 and compensation of employees rose by 3.7 per cent in 2019-20.

Australian Government general government sector net debt was $491.2 billion (24.8 per cent of GDP) at the end of 2019-20, which was $98.9 billion higher than estimated at the time of the 2019-20 MYEFO and around the level projected at the July Update. This primarily reflects the increased borrowing requirement due to the deterioration in the underlying cash balance. Australian Government general government sector net financial worth was negative $840.6 billion and net worth was negative $664.9 billion at the end of 2019-20.

Part 1: Australian Government Budget Outcome

3

Table 2: Australian Government general government sector budget aggregates 2018-19 2019-20 2019-20 Change on

Outcome Estimate at Outcome (a) 2019-20

2019-20 MYEFO

MYEFO (a)

$b $b $b $b

Receipts 485.3 502.5 469.4 -33.1

Per cent of GDP 24.9 25.0 23.7

Payments(b) 478.1 492.0 549.6 57.7

Per cent of GDP 24.6 24.5 27.7

Net Future Fund earnings 7.9 5.5 5.0 -0.4

Underlying cash balance(c) -0.7 5.0 -85.3 -90.3

Per cent of GDP 0.0 0.3 -4.3

Revenue 493.3 511.1 486.3 -24.9

Per cent of GDP 25.3 25.4 24.5

Expenses 484.7 503.2 578.5 75.4

Per cent of GDP 24.9 25.0 29.2

Net operating balance 8.7 8.0 -92.3 -100.2

Per cent of GDP 0.4 0.4 -4.7

Net capital investment 6.1 4.2 4.0 -0.2

Fiscal balance 2.6 3.8 -96.3 -100.1

Per cent of GDP 0.1 0.2 -4.9

Memorandum item:

Headline cash balance -7.2 -2.8 -93.9 -91.0

(a) Include impacts resulting from the implementation of AASB 16 in the 2019-20 MYEFO. (b) Equivalent to cash payments for operating activities, purchases of non-financial assets and net cash flows from financing activities for leases. (c) Excludes net Future Fund earnings.

Underlying cash balance

In 2019-20, the underlying cash deficit was $85.3 billion, an improvement of $0.5 billion since the July Update, with this improvement incorporating changes flowing from the preparation of financial statements. Net Future Fund earnings, which are excluded from the underlying cash balance, were $5.0 billion in 2019-20, $0.3 billion lower compared to the July Update.

The underlying cash deficit for 2019-20 of $85.3 billion compares with a forecast surplus of $5.0 billion at the time of the 2019-20 MYEFO. This deterioration was driven by the response to and effects of the COVID-19 pandemic, with total payments higher by $57.7 billion and total receipts lower by $33.1 billion compared to the 2019-20 MYEFO estimates. Net Future Fund earnings were $0.4 billion lower than expected at the time of the 2019-20 MYEFO.

Final Budget Outcome 2019-20

4

Table 3: Summary of Australian Government general government sector cash flows 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$b $b $b

Cash receipts

Operating cash receipts 500.8 467.7 -33.1

Capital cash receipts(a) 1.7 1.7 0.1

Total cash receipts 502.5 469.4 -33.1

Cash payments

Operating cash payments 475.3 534.2 58.9

Capital cash payments(b) 14.3 13.0 -1.3

Total cash payments 489.6 547.3 57.6

GFS cash surplus(+)/deficit(-) 12.8 -77.9 -90.7

Per cent of GDP 0.6 -3.9

plus Net cash flows from financing activities for leases(c) -2.3 -2.4 0.0

less Net Future Fund earnings 5.5 5.0 -0.4

Underlying cash balance(d) 5.0 -85.3 -90.3

Per cent of GDP 0.3 -4.3

Memorandum items:

Net cash flows from investments in financial

assets for policy purposes -13.3 -13.6 -0.3

plus Net Future Fund earnings 5.5 5.0 -0.4

Headline cash balance -2.8 -93.9 -91.0

(a) Equivalent to cash receipts from the sale of non-financial assets in the cash flow statement. (b) Equivalent to cash payments for purchases of non-financial assets in the cash flow statement. (c) 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. (d) Excludes net Future Fund earnings.

Part 1: Australian Government Budget Outcome

5

Receipts

Total receipts for 2019-20 were $469.4 billion, $0.1 billion lower than the preliminary estimate included in the July Update of $469.5 billion, and $33.1 billion lower than forecast in the 2019-20 MYEFO.

Tax receipts were $431.8 billion, $32.0 billion lower than the estimate at the 2019-20 MYEFO. Compared with the 2019-20 MYEFO and consistent with the July Update, the weakness was across almost all heads of revenue but largely driven by lower-than-expected company, total individuals and other withholding taxes, and GST.

• Company tax receipts were $13.4 billion (13.7 per cent) below the 2019-20 MYEFO estimate. This was driven in large part by the impact of health restrictions, which have reduced taxable incomes.

• Receipts from total individuals and other withholding taxes were $9.0 billion (3.9 per cent) below the 2019-20 MYEFO estimate, largely reflecting the COVID-19 pandemic resulting in weaker collections from small, medium and large withholders in line with a deterioration in labour market conditions and lodgement and payment deferrals granted by the ATO.

• Receipts from the GST were $5.3 billion (8.1 per cent) below the 2019-20 MYEFO estimate, reflecting lower-than-expected household consumption and private dwelling investment. There has been an increase in unpaid debt in 2019-20, in part due to payment deferrals offered to businesses experiencing financial hardship.

• Receipts from excise and customs duty were $2.2 billion (4.8 per cent) below the 2019-20 MYEFO estimate, also reflecting lower-than-expected household consumption, particularly through tobacco and petrol excise.

• Receipts from superannuation fund taxes were $1.9 billion (23.7 per cent) below the 2019-20 MYEFO estimate, largely due to impacts from the COVID-19 pandemic on superannuation funds.

Non-tax receipts were $37.6 billion in 2019-20, $1.1 billion lower than estimated at the time of the 2019-20 MYEFO. This decrease largely reflects lower-than-estimated receipts related to the Higher Education Loan Program ($0.6 billion) and the Unclaimed Superannuation Monies program ($0.5 billion).

Total cash receipts in 2019-20 of $469.4 billion included $5.4 billion in Future Fund receipts, which were $0.4 billion lower than estimated in the 2019-20 MYEFO.

Final Budget Outcome 2019-20

6

Table 4: Australian Government general government (cash) receipts 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO $m $m $m

Individuals and other withholding taxes

Gross income tax withholding 218,100 214,426 -3,674

Gross other individuals 49,600 43,713 -5,887

less: Refunds 36,800 36,219 -581

Total individuals and other withholding tax 230,900 221,920 -8,980

Fringe benefits tax 3,940 3,850 -90

Company tax 98,200 84,781 -13,419

Superannuation fund taxes 8,210 6,267 -1,943

Petroleum resource rent tax(a) 1,150 1,052 -98

Income taxation receipts 342,400 317,870 -24,530

Goods and services tax 65,558 60,263 -5,294

Wine equalisation tax 1,090 959 -131

Luxury car tax 670 570 -100

Excise and customs duty

Petrol 6,200 5,734 -466

Diesel 12,280 12,046 -234

Other fuel products 2,200 1,923 -277

Tobacco 17,210 16,270 -940

Beer 2,520 2,455 -65

Spirits 2,510 2,648 138

Other alcoholic beverages(b) 1,040 1,059 19

Other customs duty

Textiles, clothing and footwear 200 169 -31

Passenger motor vehicles 400 369 -31

Other imports 1,260 1,142 -118

less: Refunds and drawbacks 500 669 169

Total excise and customs duty 45,320 43,147 -2,173

Major bank levy 1,600 1,612 12

Agricultural levies 520 469 -52

Other taxes 6,633 6,885 251

Indirect taxation receipts 121,391 113,905 -7,487

Taxation receipts 463,791 431,775 -32,016

Sales of goods and services 15,142 15,490 347

Interest received 5,134 3,244 -1,890

Dividends 6,792 7,007 215

Other non-taxation receipts 11,612 11,883 271

Non-taxation receipts 38,680 37,623 -1,057

Total receipts 502,472 469,398 -33,073

Memorandum:

Total excise 24,290 23,352 -938

Total customs duty 21,030 19,795 -1,235

(a) This item includes an amount of MRRT receipts which has not been separately disclosed owing to taxpayer confidentiality. (b) ‘Other alcoholic beverages’ are those not exceeding 10 per cent by volume of alcohol (excluding beer, brandy and wine).

Part 1: Australian Government Budget Outcome

7

Payments

Total cash payments in 2019-20 were $549.6 billion, $0.3 billion lower than the preliminary estimate of $550.0 billion included in the July Update, and $57.7 billion higher than estimated at the time of the 2019-20 MYEFO. Higher-than-estimated payments are driven by the Government’s response to the COVID-19 pandemic. Key changes since the 2019-20 MYEFO include:

• the introduction of the JobKeeper Payment to help businesses and not-for-profits significantly impacted by COVID-19 cover the cost of their employees’ wages and the provision of temporary tax-free cash flow boosts to help entities continue to operate through the economic downturn associated with COVID-19 ($35.0 billion)

• higher-than-estimated payments across social welfare payment programs, largely reflecting the introduction of the time limited Coronavirus Supplement to new and existing income support recipients and payment of the $750 Economic Stimulus Payment to eligible pensioners, income support recipients, carers and student payment recipients, together with changes in recipient and average payment numbers reflecting the automatic stabiliser effect of social welfare payments ($13.1 billion)

• higher-than-estimated payments to the states and territories as a result of the commencement of the National Partnership on COVID-19 Response to support the costs to diagnose and treat patients with, or suspected of having COVID-19 ($2.9 billion)

• higher-than-estimated payments under the Health Protection and Emergency Response program largely reflecting the Government’s response to the COVID-19 pandemic, including for the procurement of personal protective equipment ($2.1 billion)

• higher-than-estimated payments under the NDIS largely reflecting higher-than-expected average package costs and advance payments to providers to provide cash flow relief and keep services going through the COVID-19 pandemic ($2.1 billion)

• higher-than-estimated payments to the states and territories under the Natural Disaster Relief program and to individuals under the Australian Government Disaster Financial Support Payments program, largely reflecting support in response to the 2019-20 bushfires ($1.0 billion).

The outcome also reflects decreases in payments across a number of programs including lower-than-estimated payments to the states and territories for road and rail infrastructure reflecting the slower than anticipated progress on relevant projects, largely due to the COVID-19 pandemic and the 2019-20 bushfires ($1.7 billion).

Final Budget Outcome 2019-20

8

Total cash payments in 2019-20 of $549.6 billion included $0.4 billion in Future Fund payments. Future Fund payments in 2019-20 were consistent with the estimate at the time of the 2019-20 MYEFO.

Net Future Fund earnings

The underlying cash balance excludes net Future Fund earnings. Net Future Fund earnings were $5.0 billion in 2019-20, $0.4 billion lower than estimated at the time of the 2019-20 MYEFO, largely reflecting lower-than-estimated investment earnings.

Net operating balance

The 2019-20 net operating deficit was $92.3 billion compared with a surplus of $8.0 billion estimated at the time of the 2019-20 MYEFO. The 2019-20 fiscal balance was a deficit of $96.3 billion compared with a surplus of $3.8 billion estimated at the time of the 2019-20 MYEFO.

Revenue

Total revenue was $486.3 billion in 2019-20, $24.9 billion lower than estimated at the time of the 2019-20 MYEFO. In comparison, total cash receipts were $469.4 billion, $33.1 billion lower than estimated at the time of the 2019-20 MYEFO.

Taxation revenue was $447.5 billion in 2019-20, $25.3 billion lower than the estimate at the 2019-20 MYEFO. Changes in taxation revenue were largely driven by the same revenue heads as receipts.

The revenue estimates are the accrual accounting equivalent of the cash-based receipts estimates. The differences between results for taxation receipts ($32.0 billion lower than forecast) and taxation revenue ($25.3 billion lower than forecast) generally reflect timing differences between the recognition of revenue and receiving the corresponding revenue. These differences were primarily shown in GST, total individuals and other withholding taxes, and company tax.

• In part, the weaker result for cash was driven by administrative support offered to taxpayers experiencing financial hardship in response to the COVID-19 pandemic, which allowed some taxpayers to defer payments of liabilities into 2020-21.

• GST was $5.3 billion below the 2019-20 MYEFO forecast on a receipts basis and $1.9 billion below forecast on a revenue basis. The weaker outcome against forecast for receipts relative to revenue is due to higher-than-expected outstanding liabilities for GST, including liabilities where the taxpayer has been offered a deferral of payment by the ATO.

• Total individuals and other withholding taxes was $9.0 billion below the 2019-20 MYEFO forecast on a receipts basis and $6.7 billion below forecast on a revenue basis. The weaker outcome for receipts relative to revenue is largely due to

Part 1: Australian Government Budget Outcome

9

payment deferrals granted as a result of the impact of the COVID-19 pandemic on taxpayers.

• Company tax was $13.4 billion below the 2019-20 MYEFO forecast on a receipts basis and $12.0 billion below forecast on a revenue basis. The lower outcome for receipts relative to revenue is largely due to lower provisions for credit amendments to company tax returns.

Total non-tax revenue was $38.8 billion in 2019-20, $0.4 billion higher than estimated at the 2019-20 MYEFO. Non-tax receipts were $37.6 billion in 2019-20, $1.1 billion lower than estimated at the time of the 2019-20 MYEFO. The $1.5 billion difference in the variance for non-tax revenue and non-tax receipts largely reflects timing differences between the recognition of revenue and the corresponding receipt for the Reserve Bank of Australia dividend.

Final Budget Outcome 2019-20

10

Table 5: Australian Government general government sector (accrual) revenue 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Individuals and other withholding taxes

Gross income tax withholding 220,300 217,095 -3,205

Gross other individuals 52,900 48,855 -4,045

less: Refunds 36,800 36,219 -581

Total individuals and other withholding tax 236,400 229,731 -6,669

Fringe benefits tax 4,040 3,939 -101

Company tax 99,800 87,846 -11,954

Superannuation fund taxes 8,460 6,621 -1,839

Petroleum resource rent tax(a) 1,130 921 -209

Income taxation revenue 349,830 329,058 -20,772

Goods and services tax 67,230 65,287 -1,943

Wine equalisation tax 1,110 1,040 -70

Luxury car tax 670 632 -38

Excise and customs duty

Petrol 6,100 5,676 -424

Diesel 12,080 11,923 -157

Other fuel products 2,170 1,907 -263

Tobacco 16,980 15,981 -999

Beer 2,460 2,434 -26

Spirits 2,510 2,641 131

Other alcoholic beverages(b) 1,040 1,048 8

Other customs duty

Textiles, clothing and footwear 200 169 -31

Passenger motor vehicles 400 369 -31

Other imports 1,260 1,143 -117

less: Refunds and drawbacks 500 669 169

Total excise and customs duty 44,700 42,622 -2,078

Major bank levy 1,610 1,639 29

Agricultural levies 521 469 -53

Other taxes 7,144 6,778 -366

Indirect taxation revenue 122,985 118,467 -4,518

Taxation revenue 472,815 447,526 -25,288

Sales of goods and services 14,980 14,789 -191

Interest 5,247 3,689 -1,559

Dividends 6,383 8,367 1,984

Other non-taxation revenue 11,723 11,907 184

Non-taxation revenue 38,333 38,752 418

Total revenue 511,148 486,278 -24,870

Memorandum:

Total excise 23,900 23,116 -784

Total customs duty 20,800 19,507 -1,293

(a) This item includes an amount of MRRT revenue which has not been separately disclosed owing to taxpayer confidentiality. (b) ‘Other alcoholic beverages’ are those not exceeding 10 per cent by volume of alcohol (excluding beer, brandy and wine).

Part 1: Australian Government Budget Outcome

11

Expenses and net capital investment

Total expenses were $578.5 billion in 2019-20, $75.4 billion higher than estimated at the time of the 2019-20 MYEFO. Total net capital investment for 2019-20 was $4.0 billion, $0.2 billion lower than the estimate of $4.2 billion at the time of the 2019-20 MYEFO. This results in a higher-than-estimated net outcome for expenses and net capital investment of $582.6 billion.

In comparison, cash payments were $549.6 billion in 2019-20, $57.7 billion higher than estimated at the time of the 2019-20 MYEFO.

The difference of $32.9 billion between the net outcome for expenses and net capital investment and the outcome for cash payments is primarily due to timing differences in the accounting treatment of expenses and the associated cash flow, including for the July Update measures JobKeeper Payment and Boosting cash flow for employers and programs such as the Government superannuation schemes.

Further information on expenses by function and sub-function is provided in Appendix A.

Final Budget Outcome 2019-20

12

Table 6: Australian Government general government sector expenses by function 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

General public services

Legislative and executive affairs 1,355 1,366 11

Financial and fiscal affairs 7,275 7,302 26

Foreign affairs and economic aid 6,293 6,270 -24

General research 3,177 2,940 -237

General services 675 855 180

Government superannuation benefits 11,380 10,739 -641

Defence 32,783 33,187 404

Public order and safety 5,966 6,388 422

Education 35,846 39,885 4,039

Health 83,425 87,023 3,599

Social security and welfare 180,782 196,119 15,336

Housing and community amenities 5,715 5,332 -383

Recreation and culture 3,989 3,971 -18

Fuel and energy 8,161 7,892 -269

Agriculture, forestry and fishing 3,025 2,584 -441

Mining, manufacturing and construction 3,073 2,819 -254

Transport and communication 8,671 7,321 -1,350

Other economic affairs

Tourism and area promotion 173 165 -8

Labour and employment affairs 3,587 3,810 223

Immigration 3,800 3,488 -312

Other economic affairs nec 2,690 58,030 55,340

Other purposes

Public debt interest 16,746 16,923 178

Nominal superannuation interest 7,715 7,673 -42

General purpose inter-government transactions 68,547 64,603 -3,944

Natural disaster relief 38 1,863 1,825

Contingency reserve -1,707 0 1,707

Total expenses 503,180 578,549 75,369

Part 1: Australian Government Budget Outcome

13

Headline cash balance

The headline cash balance consists of the underlying cash balance, net cash flows from investments in financial assets for policy purposes (for example, student loans and a loan to NBN Co) and net Future Fund earnings.

Table 7 provides further detail between the underlying and headline cash balance estimates of the Australian Government general government sector in 2019-20.

In 2019-20, the headline cash deficit was $93.9 billion compared with a deficit of $2.8 billion estimated at the time of the 2019-20 MYEFO. The deterioration in the headline cash balance was primarily driven by the dramatic change in the underlying cash balance reflecting the response to and effects of the COVID-19 pandemic.

Table 7: Australian Government general government sector reconciliation of underlying and headline cash balance 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

2019-20 Underlying cash balance(a) 5,028 -85,272 -90,299

plus Net cash flows from investments in financial assets

for policy purposes

Student loans -3,901 -3,700 201

NBN loan -6,143 -6,405 -262

WestConnex -85 -85 0

Asbestos removal in the ACT — Mr Fluffy loose fill

asbestos remediation 900 900 0

Trade support loans -147 -148 -1

CEFC loans and investments -769 108 877

Northern Australia Infrastructure Facility -288 -122 166

Australian Business Securitisation Fund -200 -15 185

Structured Finance Support Fund 0 -1,685 -1,685

Drought and rural assistance loans -330 -267 63

Water infrastructure and regional development loans -190 -90 100

Official Development Assistance — Multilateral Replenishment -120 -169 -49

National Housing Finance and Investment Corporation -125 -100 25

Net other(b) -1,938 -1,855 83

Total net cash flows from investments in financial assets

for policy purposes -13,336 -13,632 -296

plus Net Future Fund earnings 5,468 5,036 -431

2019-20 Headline cash balance -2,841 -93,868 -91,027

(a) Excludes net Future Fund earnings. (b) Net other includes equity payments for infrastructure projects. The amounts have not been itemised for commercial-in-confidence reasons.

Final Budget Outcome 2019-20

14

Net debt, net financial worth and net worth

At the end of 2019-20, net debt was $491.2 billion (24.8 per cent of GDP), $98.9 billion higher than estimated at the time of the 2019-20 MYEFO. This primarily reflects the increased borrowing requirement stemming from the response to and effects of the COVID-19 pandemic.

Net financial worth was negative $840.6 billion at the end of 2019-20, compared with negative $518.8 billion estimated at the 2019-20 MYEFO.

Net worth was negative $664.9 billion at the end of 2019-20, compared with negative $346.0 billion estimated at the 2019-20 MYEFO.

The changes in net financial worth and net worth since the 2019-20 MYEFO primarily reflect a significant increase in the borrowing requirement due to the deterioration in the underlying cash balance, and in the Government’s reported superannuation liability. The reported increase in the superannuation liability is consistent with previous years and is the result of a large difference between the discount rates used to value the Government’s defined benefit superannuation liability at the 2019-20 MYEFO and at the 2019-20 Final Budget Outcome. The approach to valuing the superannuation liability has not changed from previous budgets or Final Budget Outcomes.

At the 2019-20 MYEFO, actuaries determined the long-term discount rate to be 5.0 per cent per annum. This rate reflected the average annual rate estimated to apply over the remainder of the term to maturity of the liability and the actuaries’ views that short-term deviations are expected to be smoothed out in the longer term. This approach also reduces the volatility in reported liabilities that would occur from year to year if the long-term government bond rate were used.

