Quarterly Financial Report No. 1



Quarterly Financial Report No. 1September 2019Presented byTim Pallas MPTreasurer of the State of VictoriaTable of contentsOverview PAGEREF Overview \h 1General government sector outcome PAGEREF GGSectorOutcome \h 1Financial performance PAGEREF FinancialPerformance \h 1Financial position PAGEREF FinancialPosition \h 2Cash flows PAGEREF CashFlows \h 2Infrastructure investment PAGEREF InfrastructureInvestment \h 2Financial statements for the general government sectorConsolidated comprehensive operating statement PAGEREF ConsolidatedOS \h 5Consolidated balance sheet PAGEREF ConsolidatedBS \h 6Consolidated cash flow PAGEREF ConsolidatedCF \h 7Consolidated statement of changes in equity PAGEREF ConsolidatedSOCIE \h 8 TOC \h \z \t " Heading 1 (#),1" 1.About this report PAGEREF _Toc23340229 \h 92.How funds are raised PAGEREF _Toc23340230 \h 103.How funds are spent PAGEREF _Toc23340231 \h 134.Major assets and investments PAGEREF _Toc23340232 \h 175.Other assets and liabilities PAGEREF _Toc23340233 \h 216.Public account PAGEREF _Toc23340234 \h 227.Other disclosures PAGEREF _Toc23340235 \h 258.Results quarter by quarter – Victorian general government sector PAGEREF _Toc23340236 \h 29Consolidated comprehensive operating statement for the past five quarters PAGEREF ConsolidatedOS_QBQ \h 29Consolidated balance sheet as at the end of the past five quarters PAGEREF ConsolidatedBS_QBQ \h 30Consolidated cash flow statement for the past five quarters PAGEREF ConsolidatedCF_QBQ \h 31Style conventions PAGEREF StyleConventions \h 32OverviewThis financial report presents the Victorian general government sector financial statements for the threemonth period ended 30?September 2019.Against a backdrop of a recent downturn in the property market and heightened global uncertainty, the Victorian economy is performing well. This performance was reflected in the June quarter national accounts, which show Victoria’s state final demand expanded 1.9 per cent over the year to June?2019. While this represents a slowdown in growth compared with recent periods, it is still almost double the national average. High population growth and low interest rates are supporting economic activity. Public demand has been a key contributor to growth, supported by the Government’s strong and sustained pipeline of infrastructure spending.Labour market conditions remain positive, with solid employment growth, record levels of labour force participation and a low unemployment rate. Victoria’s employment increased by 103 200 persons over the year to September 2019, the largest increase of all the states. General government sector outcomeFinancial performanceFor the three months to 30?September?2019, the net result from transactions for the general government sector recorded a deficit of $805 million, compared with a surplus of $807?million for the first quarter in 201819. Caution needs to be taken in interpreting and projecting the potential annual outcome for the full year from this quarterly result due to the significant impact of the uneven recognition pattern of various major revenue items. These include land tax, the Fire Services Property Levy, Commonwealth grants and dividends from public corporations.Revenue for the quarter totalled $16.5 billion, or 23.2?per cent of the full year budget. This is consistent with previous years and expectations for the current year to date, due to the timing of certain revenue items, in particular:land tax recognition is $782?million below the pro?rata budget, as the majority of land tax is billed and recognised in the March quarter, offset by the Fire Services Property Levy tracking $506?million above the pro rata budget due to its billing in the September quarter; grant revenue is $701 million below the pro rata budget, primarily impacted by the timing of expected contributions from Public Financial Corporations; anddividends from public non-financial and financial corporations are lower than the pro rata budget for the quarter as they are typically declared during the second and fourth quarters of the relevant financial years.Expenses from transactions totalled $17.3 billion for the September 2019 quarter, or 24.7?per?cent of the budget for the year. Significant expenditure categories include employee expenses and other operating expenses. These tracked close to pro rata for the September quarter, at 25.1 per cent and 24.3 per cent of the published budget respectively, in line with expectations and the timing of activity across departments.Grant expense also tracked closely to pro rata budget for the September quarter, at 25.2 per