Government Finance Statistics, Annual

The GFS net operating balance for all levels of government in 2018-19 was $17,300m for the general government sector and $3,474m for the total public sector.

GFS net lending/borrowing for all levels of government in 2018-19 was -$23,204m for the general government sector and -$47,530m for the total public sector.

The cash operating result for all levels of government in 2018-19 was a deficit of -$8,658m for the general government sector and a deficit of -$23,859m for the total public sector.

GFS net worth reflects the contribution of governments to the wealth of Australia. The consolidated net worth as at 30 June 2019 for all levels of government was $800,260m.

In December 2015, the Commonwealth Government released the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) which included a reclassification of visa application charges (VAC). In MYEFO these charges are now treated as taxation revenue rather than sales of goods and services. This reclassification has been applied to GFS, with no impact on total GFS revenue or the GFS net operating balance. The National Accounts statistics will maintain coherence with previously published data and classify this transaction as sales of goods and services. These treatments will remain in place until a review of the treatment of VAC across macroeconomic statistics has been completed.

The ABS has reviewed the confidentialisation of historical GFS data following the release of the updated Census and Statistics Determination 2018. This Determination is a key legislative instrument that sets out the circumstances under which the ABS may release statistical information collected under the Census and Statistics Act 1905. This review has resulted in the release of previously confidentialised GFS data which will enable additional analysis across the historical time series. This is on the basis that data providers have not objected or demonstrated that the release of this data would identify them.

For the total public sector across all levels of government, GFS revenue increased by $45,659m (6.3%) from $720,326m in 2017-18 to $765,985m in 2018-19. Over the same period GFS expenses increased by $39,589m (5.5%) from $722,922m to $762,511m. As a result the GFS net operating balance moved from -$2,596m in 2017-18 to $3,473m in 2018-19.

Between 30 June 2018 and 30 June 2019 GFS net worth across the total public sector for all levels of government moved from $917,251m to $800,399m.

The following tables show a time series of major aggregates for the total public sector across different levels of government.

For the Commonwealth Government total public sector, GFS revenue increased by $37,182m (7.9%) from $470,679m in 2017-18 to $507,861m in 2018-19. Over the same period GFS expenses increased by $28,204m (5.9%) from $480,232m to $508,436m. As a result the GFS net operating balance moved from -$9,554m in 2017-18 to -$575m in 2018-19.

Between 30 June 2018 and 30 June 2019 the GFS net worth for the Commonwealth Government total public sector moved from -$427,409m to -$552,468m.

The GFS net operating balance for state government total public sector moved from -$274m in 2017-18 to -$3,994m in 2018-19.

Between 30 June 2018 and 30 June 2019 the GFS net worth for the state government total public sector moved from $822,541m to $813,659m.

GFS revenue for the general government sector across all levels of government increased by $39,849m (6.1%) from $657,064m in 2017-18 to $696,913m in 2018-19. Over the same period GFS expenses increased by $32,666 (5.0%) from $646,947m to $679,613m. As a result the GFS net operating balance moved from $10,117m to $17,300m.

Between 30 June 2018 and 30 June 2019 GFS net worth for all levels of government moved from $917,251m to $800,260m.

The following tables show a time series of major aggregates for the general government sector across different levels of government.

For the Commonwealth Government general government sector, GFS revenue increased by $32,926m (7.2%) from $459,421m in 2017-18 to $492,347m in 2018-19. Over the same period GFS expenses increased by $24,311m (5.2%) from $463,862m to $488,173m. As a result the GFS net operating balance moved from -$4,441m in 2017-18 to $4,174m in 2018-19.

Between 30 June 2018 and 30 June 2019 GFS net worth for Commonwealth Government general government sector moved from -$427,409m to -$552,480m.

The total all states GFS net operating balance for state government general government sector moved from $7,919m in 2017-18 to $5,292m in 2018-19.

Between 30 June 2018 and 30 June 2019 GFS net worth for state government general government sector moved from $822,541m to $813,652m.

Total general government expenses for all levels of government were $679,613m in 2018-19. The major contributors were expenditure on Social protection (27.9%), Health (20.4%), Education (15.5%) and General public services (10.6%).

The international Government Finance Statistics (GFS) standard as promulgated by the International Monetary Fund (IMF) recommends that opening and closing 'stock' values be reconciled with all 'flows' occurring throughout the year. The standard is based on an analytical framework in which all changes in the values of stocks from one year to the next can be fully explained by the flows that have occurred during that year.

Institutional units hold assets (financial and non-financial) and incur liabilities (which by definition are financial). The level of these assets and liabilities at any point in time is the stock. The difference between assets and liabilities is net worth, which is a measure of the 'wealth' of units or of government. Anything which causes a change in these stocks of assets and liabilities is a flow. Flows are disaggregated into transactions and 'other economic flows'. A transaction is, for the most part, an interaction between two units by mutual agreement, whereas an other economic flow is a change in the volume or value of a stock of a unit not resulting from a transaction. Other economic flows can be disaggregated into movements in asset/liability values resulting from price changes ('revaluations') and those resulting from volume changes ('other changes in volume').

