Key figures: all levels of general government, Government Finance Statistics (GFS)
In the June quarter 2020:
- taxation revenue increased 2.5% to $141,370m
- expenses exceeded revenue resulting in a net operating balance of -$81,680m
- the GFS net lending(+)/borrowing(-) position was -$97,405m.
Table 1 - GFS key figures: all levels of government, original
|Mar Qtr 2020||Jun Qtr 2020||Mar Qtr 2020 to Jun Qtr 2020|
|General government||137 888||141 370||2.5|
|General government||169 199||170 572||0.8|
|Public non-financial corporations||22 534||23 564||4.6|
|General government||177 257||252 252||42.3|
|Public non-financial corporations||24 377||26 102||7.1|
|GFS Net operating balance|
|General government||-8 058||-81 680||. .|
|Public non-financial corporations||-1 843||-2 538||. .|
|GFS Net lending(+)/borrowing(-)|
|General government||-15 759||-97 405||. .|
|Public non-financial corporations||-5 033||-5 186||. .|
. . not applicable
Quarterly national accounts public sector measures - key figures
The table below includes the key public sector aggregates for the June quarter 2020 which will be included in the Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0). The key figures shown include Government Final Consumption Expenditure for total general government and Gross Fixed Capital Formation for total general government and total public corporations, seasonally adjusted in current prices and chain volume terms.
The following are the seasonally adjusted chain volume measures based on the previous quarter:
- public sector demand is expected to contribute 0.6 percentage points to the change in GDP in June quarter 2020.
- general government final consumption expenditure increased by $2,823m or 2.9% and is expected to contribute 0.6 percentage points to the change in GDP in June quarter 2020.
- general government gross fixed capital formation increased by $669m or 3.6%
- public corporations gross fixed capital formation decreased by $419m or -7.2%
- public gross fixed capital formation increased by $249m or 1.0% and is expected to contribute 0.1 percentage points to the change in GDP in June quarter 2020.
Table 2 - Quarterly national accounts public sector measures - key figures, seasonally adjusted
|Sep Qtr 2019||Dec Qtr 2019||Mar Qtr 2020||Jun Qtr 2020||Mar Qtr 2020 to Jun Qtr 2020|
|General government final consumption expenditure (a)|
|National - defence||8 827||8 844||9 034||9 584||6.1|
|National - non-defence||32 477||33 530||34 144||34 340||0.6|
|Total national||41 304||42 374||43 178||43 923||1.7|
|State and local||55 473||55 981||57 476||59 888||4.2|
|Total general government final consumption expenditure||96 776||98 355||100 654||103 812||3.1|
|Public gross fixed capital formation|
|National - defence||2 993||3 092||2 798||2 599||-7.1|
|National - non-defence||2 332||2 439||2 496||2 360||-5.4|
|Total national||5 325||5 532||5 294||4 959||-6.3|
|State and local||14 269||14 740||14 322||15 384||7.4|
|Total general government||19 594||20 272||19 616||20 342||3.7|
|Commonwealth||2 212||2 105||1 962||1 771||-9.7|
|State and local||3 953||3 615||4 174||3 947||-5.4|
|Total public corporations||6 165||5 719||6 136||5 719||-6.8|
|Total public gross fixed capital formation||25 758||25 991||25 752||26 061||1.2|
|Total public demand||122 535||124 346||126 406||129 873||2.7|
|Net purchases of second-hand assets by public sector||558||798||618||1 338||np|
|Chain Volume (b)|
|General government final consumption expenditure (a)|
|National - defence||8 473||8 467||8 613||9 130||6.0|
|National - non-defence||31 871||32 848||33 562||33 593||0.1|
|Total national||40 345||41 314||42 176||42 723||1.3|
|State and local||53 286||53 514||54 678||56 953||4.2|
|Total general government final consumption expenditure||93 631||94 828||96 853||99 676||2.9|
|Public gross fixed capital formation|
|National - defence||2 705||2 765||2 480||2 254||-9.1|
|National - non-defence||2 319||2 410||2 475||2 332||-5.8|
|Total national||5 024||5 175||4 954||4 586||-7.4|
|State and local||13 702||14 122||13 749||14 786||7.5|
|Total general government||18 726||19 298||18 703||19 372||3.6|
|Commonwealth||2 128||2 019||1 879||1 694||-9.8|
|State and local||3 771||3 437||3 961||3 726||-5.9|
|Total public corporations||5 899||5 455||5 839||5 420||-7.2|
|Total public gross fixed capital formation||24 625||24 753||24 542||24 791||1.0|
|Total public demand||118 255||119 581||121 396||124 468||2.5|
|Net purchases of second-hand assets by public sector||532||763||591||1 275||np|
np not available for publication but included in totals where applicable, unless otherwise indicated
a. See paragraph 35 of the Explanatory Notes in the Methodology for the relationship between general government final consumption expenditure and GFS aggregates.