cent of the published budget. The comprehensive result includes other economic flows that are not included in the net result from transactions. The comprehensive result was a deficit of $1.8 billion for the quarter, compared with a $1.9?billion surplus over the same period in 2018-19. The comprehensive result includes a $976 million remeasurement loss on the State’s defined benefit superannuation liability, compared with a $1.2 billion gain over the same period in 2018-19. This is due to the movement in bond rates which are used to value the liability at the reporting date. Financial positionTotal assets reduced by $792 million in the first quarter of 2019-20. This was mainly due to lower cash and deposits held, reflecting the Government’s infrastructure investment and the uneven timing of revenue collection. Total liabilities increased by $994?million to $104.6?billion due to the remeasurement of the State’s defined benefit superannuation liability in line with bond rate movements, partially offset by lower advances received and debt increased by $3.2 billion to $32.5 billion over?the quarter. This is consistent with expectations, driven mainly by funding for the Government’s infrastructure program. Net debt at 1 July 2019 increased by $6.9 billion as a result of adopting the new accounting standards, as outlined in section 7.4 of the financial report. Cash flowsThe movements disclosed in the cash flow statement are consistent with the abovementioned drivers associated with the net result and the impact of the Government’s infrastructure program.Infrastructure investmentNet investment in infrastructure totalled $2.3 billion for the three months to September 2019 ($2.2?billion over the corresponding period in 2018). This investment supports the needs of Victoria’s growing population and aligns with full year budget expectations.The Government’s infrastructure scorecard as at 30 September 2019Major projects in progress include:75 Level Crossing Removals by 2025;Additional VLocity trains – standard gauge train component;Ballarat Health Services expansion and redevelopment;Building a world-class Geelong Performing Arts Centre;Casey Hospital expansion;Caulfield to Dandenong conventional signalling and power infrastructure upgrade;Chandler Highway Upgrade;Child Link;Chisholm Road prison project;City Loop fire and safety upgrade (Stage 2) and intruder alarm;Community Safety Statement (Police Assistance Line/Online reporting);Courts case management system;Cranbourne Line duplication;Cranbourne-Pakenham and Sunbury line upgrade;Drysdale Bypass;Echuca-Moama Bridge;Family violence information sharing system reform (Central Information Point);Frankston Hospital;Frankston line stabling;Goulburn Valley Health redevelopment;Goulburn?Murray Water Connections Project;High Capacity Metro Trains Project;Hurstbridge Line Upgrade – Stage 2;Infringement Management and Enforcement Services (IMES) Reform Project IT solution;M80 Ring Road upgrade;Melbourne Airport Rail;Melbourne Park redevelopment – Stage 2;Melbourne Park redevelopment – Stage 3;Men’s prison system capacity;Metro Tunnel;Metropolitan Network Modernisation Program;Monash Freeway upgrade – Stage 2;Mordialloc Freeway;More E-Class trams and infrastructure;Murray Basin Rail Project;New Footscray Hospital;New Schools Construction;New Trains for Sunbury;New youth justice facility;The Government’s infrastructure scorecard as at 30 September 2019 (continued)Non-urban train radio renewal;North East Link;Princes Highway duplication project – Winchelsea to Colac;Public housing renewal program;Public Safety – Police Response (Intelligence capability);Public Safety – Police Response (Mobile technology solution);Regional Rail Revival;Royal Victorian Eye and Ear Hospital redevelopment;Safe Digital Clinical Systems – Parkville Precinct electronic medical records;Shepparton Corridor Upgrade – Stage 2;Suburban Rail Loop;Suburban Roads Upgrade;Ten new community hospitals;Tram Automatic Vehicle Monitoring system replacement;Tram procurement and supporting infrastructure;Victorian Heart Hospital;Waurn Ponds Track Duplication – Stage 2;West Gate Tunnel Project;Western Highway duplication – Ballarat to Stawell;Western Rail Plan;Western Roads Upgrade;Women’s prison system capacity;Wyndham Vale Stabling Yard; andYan Yean Road duplication.Consolidated comprehensive operating statementFor the period ended 30 September (a)(b)($ million)201819201920actual30 SepNotesactual30 SeppublishedbudgetRevenue from transactions5 896Taxation revenue2.15 83924 328210Interest revenue16071982Dividends, income tax equivalent and rate equivalent revenue2.2578631 