For the Final Budget Outcome, the Australian Accounting Standards require the use of the long-term government bond rate as at 30 June 2020 that best matches each individual scheme’s liability duration. This requirement results in differences in superannuation liability between one Final Budget Outcome and the next, and between budgets and Final Budget Outcomes, due to the discount rate applied, not as a result of changes in the accrued benefits of the defined benefit schemes. At the 2019-20 Final Budget Outcome, the long-term bond rates used were between 1.0 and 1.7 per cent per annum depending on the defined benefit scheme.

The variance in the reported superannuation liability between the 2019-20 MYEFO and 2019-20 Final Budget Outcome was an increase of $199.3 billion. By way of comparison, the variance between the 2018-19 MYEFO and the 2018-19 Final Budget Outcome was an increase of $191.6 billion.

Part 1: Australian Government Budget Outcome

15

Table 8: Australian Government general government sector net worth, net financial worth, net debt and net interest payments 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$b $b $b

Financial assets 482.8 534.1 51.4

Non-financial assets 172.8 175.7 2.9

Total assets 655.6 709.8 54.2

Total liabilities 1,001.6 1,374.7 373.1

Net worth -346.0 -664.9 -318.8

Net financial worth(a) -518.8 -840.6 -321.7

Per cent of GDP -25.8 -42.4

Net debt(b) 392.3 491.2 98.9

Per cent of GDP 19.5 24.8

Net interest payments 11.4 13.3 1.9

Per cent of GDP 0.6 0.7

(a) Net financial worth equals total financial assets minus total liabilities. (b) 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).

17

Part 2: Australian Government Financial Statements Consistent with the Charter of Budget Honesty Act 1998 (the Charter), the Government has produced a single set of financial statements for the Australian Government general government sector (GGS), the public non-financial corporations (PNFC) sector, the total non-financial public sector (NFPS) and the public financial corporations (PFC) sector. The financial statements comply with both the Australian Bureau of Statistics’ (ABS) accrual Government Finance Statistics (GFS) and Australian Accounting Standards (AAS), with departures disclosed. These statements are:

• an operating statement, including other economic flows, which shows net operating balance and net lending/borrowing (fiscal balance);

• a balance sheet, which also shows net worth, net financial worth, net financial liabilities and net debt; and

• a cash flow statement, which includes the calculation of the underlying cash balance.

In addition to these general purpose statements, notes to the financial statements are required. These notes include a summary of accounting policies, disaggregated information and other disclosures required by AAS.

The financial statements for the Final Budget Outcome for 2019-20 have been prepared on a basis consistent with the 2019-20 Mid-Year Economic and Fiscal Outlook (MYEFO). This enables comparison of the 2019-20 revised estimates published at the 2019-20 MYEFO and the outcome.

The statements reflect the Government’s policy that the ABS GFS remains the basis of budget accounting policy, except where AAS is applied because it provides a better conceptual basis for presenting information of relevance to users of public sector financial reports.

The Australian, state and territory governments have an agreed framework — the Uniform Presentation Framework (UPF) — for the presentation of government financial information on a basis broadly consistent with the Australian Accounting Standards Board standard AASB 1049 Whole of Government and General Government Sector Financial Reporting (AASB 1049). The financial statements are consistent with the requirements of the UPF.

Final Budget Outcome 2019-20

18

Australian Government Financial Statements

Table 9: Australian Government general government sector operating statement 2019-20 Month of 2019-20 Change on

Estimate at June 2020 Outcome 2019-20

2019-20 (a) MYEFO

MYEFO

Note $m $m $m $m

Revenue

Taxation revenue 3 472,815 32,875 447,526 -25,288

Sales of goods and services 4 14,980 766 14,789 -191

Interest income 5 5,247 236 3,689 -1,559

Dividend income 5 6,383 3,595 8,367 1,984

Other 6 11,723 1,208 11,907 184

Total revenue 511,148 38,680 486,278 -24,870

Expenses

Gross operating expenses

Wages and salaries(b) 7 21,366 1,757 20,721 -646

Superannuation 7 12,357 882 12,246 -111

Depreciation and amortisation 8 11,446 794 11,765 319

Supply of goods and services 9 124,029 12,127 125,264 1,235

Other operating expenses(b) 7 7,236 1,572 8,583 1,348

Total gross operating expenses 176,434 17,133 178,579 2,145

Superannuation interest expense 7 7,715 637 7,673 -42

Interest expenses 10 18,215 2,351 18,463 247

Current transfers

Current grants 11 149,813 9,084 149,799 -15

Subsidy expenses 12,136 18,675 67,641 55,505

Personal benefits 12 128,282 14,685 144,715 16,432

Total current transfers 290,232 42,443 362,154 71,923

Capital transfers 11

Mutually agreed write-downs 1,416 51 3,114 1,697

Other capital grants 9,168 3,806 8,567 -601

Total capital transfers 10,584 3,857 11,681 1,096

Total expenses 503,180 66,421 578,549 75,369

Net operating balance 7,968 -27,742 -92,271 -100,239

Other economic flows -

included in operating result

Net write-downs of assets -6,933 5,007 -8,586 -1,652

Assets recognised for the first time 201 30 153 -49

Actuarial revaluations 81 -8,007 -8,007 -8,088

Net foreign exchange gains -92 476 -4,447 -4,355

Net swap interest received -210 364 -563 -353

Market valuation of debt -1,129 854 -9,193 -8,064

Other gains/(losses) 5,131 -11,362 -3,414 -8,545

Total other economic flows —

included in operating result -2,950 -12,639 -34,056 -31,105

Operating Result(c) 5,018 -40,381 -126,327 -131,345

Part 2: Australian Government Financial Statements

19

Table 9: Australian Government general government sector operating statement (continued) 2019-20 Month of 2019-20 Change on

Estimate at June 2020 Outcome 2019-20

2019-20 (a) MYEFO

MYEFO

Note $m $m $m $m

Non-owner movements in equity

Revaluation of equity investments -3,928 6,961 6,951 10,878

Actuarial revaluations 1,879 54 54 -1,825

Other economic revaluations 195 -2,359 2,554 2,358

Total other economic flows —

included in equity -1,853 4,656 9,558 11,411

Comprehensive result —

Total change in net worth 3,164 -35,725 -116,769 -119,934

Net operating balance 7,968 -27,742 -92,271 -100,239

Net acquisition

of non-financial assets

Purchases of non-financial assets 16,868 1,844 15,876 -992

less Sales of non-financial assets 1,219 204 1,400 181

less Depreciation 11,446 794 11,765 319

plus Change in inventories -40 -736 1,293 1,332

plus Other movements in non-financial assets -3 -29 2 5

Total net acquisition of

non-financial assets 4,161 81 4,005 -156

Fiscal balance

(Net lending/borrowing)(d) 3,807 -27,822 -96,277 -100,084

(a) The month of June is derived by deducting May year-to-date published data from the annual outcome. Statistically, June movements in some series relate to earlier published months that are not reissued; this can result in negative movements.

(b) Consistent with the ABS GFS classification, other employee related expenses are classified separately from wages and salaries under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.

(c) Operating result under AAS. (d) The term fiscal balance is not used by the ABS.

Final Budget Outcome 2019-20

20

Table 10: Australian Government general government sector balance sheet 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

Note $m $m $m

Assets

Financial assets

Cash and deposits 7,204 9,453 2,249

Advances paid 13 85,155 82,045 -3,110

Investments, loans and placements 14 198,528 239,749 41,221

Other receivables 13 58,577 75,398 16,821

Equity investments

Investments in other public sector entities 55,640 65,344 9,704

Equity accounted investments 3,677 3,424 -253

Investments — shares 73,969 58,717 -15,252

Total financial assets 482,751 534,131 51,379

Non-financial assets 15

Land 11,824 11,715 -109

Buildings 43,415 43,419 4

Plant, equipment and infrastructure 87,832 88,973 1,141

Inventories 8,488 9,935 1,447

Intangibles 9,105 9,101 -4

Investment properties 160 208 48

Biological assets 21 31 11

Heritage and cultural assets 11,695 11,976 282

Assets held for sale 231 270 39

Other non-financial assets 32 37 5

Total non-financial assets 172,803 175,666 2,863

Total assets 655,554 709,796 54,242

Liabilities

Interest bearing liabilities

Deposits held 388 484 96

Government securities 645,907 784,973 139,066

Loans 16 17,759 17,132 -627

Lease liabilities 19,139 19,876 736

Total interest bearing liabilities 683,193 822,464 139,271

Part 2: Australian Government Financial Statements

21

Table 10: Australian Government general government sector balance sheet (continued) 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

Note $m $m $m

Provisions and payables

Superannuation liability 17 230,774 430,105 199,332

Other employee liabilities 17 26,663 32,262 5,598

Suppliers payables 18 7,579 7,396 -182

Personal benefits payables 18 3,753 4,670 917

Subsidies payables 18 645 1,041 396

Grants payables 18 4,051 2,847 -1,204

Other payables 18 2,186 4,580 2,393

Provisions 18 42,752 69,323 26,571

Total provisions and payables 318,404 552,224 233,820

Total liabilities 1,001,597 1,374,688 373,092

Net worth(a) -346,042 -664,892 -318,849

Net financial worth(b) -518,845 -840,557 -321,712

Net financial liabilities(c) 574,486 905,902 331,416

Net debt(d) 392,305 491,217 98,912

(a) Net worth equals total assets minus total liabilities. (b) Net financial worth equals total financial assets minus total liabilities. (c) Net financial liabilities equals total liabilities less financial assets other than investments in other public sector entities.

(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).

Final Budget Outcome 2019-20

22

Table 11: Australian Government general government sector cash flow statement(a) 2019-20 Month of 2019-20 Change on

Estimate at June 2020 Outcome 2019-20

2019-20 (b) MYEFO

MYEFO

$m $m $m $m

Cash receipts from operating activities

Taxes received 463,791 38,982 431,775 -32,016

Receipts from sales of goods and services 15,142 1,924 15,490 347

Interest receipts 5,134 -62 3,244 -1,890

Dividends and income tax equivalents 6,792 449 7,007 215

Other receipts 9,949 -983 10,159 210

Total operating receipts 500,809 40,309 467,674 -33,135

Cash payments for operating activities

Payments to employees(c) -31,152 -2,065 -30,293 860

Payments for goods and services -122,024 -9,947 -126,589 -4,565

Grants and subsidies paid -170,400 -30,828 -210,772 -40,372

Interest paid -16,564 -801 -16,524 40

Personal benefit payments -128,416 -14,490 -143,073 -14,657

Other payments(c) -6,768 -736 -6,989 -220

Total operating payments -475,325 -58,867 -534,240 -58,915

Net cash flows from operating activities 25,483 -18,557 -66,566 -92,050

Cash flows from investments in

non-financial assets

Sales of non-financial assets 1,663 105 1,724 61

Purchases of non-financial assets -14,304 -1,327 -13,032 1,272

Net cash flows from investments in

non-financial assets -12,641 -1,222 -11,308 1,333

Net cash flows from investments in

financial assets for policy purposes -13,336 -1,759 -13,632 -296

Net cash flows from investments in

financial assets for liquidity purposes -15,923 -6,961 -53,639 -37,717

Cash receipts from financing activities

Borrowing 128,737 33,312 229,205 100,468

Other financing 968 984 4,474 3,506

Total cash receipts from financing activities 129,705 34,296 233,679 103,974 Cash payments for financing activities

Borrowing -108,466 -4,265 -77,802 30,664

Other financing -6,225 -701 -9,885 -3,660

Total cash payments for financing activities -114,691 -4,965 -87,687 27,004

Net cash flows from financing activities 15,014 29,330 145,992 130,978

Net increase/(decrease) in cash held -1,403 832 846 2,249

Part 2: Australian Government Financial Statements

23

Table 11: Australian Government general government sector cash flow statement (continued)(a) 2019-20 Month of 2019-20 Change on

Estimate at June 2020 Outcome 2019-20

2019-20 (b) MYEFO

MYEFO

$m $m $m $m

GFS cash surplus(+)/deficit(-)(d) 12,842 -19,779 -77,874 -90,716

plus Net cash flows from financing activities

for leases(e) -2,347 -320 -2,361 -14

less Net Future Fund earnings 5,468 258 5,036 -431

Equals underlying cash balance(f) 5,028 -20,357 -85,272 -90,299

plus Net cash flows from investments in

financial assets for policy purposes -13,336 -1,759 -13,632 -296

plus Net Future Fund earnings 5,468 258 5,036 -431

Equals headline cash balance -2,841 -21,858 -93,868 -91,027

(a) A positive number denotes a cash inflow; a negative number denotes a cash outflow. (b) The month of June is derived by deducting May year-to-date published data from the annual outcome. Statistically, June movements in some series relate to earlier published months that are not reissued; this can result in negative movements.

(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.

Final Budget Outcome 2019-20

24

Table 12: Australian Government public non-financial corporations sector operating statement 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Revenue

Current grants and subsidies 65 321 256

Sales of goods and services 16,618 16,618 -1

Interest income 26 38 13

Other 43 51 8

Total revenue 16,753 17,029 276

Expenses

Gross operating expenses

Wages and salaries(a) 4,585 4,542 -43

Superannuation 490 526 36

Depreciation and amortisation 4,353 4,564 210

Supply of goods and services 10,385 10,696 311

Other operating expenses(a) 623 716 93

Total gross operating expenses 20,437 21,044 607

Interest expenses 1,643 1,639 -3

Other property expenses 322 283 -40

Current transfers

Tax expenses 134 208 74

Total current transfers 134 208 74

Total expenses 22,536 23,174 638

Net operating balance -5,783 -6,145 -362

Other economic flows 378 -442 -820

Comprehensive result — Total change in net worth

excluding contribution from owners -5,405 -6,587 -1,182

Net acquisition of non-financial assets

Purchases of non-financial assets 10,012 8,751 -1,261

less Sales of non-financial assets 70 236 166

less Depreciation 4,353 4,564 210

plus Change in inventories 5 -1 -6

plus Other movements in non-financial assets 0 0 0

Total net acquisition of non-financial assets 5,594 3,951 -1,644

Fiscal balance (Net lending/borrowing)(b) -11,377 -10,096 1,282

(a) Consistent with the ABS GFS classification, other employee related expenses are classified separately from wages and salaries under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.

(b) The term fiscal balance is not used by the ABS.

Part 2: Australian Government Financial Statements

25

Table 13: Australian Government public non-financial corporations sector balance sheet 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Assets

Financial assets

Cash and deposits 1,784 2,261 477

Investments, loans and placements(a) 959 421 -538

Other receivables(a) 2,863 3,169 307

Equity investments 177 188 11

Total financial assets 5,783 6,039 256

Non-financial assets

Land and other fixed assets 56,764 55,674 -1,090

Other non-financial assets(b) 3,864 4,082 218

Total non-financial assets 60,628 59,756 -871

Total assets 66,411 65,795 -616

Liabilities

Interest bearing liabilities

Deposits held 13 10 -2

Advances received and loans(a) 25,068 25,050 -19

Lease liabilities 12,896 12,574 -323

Total interest bearing liabilities 37,978 37,634 -344

Provisions and payables

Superannuation liability 26 28 2

Other employee liabilities 1,861 1,935 74

Other payables(a) 4,762 5,744 982

Other provisions(b) 607 952 346

Total provisions and payables 7,255 8,659 1,404

Total liabilities 45,233 46,293 1,060

Shares and other contributed capital 21,178 19,502 -1,676

Net worth(c) 21,178 19,502 -1,676

Net financial worth(d) -39,450 -40,254 -805

Net debt(e) 35,234 34,952 -282

(a) In the 2019-20 FBO, derivative assets and liabilities have been reclassified from interest bearing assets and liabilities to non-interest bearing assets and liabilities and are no longer included in the calculation of net debt.

(b) Excludes the impact of commercial taxation adjustments. (c) Under AASB 1049, net worth equals total assets minus total liabilities. Under the ABS GFS, net worth equals total assets minus total liabilities minus shares and other contributed capital. The AASB 1049 method is used in this table.

(d) Under AASB 1049, net financial worth equals total financial assets minus total liabilities. Under the ABS GFS, net financial worth equals total financial assets minus total liabilities minus shares and other contributed capital. The AASB 1049 method is used in this table.

(e) Net debt equals the sum of interest bearing liabilities less the sum of selected financial assets (cash and deposits and investments, loans and placements).

Final Budget Outcome 2019-20

26

Table 14: Australian Government public non-financial corporations sector cash flow statement(a) 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Cash receipts from operating activities

Receipts from sales of goods and services 17,462 17,739 277

Grants and subsidies received 5 264 259

GST input credit receipts 1,148 695 -453

Other receipts 58 31 -27

Total operating receipts 18,674 18,729 56

Cash payments for operating activities

Payments to employees(b) -4,658 -4,903 -245

Payment for goods and services -12,261 -12,276 -15

Interest paid -810 -1,445 -635

GST payments to taxation authority -1,041 -380 661

Distributions paid(c) -333 -286 47

Other payments(b) -987 -820 167

Total operating payments -20,089 -20,109 -20

Net cash flows from operating activities -1,415 -1,379 36

Cash flows from investments in non-financial assets

Sales of non-financial assets 70 95 25

Purchases of non-financial assets -7,840 -7,749 92

Net cash flows from

investments in non-financial assets -7,771 -7,654 117

Net cash flows from investments in financial assets

for policy purposes -5 -3 2

Net cash flows from investments in financial assets

for liquidity purposes -38 -61 -23

Net cash flows from financing activities

Borrowing (net) 8,136 8,483 347

Other financing (net) 789 797 7

Net cash flows from financing activities(c) 8,925 9,279 354

Net increase/(decrease) in cash held -305 182 487

Cash at the beginning of the year 2,078 2,078 0

Cash at the end of the year 1,773 2,261 488

GFS cash surplus(+)/deficit(-)(d) -9,186 -9,033 153

plus Net cash flows from financing activities for leases(e) -962 -386 575

Adjusted GFS cash surplus(+)/deficit(-)(e) -10,147 -9,419 728

(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) Consistent with the ABS GFS classification, distributions paid by public corporations are reclassified from

cash flows from financing activities to cash flows from operating activities in the 2019-20 FBO. Comparators for the 2019-20 MYEFO have been revised to reflect this reclassification. (d) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets. (e) To retain a consistent measure of the GFS cash surplus/deficit following the implementation of AASB 16,

its calculation is adjusted to include the principal payments on lease liabilities.

Part 2: Australian Government Financial Statements

27

Table 15: Australian Government total non-financial public sector operating statement 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Revenue

Taxation revenue 472,708 447,619 -25,089

Sales of goods and services 30,640 30,291 -349

Interest income 4,637 3,087 -1,551

Dividend income 6,060 8,084 2,024

Other 11,804 11,880 75

Total revenue 525,850 500,961 -24,889

Expenses

Gross operating expenses

Wages and salaries(a) 25,951 25,262 -688

Superannuation 12,848 12,767 -81

Depreciation and amortisation 15,799 16,329 530

Supply of goods and services 133,440 134,726 1,286

Other operating expenses(a) 7,859 9,300 1,441

Total gross operating expenses 195,896 198,384 2,488

Superannuation interest expense 7,715 7,674 -41

Interest expenses 19,222 19,462 240

Current transfers

Current grants 149,813 149,799 -15

Subsidy expenses 12,131 67,380 55,249

Personal benefits 128,282 144,715 16,432

Total current transfers 290,227 361,893 71,667

Capital transfers 10,584 11,670 1,086

Total expenses 523,644 599,083 75,438

Net operating balance 2,206 -98,122 -100,328

Other economic flows 1,589 -30,818 -32,407

Comprehensive result — Total change in net worth 3,795 -128,940 -132,735

Net acquisition of non-financial assets

Purchases of non-financial assets 26,872 24,619 -2,253

less Sales of non-financial assets 1,289 1,636 348

less Depreciation 15,799 16,329 530

plus Change in inventories -34 1,292 1,326

plus Other movements in non-financial assets -3 2 5

Total net acquisition of non-financial assets 9,747 7,947 -1,800

Fiscal balance (Net lending/borrowing)(b) -7,541 -106,069 -98,528

(a) Consistent with the ABS GFS classification, other employee related expenses are classified separately from wages and salaries under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.

(b) The term fiscal balance is not used by the ABS.

Final Budget Outcome 2019-20

28

Table 16: Australian Government total non-financial public sector balance sheet 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Assets

Financial assets

Cash and deposits 8,989 11,711 2,722

Advances paid 65,697 62,319 -3,377

Investments, loans and placements(a) 199,459 240,154 40,695

Other receivables(a) 61,302 78,382 17,080

Equity investments 110,021 93,146 -16,876

Total financial assets 445,468 485,711 40,243

Non-financial assets

Land and other fixed assets 220,009 221,684 1,674

Other non-financial assets 13,464 13,780 317

Total non-financial assets 233,473 235,464 1,991

Total assets 678,941 721,175 42,234

Liabilities

Interest bearing liabilities

Deposits held 401 491 90

Government securities 645,907 784,973 139,066

Advances received and loans(a) 23,340 22,440 -900

Lease liabilities 32,027 32,443 415

Total interest bearing liabilities 701,675 840,346 138,671

Provisions and payables

Superannuation liability 230,800 430,133 199,334

Other employee liabilities 28,524 34,197 5,672

Other payables(a) 22,923 26,166 3,243

Other provisions 43,284 70,250 26,966

Total provisions and payables 325,531 560,745 235,215

Total liabilities 1,027,206 1,401,091 373,885

Net worth(b) -348,265 -679,916 -331,651

Net financial worth(c) -581,738 -915,380 -333,642

Net debt(d) 427,531 526,162 98,632

(a) In 2019-20 FBO, derivative assets and liabilities have been reclassified from interest bearing assets and liabilities to non-interest bearing assets and liabilities and are no longer included in the calculation of net debt.