For more information on the statement of stocks and flows, refer to Chapter 4 in Australian System of Government Finance Statistics: Concepts, Sources and Methods, 2015 (cat. no. 5514.0) and Chapter 3 of the IMF's Government Finance Statistics Manual 2014 (GFSM 2014).

The statement of stocks and flows for the Commonwealth general government sector is presented in Table 1. During 2018-19 the net worth of the Commonwealth general government sector decreased by $125,071m. This was the result of other economic flows of -$129,245m and a GFS net operating balance (which reflects the change in net worth due to transactions) of $4,174m.

During 2018-19 the net worth of the state general government sector decreased by $8,889m, driven by -$14,181m from other economic flows and a GFS net operating balance of $5,292m.

During 2018-19 the net worth of the local general government sector increased by $14,706m, driven by $4,356m from other economic flows and a GFS net operating balance of $10,350m.

Public sector debt is defined as the level of debt liabilities owed by a government to its creditors. Public sector debt statistics can be used as a performance measure on the level of solvency and the liquidity of the public sector. They can also be used to assess the budget sustainability of governments.

The International Monetary Fund (IMF) released a staff discussion note titled What Lies Beneath: The Statistical Definition of Public Sector Debt in 2012. This note introduced the debt matrix - a grid presentation of public sector debt on both a gross and net basis, which enables the recording of debt based on type of debt instrument and level of government subsector.

With the implementation of AGFS15, the ABS has introduced the debt matrix presentation for public sector debt statistics, modified for the Australian situation. The ABS has broadened the financial assets and liabilities reported in the matrix beyond just debt instruments to also include other liabilities, namely equity.

The ABS has recognised that using a matrix-style presentation enables analysts and policy makers to analyse different measures of debt and other liabilities depending on their specific focus or interest. For example, if one is analysing a government’s liquidity, then the focus would be at the L1 to L3 level. However, if one is analysing a government’s longer term budget sustainability, then the focus would be at the L4 to L6 level.

Gross public sector debt consists of all liabilities that are debt instruments. It is described as the stock position in financial claims that require payment(s) of interest and / or principal by the debtor to the creditor at a date (or dates) in the future. The matrix presented below also includes non-debt liabilities.

Headline gross public sector debt (L5 under AGFS15) for the All Australia general government sector was driven by debt securities ($636,357m) and insurance and superannuation liabilities ($423,612m) of the national sector, as well as insurance and superannuation liabilities ($173,628m) and loans ($125,919m) of the state sector.

Net public sector debt is described as gross debt minus the stock position in financial assets corresponding to debt instruments. The matrix presented below also includes non-debt liabilities and their corresponding financial assets.

Headline net public sector debt (L5 under AGFS15) for the All Australia general government sector was driven by a net debt position for debt securities ($525,201m) and insurance and superannuation ($423,612m) of the national sector, as well as insurance and superannuation ($173,628m) and loans ($113,434m) of the state sector. This was partially offset by a net asset position for loans of the national sector (-$68,273m), debt securities of the state sector (-$57,389m) and currency and deposits held by all levels of government (-$34,653m).

Headline net public sector debt (L5 under AGFS15) of the All Australia general government sector as a percentage of GDP was 59.3% at 30 June 2019, driven by the national sector 46.0%.

The statement of total changes in net worth combines the key results of the operating statement and the statement of stocks and flows in one statement.

This statement provides a clear statistical explanation of the factors causing the change in the net worth of government. It explains the sources of changes in assets and liabilities from one reporting period to another in terms of transactions in revenue and expenses as well as other economic flows. For example, a strong contribution to the change in net worth from other economic flows will highlight the influence of revaluations to assets and liabilities, which do not reflect fiscal decisions of government.

The decrease in the net worth of the Commonwealth general government sector during 2018-19 was driven by an increase in liabilities ($147,623m) via other economic flows, primarily due to an upward revaluation of provisions for superannuation ($101,775m), partly offset by a positive net operating balance position ($4,174m)

The decrease in the net worth of the total state general government sector during 2018-19 was driven by an increase in liabilities via other economic flows ($24,288m), primarily due to an upward revaluation of provisions for superannuation ($25,488m) offset by an increase in non-financial assets ($17,241m) and a positive net operating balance position ($5,292m). The total local general government sector saw a positive net operating balance position ($10,350m) driving the change in net worth ($14,706m).

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070, email client.services@abs.gov.au or email public.finance@abs.gov.au. The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to us.

This release previously used catalogue number 5512.0.