905Sales of goods and services2.31 9478 0307 923Grant revenue2.47 82234 093618Other revenue2.56522 99916 634Total revenue from transactions16 47771 032Expenses from transactions6 081Employee expenses6 57826 208167Net superannuation interest expense3.3141565671Other superannuation3.37522 960725Depreciation4.28863 748525Interest expense5642 6112 853Grant expense3 25912 9344 806Other operating expenses5 10220 95515 827Total expenses from transactions3.417 28269 982807Net result from transactions – net operating balance(805)1 050Other economic flows included in net result5Net gain/(loss) on disposal of nonfinancial assets940(4)Net gain/(loss) on financial assets or liabilities at fair value125(116)Other gains/(losses) from other economic flows7.1(171)(388)(115)Total other economic flows included in net result(161)(323)692Net result(967)726Other economic flows – other comprehensive incomeItems that will not be reclassified to net result37Changes in nonfinancial assets revaluation surplus2293 2041 213Remeasurement of superannuation defined benefits plans3.3(976)1 10914Other movements in equity(57)47Items that may be reclassified subsequently to net result(12)Net gain/(loss) on financial assets at fair value(17)2..Net gain/(loss) on equity investments in other sector entities at proportional share of the carrying amount of net assets..6921 252Total other economic flows – other comprehensive income(821)5 0551 945Comprehensive result – total change in net worth(1 787)5 782KEY FISCAL AGGREGRATES807Net operating balance(805)1 0501 039Less: Net acquisition of nonfinancial assets from transactions3.68593 889(231)Net lending/(borrowing)(1 664)(2 839)The accompanying notes form part of these financial statements.Notes:(a) The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. (b) Note 7.4 provides further information on the impact of the new accounting standards.Consolidated balance sheetAs at 30 September (a)(b)($ million)201819201920actual30 SepNotesopening1 Julactual30 Seprevisedbudget (c)AssetsFinancial assets5 940Cash and deposits7.29 7756 3437 7368 963Advances paid8 3407 8846 2436 400Receivables5.16 6516 4056 9143 940Investments, loans and placements2 5393 0002 96852Investments accounted for using the equity method454545102 157Investments in other sector entities101 825102 737107 723127 453Total financial assets129 176126 414131 629Nonfinancial assets171Inventories165177172391Nonfinancial assets held for sale223216215144 644Land, buildings, infrastructure, plant and equipment4.1157 814158 891165 4172 229Other nonfinancial assets4.72 1263 0131 971147 434Total nonfinancial assets160 328162 297167 775274 887Total assets4.8289 503288 711299 404Liabilities5 530Deposits held and advances received5 1464 6883 21514 062Payables5.215 93515 91116 43034 146Borrowings44 86445 04451 2376 893Employee benefits3.28 0208 0348 33724 257Superannuation28 63229 88427 551962Other provisions1 0571 0851 05685 850Total liabilities103 653104 647107 826189 038Net assets185 851184 064191 57757 500Accumulated surplus/(deficit)55 56577 32157 449131 538Reserves130 286106 742134 184189 038Net worth185 851184 064191 633FISCAL AGGREGATES41 604Net financial worth25 52321 76723 80260 554Net financial liabilities76 30280 97183 92120 833Net debt29 35532 50637 506The accompanying notes form part of these financial statements.Notes:(a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors.(b) Note 7.4 provides further information on the impact of the new accounting standards on the 2018-19 comparative figures and the 1 July 2019 opening balances.(c) Balances represent actual opening balances at 1 July 2019 plus 2019-20 budgeted movements.Consolidated cash flow statement For the period ended 30 September (a)($ million)201819201920actual30 SepNotesactual30 SeprevisedbudgetCash flows from operating activitiesReceipts5 994Taxes received5 87024 0987 927Grants7 82734 1182 127Sales of goods and services (b)2 3338 774209Interest received17171982Dividends, income tax equivalent and rate equivalent receipts988573 348Other receipts5162 13419 686Total receipts16 81570 701Payments(6 211)Payments for employees(6 592)(25 898)(572)Superannuation(616)(3 497)(516)Interest paid(488)(2 081)(2 870)Grants and subsidies(3 255)(12 927)(5 687)Goods and services (b)(6 100)(20 796)(211)Other payments(216)(801)(16 068)Total payments(17 267)(65 999)3 619Net cash flows from operating activities7.3(452)4 702Cash flows from investing activitiesCash flows from investments in nonfinancial assets(2 174)Purchases of nonfinancial assets3.5(2 310)(13 102)45Sales of nonfinancial assets42825(2 129)Net cash flows from investments in nonfinancial assets(2 268)(12 277)729Net cash flows from investments in financial assets for policy purposes3983 106(1 400)Subtotal(1 870)(9 171)(35)Net cash flows from investments in financial assets for liquidity management purposes(489)(361)(1 435)Net cash flows from investing activities(2 359)(9 532)Cash flows from financing activities(831)Advances received (net)(365)(2 030)(1 576)Net borrowings(165)4 821(94)Deposits received (net)(93)..