(b) Under AASB 1049, net worth equals total assets minus total liabilities. Under the ABS GFS, net worth equals total assets minus total liabilities minus shares and other contributed capital. The AASB 1049 method is used in this table.

(c) Under AASB 1049, net financial worth equals total financial assets minus total liabilities. Under the ABS GFS, net financial worth equals total financial assets minus total liabilities minus shares and other contributed capital. The AASB 1049 method is used in this table.

(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).

Part 2: Australian Government Financial Statements

29

Table 17: Australian Government total non-financial public sector cash flow statement(a) 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Cash receipts from operating activities

Taxes received 463,718 431,651 -32,067

Receipts from sales of goods and services 30,484 30,532 48

Interest receipts 4,531 2,632 -1,899

Dividends and income tax equivalents 6,478 6,725 247

Other receipts 9,964 10,002 38

Total operating receipts 515,175 481,543 -33,633

Cash payments for operating activities

Payments to employees(b) -35,810 -35,191 619

Payments for goods and services -132,061 -135,737 -3,676

Grants and subsidies paid -170,396 -210,503 -40,107

Interest paid -16,749 -17,333 -584

Personal benefit payments -128,416 -143,073 -14,657

Other payments(b) -7,634 -7,652 -19

Total operating payments -491,066 -549,490 -58,423

Net cash flows from operating activities 24,109 -67,947 -92,056

Cash flows from investments in non-financial assets

Sales of non-financial assets 1,733 1,819 87

Purchases of non-financial assets -22,173 -20,781 1,393

Net cash flows from

investments in non-financial assets -20,441 -18,961 1,479

Net cash flows from investments in financial assets

for policy purposes -5,564 -6,202 -638

Net cash flows from investments in financial assets

for liquidity purposes -15,961 -53,704 -37,743

Net cash flows from financing activities

Borrowing (net) 22,258 153,480 131,222

Other financing (net) -6,107 -5,640 467

Net cash flows from financing activities 16,150 147,839 131,689

Net increase/(decrease) in cash held -1,707 1,025 2,732

Cash at the beginning of the year 10,685 10,685 0

Cash at the end of the year 8,979 11,711 2,732

GFS cash surplus(+)/deficit(-)(c) 3,668 -86,908 -90,577

plus Net cash flows from financing activities for leases(d) -3,309 -2,747 561

Adjusted GFS cash surplus(+)/deficit(-)(d) 360 -89,656 -90,016

(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) To retain a consistent measure of the GFS cash surplus/deficit following the implementation of AASB 16, its calculation is adjusted to include the principal payments on lease liabilities

Final Budget Outcome 2019-20

30

Table 18: Australian Government public financial corporations sector operating statement 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Revenue

Current grants and subsidies 151 166 15

Sales of goods and services 780 812 32

Interest income 1,682 2,044 361

Other 50 68 18

Total revenue 2,663 3,090 426

Expenses

Gross operating expenses

Wages and salaries(a) 198 219 21

Superannuation 70 97 27

Depreciation and amortisation 71 82 12

Supply of goods and services 540 455 -85

Other operating expenses(a) 58 58 0

Total gross operating expenses 937 911 -26

Interest expenses 680 609 -71

Other property expenses 875 2,590 1,715

Current transfers

Tax expenses 8 7 -2

Total current transfers 9 7 -3

Total expenses 2,502 4,117 1,616

Net operating balance 162 -1,028 -1,189

Other economic flows 1,704 2,005 300

Comprehensive result — Total change in net worth

excluding contribution from owners 1,866 977 -889

Net acquisition of non-financial assets

Purchases of non-financial assets 35 66 31

less Sales of non-financial assets 0 3 3

less Depreciation 71 82 12

plus Change in inventories -28 14 42

plus Other movements in non-financial assets 0 0 0

Total net acquisition of non-financial assets -64 -4 59

Fiscal balance (Net lending/borrowing)(b) 225 -1,023 -1,248

(a) Consistent with the ABS GFS classification, other employee related expenses are classified separately from wages and salaries under other operating expenses. Total employee expenses equal wages and salaries plus other operating expenses.

(b) The term fiscal balance is not used by the ABS.

Part 2: Australian Government Financial Statements

31

Table 19: Australian Government public financial corporations sector balance sheet 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Assets

Financial assets

Cash and deposits 1,581 1,419 -162

Investments, loans and placements(a) 179,189 283,381 104,192

Other receivables(a) 143 204 61

Equity investments 625 680 55

Total financial assets 181,539 285,684 104,145

Non-financial assets

Land and other fixed assets 885 900 14

Other non-financial assets(b) 97 96 -1

Total non-financial assets 983 995 13

Total assets 182,521 286,679 104,157

Liabilities

Interest bearing liabilities

Deposits held 139,640 244,380 104,741

Borrowing(a) 7,509 5,224 -2,284

Total interest bearing liabilities 147,148 249,605 102,456

Provisions and payables

Superannuation liability 726 944 218

Other employee liabilities 211 228 17

Other payables(a) 1,043 3,277 2,234

Other provisions(b) 1,628 1,737 109

Total provisions and payables 3,608 6,186 2,578

Total liabilities 150,756 255,791 105,035

Shares and other contributed capital 31,765 30,888 -877

Net worth(c) 31,765 30,888 -877

Net financial worth(d) 30,783 29,893 -890

Net debt(e) -33,622 -35,195 -1,573

(a) In 2019-20 FBO, derivative assets and liabilities have been reclassified from interest bearing assets and liabilities to non-interest bearing assets and liabilities and are no longer included in the calculation of net debt.

(b) Excludes the impact of commercial taxation adjustments. (c) Under AASB 1049, net worth equals total assets minus total liabilities. Under the ABS GFS, net worth equals total assets minus total liabilities minus shares and other contributed capital. The AASB 1049 method is used in this table.

(d) Under AASB 1049, net financial worth equals total financial assets minus total liabilities. Under the ABS GFS, net financial worth equals total financial assets minus total liabilities minus shares and other contributed capital. The AASB 1049 method is used in this table.

(e) Net debt is the sum of interest bearing liabilities less the sum of selected financial assets (cash and deposits, and investments, loans and placements).

Final Budget Outcome 2019-20

32

Table 20: Australian Government public financial corporations sector cash flow statement(a) 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Cash receipts from operating activities

Receipts from sales of goods and services 802 778 -23

Grants and subsidies received 151 165 14

GST input credit receipts 8 20 13

Interest receipts 1,677 1,725 49

Other receipts 4 35 31

Total operating receipts 2,642 2,724 82

Cash payments for operating activities

Payments to employees(b) -254 -258 -4

Payments for goods and services -695 -451 244

Interest paid -636 -553 83

GST payment to taxation authority -14 -18 -4

Distributions paid(c) -1,710 -1,708 2

Other payments(b) -71 -62 10

Total operating payments -3,381 -3,051 330

Net cash flows from operating activities -739 -327 412

Cash flows from investments in non-financial assets

Sales of non-financial assets 0 0 0

Purchases of non-financial assets -77 -55 22

Net cash flows from

investments in non-financial assets -77 -55 22

Net cash flows from investments in financial assets

for policy purposes -466 -1,251 -785

Net cash flows from investments in financial assets

for liquidity purposes 9,896 -95,186 -105,082

Net cash flows from financing activities

Borrowing and deposits received (net) -10,624 85,831 96,455

Other financing (net) 1,359 10,174 8,816

Net cash flows from financing activities(c) -9,265 96,005 105,270

Net increase/(decrease) in cash held -652 -814 -162

Cash at the beginning of the year 2,233 2,233 0

Cash at the end of the year 1,581 1,419 -162

GFS cash surplus(+)/deficit(-)(d) -816 -382 434

plus Net cash flows from financing activities for leases(e) -1 -5 -4

Adjusted GFS cash surplus(+)/deficit(-)(e) -817 -387 430

(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) Consistent with the ABS GFS classification, distributions paid by public corporations are reclassified from

cash flows from financing activities to cash flows from operating activities in the 2019-20 FBO. Comparators for the 2019-20 MYEFO have been revised to reflect this reclassification. (d) GFS cash surplus/deficit equals net cash flows from operating activities and investments in non-financial assets. (e) To retain a consistent measure of the GFS cash surplus/deficit following the implementation of AASB 16,

its calculation is adjusted to include the principal payments on lease liabilities.

Part 2: Australian Government Financial Statements

33

Notes to the general government sector financial statements

Note 1: External reporting standards and accounting policies

The Charter of Budget Honesty Act 1998 (the Charter) requires that the Final Budget Outcome (FBO) be based on external reporting standards and that departures from applicable external reporting standards be identified.

The external standards used for the FBO reporting purposes are:

• the Australian Bureau of Statistics’ (ABS) accrual Government Finance Statistics (GFS) publication, Australian System of Government Finance Statistics: Concepts, Sources and Methods 2015 (cat. no. 5514.0), which in turn is based on the International Monetary Fund (IMF) accrual GFS framework; and

• the Australian Accounting Standards (AAS), issued by the Australian Accounting Standards Board (AASB), which includes International Financial Reporting Standards as adopted in Australia and the public sector specific standard AASB 1049 Whole of Government and General Government Sector Financial Reporting (AASB 1049).

The financial statements have been prepared on an accrual basis that complies with both the ABS GFS and AAS, except for departures disclosed at Note 2. A more detailed description of the AAS and the ABS GFS frameworks, in addition to definitions of key terms used in these frameworks, can be found in Attachment A. Detailed accounting policies, as well as a set of notes and other disclosures, as required by AAS, are disclosed in the Australian Government Consolidated Financial Statements (CFS).

Fiscal reporting focuses on the general government sector (GGS). The GGS provides public services that are mainly non-market in nature and for the collective consumption of the community, or involve the transfer or redistribution of income. These services are largely financed through taxes and other compulsory levies. This sector comprises all government departments, offices and some other bodies. In preparing financial statements for the GGS, all material transactions and balances between entities within the GGS have been eliminated.

The statements for the GGS are based on audit-cleared financial statements for material entities with the exception of the Attorney-General’s Department, the Department of Defence and the Department of Infrastructure, Transport, Regional Development and Communications.

The Government’s key fiscal aggregates are based on the ABS GFS concepts and definitions, including the ABS GFS cash surplus/deficit and the derivation of the underlying cash balance and net financial worth. AASB 1049 requires the disclosure of other ABS GFS fiscal aggregates, including the net operating balance, net lending/borrowing (fiscal balance) and net worth. In addition to these ABS GFS aggregates, the Uniform Presentation Framework (UPF) requires disclosure of net debt, net financial worth and net financial liabilities.

Final Budget Outcome 2019-20

34

AASB 1049 and the UPF also provide a basis for reporting of the public non-financial corporations (PNFC) and public financial corporations (PFC) sectors and the total non-financial public sector (NFPS).

AASB 1049 requires disaggregated information, by ABS GFS function to be disclosed where they are reliably attributable. The ABS GFS does not require total assets to be attributed to functions. Disaggregated information for expenses by function is disclosed in Part 1.

AASB 1049 also requires the FBO and CFS to be released at the same time. The Charter requires the FBO to be released before the end of three months after the end of the financial year, whereas the CFS is not released until it is audit cleared, generally around December each year.

AASB 1055 Budgetary Reporting requires major variances between original budget estimates and outcomes to be explained in the financial statements. Explanations of variances in fiscal balance, revenue, expenses, net capital investment, cash flows, net debt, net financial worth and net worth for the 2019-20 year from the 2019-20 Budget to the 2019-20 MYEFO are discussed in Part 3 of the 2019-20 MYEFO. Explanations of variances from the 2019-20 MYEFO to the Final Budget Outcome for 2019-20 are disclosed in Part 1.

Note 2: Departures from external reporting standards

The Charter requires that departures from applicable external reporting standards be identified. The major differences between AAS and the ABS GFS treatments of transactions are outlined in Table 21.

AASB 1049 requires AAS measurement of items to be disclosed on the face of the financial statements with reconciliation to the ABS GFS measurement of key fiscal aggregates, where different, in notes to the financial statements. Only one measure of each aggregate has been included on the face statements to avoid confusion.

Further information on the differences between the two systems is provided in the ABS publication Australian System of Government Finance Statistics: Concepts, Sources and Methods, 2015 (cat. no. 5514.0).

Part 2: Australian Government Financial Statements

35

Table 21: Major differences between AAS and ABS GFS

Issue AAS treatment ABS GFS treatment Treatment

adopted

Circulating coins — seigniorage The profit between the cost and sale of circulating coins

(seigniorage) is treated as revenue.

Circulating coins is treated as a liability, and the cost of producing the coins is treated as an expense.

AAS

Valuation of loans Changes in the valuation of loans are treated as a revenue or an expense.

In some circumstances recognition as a revenue or an expense is delayed until the loan ends or is transferred.

Changes in the valuation of loans (excluding mutually agreed write-downs) are treated as an other economic flow.

ABS GFS

Timing recognition of Boosting Cash Flows for Employers

Expense recognition based on underlying economic activity that gives rise to the Cash Flow Boost payment. At 30 June 2020, an accrual is made for estimated payments that relate to the 2019-20 economic activity, for Activity Statements that have not yet been submitted.

Recognised when the businesses receive payments after submitting their activity statements and having met all requirements.

AAS

Leases AASB 16 introduced a single

lease accounting framework for lessees, which replaced the distinction between operating and finance leases. Right of use assets and lease liabilities are recognised on the balance sheets for leases that were previously accounted for as operating expense.

The distinction between operating leases and finance leases will be continued for lessees.

AAS

Concessional loans

Concessional elements are treated as an expense on initial recognition and unwound over the loan term.

Concessional elements are treated as an other economic flow.

AAS

Investment in other public sector entities

Valued at fair value in the balance sheet as long as it can be reliably measured, otherwise net assets is permissible.

Unlisted entities valued based on their net assets in the balance sheet.

AAS

Provision for restoration, decommissioning and make-good

Capitalised when the asset is acquired. Capitalised when make-good activity takes place.

AAS

Renewable Energy Certificates (RECs)

The issuance and registration of RECs is considered to be an administrative function and does not result in the recognition of assets or liabilities and, consequently, no revenue or expenses are recognised.

The issuance and registration of RECs is considered to be government financial transactions resulting in the recognition of assets, liabilities, revenue and expenses.

AAS

Final Budget Outcome 2019-20

36

Table 21: Major differences between AAS and ABS GFS (continued)

Issue AAS treatment ABS GFS treatment Treatment

adopted

Dividends paid by public corporations Treated as an equity distribution. Equity distributions

are treated as a distribution of profits, as opposed to an expense.

Dividends are treated as an expense. ABS GFS

Dividends paid by the Reserve Bank of Australia

Dividends are recognised in the year profit was earned. Dividends are recognised when the Treasurer makes a

determination.

AAS

National Disability Insurance Scheme (NDIS) revenue

Funding contributions by the state and territory governments to NDIS are treated as sales of goods and services revenue.

In-kind disability services provided by the state and territory governments are treated as other revenue.

Funding contributions by the state and territory governments to NDIS are treated as grants revenue.

In-kind disability services provided by the states and territory governments are treated as sales of goods and services revenue.

AAS

Commercial tax effect accounting assets and liabilities

Corporations in the PNFC and PFC sectors record tax expenses on a commercial basis.

Deferred tax assets and liabilities are reversed so that corporations record tax expenses on a consistent basis to the Australian Taxation Office.

ABS GFS

Fiscal aggregates differences

Net worth of PNFC and PFC sectors Calculated as assets less liabilities.

Calculated as assets less liabilities less shares and other contributed capital.

AAS

Net financial worth of PNFC and PFC sectors

Calculated as financial assets less total liabilities. Calculated as financial assets less total liabilities less shares

and contributed capital.

AAS

Classification differences

Prepayments Treated as a non-financial asset. Treated as a financial asset. ABS GFS

Spectrum sales Recognise non-financial asset sale (lessor finance leases) for fiscal balance when licences take effect, which may be after the auction of licences, as this is regarded as the point at which control is transferred. Recognise cash at the time of receipt.

Recognise non-financial asset sale for fiscal balance at time of auction as this is regarded as the point at which control is transferred. Recognise cash at the time of receipt.

AAS

Part 2: Australian Government Financial Statements

37

Note 3: Taxation revenue by type 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Individuals and other withholding taxes

Gross income tax withholding 220,300 217,095 -3,205

Gross other individuals 52,900 48,855 -4,045

less: Refunds 36,800 36,219 -581

Total individuals and other withholding taxation 236,400 229,731 -6,669

Fringe benefits tax 4,040 3,939 -101

Company tax 99,800 87,846 -11,954

Superannuation fund taxes 8,460 6,621 -1,839

Petroleum resource rent tax(a) 1,130 921 -209

Income taxation revenue 349,830 329,058 -20,772

Goods and services tax 67,230 65,287 -1,943

Wine equalisation tax 1,110 1,040 -70

Luxury car tax 670 632 -38

Excise and customs duty

Petrol 6,100 5,676 -424

Diesel 12,080 11,923 -157

Other fuel products 2,170 1,907 -263

Tobacco 16,980 15,981 -999

Beer 2,460 2,434 -26

Spirits 2,510 2,641 131

Other alcoholic beverages(b) 1,040 1,048 8

Other customs duty

Textiles, clothing and footwear 200 169 -31

Passenger motor vehicles 400 369 -31

Other imports 1,260 1,143 -117

less: Refunds and drawbacks 500 669 169

Total excise and customs duty 44,700 42,622 -2,078

Major bank levy 1,610 1,639 29

Agricultural levies 521 469 -53

Other taxes 7,144 6,778 -366

Mirror taxes 633 593 -40

less: Transfers to States in relation to mirror tax revenue 633 593 -40

Mirror tax revenue 0 0 0

Indirect taxation revenue 122,985 118,467 -4,518

Taxation revenue 472,815 447,526 -25,288

Memorandum:

Total excise 23,900 23,116 -784

Total customs duty 20,800 19,507 -1,293

(a) This item includes an amount of MRRT revenue which has not been separately disclosed owing to taxpayer confidentiality. (b) ‘Other alcoholic beverages’ are those not exceeding 10 per cent by volume of alcohol (excluding beer, brandy and wine).

Final Budget Outcome 2019-20

38

Note 3(a): Taxation revenue by source 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Taxes on income, profits and capital gains

Income and capital gains levied on individuals 240,440 233,669 -6,771

Income and capital gains levied on enterprises 109,390 95,389 -14,001

Total taxes on income, profits and capital gains 349,830 329,058 -20,772

Taxes on employers’ payroll and labour force 959 1,034 75

Taxes on the provision of goods and services

Sales/goods and services tax 69,010 66,960 -2,050

Excises and levies 24,421 23,585 -837

Taxes on international trade 20,800 19,507 -1,293

Total taxes on the provision of goods and services 114,231 110,051 -4,180

Taxes on the use of goods and performance of activities 7,795 7,383 -412

Total taxation revenue 472,815 447,526 -25,288

Note 4: Sales of goods and services revenue 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Sales of goods 1,227 1,324 97

Rendering of services 11,639 11,131 -509

Lease rental 107 386 279

Fees from regulatory services 2,006 1,947 -59

Total sales of goods and services revenue 14,980 14,789 -191

Part 2: Australian Government Financial Statements

39

Note 5: Interest and dividend revenue 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Interest from other governments

State and territory debt 30 33 2

Housing agreements 86 87 1

Total interest from other governments 116 120 4

Interest from other sources

Advances 360 987 628

Deposits 465 410 -55

Indexation of HELP receivable and other

student loans 1,037 797 -240

Other 3,269 1,374 -1,895

Total interest from other sources 5,131 3,569 -1,562

Total interest 5,247 3,689 -1,559

Dividends

Dividends from other public sector entities 1,234 3,095 1,861

Other dividends 5,149 5,272 123

Total dividends 6,383 8,367 1,984

Total interest and dividend revenue 11,630 12,055 426

Note 6: Other sources of non-taxation revenue 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Industry contributions 165 194 29

Royalties 1,150 992 -157

Seigniorage 69 57 -12

Other 10,339 10,665 325

Total other sources of non-taxation revenue 11,723 11,907 184

Final Budget Outcome 2019-20

40

Note 7: Employee and superannuation expense 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Wages and salaries expenses 21,366 20,721 -646

Other operating expenses

Leave and other entitlements 2,481 3,217 736

Separations and redundancies 55 213 158

Workers compensation premiums and claims 2,289 2,556 267

Other 2,411 2,597 186

Total other operating expenses 7,236 8,583 1,348

Superannuation expenses

Superannuation 12,357 12,246 -111

Superannuation interest cost 7,715 7,673 -42

Total superannuation expenses 20,072 19,919 -153

Total employee and superannuation expense 48,674 49,223 549

Note 8: Depreciation and amortisation expense 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Depreciation

Specialist military equipment 4,767 4,615 -152

Buildings 3,518 3,704 186

Other infrastructure, plant and equipment 1,936 1,973 37

Heritage and cultural assets 81 75 -6

Other 3 5 2

Total depreciation(a) 10,306 10,371 65

Total amortisation 1,140 1,394 254

Total depreciation and amortisation expense 11,446 11,765 319

Memorandum:

Depreciation relating to right of use assets

Specialist military equipment 0 31 31

Buildings 2,216 2,374 159

Other infrastructure, plant and equipment 363 348 -15

Other 3 5 2

Total depreciation of right of use assets 2,581 2,759 177

(a) Includes depreciation of right of use (leased) assets, resulting from implementation of AASB 16.