b. Reference year for chain volume measures is 2017-18.
Quarters presented in this release
This release presents quarterly government finance statistics on an accrual accounting basis. All tables presented are for the general government sector, with the exception of Table 2 which presents data for the public non-financial corporations sector.
Detailed quarterly GFS are released for the current financial year only, other than in the September quarter, when the quarters of the previous financial year are presented. Users requiring data for earlier periods should consult the annual publication Government Finance Statistics, Australia (cat. no. 5512.0). The latest issue (2018-19) was released on 28 April 2020.
Government Finance Statistics are part of the broader suite of macroeconomic accounts produced by the ABS. They share their basic concepts with the National Accounts and Balance of Payments. The conceptual framework is agreed internationally and published by the International Monetary Fund. Macroeconomic statistics are compiled to enable macroeconomic analysis and the standards may differ from accounting standards in some regards.
COVID-19 impacted a range of Government Finance Statistics series in the June quarter 2020. Key policies and conceptual determinations are discussed in the article Economic measurement during COVID-19: Selected issues in the Economic Accounts. During the quarter there was minimal impact on the collection of data used to produce Government Finance Statistics. More information on the impacts of extreme events on the Australian economy are discussed in the Australian Statistician - Analytical series. Further ABS data measuring the impact of COVID-19 can be found via abs.gov.au/covid19.
A timing difference in recording the Boosting Cash Flow for Employers support program will cause a divergence between the Commonwealth Government Final Budget Outcomes and ABS published Statistics.
What's new this quarter
Introduction of an Analysis section focusing on key Government Finance Statistics analytical series.
Two spotlight articles are included in this release:
- Spotlight: Classifying COVID-19 policy interventions in macroeconomic statistics examines significant COVID-19 policies included in the June quarter 2020 Government Finance Statistics and how the ABS has classified them.
- Spotlight: Impacts of COVID-19 on taxation revenue looks deeper into the impacts of the COVID-19 pandemic on Commonwealth, State and Local Government taxation revenue.
Accounting standard changes
The following Australian Accounting Standards Board (AASB) standard changes have been introduced in government financial reporting for periods from 1 July 2019 onwards, leading to increased divergence in certain circumstances between economic statistics publications and government financial reporting:
- Leases (AASB 16): The standard removes the distinction between operating and finance leases on the lessee side of financial reporting. The conceptual distinction between operating and finance leases still remains in economic statistics. GFS outputs are consistent with the historical treatment.
- Revenue recognition (AASB 15 & 1058): The standard requires revenue to be recognised when performance obligations are met in certain circumstances. In GFS the change primarily affects grant revenue received by state and territory governments from the Commonwealth. Recognition of grant revenue in GFS remains consistent with the historical treatment which is based on when jurisdictions have access to the funding as reported by the Commonwealth.
- Service Concession Arrangements (AASB 1059): The standard impacts ownership of non-financial assets. It applies a control concept to determine non-financial asset ownership. Non-financial asset ownership in GFS is determined based off a risk-reward concept consistent with the historical treatment which has been maintained in economic statistics.
Transactions related to visa application charges
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 the Government Finance Statistics (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.