(2 501)Net cash flows from financing activities(622)2 791(317)Net increase/(decrease) in cash and cash equivalents(3 432)(2 039)6 257Cash and cash equivalents at beginning of reporting period9 7759 7755 940Cash and cash equivalents at end of the reporting period6 3437 736FISCAL AGGREGATES3 619Net cash flows from operating activities(452)4 702(2 129)Net cash flows from investments in nonfinancial assets(2 268)(12 277)1 490Cash surplus/(deficit)(2 719)(7 575)The accompanying notes form part of these financial statements.Notes:(a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors.(b)These items are inclusive of goods and services tax.Consolidated statement of changes in equity For the period ended 30 September (a)($ million)Accumulated surplus/(deficit)Nonfinancial assets revaluation surplusInvestment in other sector entities revaluation surplusOther reservesTotal201920Balance at 1 July 2019 before new accounting standards52 47365 45463 6971 020182 644Impact of new accounting standards3 092115....3 207Restated balance at 1 July 2019 (b)55 56565 56963 6971 020185 851Net result for the year(967)......(967)Other comprehensive income for the year(952)229..(98)(821)Transfer to/(from) accumulated surplus23 675(23 675)......Balance at 30 September 201977 32142 12363 697922184 064Budget equity as at 30 June 2020 (c)57 44968 77364 3901 021191 633201819Balance at 1 July 2018 before new accounting standards (d)52 62664 08466 3511 055184 116Impact of new accounting standards2 977......2 977Restated balance at 1 July 2018 (e)55 60364 08466 3511 055187 093Net result for the year (e)692......692Other comprehensive income for the year (e)1 20437..111 252Transfer to/(from) accumulated surplus..........Balance at 30 September 2018 (d)(e)57 50064 12166 3511 066189 038The accompanying notes form part of these financial statements.Notes:(a) Note 7.4 provides further information on the impact of the new accounting standards.(b)The 1 July 2019 balance has been restated resulting from the application of the AASB 15 Revenue from Contracts with Customers and AASB 1058 Income of NotforProfit Entities, AASB 16 Leases and AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(c)Balances represent actual opening balances at 1 July 2019 plus 2019-20 budgeted movements.(d)The 1 July 2018 balance has been restated resulting from the application of AASB 9 Financial Instruments.(e)The 1 July 2018 balance and the September 2018 comparative figure have been restated resulting from the application of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.About this reportBasis of preparationThis September Quarterly Financial Report presents the unaudited financial report for the general government sector for the three months ended 30?September 2019.Except as indicated below, the detailed accounting policies applied in preparing the quarterly financial report are consistent with those applied for the financial statements published in the 2018-19 Financial Report for the State of Victoria. This quarterly financial report does not include all the notes normally included with the annual financial report, this report should be read in conjunction with the 2018-19 Financial Report.Several new accounting standards issued by the Australian Accounting Standards Board (AASB) have been applied for the first time in this financial report. These are:AASB 15 Revenue from Contracts with Customers;AASB 1058 Income of Not-for-profits Entities;AASB 16 Leases; andAASB 1059 Service Concession Arrangements: Grantors. The transitional impacts of adopting these standards have been reflected in the opening balance of accumulated surplus/(deficit), as presented in the statement of changes in equity on page 8.Note 7.4 further outlines the actual impacts of the new accounting standards.Full presentation and disclosure of transition to the new accounting standards will be reflected in the 2019-20 Financial Report of the State of Victoria.Statement of complianceThese financial statements have been prepared in accordance with section?26 of the Financial Management Act 1994, having regard to the recognition and measurement principles of the applicable Australian Accounting Standards (AAS) and