Part 2: Australian Government Financial Statements

41

Note 9: Supply of goods and services expense 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Supply of goods and services 34,589 34,065 -524

Lease expenses 296 259 -37

Personal benefits — indirect 81,786 82,118 332

Health care payments 5,012 5,689 677

Other 2,347 3,133 786

Total supply of goods and services expense 124,029 125,264 1,235

Note 10: Interest expense 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Interest on debt

Government securities 16,588 16,742 154

Loans 2 2 0

Other 222 176 -46

Total interest on debt 16,812 16,920 107

Interest on lease liabilities 387 364 -23

Other financing costs 1,016 1,179 162

Total interest expense 18,215 18,463 247

Final Budget Outcome 2019-20

42

Note 11: Current and capital grants expense 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Current grants expense

State and territory governments 118,389 118,096 -293

Private sector 10,294 10,500 206

Overseas 3,964 3,916 -47

Non-profit organisations 4,886 5,652 766

Multi-jurisdictional sector 10,592 10,391 -201

Other 1,688 1,243 -445

Total current grants expense 149,813 149,799 -15

Capital grants expense

Mutually agreed write-downs 1,416 3,114 1,697

Other capital grants

State and territory governments 7,251 7,064 -187

Local governments 669 634 -36

Non-profit organisations 1,003 627 -376

Private sector 19 52 33

Overseas 0 22 22

Other 226 169 -56

Total capital grants expense 10,584 11,681 1,096

Total grants expense 160,398 161,479 1,081

Note 12: Personal benefits expense 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Social welfare — assistance to the aged 48,548 50,635 2,087

Assistance to veterans and dependants 4,752 4,992 241

Assistance to people with disabilities 26,098 27,156 1,058

Assistance to families with children 27,168 29,455 2,287

Assistance to the unemployed 11,306 20,092 8,786

Student assistance 2,238 3,583 1,345

Other welfare programs 1,036 1,022 -14

Financial and fiscal affairs 461 746 285

Vocational and industry training 36 31 -5

Other 6,642 7,003 361

Total personal benefits expense 128,282 144,715 16,432

Part 2: Australian Government Financial Statements

43

Note 13: Advances paid and other receivables 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Advances paid

Loans to State and Territory governments 2,397 2,474 77

Student loans 55,029 52,377 -2,651

Other 28,124 27,500 -625

less Impairment allowance 395 307 -89

Total advances paid 85,155 82,045 -3,110

Other receivables

Goods and services receivable 1,372 2,117 744

Recoveries of benefit payments 6,196 5,845 -351

Taxes receivable 28,817 36,029 7,212

Prepayments 4,209 4,658 450

Other 21,142 29,957 8,815

less Impairment allowance 3,158 3,207 49

Total other receivables 58,577 75,398 16,821

Note 14: Investments, loans and placements 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Investments — deposits 40,408 75,757 35,349

IMF quota 13,219 13,214 -5

Other 144,902 150,779 5,877

Total investments, loans and placements 198,528 239,749 41,221

Final Budget Outcome 2019-20

44

Note 15: Non-financial assets 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Land and buildings

Land 11,824 11,715 -109

Buildings 43,415 43,419 4

Total land and buildings 55,240 55,134 -105

Plant, equipment and infrastructure

Specialist military equipment 69,914 71,615 1,701

Other plant, equipment and infrastructure 17,918 17,357 -560

Total plant, equipment and infrastructure 87,832 88,973 1,141

Inventories

Inventories held for sale 1,074 1,090 16

Inventories not held for sale 7,414 8,845 1,431

Total inventories 8,488 9,935 1,447

Intangibles

Computer software 4,639 4,656 17

Other 4,466 4,445 -21

Total intangibles 9,105 9,101 -4

Total investment properties 160 208 48

Total biological assets 21 31 11

Total heritage and cultural assets 11,695 11,976 282

Total assets held for sale 231 270 39

Total other non-financial assets 32 37 5

Total non-financial assets(a) 172,803 175,666 2,863

Memorandum:

Total relating to right of use assets

Land 115 159 45

Buildings 16,466 17,392 926

Specialist military equipment 0 291 291

Other plant, equipment and infrastructure 2,033 1,804 -229

Total right of use assets 18,614 19,647 1,033

(a) Include right of use (leased) assets, resulting from implementation of AASB 16.

Part 2: Australian Government Financial Statements

45

Note 16: Loans 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Promissory notes 10,608 10,051 -557

Special drawing rights 6,201 6,199 -2

Other 949 883 -67

Total loans 17,759 17,132 -627

Note 17: Employee and superannuation liabilities 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Total superannuation liability(a) 230,774 430,105 199,332

Other employee liabilities

Leave and other entitlements 8,824 9,513 689

Accrued salaries and wages 330 444 113

Workers compensation claims 1,940 2,029 89

Military compensation 15,174 19,815 4,641

Other 394 461 66

Total other employee liabilities 26,663 32,262 5,598

Total employee and superannuation liabilities 257,437 462,367 204,930

(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 2019-20 FBO 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.

Final Budget Outcome 2019-20

46

Note 18: Provisions and payables 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Suppliers payable

Trade creditors 5,396 6,154 758

Lease rental payable 195 10 -186

Personal benefits payables — indirect 1,695 644 -1,051

Other creditors 292 588 297

Total suppliers payables 7,579 7,396 -182

Total personal benefits payables — direct 3,753 4,670 917

Total subsidies payable 645 1,041 396

Grants payables

State and territory governments 70 134 64

Non-profit organisations 230 162 -68

Private sector 526 446 -80

Overseas 1,927 1,867 -60

Local governments 1 8 6

Other 1,297 231 -1,066

Total grants payables 4,051 2,847 -1,204

Total other payables 2,186 4,580 2,393

Provisions

Provisions for tax refunds 3,653 3,105 -549

Grants provisions 7,971 9,050 1,079

Personal benefits provisions — direct 6,859 7,924 1,064

Personal benefits provisions — indirect 2,607 2,915 308

Provisions for subsidies 4,177 23,689 19,512

Other 17,484 22,641 5,156

Total provisions 42,752 69,323 26,571

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Note 19: Reconciliation of cash 2019-20 2019-20 Change on

Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m

Net operating balance (revenues less expenses) 7,968 -92,271 -100,239

less Revenues not providing cash

Other 1,367 1,598 231

Total revenues not providing cash 1,367 1,598 231

plus Expenses not requiring cash

Increase/(decrease) in employee entitlements 10,884 8,367 -2,517

Depreciation/amortisation expense 11,446 11,765 319

Mutually agreed write-downs 1,416 3,114 1,697

Other 1,383 1,837 454

Total expenses not requiring cash 25,129 25,083 -47

plus Cash provided/(used) by working capital items

Decrease/(increase) in inventories 40 -1,293 -1,333

Decrease/(increase) in receivables -7,514 -24,432 -16,918

Decrease/(increase) in other financial assets 113 1,360 1,247

Decrease/(increase) in other non-financial assets 47 -1,215 -1,262

Increase/(decrease) in benefits, subsidies

and grants payable 2,115 23,488 21,373

Increase/(decrease) in suppliers' liabilities -637 -339 298

Increase/(decrease) in other provisions and payables -412 4,656 5,068

Net cash provided/(used) by working capital -6,248 2,225 8,473

equals (Net cash from/(to) operating activities) 25,483 -66,566 -92,050

plus (Net cash from/(to) investing activities) -41,900 -78,579 -36,680

Net cash from operating activities and investment -16,416 -145,146 -128,729

plus (Net cash from/(to) financing activities) 15,014 145,992 130,978

equals Net increase/(decrease) in cash -1,403 846 2,249

Cash at the beginning of the year 8,607 8,607 0

Net increase/(decrease) in cash -1,403 846 2,249

Cash at the end of the year 7,204 9,453 2,249

48

Attachment A

Financial reporting standards and budget concepts

The Final Budget Outcome primarily focuses on the financial performance and position of the general government sector (GGS). The GGS provides public services that are mainly non-market in nature and for the collective consumption of the community, or involve the transfer or redistribution of income. These services are largely financed through taxes and other compulsory levies. AASB 1049 recognises the GGS as a reporting entity.

AASB 1049 Conceptual framework

AASB 1049 seeks to ‘harmonise’ the ABS GFS and AAS.

The reporting framework for AASB 1049 requires the preparation of accrual-based general purpose financial reports, showing government assets, liabilities, revenue, expenses and cash flows. GGS reporting under AASB 1049 aims to provide users with information about the stewardship of each government in relation to its GGS and accountability for the resources entrusted to it; information about the financial position, performance and cash flows of each government’s GGS; and information that facilitates assessments of the macroeconomic impact. AASB 1049 also provides a basis for whole-of-government reporting, including for the PNFC and PFC sectors.

AASB 1049 has adopted the AAS conceptual framework and principles for the recognition of assets, liabilities, revenues and expenses and their presentation, measurement and disclosure. In addition, AASB 1049 has broadly adopted the ABS GFS conceptual framework for presenting government financial statements. In particular, AASB 1049 requires the GGS to prepare a separate set of financial statements, overriding AASB 10 Consolidated Financial Statements. AASB 1049 also follows the ABS GFS by requiring changes in net worth to be split into either transactions or ‘other economic flows’ and for this to be presented in a single operating statement. AASB 1049 is therefore broadly consistent with international statistical standards and the International Monetary Fund’s (IMF) Government Finance Statistics Manual 2014.1

1 Additional information on the Australian accrual GFS framework is available in the ABS publication Australian System of Government Finance Statistics: Concepts, Sources and Methods, 2015 (cat. no. 5514.0).

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All financial data presented in the financial statements are recorded as either stocks (assets and liabilities) or flows (classified as either transactions or ‘other economic flows’). Transactions result from a mutually agreed interaction between economic entities. Despite their compulsory nature, taxes are transactions deemed to occur by mutual agreement between the government and the taxpayer. Transactions that increase or decrease net worth (assets less liabilities) are reported as revenues and expenses respectively in the operating statement.2

A change to the value or volume of an asset or liability that does not result from a transaction is an ‘other economic flow’. This can include changes in values from market prices, most actuarial valuations and exchange rates, and changes in volumes from discoveries, depletion and destruction. All ‘other economic flows’ are reported in the operating statement.

Consistent with the ABS GFS framework, and in general AAS, the financial statements record flows in the period in which they occur. As a result, prior period outcomes may be revised for classification changes relating to information that could reasonably have been expected to be known in the past, is material in at least one of the affected periods and can be reliably assigned to the relevant period(s).

Operating statement

The operating statement presents details of transactions in revenues, expenses, the net acquisition of non-financial assets (net capital investment) and other economic flows for an accounting period.

Revenues arise from transactions that increase net worth and expenses arise from transactions that decrease net worth. Revenues less expenses gives the net operating balance. The net operating balance is similar to the National Accounts concept of government saving plus capital transfers.

The net acquisition of non-financial assets (net capital investment) equals gross fixed capital formation, less depreciation, plus changes (investment) in inventories, plus other transactions in non-financial assets.

‘Other economic flows’ are presented in the operating statement and outline changes in net worth that are driven by economic flows other than revenues and expenses. Revenues, expenses and ‘other economic flows’ sum to the total change in net worth during a period. The majority of ‘other economic flows’ for the Australian Government GGS arise from price movements in its assets and liabilities.

2 Not all transactions impact on net worth. For example, transactions in financial assets and liabilities do not impact on net worth as they represent the swapping of assets and liabilities on the balance sheet.

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Net operating balance

The net operating balance is the excess of revenue from transactions over expenses from transactions. The net operating balance excludes expenditure on the acquisition of capital assets, but includes non-cash costs such as accruing superannuation entitlements and the consumption of capital (depreciation). By including all accruing costs, including depreciation, the net operating balance encompasses the full current cost of providing government services. This makes it a measure of the sustainability of the government’s fiscal position over time and provides an indication of the sustainability of the existing level of government services.

The net operating balance is a flow measure on the operating statement.

Fiscal balance

The fiscal balance (or net lending/borrowing) is the net operating balance less net capital investment. Thus, the fiscal balance includes the impact of net expenditure (effectively purchases less sales) on non-financial assets rather than consumption (depreciation) of non-financial assets.3

The fiscal balance measures the Australian Government’s investment-saving balance. It measures in accrual terms the gap between government savings plus net capital transfers, and investment in non-financial assets. As such, it approximates the contribution of the Australian Government GGS to the balance on the current account in the balance of payments.

Balance sheet

The balance sheet shows stocks of assets, liabilities and net worth. In accordance with the UPF, net debt, net financial worth and net financial liabilities are also reported in the balance sheet.

Net worth

The net worth of the GGS, PNFC and PFC sectors is defined as assets less liabilities. This differs from the ABS GFS definition for the PNFC and PFC sectors where net worth is defined as assets less liabilities less shares and other contributed capital. Net worth is an economic measure of wealth, reflecting the Australian Government’s contribution to the wealth of Australia.

3 The net operating balance includes consumption of non-financial assets because depreciation is an expense. Depreciation is deducted in the calculation of net capital investment as the full investment in non-financial assets is included in the calculation of fiscal balance.

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Net financial worth

Net financial worth measures a government’s net holdings of financial assets. It is calculated from the balance sheet as financial assets minus liabilities. This differs from the ABS GFS definition of net financial worth for the PNFC and PFC sectors, defined as financial assets, less liabilities, less shares and other contributed capital. Net financial worth is a broader measure than net debt, in that it incorporates provisions made (such as superannuation) as well as holdings of equity. Net financial worth includes all classes of financial assets and all liabilities, only some of which are included in net debt. As non-financial assets are excluded from net financial worth, this is a narrower measure than net worth. However, it avoids the concerns inherent with the net worth measure relating to the valuation of non-financial assets and their availability to offset liabilities.

Net financial liabilities

Net financial liabilities comprises total liabilities less financial assets but excludes equity investments in the other sectors of the jurisdiction. Net financial liabilities is a more accurate indicator than net debt of a jurisdiction’s fiscal position as it includes substantial non-debt liabilities such as accrued superannuation and long service leave entitlements. Excluding the net worth of other sectors in government results in a purer measure of financial worth than net financial worth, as, in general, the net worth of other sectors of government, in particular the PNFC sector, is backed up by physical assets.

Net debt

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). The financial assets include Future Fund investments in interest bearing securities and collective investment vehicles (CIVs). CIVs enable investors to pool their money and invest the pooled funds, rather than buying securities directly. Net debt does not include superannuation related liabilities. Net debt is a common measure of the strength of a government’s financial position. High levels of net debt impose a call on future revenue flows to service that debt.

The 2015 ABS GFS Manual presents debt in a matrix format, with no single net debt aggregate identified. The Australian Government continues to report net debt in accordance with the UPF as described above.

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Cash flow statement

The cash flow statement identifies how cash is generated and applied in a single accounting period. The cash flow statement reflects a cash basis of recording (rather than an accrual basis) where information is derived indirectly from underlying accrual transactions and movements in balances. This, in effect, means that transactions are captured when cash is received or when cash payments are made. Cash transactions are specifically identified because cash management is considered an integral function of accrual budgeting.

Underlying cash balance

The underlying cash balance plus net Future Fund earnings is the cash counterpart of the fiscal balance, reflecting the Australian Government’s cash investment-saving balance.

For the GGS, the underlying cash balance is calculated as shown below:

Net cash flows from operating activities

plus

Net cash flows from investments in non-financial assets

equals

ABS GFS cash surplus/deficit

plus

Net cash flows from financing activities for leases

less

Net Future Fund cash earnings

equals

Underlying cash balance

Under the Future Fund Act 2006, earnings are required to be reinvested to meet the Government’s future public sector superannuation liabilities. The Government excludes net Future Fund cash earnings from the calculation of the underlying cash balance between 2005-06 and 2019-20. From 2020-21 onwards, net Future Fund cash earnings will be included in the calculation of the underlying cash balance because the Future Fund becomes available to meet the Government’s superannuation liabilities from that year.

In contrast, net Future Fund earnings are included in the net operating balance and fiscal balance for all years because superannuation expenses relating to future cash payments are recorded in the net operating balance and fiscal balance.

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Net Future Fund earnings are separately identified in the Australian Government GGS cash flow statement in Table 11 of this statement and the historical tables in Appendix B.

Headline cash balance

The headline cash balance is calculated by adding net cash flows from investments in financial assets for policy purposes and net Future Fund earnings to the underlying cash balance.

Net cash flows from investments in financial assets for policy purposes include equity transactions and advances paid.4 Equity transactions include equity injections into controlled businesses and privatisations of government businesses. Advances paid include net loans to the states, and net loans to students.

Sectoral classifications

To assist in analysing the public sector, data are presented by institutional sector as shown in Figure 1. The ABS GFS defines the GGS, PNFC and PFC sectors. AASB 1049 has also adopted this sectoral reporting.

4 Net cash flows from investments in financial assets for policy purposes are often referred to as net advances.

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Figure 1: Institutional structure of the public sector

All entities are classified as GGS entities except for the following list of portfolio entities that are classified as PFC or PNFC (Table 22).

A table which provides a full list of public sector principal entities under the current portfolio structure is available on the Department of Finance website at:

www.finance.gov.au/government/managing-commonwealth-resources/structure-aus tralian-government-public-sector/pgpa-act-flipchart-list.

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Table 22: Entities outside of the general government sector — 2019-20

Public financial corporations

Attorney-General’s Portfolio • Coal Mining Industry (Long Service Leave Funding) Corporation

Foreign Affairs and Trade Portfolio • Export Finance and Insurance Corporation (also referred to as Export Finance Australia)

Industry, Science, Energy and Resources Portfolio • CSIRO FollowOn Services Pty Ltd

• CSIRO FollowOn Services 2 Pty Ltd

• CSIRO General Partner Pty Ltd

• CSIRO General Partner 2 Pty Ltd

• CSIROGP Fund 2 Pty Ltd

Treasury Portfolio • Australian Reinsurance Pool Corporation

• National Housing Finance and Investment Corporation*

• Reserve Bank of Australia

Public non-financial corporations

Industry, Science, Energy and Resources Portfolio • ANSTO Nuclear Medicine Pty Ltd

• Snowy Hydro Limited

Infrastructure, Transport, Regional Development and Communications Portfolio • Airservices Australia

• Australian Postal Corporation (Australia Post)

• Australian Rail Track Corporation Limited

• Moorebank Intermodal Company Limited

• nbn Co Ltd

• WSA Co Ltd

Finance Portfolio • ASC Pty Ltd

• Australian Naval Infrastructure Pty Ltd

Social Services Portfolio • Australian Hearing Services (Hearing Australia)

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Table 22: Entities outside of the general government sector — 2019-20 (continued)

Public non-financial corporations (continued)

Prime Minister and Cabinet Portfolio • Voyages Indigenous Tourism Australia Pty Ltd

* The National Housing Finance and Investment Corporation (NHFIC), a corporate Commonwealth entity, operates an affordable housing bond aggregator to encourage greater private and institutional investment and provide cheaper and longer-term finance to registered providers of affordable housing. The NHFIC bond aggregator is a PFC. NHFIC also administers the National Housing Infrastructure Facility (the Facility). The Facility is included in the GGS.

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Part 3: Australia’s Federal Financial Relations This part provides information on payments to the states and territories (the states) for specific purposes and general revenue assistance, including the GST entitlement.

Australian Government payments to the states are framed by the Intergovernmental Agreement on Federal Financial Relations (the Intergovernmental Agreement), which has been in place since 1 January 2009.

More detailed information on Australia’s federal relations can be found in Budget Paper No. 3, Federal Financial Relations 2019-20 and on the Federal Financial Relations website at: www.federalfinancialrelations.gov.au.

Overview of payments to the states

The states receive substantial financial support from the Australian Government. In 2019-20, the Australian Government provided the states with payments totalling $125.8 billion, comprising specific purpose payments of $63.8 billion and general revenue assistance (including GST entitlements) of $62.0 billion, as shown in Table 25. Payments to the states constituted 21.7 per cent of total Australian Government expenditure in 2019-20.

Table 25: Australian Government payments to the states, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

Payments for specific

purposes 20,623 15,254 13,342 6,637 4,252 1,356 1,045 1,257 63,766

General revenue

assistance 16,723 15,453 12,780 4,732 6,095 2,229 1,291 2,724 62,028

Total payments to

the states 37,346 30,707 26,122 11,369 10,347 3,586 2,336 3,981 125,795

Payments for specific purposes

The Australian Government provides payments to the states for specific purposes in policy areas administered by the states, including health, education, skills and workforce development, community services, housing, Indigenous affairs, infrastructure and the environment.

In 2019-20, the Australian Government provided the following types of specific purpose payments to the states:

• National Specific Purpose Payments (National SPPs) in respect of disability services and skills and workforce development

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• National Health Reform funding for public hospitals and COVID-19 response

• Quality Schools funding for government and non-government schools

• National Housing and Homelessness funding

• National Partnership payments across a wide range of policy areas.

