Government Finance Statistics, Australia

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 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. 

Statistical revisions are carried out regularly in Government Finance Statistics to reflect the most current information and data available. In addition to these regular revisions, a number of historical data changes have been implemented in the September quarter 2021 to align with statistical treatments as published in the most recent Government Finance Statistics and National Accounts annual publications. These revisions impact primarily on public investment measures to ensure alignment across macroeconomic statistics produced by the ABS.

The reclassification of visa application charges (VAC) from sales of goods and services to taxation revenue will be implemented in the National Accounts from September quarter 2021, bringing this treatment into alignment with Government Finance Statistics (as noted in previous publications).

Divergences between state and commonwealth fiscal reporting and Government Finance Statistics may occur as a result of conceptual determinations and timing recognition differences, to ensure alignment with economic activity as measured across ABS macroeconomic statistics. These differences primarily impact on measures of government subsidies and other support payments to businesses and households during the September quarter 2021.