Interpretations issued by the AASB. The financial statements are also presented in a manner consistent with the requirements of AASB?1049 Whole of Government and General Government Sector Financial Reporting.Where applicable, those paragraphs of AAS applicable to not-for-profit entities have been applied.Basis of accounting and measurementThe accrual basis of accounting has been applied where assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.Reporting entityThe general government sector includes all government departments, offices and other bodies engaged in providing services free of charge or at prices significantly below their cost of production. The primary function of entities in the general government sector is to provide public services (outputs), which are mainly nonmarket in nature, for the collective consumption of the community, and involve the transfer or redistribution of revenue, which is financed mainly through taxes and other compulsory levies.The general government sector is not a separate entity but represents a sector within the State of Victoria reporting entity. Unless otherwise noted, accounting policies applied by the State of Victoria apply equally to the general government sector.Basis of consolidationThe September Quarterly Financial Report includes all reporting entities in the general government sector that are controlled by the State. Information on entities consolidated for the general government sector is included in Note 7.5. In the process of reporting the general government sector as a single economic entity, all material transactions and balances in the sector are eliminated.How funds are raisedIntroductionThis section presents the sources and amounts of revenue raised by the general government sector.Revenue from transactions is recognised to the extent that it is probable the economic benefits will flow to the entity and the revenue can be reliably measured at fair value.Taxation revenue($ million)201819201920actual30 Sepactual30 Seppublishedbudget1 616Taxes on employers’ payroll and labour force1 7276 537Taxes on immovable property77Land tax1333 659644Fire Services Property Levy6837092Congestion levy..101122Metropolitan improvement levy137183845Total taxes on property9544 653Gambling taxes142Public lotteries166444296Electronic gaming machines2941 14054Casino5923817Racing and other sports betting391407Other313Financial and capital transactions1 682Land transfer duty1 3855 8965Metropolitan planning levy62234Financial accommodation levy3817876Growth areas infrastructure contribution5928535Levies on statutory corporations34157387Taxes on insurance4131 4792 737Total taxes on the provision of goods and services2 4969 992Motor vehicle taxes410Vehicle registration fees3771 784230Duty on vehicle registrations and transfers2081 029..Liquor licence fees..2659Other77307699Total taxes on the use of goods and performance of activities6623 1465 896Total taxation revenue5 83924 328Dividends, income tax equivalent and rate equivalent revenue($ million)201819201920actual30 Sepactual30 Seppublishedbudget..Dividends from PFC sector..132..Dividends from PNFC sector..38521Dividends from nonpublic sector3010721Dividends306242Income tax equivalent revenue from PFC sector3858Income tax equivalent revenue from PNFC sector2522460Income tax equivalent revenue27232..Local government rate equivalent revenue..782Total dividends, income tax equivalent and rate equivalent revenue57863Sales of goods and services($ million)201819201920actual30 Sepactual30 Seppublishedbudget57Motor vehicle regulatory fees59242122Other regulatory fees10557920Sale of goods33991 129Provision of services1 1294 63019Rental2486..Refunds and reimbursements111557Intersector capital asset charge5962 3841 905Total sales of goods and services1 9478 030Grant revenue($ million)201819201920actual30 Sepactual30 Seppublishedbudget4 324General purpose grants4 31617 535896Specific purpose grants for onpassing9533 9362 367Other specific purpose grants2 50311 0267 587Total7 77332 497336Other contributions and grants491 5967 923Total grant revenue7 82234 093Other revenue($ million)201819201920actual30 Sepactual30 Seppublishedbudget..Fair value of assets received free of charge or for nominal consideration1656205Fines17782225Royalties1311059Donations and gifts (a)392099Other nonproperty rental928111Other revenue – Education12565127Other revenue – Health (a)5522045Revenue related to economic service concession arrangements (b)86337137Other miscellaneous revenue132566618Total other revenue (b)6522 999Notes: (a)The September 2018 comparative figures have been reclassified to reflect more