National SPPs, National Health Reform, Quality Schools and National Housing and Homelessness funding

In 2019-20, the Australian Government continued to provide funding for key service delivery sectors through National SPPs, National Health Reform funding, Quality Schools funding and National Housing and Homelessness funding. The National SPPs are:

• the National Skills and Workforce Development SPP

• the National Disability SPP.

The states are required to spend each National SPP in the relevant sector. The National SPPs are indexed each year by growth factors specified in the Intergovernmental Agreement.

Payments made throughout the year for National SPPs were made in advance based on Australian Government estimates of the relevant growth factors. A balancing adjustment is made after the end of the financial year once final growth factor data is available.

The National SPPs are distributed among the states in accordance with population shares based on the Australian Statistician’s determination as at 31 December of that year.

Payments made throughout the year for National Health Reform were made in advance on the basis of advice from the Administrator of the National Health Funding Pool. This funding is calculated by reference to growth in public hospital activity and the national efficient price determined by the Independent Hospital Pricing Authority. The amounts published are for payments made in respect of services delivered in 2019-20, and previous years. The Treasurer will determine the final amount and state allocations for 2019-20 following the Administrator’s final reconciliation of activity data.

Quality Schools funding includes recurrent and capital funding for government and non-government schools, funding for non-government representative bodies and other prescribed-purpose funding. Quality Schools funding is distributed among the states in accordance with the Australian Education Act 2013 and agreements made under that Act.

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Quality Schools is a needs-based funding model introduced in the 2017-18 Budget that aims to improve the educational outcomes of Australian students. Funding is provided to government and non-government schools in all states, which includes recurrent funding, capital funding and special circumstances funding for non-government schools, funding for non-government representative bodies and other prescribed-purpose funding.

Payments made throughout the year for National Housing and Homelessness were made in advance based on Australian Government estimates of the relevant growth factors. A balancing adjustment is made after the end of the financial year once final growth factor data is available.

National Housing and Homelessness funding was introduced in 2018-19 and is made up of a general funding component and a homelessness funding component which is matched by the states. The general funding is allocated to the states in accordance with population shares based on the Australian Statistician’s determination as at 31 December of that year. The homelessness funding is allocated in accordance with the state’s share of total homelessness based on 2006 Australian Bureau of Statistics Census homelessness estimates.

National Partnership payments

Under the Intergovernmental Agreement, National Partnership payments to the states are the key vehicle to support the delivery of specified projects, facilitate reforms or reward jurisdictions that deliver on nationally significant reforms.

National Partnerships are typically time-limited, reflecting the nature of the project or reform involved. National Partnership agreements are publicly available at: www.federalfinancialrelations.gov.au.

Total payments for specific purposes

In 2019-20, the states received $63.8 billion in payments for specific purposes, which constituted 11.0 per cent of total Australian Government expenditure. Total payments for specific purposes by category are in shown Table 26.

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Table 26: Total payments for specific purposes by category, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

National Specific Purpose

Payments 490 401 309 334 106 32 26 15 1,713

National Health Reform

funding(a) 8,028 6,622 5,353 2,590 1,610 520 476 317 25,516

Quality Schools funding 6,914 5,408 4,731 2,292 1,709 493 357 403 22,307

National Housing and

Homelessness funding 483 405 321 167 109 34 26 20 1,565

National Partnership

payments(b) 4,708 2,417 2,628 1,255 717 277 160 502 12,666

Total payments for

specific purposes 20,623 15,254 13,342 6,637 4,252 1,356 1,045 1,257 63,766 (a) Entitlements for 2019-20 will be finalised following reconciliation of activity data by the Administrator of the National Health Funding Pool and a subsequent Determination by the Treasurer. (b) Includes financial assistance grants for local governments.

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Total payments for specific purposes by sector and category are shown in Table 27.

Table 27: Total payments for specific purposes by sector and category, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

Health

National Health Reform

funding(a) 8,028 6,622 5,353 2,590 1,610 520 476 317 25,516

National Partnerships 60 51 42 27 24 37 9 31 280

Total health payments 8,087 6,673 5,395 2,616 1,634 557 485 348 25,795

Education

Quality Schools funding 6,914 5,408 4,731 2,292 1,709 493 357 403 22,307

National Partnerships 148 147 105 58 39 13 12 40 563

Total education payments 7,062 5,555 4,837 2,350 1,748 506 369 443 22,870

Skills and workforce

development

National Skills and Workforce

Development SPP 490 401 309 159 106 32 26 15 1,539

National Partnerships 105 - - 36 23 10 6 3 183

Total skills and workforce

development payments 595 401 309 195 129 42 32 18 1,721

Community services

National Disability SPP - - - 174 - - - - 174

National Partnerships 648 251 557 32 76 24 49 59 1,696

Total community services

payments 648 251 557 206 76 24 49 59 1,870

Affordable housing

National Housing and

Homeslessness funding 483 405 321 167 109 34 26 20 1,565

National Partnerships .. - - - - - - 86 86

Total affordable housing

payments 483 405 321 167 109 34 26 106 1,651

Infrastructure

National Partnerships 1,446 1,040 1,347 616 206 112 12 200 4,979

Environment

National Partnerships 45 63 66 9 68 24 3 13 291

Contingent payments

National Partnerships 1,360 165 -113 130 90 -33 1 20 1,621

Other

National Partnerships(b) 896 700 624 348 192 90 69 48 2,967

Total payments for

specific purposes 20,623 15,254 13,342 6,637 4,252 1,356 1,045 1,257 63,766 (a) Entitlements for 2019-20 will be finalised following reconciliation of activity data by the Administrator of the National Health Funding Pool and a subsequent Determination by the Treasurer. (b) Includes financial assistance grants for local governments.

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The Disaster Recovery Funding Arrangements and the Natural Disaster Relief and Recovery Arrangements

The Australian Government provides funding under the Disaster Recovery Funding Arrangements (DRFA) and the Natural Disaster Relief and Recovery Arrangements (NDRRA) to assist the states in relief and recovery efforts following eligible natural disasters.

Table 28 shows total cash payments made in 2019-20.

Table 28: DRFA and NDRRA cash payments, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

DRFA and NDRRA 674.6 126.3 506.9 - 33.7 21.9 .. 11.4 1,374.8

Total 674.6 126.3 506.9 - 33.7 21.9 .. 11.4 1,374.8

For accounting purposes, the Australian Government recognises a liability equal to the present value of future payments expected to be made to the states under the DRFA and the NDRRA. This is regardless of whether a state has completed eligible disaster reconstruction work or submitted an eligible claim. See Table 43 in Attachment A for the expense outcome.

General revenue assistance

General revenue assistance is provided to the states, without conditions, to spend according to their own budget priorities.

In 2019-20, the states received $62.0 billion in general revenue assistance from the Australian Government, comprising $60.2 billion in GST entitlements and $1.8 billion of other general revenue assistance (Table 29). Total general revenue assistance to the states constituted 10.7 per cent of total Australian Government expenditure in 2019-20.

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Table 29: General revenue assistance, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

GST entitlement(a) 16,723.2 15,453.4 12,780.0 3,234.7 6,095.4 2,229.2 1,250.6 2,469.4 60,235.9 Other payments

ACT municipal

services - - - - - - 40.7 - 40.7

Compensation

for reduced

royalties - - - 19.2 - - - - 19.2

Royalty

payments - - - 663.6 - - - 2.7 666.2

Transitional

GST top-up

payments(b) - - - 814.2 - - - 252.1 1,066.3

Total other

general revenue

assistance - - - 1,497.0 - - 40.7 254.8 1,792.4

Total 16,723.2 15,453.4 12,780.0 4,731.6 6,095.4 2,229.2 1,291.3 2,724.2 62,028.3 (a) The 2019-20 GST outcome will be finalised following a Determination by the Treasurer. This figure reflects the most recent data received from the Australian Taxation Office. (b) The Government paid Western Australia the balance of its $1.2 billion 2019-20 top-up payment following

a partial pre-payment of $434 million in 2018-19.

GST payments

Under the Federal Financial Relations Act 2009, the states are entitled to receive payments from the Australian Government equivalent to the revenue raised from the GST in any given financial year, subject to some minor adjustments as discussed below.

• Some GST revenue accrued during a financial year is not remitted to the Australian Taxation Office (ATO) by 30 June of that year, because it is not due to be paid until Business Activity Statements (BAS) are lodged the following financial year.

• Penalties owed to the ATO, other than general interest charge (GIC) penalties, are not included in the GST to be paid to the states, as defined in the Federal Financial Relations Act 2009.

• Some GST collected by Australian Government agencies is not remitted to the ATO by 30 June in each financial year because it is not due to be paid until the next BAS is lodged.

In 2019-20, GST revenue was $65.3 billion. A reconciliation of GST revenue and the states’ GST entitlement is provided in Table 30.

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Table 30: Reconciliation of GST revenue and the states’ GST entitlement, 2019-20 $million Total

GST revenue 65,287.2

less Change in GST receivables 5,023.9

GST receipts 60,263.3

less Non-GIC penalties collected 60.2

less Net GST collected by Commonwealth agencies but not yet remitted to the ATO -32.8

States’ GST entitlement(a) 60,235.9

(a) The 2019-20 GST outcome will be finalised following a Determination by the Treasurer.

The Australian Government made monthly payments (advances) to the states throughout 2019-20 based on GST estimates, as updated at the 2019-20 MYEFO. GST estimates were used because the actual amount of GST revenue collected in 2019-20 is not known until after the end of the financial year.

For 2019-20, the states’ GST entitlement is expected to be $60.2 billion. This is $5.2 billion lower than the advances paid during 2019-20. Once the Treasurer has made a Determination of the GST entitlement for 2019-20, a balancing adjustment will be made to each state’s payments to ensure the states receive the GST to which they are entitled. Table 31 provides a reconciliation of the states’ GST entitlement and GST advances.

Table 31: States’ GST entitlement and GST advances, 2019-20 $million Total

States’ GST entitlement(a) 60,235.9

less Advances of GST made throughout 2019-20 65,410.0

equals Balancing adjustment -5,174.1

(a) The 2019-20 GST outcome will be finalised following a Determination by the Treasurer.

Distribution of the GST among the states

The Australian Government distributes the GST among the states based on the GST revenue sharing relativities recommended by the Commonwealth Grants Commission.

Following consultation with the states, the Treasurer issued a Determination of the GST revenue sharing relativities for 2019-20 in March 2019. The relativities for 2019-20 are shown in Table 32.

Table 32: GST relativities, 2019-20 NSW VIC QLD WA SA TAS ACT NT

2019-20 0.87013 0.98273 1.05370 0.51842 1.46552 1.75576 1.23759 4.26735

The detailed calculation for the distribution of the GST entitlement in 2019-20 is shown in Table 33. This method of calculation is prescribed in legislation in the Federal Financial Relations Act 2009. The entitlements are allocated using the population as at 31 December 2019, as determined by the Australian Statistician.

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Table 33: Calculation of the 2019-20 GST entitlements (a) Population as at GST Adjusted Share of adjusted Share of

31 December revenue sharing population population GST pool

2019 relativities (1) x (2) (per cent) ($million)

(1) (2) (3) (4) (5)

NSW 8,128,984 0.87013 7,073,273 27.8 16,723.2

VIC 6,651,074 0.98273 6,536,210 25.7 15,453.4

QLD 5,129,996 1.05370 5,405,477 21.2 12,780.0

WA 2,639,080 0.51842 1,368,152 5.4 3,234.7

SA 1,759,184 1.46552 2,578,119 10.1 6,095.4

TAS 537,012 1.75576 942,864 3.7 2,229.2

ACT 427,419 1.23759 528,969 2.1 1,250.6

NT 244,761 4.26735 1,044,481 4.1 2,469.4

Total 25,517,510 na 25,477,545 100.0 60,235.9

(a) The 2019-20 GST outcome will be finalised following a Determination by the Treasurer.

Table 34 provides a summary of the advances made in 2019-20 against the states’ estimated final entitlements shown in Table 33. The variance between advances paid in 2019-20 and the states’ final entitlements will be included as an adjustment to payments in the 2020-21 financial year.

Table 34: Summary of GST advances made in 2019-20 and distribution of the balancing adjustment across states (a) $million NSW VIC QLD WA SA TAS ACT NT Total

GST entitlement 16,723.2 15,453.4 12,780.0 3,234.7 6,095.4 2,229.2 1,250.6 2,469.4 60,235.9 19-20 advances 18,192.1 16,798.4 13,867.9 3,489.2 6,591.7 2,417.3 1,368.0 2,685.3 65,410.0 Balancing

adjustment -1,468.9 -1,345.0 -1,087.9 -254.6 -496.3 -188.2 -117.4 -215.9 -5,174.1 (a) The 2019-20 GST outcome will be finalised following a Determination by the Treasurer.

GST administration

States compensate the Australian Government for the agreed costs incurred by the ATO in administering the GST, including costs incurred by the Department of Home Affairs, as shown in Table 35.

Table 35: GST administration, 2019-20 $million Actual

2018-19 2019-20

Australian Taxation Office budget 599.2 646.6

less Prior year adjustment - -

equals State government administration payments 599.2 646.6

less Australian Taxation Office outcome 599.2 646.6

equals Commonwealth budget impact - -

plus Prior year adjustment - -

equals Following year adjustment - -

The estimated outcome for the 2019-20 GST administration expense is $646.6 million. GST administration costs for 2019-20 were capped at the estimate as per Schedule B of

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the GST Administration Performance Agreement and will move to a full cost recovery arrangement from 2020-21 as endorsed by the Council on Federal Financial Relations.

67

Attachment A

Payments to the states

This attachment provides information on Australian Government payments to the states and local governments on an accruals basis. Details regarding Australian Government advances (loans) to the states, including repayments of advances and interest on advances, are provided in Table 47.

The following tables detail payments and other financial flows to the states for 2019-20:

Table 36 — health

Table 37 — education

Table 38 — skills and workforce development

Table 39 — community services

Table 40 — affordable housing

Table 41 — infrastructure

Table 42 — environment

Table 43 — contingent liabilities

Table 44 — other purposes

Table 45 — general revenue assistance

Table 46 — total payments, presented by function based on the International Monetary Fund’s Classification of the Functions of Government

Table 47 — estimated advances, repayment of advances and interest payments.

Final Budget Outcome 2019

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Table 36: Payments for specific purposes to support state health services, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

National Health Reform funding(a)

Hospital services 6,819.0 5,415.5 4,923.4 2,357.7 1,465.7 435.6 426.9 295.4 22,139.2

Public health 134.2 109.8 84.7 43.6 29.0 8.9 7.1 4.0 421.2

COVID-19 public health response 1,074.4 1,097.1 345.3 188.4 115.4 75.4 41.7 17.5 2,955.2

Total National Health Reform funding 8,027.5 6,622.4 5,353.4 2,589.7 1,610.1 519.9 475.6 317.0 25,515.6

National Partnership payments

Health services

Achieving better health outcomes 0.3 - - - - - - - 0.3

Additional assistance for public hospitals - - - - - - 4.1 - 4.1

Adult Mental Health Centres - - - - 2.0 - - - 2.0

Comprehensive palliative care

across the life course 2.0 - - 1.0 0.7 - 0.2 0.1 3.9

Expansion of the BreastScreen

Australia program 4.9 3.8 3.0 1.6 1.1 0.3 0.2 0.2 15.2

Hummingbird House - - 0.8 - - - - - 0.8

Management of Torres Strait / Papua New

Guinea cross-border health issues - - 4.9 - - - - - 4.9

Mosquito control and cross border

liaison in the Torres Strait - - 1.0 - - - - - 1.0

National Bowel Cancer Screening

Program — participant follow-up

function 2.8 2.2 1.8 1.0 0.7 0.3 0.2 0.1 8.9

OzFoodNet 0.4 0.3 0.3 0.2 0.2 0.2 0.1 0.2 1.8

Royal Darwin Hospital — equipped,

prepared and ready - - - - - - - 16.5 16.5

Specialist dementia care program 0.2 0.4 0.4 0.3 0.2 - 0.1 - 1.5

Vaccine-preventable diseases

surveillance 0.2 0.2 0.2 0.1 0.1 .. .. 0.1 0.9

Victorian Cytology service - 10.5 - - - - - - 10.5

(a) Entitlements for 2019-20 will be finalised following reconciliation of activity data by the Administrator of the National Health Funding Pool, and a subsequent Determination by the Treasurer.

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Table 36: Payments for specific purposes to support state health services, 2019-20 (continued) $million NSW VIC QLD WA SA TAS ACT NT Total

Health Infrastructure

Fussell House accommodation 2.7 - - - - - - - 2.7

Grace's Place 4.1 - - - - - - - 4.1

Health infrastructure projects - 0.5 - 4.4 - 10.0 - 2.2 17.1

Redevelopment of Strathalbyn

residential aged care facility - - - - 0.7 - - - 0.7

Indigenous health

Addressing blood borne viruses and

sexually transmitted infections

in the Torres Strait - - 1.1 - - - - - 1.1

Improving trachoma control services

for Indigenous Australians - - 0.3 1.7 1.4 - - 1.9 5.2

Northern Territory remote Aboriginal

investment — health component - - - - - - - 6.7 6.7

Rheumatic fever strategy - - 0.9 0.9 0.4 - - 0.9 3.2

Other Health

CCTV trial in aged care facilities - - - - 0.5 - - - 0.5

Community Health, Hospitals and

Infrastructure projects 2.8 1.2 - 3.5 2.2 22.4 2.3 0.2 34.6

Encouraging more clinical trials in Australia 0.6 0.2 0.3 0.2 0.1 0.1 0.2 0.1 1.8

Essential vaccines 3.3 3.5 3.0 1.8 0.9 0.5 0.5 0.4 14.0

Lymphoedema garments and

allied health therapy 0.6 0.5 0.4 0.2 0.1 .. .. .. 2.0

National Coronial Information System - 0.4 - - - - - - 0.4

Public dental services for adults 34.4 26.9 21.7 9.7 9.4 3.4 1.0 1.4 107.7

Suicide prevention 0.4 - - - - - 0.2 - 0.6

Veteran Wellbeing Centre Program - - 2.1 - 2.9 - - - 5.0

Total National Partnership payments 59.5 50.5 42.0 26.6 23.6 37.3 9.0 31.1 279.7

Total 8,087.1 6,672.9 5,395.4 2,616.3 1,633.7 557.1 484.7 348.1 25,795.3

Final Budget Outcome 2019

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Table 37: Payments for specific purposes to support state education services, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

Quality Schools funding(a)(b)(c) 6,913.8 5,407.9 4,731.4 2,291.7 1,709.2 493.2 357.0 402.9 22,307.1

National Partnership payments

Local Schools Community Fund 9.4 7.6 6.0 3.2 2.0 1.0 0.6 0.4 30.2

MoneySmart Teaching - - - - - - 0.1 - 0.1

National School Chaplaincy Program 12.3 13.1 18.8 7.7 7.7 2.2 0.9 0.4 63.2

Northern Territory Remote Aboriginal

investment(a)

Children and schooling component - - - - - - - 34.7 34.7

School Pathways Program - - - 0.6 0.6 - - - 1.2

Universal Access to Early Childhood

Education 126.7 126.0 80.4 46.9 28.6 9.4 10.3 4.8 433.2

Total National Partnership payments 148.4 146.8 105.2 58.5 38.9 12.6 11.9 40.3 562.6

Total 7,062.1 5,554.6 4,836.6 2,350.2 1,748.1 505.8 368.9 443.2 22,869.7

Memorandum item — payments for non-government schools included in payments above

Quality Schools funding(a)(b)(c) 4,276.5 3,451.9 2,865.0 1,462.3 1,138.1 284.0 239.0 201.1 13,917.9

Total 4,276.5 3,451.9 2,865.0 1,462.3 1,138.1 284.0 239.0 201.1 13,917.9

(a) Includes funding for non-government representative bodies. (b) The 2019-20 Quality Schools funding outcome will be finalised following a Determination by the Minister for Education. (c) Actual cash payments to non-government schools may be inclusive of GST. However, Final Budget Outcome figures are reported exclusive of GST.

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Table 38: Payments for specific purposes to support state skills and workforce development services, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

National Skills and Workforce

Development SPP 490.1 401.0 309.3 159.1 106.1 32.4 25.8 14.8 1,538.6

National Partnership payments

National Infection Control Training Fund - - - 4.1 2.8 0.8 0.7 - 8.4

Skills for Tasmania - - - - - 2.3 - - 2.3

Skilling Australians Fund 105.1 - - 32.0 20.1 6.8 5.5 2.8 172.3

Total National Partnership payments 105.1 - - 36.1 22.9 9.9 6.2 2.8 182.9

Total 595.2 401.0 309.3 195.3 128.9 42.3 31.9 17.6 1,721.5

Final Budget Outcome 2019

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Table 39: Payments for specific purposes to support state community services, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

National Disability SPP - - - 174.4 - - - - 174.4

National Partnership payments

Covid-19 Domestic Violence Support 8.8 7.2 6.0 3.6 2.8 1.5 1.4 1.3 32.5

NDIS Strategic Investment in QLD - - 3.5 - - - - - 3.5

Northern Territory Remote Aboriginal

investment

Community safety implementation plan - - - - - - - 44.4 44.4

Pay equity for the social and community

services sector 31.9 - - - - - - 4.0 35.9

Payments from the DisabilityCare Australia

Fund(b) 607.0 244.0 547.4 - 72.7 22.5 47.2 9.7 1,550.5

Specialist disability services - - - 28.2 - - - - 28.2

Women's Safety Package Technology

Trials - 0.1 0.1 - 0.2 0.4 - - 0.8

Total National Partnership payments 647.7 251.2 557.0 31.9 75.6 24.5 48.6 59.4 1,695.8

Total 647.7 251.2 557.0 206.3 75.6 24.5 48.6 59.4 1,870.2

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Table 40: Payments for specific purposes to support state affordable housing services, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

National Housing and

Homelessness Agreement 482.7 405.3 320.5 166.9 109.3 33.8 26.5 19.9 1,564.9

National Partnership payments

National Regulatory System for

Community Housing 0.2 - - - - - - - 0.2

Northern Territory Remote Aboriginal

investment

Remote Australia strategies - - - - - - - 3.5 3.5

component

Remote Housing - - - - - - - 82.8 82.8

Total National Partnership payments 0.2 - - - - - - 86.3 86.5

Total 482.9 405.3 320.5 166.9 109.3 33.8 26.5 106.2 1,651.4

Final Budget Outcome 2019

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Table 41: Payments for specific purposes to support state infrastructure services, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

National Partnership payments

Infrastructure Investment Program

Black spot projects 14.9 24.6 18.4 13.6 7.2 2.1 0.5 0.3 81.6

Bridges Renewal Program 33.9 6.3 37.0 7.9 2.7 0.5 0.3 1.6 90.1

Developing Northern Australia

Improving cattle supply chains - - 16.5 12.1 - - - 17.6 46.1

Northern Australian Roads - - 68.3 43.3 - - - 74.9 186.5

Heavy Vehicle Safety and Productivity

Program 15.3 6.4 16.5 6.6 3.0 2.7 - 1.3 51.6

Major Business Cases 6.0 - 7.5 - - - - - 13.5

National Rail Program 26.7 - 12.5 1.4 - - - - 40.6

Rail Investment component - 265.6 - 24.2 36.0 17.0 - - 342.7

Road Investment component(a) 531.2 507.9 999.2 355.8 80.7 54.5 4.4 44.4 2,578.1

Roads of Strategic Importance 22.6 3.5 10.5 60.2 - 15.3 - 16.3 128.4

Roads to Recovery Program 177.6 110.7 115.6 76.0 53.2 16.8 6.7 12.6 569.0

Urban Congestion Fund 4.5 104.1 25.0 14.4 - - - - 148.1

Infrastructure Growth Package

New Investments 38.9 0.2 2.0 - - - - 5.4 46.5

Western Sydney Infrastructure Plan 529.5 - - - - - - - 529.5

Other National Partnership Payments

Adelaide City Deal - - - - 3.2 - - - 3.2

Barkly Regional Deal - - - - - - - 1.3 1.3

Darwin City Deal - - - - - - - 25.0 25.0

Drought Communities Program 38.6 9.7 17.8 - 20.0 0.4 0.5 - 87.0

Geelong City Deal - 1.5 - - - - - - 1.5

Launceston City Deal - Tamar River - - - - - 2.5 - - 2.5

Western Sydney City Deal 6.3 - - - - - - - 6.3

Total 1,445.9 1,040.4 1,346.8 615.5 206.0 111.6 12.3 200.4 4,979.0

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Table 41: Payments for specific purposes to support state infrastructure services, 2019-20 (continued) $million NSW VIC QLD WA SA TAS ACT NT Total

Memorandum item — payments direct to local governments included in payments above

Infrastructure Investment Program

Roads to Recovery 176.6 110.7 115.6 76.0 42.7 16.8 - 8.4 546.7

Other National Partnership Payments

Drought Communities Program 38.6 9.7 17.8 - 20.0 0.4 0.5 - 87.0

Total 215.2 120.4 133.4 76.0 62.7 17.1 0.5 8.4 633.7

(b) A portion of Australian Government funding for road infrastructure is sourced from the additional net revenue received from the reintroduction of biannual indexation excise and excise-equivalent customs duty for all fuels (except aviation fuels), as announced in the 2014-15 Budget.

Final Budget Outcome 2019

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Table 42: Payments for specific purposes to support state environment services, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

National Partnership payments

Bushfire Wildlife and Habitat Recovery 5.0 3.0 1.5 1.0 1.5 0.5 0.5 - 13.0

Development of business cases for

constraints measures and

implementation 4.3 - - - 0.5 - - - 4.8

Environmental management of the former

Rum Jungle Mine site - - - - - - - 5.3 5.3

Great Artesian Basin sustainability

initiative - - 1.8 - 0.8 - - - 2.7

Hydrogen energy supply chain pilot

project - 17.5 - - - - - - 17.5

Implementing water reform in the

Murray-Darling Basin 9.4 6.8 2.0 - 1.5 - 0.3 - 20.0

Lindenow Valley water security scheme - 1.0 - - - - - - 1.0

Management of established pest and

weeds - - - 1.0 3.0 - - - 4.0

National Water Infrastructure Development

Fund

Feasibility studies - - 16.9 0.4 - - - 0.2 17.4

Capital - 7.2 2.6 - 10.2 14.0 - - 34.0

Natural disaster resilience 5.4 3.3 4.8 2.5 1.7 1.0 1.0 1.0 20.9

On-farm emergency water infrastructure

rebate 14.3 3.5 5.0 3.8 2.5 .. 0.1 1.7 30.7

Pest and disease preparedness and

response programs - 0.1 24.3 -0.5 - - - 5.2 29.1

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Table 42: Payments for specific purposes to support state environment services, 2019-20 (continued) $million NSW VIC QLD WA SA TAS ACT NT Total

Preparing Australia package 0.4 - - - - - - - 0.4

Sustainable rural water use and

infrastructure program 5.7 20.7 1.1 - 18.1 - 0.6 - 46.2

Water Efficiency Program 0.1 - - - - - 0.2 - 0.3

Water for Fodder Program - - - - 28.0 - - - 28.0

World Heritage Sites 0.8 - 3.1 0.4 0.1 8.2 - - 12.6

Yellow crazy ant control - - 3.0 - - - - - 3.0

Total 45.4 63.1 66.1 8.5 67.9 23.8 2.8 13.4 290.9

Final Budget Outcome 2019

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Table 43: Payments for specific purposes to support contingent state services, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

National Partnership payments

Disaster Recovery Funding

and Natural Disaster Relief and

Recovery Arrangements(a) 1,360.0 165.5 -113.1 130.1 90.1 -32.6 0.8 20.3 1,621.2

Total 1,360.0 165.5 -113.1 130.1 90.1 -32.6 0.8 20.3 1,621.2

(a) Figures reflect the expense outcome. Total cash payments made in 2019-20 are presented in Table 28.

Table 44: Payments for specific purposes to support other state services, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

National Partnership payments

Bushfire legal assistance funding 1.7 0.5 0.4 - 0.3 - - - 2.9

COVID-19 legal assistance funding 7.2 5.7 5.8 3.6 2.3 0.9 0.8 1.7 27.9

Family advocacy and support services 2.3 1.6 1.4 1.0 0.8 1.0 0.7 0.8 9.7

Family law information sharing 0.7 0.3 0.7 0.3 0.2 0.3 0.3 - 2.7

Financial assistance for police officers 0.2 - - - - - - - 0.2

Financial assistance to local governments 799.4 626.0 506.3 305.8 167.1 79.7 55.4 36.0 2,575.6

Household resilience program - - 10.0 - - - - - 10.0

Legal assistance services 79.8 62.1 54.2 32.0 20.6 7.6 6.1 7.6 270.0

National tourism icons package - - 1.2 3.7 - 0.3 - - 5.2

North Queensland stadium - - 35.0 - - - - - 35.0

North Queensland strata title

inspection scheme - - 5.3 - - - - - 5.3

Provision of fire services 5.0 3.5 3.4 1.6 1.2 0.3 5.3 2.3 22.6

Sinking fund on state debt .. - - - - - - - ..

Total 896.4 699.7 623.7 347.9 192.4 90.0 68.6 48.3 2,967.2

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Table 45: General revenue assistance payments to the states, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

GST entitlement(a) 16,723.2 15,453.4 12,780.0 3,234.7 6,095.4 2,229.2 1,250.6 2,469.4 60,235.9

Other payments

ACT municipal services - - - - - - 40.7 - 40.7

Compensation for reduced royalties - - - 19.2 - - - - 19.2

Royalty payments - - - 663.6 - - - 2.7 666.2

Transitional GST top-up payments(b) - - - 814.2 - - - 252.1 1,066.3

Total other general revenue

assistance - - - 1,497.0 - - 40.7 254.8 1,792.4

Total 16,723.2 15,453.4 12,780.0 4,731.6 6,095.4 2,229.2 1,291.3 2,724.2 62,028.3

(a) The 2019-20 GST outcome will be finalised following a Determination by the Treasurer. (b) The Government paid Western Australia the balance of its $1.2 billion 2019-20 top-up payment following a partial pre-payment of $434 million in 2018-19.

Final Budget Outcome 2019

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Table 46: Total payments to the states by function, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

General public services - - - - - - - - -

Public order and safety 96.4 72.5 64.5 37.5 25.0 10.3 13.1 56.5 375.8

Education 7,657.3 5,955.7 5,145.9 2,541.4 1,874.3 547.3 400.2 456.0 24,578.0

Health 8,084.9 6,672.5 5,395.0 2,615.0 1,631.7 557.1 484.4 348.0 25,788.6

Social security and welfare 650.7 252.9 558.7 208.6 78.0 24.2 49.0 23.6 1,845.9

Housing and community amenities 538.9 430.0 385.5 171.2 146.0 60.4 28.5 135.5 1,896.1

Recreation and culture - - 35.0 - - - - - 35.0

Fuel and energy - 17.5 - - - - - - 17.5

Agriculture, forestry and fishing 33.8 32.0 34.3 4.3 54.4 0.0 1.3 6.8 166.8

Mining, manufacturing and construction - - - - - - - - -

Transport and communication 1,401.1 1,029.3 1,329.0 615.5 182.8 108.7 11.8 174.1 4,852.3

Other economic affairs - - 1.2 7.8 2.8 1.2 0.7 - 13.6

Other purposes(a) 18,882.6 16,244.9 13,173.3 5,167.5 6,352.6 2,276.3 1,347.5 2,780.5 66,225.2

Total payments to the states 37,345.8 30,707.2 26,122.4 11,368.7 10,347.4 3,585.6 2,336.4 3,981.1 125,794.6

less payments 'through' the states 4,380.7 3,487.6 2,931.5 1,485.1 1,163.8 288.8 248.3 241.1 14,227.0

less financial assistance for local

governments 799.4 626.0 506.3 305.8 167.1 79.7 55.4 36.0 2,575.6

less payments direct to local

governments 215.2 120.4 133.4 76.0 62.7 17.1 0.5 8.4 633.7

equals total payments to the states for

own-purpose expenses 31,950.5 26,473.3 22,551.1 9,501.8 8,953.8 3,199.9 2,032.2 3,695.6 108,358.3

(a) Payments for ‘Other purposes’ includes general revenue assistance to the states.

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Table 47: Other financial flows — estimated advances, repayment of advances and interest payments, 2019-20 $million NSW VIC QLD WA SA TAS ACT NT Total

Advances

Agriculture

Natural disaster relief - - 2.6 - - 0.4 - - 3.1

Moreton Bay Precinct loan - - 92.4 - - - - - 92.4

Total Advances - - 95.1 - - 0.4 - - 95.5

Repayments

Agriculture

Drought Concessional Loans Scheme -10.3 -25.6 -38.5 - -2.4 -0.9 - - -77.6

Drought Recovery Loans Scheme -1.0 -4.0 -0.5 - - -0.1 - - -5.6

Farm Finance Concessional

Loans Scheme -11.1 -4.9 -7.9 -3.3 -0.5 -4.8 - -4.1 -36.6

Asbestos Removal in the ACT - - - - - - -900.0 - -900.0

Environment

Northern Territory — water and

sewerage assistance - - - - - - - -0.1 -0.1

Housing

Commonwealth-State Housing

Agreement loans -37.4 - -10.3 -9.9 -3.2 - - -1.0 -61.7

Housing for service personnel -2.0 - -1.2 -0.3 -0.1 - - - -3.6

Other housing - - - - - - -8.3 -3.5 -11.7

Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund - - - - - - - - -

Natural disaster relief -4.3 - -13.2 - - - - - -17.5

Other purposes

ACT debt repayments - - - - - - -0.6 - -0.6

Loan Council — housing nominations -10.7 - -3.9 -6.8 -4.5 - - -3.6 -29.5

Total Repayments -76.6 -34.5 -75.5 -20.3 -10.6 -5.8 -908.8 -12.2 -1,144.5

Final Budget Outcome 2019

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Table 47: Other financial flows — estimated advances, repayment of advances and interest payments, 2019-20 (continued) $million NSW VIC QLD WA SA TAS ACT NT Total

Interest

Agriculture

Drought Concessional Loans Scheme -2.9 -4.8 -3.8 -0.1 -0.3 -0.9 - - -12.7

Drought Recovery Loans Scheme -0.5 -0.9 -0.4 - -0.1 -0.1 - - -2.0

Farm Finance Concessional

Loans Scheme -0.7 -0.3 -0.3 0.2 .. -0.2 - -0.1 -1.4

Asbestos Removal in the ACT - - - - - - -8.2 - -8.2

Environment

Northern Territory — water and

sewerage assistance - - - - - - - -0.5 -0.5

Housing

Commonwealth-State Housing

Agreement loans -19.9 - -5.8 -5.5 -1.7 -0.6 - -1.0 -34.4

Housing for service personnel -1.6 - -0.9 -0.1 -0.1 - - - -2.6

Other housing - - - - - - -5.2 -2.2 -7.3

Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund -2.2 - - - - - - - -2.2

Moreton Bay Precinct loan - - -2.4 - - - - - -2.4

Natural disaster relief -0.1 - -0.5 - - - - - -0.6

Other purposes

ACT debt repayments - - - - - - -0.3 - -0.3

Loan Council — housing nominations -16.0 - -5.7 -9.8 -7.0 -0.9 - -5.6 -45.0

Total Interest -44.0 -6.0 -19.9 -15.3 -9.1 -2.6 -13.6 -9.4 -119.9

Net Financial Flow -120.6 -40.5 -0.3 -35.6 -19.7 -8.0 -922.5 -21.6 -1,168.9

83

Appendix A: Expenses by Function and Sub-function Table A1 sets out Australian Government general government sector expenses by function and sub-function for 2019-20.

Table A1: Australian Government general government sector expenses by function and sub-function 2018-19 2019-20 2019-20 Change on

Outcome Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m $m

General public services

Legislative and executive affairs 1,644 1,355 1,366 11

Financial and fiscal affairs 7,729 7,275 7,302 26

Foreign affairs and economic aid 5,756 6,293 6,270 -24

General research 2,859 3,177 2,940 -237

General services 790 675 855 180

Government superannuation benefits 7,442 11,380 10,739 -641

Total general public services 26,221 30,157 29,472 -686

Defence 30,798 32,783 33,187 404

Public order and safety

Courts and legal services 1,252 1,401 1,416 15

Other public order and safety 4,522 4,565 4,973 408

Total public order and safety 5,774 5,966 6,388 422

Education

Higher education 9,589 9,721 9,652 -70

Vocational and other education 1,662 1,716 1,713 -3

Schools 19,708 21,088 22,305 1,217

Non-government schools 12,025 12,762 13,918 1,156

Government schools 7,682 8,326 8,387 61

School education — specific funding 669 751 722 -29

Student assistance 2,530 2,267 5,271 3,004

General administration 384 303 222 -81

Total education 34,542 35,846 39,885 4,039

Health

Medical services and benefits 31,964 33,612 32,668 -944

Pharmaceutical benefits and services 13,302 13,828 14,175 347

Assistance to the States for public hospitals 21,738 22,535 22,560 26

Hospital services 1,327 1,271 1,248 -23

Health services 7,530 7,878 11,888 4,010

General administration 3,418 3,327 3,510 184

Aboriginal and Torres Strait Islander health 917 974 973 -1

Total health 80,196 83,425 87,023 3,599

Social security and welfare

Assistance to the aged 66,701 69,975 71,855 1,880

Assistance to veterans and dependants 7,015 7,223 7,711 488

Assistance to people with disabilities 41,825 47,216 49,038 1,822

Assistance to families with children 35,765 36,777 38,604 1,827

Final Budget Outcome 2019-20

84

Table A1: Australian Government general government sector expenses by function and sub-function (continued) 2018-19 2019-20 2019-20 Change on

Outcome Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m $m

Social security and welfare

(continued)

Assistance to the unemployed and

the sick 10,585 11,354 20,128 8,773

Other welfare programs 1,596 1,625 1,869 245

Assistance for Indigenous Australians nec 2,279 2,288 2,388 100

General administration 4,282 4,325 4,526 201

Total social security and welfare 170,046 180,782 196,119 15,336

Housing and community amenities

Housing 2,819 2,847 2,752 -95

Urban and regional development 1,065 1,811 1,292 -519

Environment protection 1,131 1,057 1,288 231

Total housing and community

amenities 5,014 5,715 5,332 -383

Recreation and culture

Broadcasting 1,513 1,487 1,500 13

Arts and cultural heritage 1,409 1,451 1,439 -12

Sport and recreation 558 590 544 -46

National estate and parks 503 460 487 27

Total recreation and culture 3,982 3,989 3,971 -18

Fuel and energy 7,698 8,161 7,892 -269

Agriculture, forestry and fishing

Wool industry 89 66 58 -8

Grains industry 135 205 199 -6

Dairy industry 51 50 55 5

Cattle, sheep and pig industry 235 242 230 -12

Fishing, horticulture and other agriculture 439 417 393 -24

General assistance not allocated to

specific industries 44 35 39 4

Rural assistance 245 369 426 56

Natural resources development 559 795 431 -364

General administration 815 846 754 -92

Total agriculture, forestry and fishing 2,611 3,025 2,584 -441

Mining, manufacturing and construction 2,505 3,073 2,819 -254

Transport and communication

Communication 964 859 679 -181

Rail transport 1,093 937 555 -382

Air transport 299 385 935 550

Road transport 5,125 5,841 4,499 -1,342

Sea transport 445 447 438 -9

Other transport and communication 200 201 216 14

Total transport and communication 8,125 8,671 7,321 -1,350

Appendix A: Expenses by Function and Sub Function

85

Table A1: Australian Government general government sector expenses by function and sub-function (continued) 2018-19 2019-20 2019-20 Change on

Outcome Estimate at Outcome 2019-20

2019-20 MYEFO

MYEFO

$m $m $m $m

Other economic affairs

Tourism and area promotion 174 173 165 -8

Total labour and employment affairs 3,754 3,587 3,810 223

Vocational and industry training 1,130 1,049 1,083 34

Labour market assistance to job seekers

and industry 2,000 1,861 2,024 163

Industrial relations 624 676 702 26

Immigration 3,404 3,800 3,488 -312

Other economic affairs nec 2,382 2,690 58,030 55,340

Total other economic affairs 9,714 10,250 65,494 55,244

Other purposes

Public debt interest 17,100 16,746 16,923 178

Interest on Commonwealth

Government’s behalf 17,100 16,746 16,923 178

Nominal superannuation interest 9,736 7,715 7,673 -42

General purpose inter-government

transactions 69,186 68,547 64,603 -3,944

General revenue assistance —

states and territories 66,641 67,285 62,027 -5,258

Local government assistance 2,545 1,262 2,576 1,314

Natural disaster relief 1,405 38 1,863 1,825

Contingency reserve 0 -1,707 0 1,707

Total other purposes 97,427 91,338 91,062 -276

Total expenses 484,653 503,180 578,549 75,369

87

Appendix B: Historical Australian Government Data This appendix reports historical data for the Australian Government fiscal aggregates across the general government, public non-financial corporations and non-financial public sectors.

Data sources

Data are sourced from Australian Government Final Budget Outcomes, the Australian Bureau of Statistics (ABS), the Australian Office of Financial Management and Australian Government Consolidated Financial Statements.

• Accrual data from 1996-97 onwards and cash data, net debt data, net financial worth data and net worth data from 1999-2000 onwards are sourced from Australian Government Final Budget Outcomes. Back-casting adjustments for accounting classification changes and other revisions have been made from 1998-99 onwards where applicable.

• Cash data prior to 1999-2000 are sourced from ABS data, which have been calculated using methodology consistent with that used for later years in ABS cat. no. 5512.0 Government Finance Statistics.

• Net debt data prior to 1999-2000 are from ABS cat. no. 5512.0 Government Finance Statistics 2003-04 in 1998-99, ABS cat. no. 5501.0 Government Financial Estimates 1999-2000 and ABS cat. no. 5513.0 Public Sector Financial Assets and Liabilities 1998 from 1987-88 to 1997-98, and Treasury estimates (see Treasury’s Economic Roundup, Spring 1996, pages 97-103) prior to 1987-88.

Comparability of data across years

The data set contains a number of structural breaks owing to accounting classification differences and changes to the structure of the budget which cannot be eliminated through back-casting because of data limitations. These breaks can affect the comparability of data across years, especially when the analysis is taken over a large number of years. Specific factors causing structural breaks include:

• From 2019-20 onwards, as a result of the implementation of the accounting standard AASB 16 Leases the distinction between operating and finance leases for lessees has been removed. This has a number of implications for the budget aggregates, in particular net debt and net financial worth. Also, 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.