current information. (b)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. This revenue relates to ‘economic’ service concession arrangements and reflects the progressive unwinding of the ‘grant of right to operate liability’ over the remaining period of the arrangement.How funds are spentIntroductionThis section accounts for the major components of expenditure incurred by the general government sector towards the delivery of services and on capital or infrastructure projects during the period, as well as any related obligations outstanding as at 30?September 2019.Employee expenses and provision for outstanding employee benefitsEmployee expenses (operating statement)Employee expenses in the operating statement are a major component of operating costs and include all costs related to employment, including wages and salaries, fringe benefits tax, leave entitlements and redundancy payments. The majority of employee expenses in the operating statement are wages and salaries. Increases in employee expenses are mainly attributable to increased service delivery in the health, education, and community safety sectors as well as salary growth in line with enterprise bargaining agreements.Employee expenses (balance sheet)As part of operations, the State provides for benefits accruing to employees but payable in future periods in respect of wages and salaries, annual leave and long service leave, and related on-costs for services rendered to the reporting date. In measuring employee benefits, consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted to reflect the estimated timing and amount of benefit payment. The table below shows the key components of this provision as at 30?September 2019.Employee benefits (balance sheet)($ million)201819201920actual30 Sepopening1 Julactual30 SeprevisedbudgetCurrent409Accrued salaries and wages65658067085Other employee benefits8468841 632Annual leave1 7581 7921 7943 919Long service leave4 4744 5274 6176 044Total current employee benefits and oncosts6 9716 9677 164Noncurrent849Long service leave1 0481 0671 173849Total noncurrent employee benefits and oncosts1 0481 0671 1736 893Total employee benefits and oncosts8 0208 0348 337Superannuation (operating statement)($ million)201819201920actual30 Sepactual30 SeppublishedbudgetDefined benefit plans167Net superannuation interest expense141565231Current service cost2721 093Remeasurements:(256)Expected return on superannuation assets excluding interest income(277)(1 109)(40)Other actuarial (gain)/loss on superannuation assets(15)..(917)Actuarial and other adjustments to unfunded superannuation liability1 267..(815)Total expense recognised in respect of defined benefit plans1 389549Defined contribution plans419Employer contributions to defined contribution plans4651 79420Other (including pensions)1573440Total expense recognised in respect of defined contribution plans4811 868(375)Total superannuation (gain)/expense recognised in operating statement1 8692 416Represented by:167Net superannuation interest expense141565671Other superannuation7522 960838Superannuation expense from transactions8933 526(1 213)Remeasurement recognised in other comprehensive income976(1 109)(375)Total superannuation costs recognised in operating statement1 8692 416Total expenses by classification of the functions of government (COFOG)and by portfolio department (a)(b)(a)Total expenses by classification of the functions of government ($ million)201819201920actual30 Sepactual30 Seppublishedbudget970General public services9833 8211 920Public order and safety2 1028 611365Economic affairs3971 991157Environmental protection173840458Housing and community amenities5142 0834 803Health5 23720 977186Recreation, culture and religion1809273 968Education4 17816 9391 163Social protection1 3415 5352 020Transport2 2399 164(183)Not allocated by purpose(62)(907)15 827Total expenses by COFOG17 28269 982Notes:(a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)The September 2018 comparative figures and 2019-20 Budget figures have been restated to reflect more current information. (b)Total expenses by portfolio department (a)($ million) 201819201920actual30 Sepactual30 SeppublishedbudgetExpenses from transactions4 495Education and Training4 82319 255677Environment, Land, Water and Planning (b)7483 4726 336Health and Human Services6 94527 923..Jobs, Precincts and Regions4902 4031 845Justice and Community Safety (b)1 9988 047151Premier and Cabinet1546712 542Transport (b)2 2819 2241 805Treasury and Finance1 9597 76452Parliament56244157Courts166710573Regulatory bodies and other part funded agencies (c)6392 47018 631Total expenses by department (b)20 25982 182(2 804)Less eliminations and adjustments (d)(2 977)(12 200)15 827Total expenses (b)17 28269 982Notes:(a)On 29 November 2018, the Premier announced various machinery of government changes effective from 1 January 2019. Please see Note 9.8 in the 2018-19 Financial Report for further details.