Final Budget Outcome 2019-20

88

• From 2005-06 onwards, underlying Government Finance Statistics (GFS) data are provided by agencies in accordance with Australian Accounting Standards (AAS), which includes International Financial Reporting Standards (IFRS) as adopted in Australia. Prior to 2005-06, underlying GFS data are based on data provided by agencies applying AAS prior to the adoption of IFRS.

• Most recent accounting classification changes that require revisions to the historical series have been back-cast (where applicable) to 1998-99, ensuring that data are consistent across the accrual period from 1998-99 onwards. However, because of data limitations, these changes have not been back-cast to earlier years.

• Prior to 1999-2000, Australian Government general government sector debt instruments are valued at historic cost, whereas from 1999-2000 onwards they are valued at market prices (consistent with accrual GFS standards). This affects net debt and net interest payments.

• Cash data up to and including 1997-98 are calculated under a cash accounting framework, while cash data from 1998-99 onwards are derived from an accrual accounting framework.1 Although the major methodological differences associated with the move to the accrual framework have been eliminated through back-casting, comparisons across the break may still be affected by changes to some data sources and collection methodologies.

• Adjustments in the coverage of agencies are included in the accounts of the different sectors. These include the reclassification of Central Banking Authorities from the general government to the public financial corporations sector in 1998-99, and subsequent back-casting to account for this change.

• Changes have been made in arrangements for transfer payments, where tax concessions or rebates are replaced by payments through the social security system. This has the effect of increasing both cash receipts and payments, as compared with earlier periods, but not changing cash balances. Changes in the opposite direction reduce both cash payments and receipts.

• Classification differences in the data relating to the period prior to 1976-77 mean that earlier data may not be entirely consistent with data for 1976-77 onwards.

Revisions to previously published data

Under the accrual GFS framework and generally under AAS, flows are recorded in the period in which they occurred. As a result, prior period outcomes may be revised for classification changes relating to information that could reasonably have been expected

1 Prior to the 2008-09 Budget, cash data calculated under the cash accounting framework was used up to and including 1998-99. In the 2008-09 Budget, cash data prior to 1998-99 have been replaced by ABS data derived from the accrual framework.

Appendix B: Historical Australian Government Data

89

to be known in the past, is material in at least one of the affected periods, and can be reliably assigned to the relevant period(s).

There have been no material classification changes that have resulted in back-casting in this update.

Final Budget Outcome 2019-20

90

Table B1: Australian Government general government sector receipts, payments, net Future Fund earnings and underlying cash balance(a) Net Future Underlying

Fund cash

Receipts(b) Payments(c) earnings balance(d)

Per cent Per cent real Per cent Per cent

$m of GDP $m growth(e) of GDP $m $m of GDP

1970-71 8,290 20.6 7,389 na 18.3 - 901 2.2

1971-72 9,135 20.5 8,249 4.1 18.5 - 886 2.0

1972-73 9,735 19.6 9,388 7.7 18.9 - 348 0.7

1973-74 12,228 20.3 11,078 4.2 18.4 - 1,150 1.9

1974-75 15,643 22.0 15,463 19.9 21.7 - 181 0.3

1975-76 18,727 22.5 20,225 15.7 24.3 - -1,499 -1.8

1976-77 21,890 22.8 23,157 0.6 24.1 - -1,266 -1.3

1977-78 24,019 22.9 26,057 2.7 24.8 - -2,037 -1.9

1978-79 26,129 22.0 28,272 0.3 23.8 - -2,142 -1.8

1979-80 30,321 22.6 31,642 1.5 23.5 - -1,322 -1.0

1980-81 35,993 23.7 36,176 4.6 23.8 - -184 -0.1

1981-82 41,499 23.6 41,151 2.9 23.4 - 348 0.2

1982-83 45,463 24.0 48,810 6.3 25.8 - -3,348 -1.8

1983-84 49,981 23.4 56,990 9.4 26.7 - -7,008 -3.3

1984-85 58,817 25.0 64,853 9.1 27.6 - -6,037 -2.6

1985-86 66,206 25.4 71,328 1.5 27.4 - -5,122 -2.0

1986-87 74,724 26.2 77,158 -1.1 27.0 - -2,434 -0.9

1987-88 83,491 25.8 82,039 -0.9 25.3 - 1,452 0.4

1988-89 90,748 24.7 85,326 -3.1 23.2 - 5,421 1.5

1989-90 98,625 24.4 92,684 0.6 22.9 - 5,942 1.5

1990-91 100,227 24.2 100,665 3.1 24.3 - -438 -0.1

1991-92 95,840 22.7 108,472 5.7 25.7 - -12,631 -3.0

1992-93 97,633 22.0 115,751 5.6 26.1 - -18,118 -4.1

1993-94 103,824 22.3 122,009 3.5 26.2 - -18,185 -3.9

1994-95 113,458 22.9 127,619 1.4 25.8 - -14,160 -2.9

1995-96 124,429 23.6 135,538 1.9 25.7 - -11,109 -2.1

1996-97 133,592 24.1 139,689 1.7 25.2 - -6,099 -1.1

1997-98 140,736 23.9 140,587 0.6 23.9 - 149 0.0

1998-99 152,063 24.5 148,175 4.1 23.9 - 3,889 0.6

1999-00 166,199 25.1 153,192 1.0 23.2 - 13,007 2.0

2000-01 182,996 26.0 177,123 9.1 25.1 - 5,872 0.8

2001-02 187,588 24.9 188,655 3.5 25.0 - -1,067 -0.1

2002-03 204,613 25.5 197,243 1.4 24.6 - 7,370 0.9

2003-04 217,775 25.3 209,785 3.9 24.4 - 7,990 0.9

2004-05 235,984 25.6 222,407 3.5 24.1 - 13,577 1.5

2005-06 255,943 25.7 240,136 4.6 24.1 51 15,757 1.6

2006-07 272,637 25.1 253,321 2.5 23.3 2,127 17,190 1.6

2007-08 294,917 25.0 271,843 3.8 23.1 3,319 19,754 1.7

2008-09 292,600 23.2 316,046 12.7 25.1 3,566 -27,013 -2.1

2009-10 284,662 21.9 336,900 4.2 25.9 2,256 -54,494 -4.2

Appendix B: Historical Australian Government Data

91

Table B1: Australian Government general government sector receipts, payments, net Future Fund earnings and underlying cash balance(a) (continued) Net Future Underlying

Fund cash

Receipts(b) Payments(c) earnings balance(d)

Per cent Per cent real Per cent Per cent

$m of GDP $m growth(e) of GDP $m $m of GDP

2010-11 302,024 21.3 346,102 -0.4 24.4 3,385 -47,463 -3.4

2011-12 329,874 22.0 371,032 4.8 24.7 2,203 -43,360 -2.9

2012-13 351,052 22.9 367,204 -3.2 23.9 2,682 -18,834 -1.2

2013-14 360,322 22.5 406,430 7.8 25.4 2,348 -48,456 -3.0

2014-15 378,301 23.3 412,079 -0.3 25.4 4,089 -37,867 -2.3

2015-16 386,924 23.3 423,328 1.3 25.5 3,202 -39,606 -2.4

2016-17 409,868 23.2 439,375 2.0 24.9 3,644 -33,151 -1.9

2017-18 446,905 24.2 452,742 1.1 24.5 4,305 -10,141 -0.5

2018-19 485,286 24.9 478,098 3.9 24.5 7,878 -690 0.0

2019-20 469,398 23.7 549,634 13.4 27.7 5,036 -85,272 -4.3

(a) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time. (b) Receipts are equal to cash receipts from operating activities and sales of non-financial assets. (c) Payments are equal to cash payments for operating activities, purchases of non-financial assets and net

cash flows from financing activities for leases. (d) Between 2005-06 and 2019-20, the underlying cash balance is equal to receipts less payments, less net Future Fund earnings. Before 2005-06, the underlying cash balance is equal to receipts less payments. (e) Real spending growth is calculated using the Consumer Price Index as the deflator.

Final Budget Outcome 2019-20

92

Table B2: Australian Government general government sector net cash flows from investments in financial assets for policy purposes and headline cash balance(a) Net cash flows

from investments in Headline

financial assets for cash

Receipts Payments policy purposes(b) balance(c)

Per cent Per cent

$m $m $m of GDP $m of GDP

1970-71 8,290 7,389 -851 -2.1 50 0.1

1971-72 9,135 8,249 -987 -2.2 -101 -0.2

1972-73 9,735 9,388 -977 -2.0 -629 -1.3

1973-74 12,228 11,078 -1,275 -2.1 -125 -0.2

1974-75 15,643 15,463 -2,648 -3.7 -2,467 -3.5

1975-76 18,727 20,225 -2,040 -2.5 -3,539 -4.3

1976-77 21,890 23,157 -1,530 -1.6 -2,796 -2.9

1977-78 24,019 26,057 -1,324 -1.3 -3,361 -3.2

1978-79 26,129 28,272 -1,074 -0.9 -3,216 -2.7

1979-80 30,321 31,642 -702 -0.5 -2,024 -1.5

1980-81 35,993 36,176 -962 -0.6 -1,146 -0.8

1981-82 41,499 41,151 -1,008 -0.6 -660 -0.4

1982-83 45,463 48,810 -1,363 -0.7 -4,711 -2.5

1983-84 49,981 56,990 -1,136 -0.5 -8,144 -3.8

1984-85 58,817 64,853 -922 -0.4 -6,959 -3.0

1985-86 66,206 71,328 -810 -0.3 -5,932 -2.3

1986-87 74,724 77,158 -545 -0.2 -2,979 -1.0

1987-88 83,491 82,039 657 0.2 2,109 0.7

1988-89 90,748 85,326 168 0.0 5,589 1.5

1989-90 98,625 92,684 1,217 0.3 7,159 1.8

1990-91 100,227 100,665 1,563 0.4 1,125 0.3

1991-92 95,840 108,472 2,156 0.5 -10,475 -2.5

1992-93 97,633 115,751 2,471 0.6 -15,647 -3.5

1993-94 103,824 122,009 3,447 0.7 -14,738 -3.2

1994-95 113,458 127,619 1,546 0.3 -12,614 -2.6

1995-96 124,429 135,538 5,188 1.0 -5,921 -1.1

1996-97 133,592 139,689 7,241 1.3 1,142 0.2

1997-98 140,736 140,587 15,154 2.6 15,303 2.6

1998-99 152,063 148,175 6,948 1.1 10,837 1.7

1999-00 166,199 153,192 9,500 1.4 22,507 3.4

2000-01 182,996 177,123 5,673 0.8 11,545 1.6

2001-02 187,588 188,655 3,422 0.5 2,355 0.3

2002-03 204,613 197,243 -229 0.0 7,141 0.9

2003-04 217,775 209,785 -452 -0.1 7,538 0.9

2004-05 235,984 222,407 -1,139 -0.1 12,438 1.3

2005-06 255,943 240,136 -1,647 -0.2 14,160 1.4

2006-07 272,637 253,321 7,403 0.7 26,720 2.5

2007-08 294,917 271,843 5,108 0.4 28,181 2.4

2008-09 292,600 316,046 -7,889 -0.6 -31,336 -2.5

2009-10 284,662 336,900 -4,278 -0.3 -56,516 -4.3

Appendix B: Historical Australian Government Data

93

Table B2: Australian Government general government sector net cash flows from investments in financial assets for policy purposes and headline cash balance(a) (continued) Net cash flows

from investments in Headline

financial assets for cash

Receipts Payments policy purposes(b) balance(c)

Per cent Per cent

$m $m $m of GDP $m of GDP

2010-11 302,024 346,102 -7,028 -0.5 -51,106 -3.6

2011-12 329,874 371,032 -5,866 -0.4 -47,023 -3.1

2012-13 351,052 367,204 -4,802 -0.3 -20,954 -1.4

2013-14 360,322 406,430 -6,371 -0.4 -52,479 -3.3

2014-15 378,301 412,079 -5,158 -0.3 -38,936 -2.4

2015-16 386,924 423,328 -12,684 -0.8 -49,088 -3.0

2016-17 409,868 439,375 -13,501 -0.8 -43,008 -2.4

2017-18 446,905 452,742 -20,041 -1.1 -25,878 -1.4

2018-19 485,286 478,098 -14,387 -0.7 -7,199 -0.4

2019-20 469,398 549,634 -13,632 -0.7 -93,868 -4.7

(a) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time. (b) Prior to 1999-2000, net cash flows from investments in financial assets for policy purposes were referred to as ‘net advances’. A negative number reflects a cash outflow, while a positive number reflects a

cash inflow. (c) Headline cash balance is equal to receipts less payments, plus net cash flows from investments in financial assets for policy purposes. Receipts and payments are identical to Table B1.

Final Budget Outcome 2019-20

94

Table B3: Australian Government general government sector taxation receipts, non-taxation receipts and total receipts(a) Taxation receipts Non-taxation receipts Total receipts(b)

Per cent Per cent Per cent

$m of GDP $m of GDP $m of GDP

1970-71 7,193 17.8 1,097 2.7 8,290 20.6

1971-72 7,895 17.7 1,240 2.8 9,135 20.5

1972-73 8,411 16.9 1,324 2.7 9,735 19.6

1973-74 10,832 18.0 1,396 2.3 12,228 20.3

1974-75 14,141 19.9 1,502 2.1 15,643 22.0

1975-76 16,920 20.3 1,807 2.2 18,727 22.5

1976-77 19,714 20.5 2,176 2.3 21,890 22.8

1977-78 21,428 20.4 2,591 2.5 24,019 22.9

1978-79 23,409 19.7 2,720 2.3 26,129 22.0

1979-80 27,473 20.4 2,848 2.1 30,321 22.6

1980-81 32,641 21.5 3,352 2.2 35,993 23.7

1981-82 37,880 21.6 3,619 2.1 41,499 23.6

1982-83 41,025 21.7 4,438 2.3 45,463 24.0

1983-84 44,849 21.0 5,132 2.4 49,981 23.4

1984-85 52,970 22.5 5,847 2.5 58,817 25.0

1985-86 58,841 22.6 7,365 2.8 66,206 25.4

1986-87 66,467 23.3 8,257 2.9 74,724 26.2

1987-88 75,076 23.2 8,415 2.6 83,491 25.8

1988-89 83,452 22.7 7,296 2.0 90,748 24.7

1989-90 90,773 22.5 7,852 1.9 98,625 24.4

1990-91 92,739 22.4 7,488 1.8 100,227 24.2

1991-92 87,364 20.7 8,476 2.0 95,840 22.7

1992-93 88,760 20.0 8,873 2.0 97,633 22.0

1993-94 93,362 20.0 10,462 2.2 103,824 22.3

1994-95 104,921 21.2 8,537 1.7 113,458 22.9

1995-96 115,700 21.9 8,729 1.7 124,429 23.6

1996-97 124,559 22.4 9,033 1.6 133,592 24.1

1997-98 130,984 22.3 9,752 1.7 140,736 23.9

1998-99 138,420 22.3 13,643 2.2 152,063 24.5

1999-00 151,313 22.9 14,887 2.3 166,199 25.1

2000-01 170,354 24.2 12,641 1.8 182,996 26.0

2001-02 175,371 23.3 12,218 1.6 187,588 24.9

2002-03 192,391 24.0 12,222 1.5 204,613 25.5

2003-04 206,734 24.0 11,041 1.3 217,775 25.3

2004-05 223,986 24.3 11,999 1.3 235,984 25.6

2005-06 241,987 24.3 13,956 1.4 255,943 25.7

2006-07 258,252 23.8 14,385 1.3 272,637 25.1

2007-08 279,317 23.7 15,600 1.3 294,917 25.0

2008-09 273,674 21.7 18,926 1.5 292,600 23.2

2009-10 262,167 20.1 22,495 1.7 284,662 21.9

Appendix B: Historical Australian Government Data

95

Table B3: Australian Government general government sector taxation receipts, non-taxation receipts and total receipts(a) (continued) Taxation receipts Non-taxation receipts Total receipts(b)

Per cent Per cent Per cent

$m of GDP $m of GDP $m of GDP

2010-11 282,106 19.9 19,918 1.4 302,024 21.3

2011-12 311,269 20.8 18,606 1.2 329,874 22.0

2012-13 327,835 21.3 23,218 1.5 351,052 22.9

2013-14 340,283 21.3 20,038 1.3 360,322 22.5

2014-15 353,883 21.8 24,418 1.5 378,301 23.3

2015-16 362,387 21.8 24,537 1.5 386,924 23.3

2016-17 379,271 21.5 30,597 1.7 409,868 23.2

2017-18 418,053 22.6 28,853 1.6 446,905 24.2

2018-19 448,579 23.0 36,707 1.9 485,286 24.9

2019-20 431,775 21.8 37,623 1.9 469,398 23.7

(a) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time. (b) Receipts are equal to receipts from operating activities and sales of non-financial assets. Receipts are identical to Table B1.

Final Budget Outcome 2019-20

96

Table B4: Australian Government general government sector net debt and net interest payments(a) Net debt(b) Net interest payments(c)

$m Per cent of GDP $m Per cent of GDP

1970-71 344 0.9 -189 -0.5

1971-72 -496 -1.1 -245 -0.6

1972-73 -790 -1.6 -252 -0.5

1973-74 -1,851 -3.1 -286 -0.5

1974-75 -1,901 -2.7 -242 -0.3

1975-76 -341 -0.4 -330 -0.4

1976-77 898 0.9 -62 -0.1

1977-78 2,896 2.8 4 0.0

1978-79 4,983 4.2 254 0.2

1979-80 6,244 4.6 440 0.3

1980-81 6,356 4.2 620 0.4

1981-82 5,919 3.4 680 0.4

1982-83 9,151 4.8 896 0.5

1983-84 16,015 7.5 1,621 0.8

1984-85 21,896 9.3 2,813 1.2

1985-86 26,889 10.3 3,952 1.5

1986-87 29,136 10.2 4,762 1.7

1987-88 27,344 8.4 4,503 1.4

1988-89 21,981 6.0 4,475 1.2

1989-90 16,123 4.0 4,549 1.1

1990-91 16,915 4.1 3,636 0.9

1991-92 31,041 7.3 3,810 0.9

1992-93 55,218 12.5 3,986 0.9

1993-94 70,223 15.1 5,628 1.2

1994-95 83,492 16.9 7,292 1.5

1995-96 95,831 18.2 8,861 1.7

1996-97 96,281 17.3 9,489 1.7

1997-98 82,935 14.1 8,279 1.4

1998-99 72,065 11.6 8,649 1.4

1999-00 57,661 8.7 7,514 1.1

2000-01 46,802 6.6 6,195 0.9

2001-02 42,263 5.6 5,352 0.7

2002-03 33,403 4.2 3,758 0.5

2003-04 26,995 3.1 3,040 0.4

2004-05 15,604 1.7 2,502 0.3

2005-06 331 0.0 2,303 0.2

2006-07 -24,288 -2.2 228 0.0

2007-08 -39,958 -3.4 -1,015 -0.1

2008-09 -11,285 -0.9 -1,196 -0.1

2009-10 47,874 3.7 2,386 0.2

Appendix B: Historical Australian Government Data

97

Table B4: Australian Government general government sector net debt and net interest payments(a) (continued) Net debt(b) Net interest payments(c)

$m Per cent of GDP $m Per cent of GDP

2010-11 90,660 6.4 4,608 0.3

2011-12 153,443 10.2 6,609 0.4

2012-13 159,594 10.4 8,285 0.5

2013-14 209,559 13.1 10,843 0.7

2014-15 245,817 15.1 10,868 0.7

2015-16 303,467 18.3 12,041 0.7

2016-17 322,320 18.3 12,365 0.7

2017-18 341,961 18.5 13,135 0.7

2018-19 373,566 19.2 15,149 0.8

2019-20 491,217 24.8 13,280 0.7

(a) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time. (b) 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). (c) Net interest payments are equal to the difference between interest paid and interest receipts.