(b)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(c)Other general government sector agencies, which receive less than 50?per?cent of their revenue from appropriations and therefore are not allocated to departments.(d)Mainly comprising payroll tax, capital asset charge and interdepartmental transfers. The budget also includes departmental underspend estimatesPurchases of non-financial assets by portfolio department (a)($ million)201819201920actual30 Sepactual30 Seppublishedbudget378Education and Training3291 75817Environment, Land, Water and Planning21144125Health and Human Services1311 134..Jobs, Precincts and Regions18160177Justice and Community Safety891 0581Premier and Cabinet2141 387Transport (b)1 5396 8875Treasury and Finance2333Parliament3211Courts168346Regulatory bodies and other part funded agencies (c)322652 148Total purchases of nonfinancial assets by department2 18311 53826Eliminations and adjustments (d)1271 5642 174Total purchases of nonfinancial assets2 31013 102Notes:(a)On 29 November 2018, the Premier announced various machinery of government changes effective from 1 January 2019.Please see Note 9.8 in the 2018-19 Financial Report for the State of Victoria for further details.(b)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(c)Other general government sector agencies, which receive less than 50?per?cent of their revenue from appropriations and therefore are not allocated to departments.(d)Budget includes contingencies not allocated to departments and estimated departmental acquisition of non-financial assets from transactions (a)($ million)201819201920actual30 Sepactual30 Seppublishedbudget2 173Purchases of nonfinancial assets (including change in inventories)2 32013 105(45)Less: Sales of nonfinancial assets(42)(825)(725)Less: Depreciation and amortisation(886)(3 748)(365)Plus/(less): Other movements in nonfinancial assets(533)(4 643)1 039Total net acquisition of nonfinancial assets from transactions8593 889Note: (a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Major assets and investmentsIntroductionThis section outlines those assets the general government sector controls, reflecting investing activities in the current period and prior years.Total land, buildings, infrastructure, plant and equipment (a)(b)($ million)201819201920actual30 Sepopening1 Julactual30 Seprevisedbudget30 891Buildings43 32143 09544 2284 828Leased buildings......59 265Land and national parks58 29458 30859 4643 299Infrastructure systems5 1575 4076 2102 998Plant, equipment and vehicles3 3783 4023 150208Leased plant, equipment and vehicles......29 473Roads and road infrastructure33 10534 09537 4748 039Earthworks8 8998 9169 2385 644Cultural assets5 6615 6695 653144 644Total land, buildings, infrastructure, plant and equipment157 814158 891165 417Notes: (a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. (b)Note 7.4 provides further information on the impact of the new accounting standards on the 2018-19 comparative figures and the 1 July 2019 opening balances.The following two tables are subsets of total land, buildings, infrastructure, plant and equipment by right of use (leased) assets and service concession assets.Total right of use (leased) assets: land, buildings, infrastructure, plant and equipment (a)($ million)201819201920actual30 Sepopening1 Julactual30 Seprevisedbudget..Buildings8 1817 9137 696..Infrastructure systems656..Plant, equipment and vehicles563573321..Total right of use assets: land, buildings, infrastructure, plant and equipment8 7508 4918 023Note: (a)AASB 16 Leases has been applied for the first time from 1 July 2019. Total service concession assets: land, buildings, infrastructure, plant and equipment($ million)201819201920actual30 Sepopening1 Julactual30 Seprevisedbudget1 703Buildings1 8291 9701 668916Land and national parks9219199751 991Infrastructure systems3 2363 5834 686188Plant, equipment and vehicles170168887 911Roads and road infrastructure9 2639 91711 25512 710Total service concession assets: land, buildings, infrastructure, plant and equipment15 42016 55618 673Depreciation (a)($ million)201819201920actual30 Sepactual30 Seppublishedbudget296Buildings4571 94041Leased buildings....9Infrastructure systems1361136Plant, equipment and vehicles1617087Leased plant, equipment and vehicles....199Roads and road