Final Budget Outcome 2019-20

98

Table B5: Australian Government general government sector face value of Australian Government Securities (AGS)(a) on issue and interest paid(b) Face value of AGS on issue

Total AGS on issue(c) Subject to Treasurer’s Direction(d) Interest paid(e)

End of year Per cent End of year Per cent Per cent

$m of GDP $m of GDP $m of GDP

1970-71 10,887 27.0 - - 580 1.4

1971-72 11,490 25.8 - - 614 1.4

1972-73 12,217 24.6 - - 675 1.4

1973-74 12,809 21.3 - - 712 1.2

1974-75 14,785 20.8 - - 893 1.3

1975-76 17,940 21.6 - - 1,001 1.2

1976-77 20,845 21.7 - - 1,485 1.5

1977-78 23,957 22.8 - - 1,740 1.7

1978-79 28,120 23.7 - - 2,080 1.8

1979-80 29,321 21.8 - - 2,356 1.8

1980-81 30,189 19.8 - - 2,723 1.8

1981-82 31,060 17.7 - - 3,058 1.7

1982-83 37,071 19.6 - - 3,580 1.9

1983-84 45,437 21.3 - - 4,558 2.1

1984-85 54,420 23.2 - - 5,952 2.5

1985-86 63,089 24.2 - - 7,394 2.8

1986-87 67,172 23.5 - - 8,339 2.9

1987-88 62,794 19.4 - - 8,139 2.5

1988-89 56,854 15.5 - - 8,222 2.2

1989-90 48,399 12.0 - - 8,064 2.0

1990-91 48,723 11.8 - - 6,994 1.7

1991-92 58,826 13.9 - - 6,819 1.6

1992-93 76,509 17.3 - - 6,487 1.5

1993-94 90,889 19.5 - - 7,709 1.7

1994-95 105,466 21.3 - - 9,144 1.8

1995-96 110,166 20.9 - - 10,325 2.0

1996-97 111,067 20.0 - - 10,653 1.9

1997-98 93,664 15.9 - - 9,453 1.6

1998-99 85,331 13.8 - - 9,299 1.5

1999-00 75,536 11.4 - - 8,509 1.3

2000-01 66,403 9.4 - - 7,335 1.0

2001-02 63,004 8.4 - - 6,270 0.8

2002-03 57,435 7.2 - - 4,740 0.6

2003-04 54,750 6.4 - - 4,096 0.5

2004-05 55,151 6.0 - - 3,902 0.4

2005-06 54,070 5.4 - - 4,628 0.5

2006-07 53,264 4.9 - - 3,959 0.4

2007-08 55,442 4.7 - - 3,754 0.3

2008-09 101,147 8.0 95,103 7.5 3,970 0.3

2009-10 147,133 11.3 141,806 10.9 6,411 0.5

Appendix B: Historical Australian Government Data

99

Table B5: Australian Government general government sector face value of Australian Government Securities (AGS)(a) on issue and interest paid(b) (continued) Face value of AGS on issue

Total AGS on issue(c) Subject to Treasurer’s Direction(d) Interest paid(e)

End of year Per cent End of year Per cent Per cent

$m of GDP $m of GDP $m of GDP

2010-11 191,292 13.5 186,704 13.2 9,551 0.7

2011-12 233,976 15.6 229,389 15.3 10,875 0.7

2012-13 257,378 16.8 252,791 16.5 11,846 0.8

2013-14 319,487 20.0 316,952 19.8 13,972 0.9

2014-15 368,738 22.7 366,202 22.5 13,924 0.9

2015-16 420,420 25.3 417,936 25.2 14,977 0.9

2016-17 500,979 28.4 498,510 28.3 15,290 0.9

2017-18 531,937 28.8 529,467 28.6 16,568 0.9

2018-19 541,992 27.8 541,986 27.8 18,951 1.0

2019-20 684,298 34.5 684,292 34.5 16,524 0.8

(a) Referred to as Commonwealth Government Securities prior to the 2019-20 Budget. (b) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time. (c) Total AGS on issue includes AGS held on behalf of the states and the Northern Territory. (d) The face value of AGS subject to the Treasurer’s Direction excludes the stock and securities outlined in

subsection 51JA(2A) of the Commonwealth Inscribed Stock Act 1911. These are the same stock and securities that were excluded from the previous legislative debt limit. AGS on issue subject to the Treasurer’s Direction are not available prior to 2008-09 because the limit was first introduced in July 2008. (e) Interest paid consists of all cash interest payments of the general government sector, including those relating to AGS on issue. From 2019-20 onwards, interest paid includes impacts from the implementation of AASB 16 Leases.

Final Budget Outcome 2019

- 20

100

Table B6: Australian Government general government sector revenue, expenses, net operating balance, net capital investment and fiscal balance(a) Revenue Expenses Net operating balance(b) Net capital investment Fiscal balance(c)

Per cent Per cent Per cent Per cent Per cent

$m of GDP $m of GDP $m of GDP $m of GDP $m of GDP

1996-97 141,688 25.5 145,821 26.3 -4,133 -0.7 90 0.0 -4,223 -0.8

1997-98 146,820 25.0 148,652 25.3 -1,832 -0.3 147 0.0 -1,979 -0.3

1998-99 152,106 24.5 146,772 23.7 5,334 0.9 1,433 0.2 3,901 0.6

1999-00 167,304 25.3 155,558 23.5 11,746 1.8 -69 0.0 11,815 1.8

2000-01 186,106 26.4 180,090 25.5 6,016 0.9 8 0.0 6,007 0.9

2001-02 190,432 25.2 192,984 25.6 -2,553 -0.3 382 0.1 -2,935 -0.4

2002-03 206,778 25.8 201,113 25.1 5,665 0.7 287 0.0 5,377 0.7

2003-04 222,042 25.8 215,235 25.0 6,808 0.8 660 0.1 6,148 0.7

2004-05 242,354 26.3 229,092 24.8 13,261 1.4 1,034 0.1 12,228 1.3

2005-06 260,569 26.2 241,665 24.3 18,904 1.9 2,498 0.3 16,406 1.6

2006-07 277,895 25.6 258,761 23.8 19,134 1.8 2,333 0.2 16,801 1.5

2007-08 303,402 25.8 279,862 23.8 23,540 2.0 2,593 0.2 20,948 1.8

2008-09 298,508 23.7 324,387 25.7 -25,879 -2.1 4,064 0.3 -29,943 -2.4

2009-10 292,387 22.5 339,829 26.1 -47,442 -3.6 6,433 0.5 -53,875 -4.1

2010-11 309,204 21.8 356,084 25.1 -46,880 -3.3 5,297 0.4 -52,176 -3.7

2011-12 337,324 22.5 377,220 25.2 -39,896 -2.7 4,850 0.3 -44,746 -3.0

2012-13 359,496 23.4 382,397 24.9 -22,901 -1.5 987 0.1 -23,888 -1.6

2013-14 374,151 23.4 414,500 25.9 -40,349 -2.5 3,850 0.2 -44,198 -2.8

2014-15 379,455 23.4 417,514 25.7 -38,059 -2.3 2,706 0.2 -40,764 -2.5

2015-16 395,055 23.8 428,691 25.8 -33,636 -2.0 3,829 0.2 -37,464 -2.3

2016-17 415,723 23.6 447,807 25.4 -32,084 -1.8 2,876 0.2 -34,960 -2.0

2017-18 456,280 24.7 460,282 24.9 -4,001 -0.2 1,284 0.1 -5,285 -0.3

2018-19 493,346 25.3 484,653 24.9 8,692 0.4 6,126 0.3 2,566 0.1

2019-20 486,278 24.5 578,549 29.2 -92,271 -4.7 4,005 0.2 -96,277 -4.9

(a) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time. (b) Net operating balance is equal to revenue less expenses. (c) Fiscal balance is equal to revenue less expenses less net capital investment.

Appendix B: Historical Australian Government Data

101

Table B7: Australian Government general government sector net worth and net financial worth(a) Net worth(b) Net financial worth(c)

Per cent Per cent

$m of GDP $m of GDP

1999-00 -10,424 -1.6 -70,414 -10.7

2000-01 -10,287 -1.5 -75,544 -10.7

2001-02 -15,330 -2.0 -81,707 -10.8

2002-03 -18,856 -2.4 -86,456 -10.8

2003-04 -4,740 -0.6 -75,976 -8.8

2004-05 11,066 1.2 -62,372 -6.8

2005-06 14,293 1.4 -63,442 -6.4

2006-07 42,677 3.9 -39,370 -3.6

2007-08 67,122 5.7 -18,428 -1.6

2008-09 15,452 1.2 -75,465 -6.0

2009-10 -50,383 -3.9 -148,930 -11.4

2010-11 -100,504 -7.1 -203,904 -14.4

2011-12 -252,046 -16.8 -360,672 -24.1

2012-13 -207,769 -13.5 -317,843 -20.7

2013-14 -261,596 -16.4 -375,882 -23.5

2014-15 -308,390 -19.0 -427,169 -26.3

2015-16 -423,674 -25.5 -548,028 -33.0

2016-17 -390,897 -22.2 -529,225 -30.0

2017-18 -418,135 -22.6 -562,183 -30.4

2018-19 -543,459 -27.9 -694,448 -35.6

2019-20 -664,892 -33.6 -840,557 -42.4

(a) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time. (b) Net worth is equal to total assets less total liabilities. (c) Net financial worth is equal to financial assets less total liabilities.

Final Budget Outcome 2019-20

102

Table B8: Australian Government general government sector accrual taxation revenue, non-taxation revenue and total revenue(a) Taxation revenue Non-taxation revenue Total revenue

Per cent Per cent Per cent

$m of GDP $m of GDP $m of GDP

1999-00 153,409 23.2 13,895 2.1 167,304 25.3

2000-01 175,876 24.9 10,229 1.5 186,106 26.4

2001-02 178,410 23.7 12,022 1.6 190,432 25.2

2002-03 195,319 24.4 11,458 1.4 206,778 25.8

2003-04 210,541 24.5 11,501 1.3 222,042 25.8

2004-05 230,490 25.0 11,863 1.3 242,354 26.3

2005-06 245,846 24.7 14,723 1.5 260,569 26.2

2006-07 262,876 24.2 15,019 1.4 277,895 25.6

2007-08 286,869 24.4 16,534 1.4 303,402 25.8

2008-09 279,303 22.2 19,206 1.5 298,508 23.7

2009-10 268,841 20.7 23,546 1.8 292,387 22.5

2010-11 289,566 20.4 19,639 1.4 309,204 21.8

2011-12 317,413 21.2 19,911 1.3 337,324 22.5

2012-13 338,106 22.0 21,390 1.4 359,496 23.4

2013-14 353,239 22.1 20,912 1.3 374,151 23.4

2014-15 356,321 21.9 23,134 1.4 379,455 23.4

2015-16 369,410 22.2 25,645 1.5 395,055 23.8

2016-17 388,641 22.0 27,082 1.5 415,723 23.6

2017-18 427,183 23.1 29,097 1.6 456,280 24.7

2018-19 456,072 23.4 37,274 1.9 493,346 25.3

2019-20 447,526 22.6 38,752 2.0 486,278 24.5

(a) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time.

Appendix B:

Historical

Australian Government Data

103

Table B9: Australian Government cash receipts, payments and surplus by institutional sector ($m)(a) General government Public non-financial corporations Non-financial public sector

Underlying cash

Receipts(b) Payments(c) balance(d) Receipts(b) Payments(e) Cash surplus Receipts(b) Payments(e) Cash surplus

1988-89 90,748 85,326 5,421 4,177 6,035 257 93,923 90,312 5,678

1989-90 98,625 92,684 5,942 3,926 11,322 -5,261 101,495 102,883 681

1990-91 100,227 100,665 -438 4,804 9,351 -2,139 103,837 108,808 -2,577

1991-92 95,840 108,472 -12,631 3,899 7,713 101 97,937 114,369 -12,530

1992-93 97,633 115,751 -18,118 4,385 7,819 -196 100,512 122,042 -18,314

1993-94 103,824 122,009 -18,185 5,178 6,476 1,482 106,747 126,214 -16,703

1994-95 113,458 127,619 -14,160 5,262 7,318 1,956 116,751 132,965 -12,204

1995-96 124,429 135,538 -11,109 4,927 8,190 -527 126,593 140,963 -11,636

1996-97 133,592 139,689 -6,099 4,782 7,373 473 135,259 143,948 -5,626

1997-98 140,736 140,587 149 6,238 7,923 1,119 144,517 145,985 1,268

1998-99 152,063 148,175 3,889 na na -353 na na 3,536

1999-00 166,199 153,192 13,007 na na -2,594 na na 10,413

2000-01 182,996 177,123 5,872 na na 391 na na 6,323

2001-02 187,588 188,655 -1,067 na na 1,210 na na 65

2002-03 204,613 197,243 7,370 27,386 26,105 1,280 na na 8,651

2003-04 217,775 209,785 7,990 27,718 26,142 1,575 238,236 228,664 9,569

2004-05 235,984 222,407 13,577 29,621 28,071 1,550 257,946 242,805 15,141

2005-06 255,943 240,136 15,757 30,875 31,874 -999 278,254 263,421 14,833

2006-07 272,637 253,321 17,190 16,882 18,641 -1,759 285,336 267,719 17,625

2007-08 294,917 271,843 19,754 7,758 8,231 -472 300,503 277,754 22,800

2008-09 292,600 316,046 -27,013 7,987 8,960 -973 297,421 321,275 -23,786

2009-10 284,662 336,900 -54,494 8,419 9,341 -922 290,681 343,816 -52,879

Final Budget Outcome 2019

- 20

104

Table B9: Australian Government cash receipts, payments and surplus by institutional sector ($m)(a) (continued) General government Public non-financial corporations Non-financial public sector

Underlying cash

Receipts(b) Payments(c) balance(d) Receipts(b) Payments(e) Cash surplus Receipts(b) Payments(e) Cash surplus

2010-11 302,024 346,102 -47,463 8,558 9,733 -1,175 308,258 353,452 -44,911

2011-12 329,874 371,032 -43,360 8,845 10,847 -2,002 336,122 379,266 -42,763

2012-13 351,052 367,204 -18,834 9,766 13,061 -3,294 358,088 377,221 -19,133

2013-14 360,322 406,430 -48,456 11,042 14,246 -3,204 368,521 417,248 -48,726

2014-15 378,301 412,079 -37,867 11,256 15,136 -3,880 386,643 424,229 -37,586

2015-16 386,924 423,328 -39,606 11,606 17,753 -6,147 395,842 438,228 -42,386

2016-17 409,868 439,375 -33,151 12,406 19,543 -7,138 419,433 456,020 -36,587

2017-18 446,905 452,742 -10,141 14,195 22,348 -8,153 457,604 471,451 -13,846

2018-19 485,286 478,098 -690 17,909 26,608 -8,699 498,767 500,276 -1,510

2019-20 469,398 549,634 -85,272 18,824 28,244 -9,419 483,362 573,018 -89,656

(a) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time. (b) Receipts are equal to receipts from operating activities and sales of non-financial assets. (c) Payments in the general government sector are equal to payments for operating activities, purchases of non-financial assets and net cash flows from financing activities for leases.

(d) Between 2005-06 and 2019-20, the underlying cash balance is equal to receipts less payments, less net Future Fund earnings. Before 2005-06, the underlying cash balance is equal to receipts less payments. (e) Payments in the public non-financial corporations and non-financial public sectors are equal to payments for operating activities, purchases of non-financial assets, distributions paid and net cash flows from financing activities for leases. na Data not available.

Appendix B: Historical Australian Government Data

105

Table B10: Australian Government accrual revenue, expenses and fiscal balance by institutional sector ($m)(a) General government Public non-financial corporations Non-financial public sector

Fiscal Fiscal Fiscal

Revenue Expenses balance(b) Revenue Expenses balance(b) Revenue Expenses balance(b)

1996-97 141,688 145,821 -4,223 27,431 26,015 -331 na na -4,554

1997-98 146,820 148,652 -1,979 29,618 26,999 2,360 na na 387

1998-99 152,106 146,772 3,901 27,687 26,088 -816 175,891 168,958 3,085

1999-00 167,304 155,558 11,815 25,485 23,542 1,062 188,841 175,152 11,721

2000-01 186,106 180,090 6,007 25,869 24,762 -826 207,367 200,246 5,181

2001-02 190,432 192,984 -2,935 26,638 25,341 793 212,462 213,718 -2,142

2002-03 206,778 201,113 5,377 24,339 22,916 1,975 225,989 218,944 7,311

2003-04 222,042 215,235 6,148 25,449 23,444 2,143 241,746 232,934 8,291

2004-05 242,354 229,092 12,228 26,965 25,191 1,473 263,434 248,398 13,700

2005-06 260,569 241,665 16,406 28,143 29,531 -2,442 281,927 264,410 13,964

2006-07 277,895 258,761 16,801 15,443 16,360 -1,763 289,551 271,335 15,038

2007-08 303,402 279,862 20,948 6,854 6,686 -584 308,888 285,179 20,364

2008-09 298,508 324,387 -29,943 6,998 7,576 -1,495 303,309 329,766 -31,438

2009-10 292,387 339,829 -53,875 7,288 7,297 -1,079 298,033 345,483 -54,954

2010-11 309,204 356,084 -52,176 7,563 7,787 -1,446 315,001 362,106 -53,622

2011-12 337,324 377,220 -44,746 8,046 8,238 -2,158 343,722 383,810 -46,904

2012-13 359,496 382,397 -23,888 8,863 9,415 -4,189 366,642 390,094 -28,077

2013-14 374,151 414,500 -44,198 9,537 11,127 -6,070 381,971 423,910 -50,269

2014-15 379,455 417,514 -40,764 9,987 11,850 -4,856 387,719 427,641 -45,620

2015-16 395,055 428,691 -37,464 10,044 12,809 -7,486 403,868 440,270 -44,950

2016-17 415,723 447,807 -34,960 10,894 15,035 -9,918 425,114 461,338 -44,879

2017-18 456,280 460,282 -5,285 12,318 16,934 -10,055 466,661 475,195 -15,255

2018-19 493,346 484,653 2,566 15,836 20,899 -11,121 507,017 503,270 -8,439

2019-20 486,278 578,549 -96,277 17,029 23,174 -10,096 500,961 599,083 -106,069

(a) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time. (b) Fiscal balance is equal to revenue less expenses less net capital investment. Net capital investment is not shown in this table. na Data not available.

Final Budget Outcome 2019-20

106

Table B11: Australian Government general government sector receipts, payments, underlying cash balance, net debt and net interest payments presented on a real per capita basis(a)(b) Taxation Non-taxation Total Underlying Net interest

receipts receipts receipts Payments cash balance Net debt payments

1970-71 5,494 838 6,331 5,643 688 263 -144

1971-72 5,524 868 6,391 5,771 620 -347 -171

1972-73 5,484 863 6,348 6,122 227 -515 -164

1973-74 6,138 791 6,930 6,278 652 -1,049 -162

1974-75 6,797 722 7,519 7,433 87 -914 -116

1975-76 7,125 761 7,886 8,516 -631 -144 -139

1976-77 7,212 796 8,008 8,471 -463 329 -23

1977-78 7,073 855 7,928 8,601 -672 956 1

1978-79 7,066 821 7,887 8,534 -647 1,504 77

1979-80 7,430 770 8,200 8,557 -358 1,689 119

1980-81 7,954 817 8,771 8,815 -45 1,549 151

1981-82 8,208 784 8,992 8,916 75 1,283 147

1982-83 7,861 850 8,712 9,353 -642 1,754 172

1983-84 7,956 910 8,866 10,110 -1,243 2,841 288

1984-85 8,889 981 9,870 10,883 -1,013 3,674 472

1985-86 8,978 1,124 10,102 10,883 -782 4,103 603

1986-87 9,131 1,134 10,265 10,600 -334 4,003 654

1987-88 9,453 1,060 10,512 10,329 183 3,443 567

1988-89 9,628 842 10,470 9,844 625 2,536 516

1989-90 9,555 827 10,382 9,756 625 1,697 479

1990-91 9,153 739 9,893 9,936 -43 1,670 359

1991-92 8,368 812 9,180 10,390 -1,210 2,973 365

1992-93 8,341 834 9,175 10,877 -1,703 5,189 375

1993-94 8,532 956 9,488 11,150 -1,662 6,417 514

1994-95 9,191 748 9,938 11,179 -1,240 7,314 639

1995-96 9,608 725 10,333 11,255 -922 7,958 736

1996-97 10,096 732 10,828 11,322 -494 7,804 769

1997-98 10,511 783 11,294 11,282 12 6,655 664

1998-99 10,852 1,070 11,922 11,617 305 5,650 678

1999-00 11,455 1,127 12,582 11,597 985 4,365 569

2000-01 12,010 891 12,901 12,487 414 3,299 437

2001-02 11,882 828 12,710 12,782 -72 2,863 363

2002-03 12,500 794 13,294 12,815 479 2,170 244

2003-04 12,983 693 13,677 13,175 502 1,695 191

2004-05 13,566 727 14,293 13,470 822 945 152

2005-06 14,012 808 14,820 13,904 912 19 133

2006-07 14,269 795 15,064 13,997 950 -1,342 13

2007-08 14,630 817 15,447 14,239 1,035 -2,093 -53

2008-09 13,618 942 14,559 15,726 -1,344 -562 -60

2009-10 12,552 1,077 13,629 16,131 -2,609 2,292 114

Appendix B: Historical Australian Government Data

107

Table B11: Australian Government general government sector receipts, payments, underlying cash balance, net debt and net interest payments presented on a real per capita basis(a)(b) (continued) Taxation Non-taxation Total Underlying Net interest

receipts receipts receipts Payments cash balance Net debt payments

2010-11 12,919 912 13,831 15,849 -2,174 4,152 211

2011-12 13,692 818 14,511 16,321 -1,907 6,750 291

2012-13 13,859 982 14,841 15,524 -796 6,747 350

2013-14 13,798 813 14,611 16,480 -1,965 8,497 440

2014-15 13,906 960 14,866 16,193 -1,488 9,660 427

2015-16 13,829 936 14,765 16,154 -1,511 11,580 459

2016-17 13,992 1,129 15,121 16,210 -1,223 11,891 456

2017-18 14,900 1,028 15,929 16,137 -361 12,188 468

2018-19 15,497 1,268 16,765 16,517 -24 12,905 523

2019-20 14,551 1,268 15,819 18,522 -2,874 16,554 448

(a) Data have been revised in the 2019-20 Final Budget Outcome to improve accuracy and comparability through time. (b) The real levels are derived using the Consumer Price Index (CPI). The current reference period for the CPI is 2011-12, which means the real levels per capita are reported in 2011-12 dollars.