infrastructure2158525Cultural assets32233Intangible produced assets (b)37165725Total depreciation8863 748Notes: (a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b) Amortisation of intangible non-produced assets is included under other gains/(losses) from other economic flows.The following two tables are subsets of total depreciation expense.Depreciation of right of use (leased) assets (a)($ million)201819201920actual30 Sepactual30 Seppublishedbudget..Buildings118607..Infrastructure systems..12..Plant, equipment and vehicles28122..Total depreciation of right of use assets146740Note: (a)AASB 16 Leases has been applied for the first time from 1 July 2019.Depreciation of service concession assets ($ million)201819201920actual30 Sepactual30 Seppublishedbudget10Buildings14305Plant, equipment and vehicles42843Roads and road infrastructure48183..Intangible produced assets..158Total depreciation of service concession assets66243Land and buildings (a)(b)($ million)201819201920actual30 Sepopening1 Julactual30 Seprevisedbudget33 475Buildings45 09745 27448 117(2 584)Accumulated depreciation(1 776)(2 179)(3 889)30 891Buildings (net carrying amount)43 32143 09544 2285 501Leased buildings......(673)Leased buildings accumulated depreciation......4 828Leased buildings (net carrying amount)......58 032Land57 07457 08958 2541 233National parks and other ’land only’ holdings1 2191 2191 21059 265Land and national parks58 29458 30859 46494 983Total land and buildings101 614101 403103 692Notes: (a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)Note 7.4 provides further information on the impact of the new accounting standards on the 2018-19 comparative figures and the 1 July 2019 opening balances.Plant, equipment, vehicles, and infrastructure systems (a)(b)($ million)201819201920actual30 Sepopening1 Julactual30 Seprevisedbudget3 794Infrastructure systems5 7285 9916 843(495)Accumulated depreciation(572)(585)(633)3 299Infrastructure systems (net carrying amount)5 1575 4076 2107 132Plant, equipment and vehicles7 9328 0848 235(4 135)Accumulated depreciation(4 554)(4 682)(5 086)492Leased plant, equipment and vehicles......(283)Accumulated depreciation......3 206Plant, equipment and vehicles (net carrying amount)3 3783 4023 1506 505Total plant, equipment and vehicles, and infrastructure systems8 5348 8089 360Notes: (a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)Note 7.4 provides further information on the impact of the new accounting standards on the 2018-19 comparative figures and the 1 July 2019 opening balances.Roads, road infrastructure and earthworks (a)(b)($ million)201819201920actual30 Sepopening1 Julactual30 Seprevisedbudget49 831Roads and roads infrastructure56 56957 73262 513(20 359)Accumulated depreciation(23 463)(23 638)(25 038)29 473Roads and road infrastructure (net carrying amount)33 10534 09537 4748 039Earthworks8 8998 9169 23837 512Total roads, road infrastructure and earthworks42 00443 01146 712Notes: (a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)Note 7.4 provides further information on the impact of the new accounting standards on the 2018-19 comparative figures and the 1 July 2019 opening balances.Cultural assets($ million)201819201920actual30 Sepopening1 Julactual30 Seprevisedbudget5 821Cultural assets5 8505 8605 865(177)Accumulated depreciation(189)(191)(211)5 644Total cultural assets5 6615 6695 653Other non-financial assets (a)(b)($ million)201819201920actual30 Sepopening1 Julactual30 Seprevisedbudget1 972Intangible produced assets2 1972 2202 211(1 042)Accumulated depreciation(1 085)(1 120)(1 201)..Service concession assets – intangible produced251251248..Accumulated depreciation(1)(1)(1)119Intangible nonproduced assets109109110(41)Accumulated amortisation(40)(42)(45)1 008Total intangibles1 4301 4171 321186Investment properties2802802802Biological assets2241 032Other assets4141 3143662 229Total other nonfinancial assets2 1263 0131 971Notes: (a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)Note 7.4 provides further information on the impact of the new accounting standards on the 2018-19 comparative figures and the 1 July 2019 opening balances.Total assets by classification of the functions of government (COFOG) (a)(b)($ million)201819201920actual30 Sepactual30 Seprevisedbudget2 273General public services2 4912 4079 678Public order and safety11 95612 4581 240Economic affairs1 3291 26511 955Environmental protection11 63111 7691 796Housing and community amenities2 2652 19816 244Health20 08320 0107 334Recreation, culture and religion7 5617 68327 489Education27 45128 4421 750Social protection2 4152 36167 895Transport75 53481 646127 233Not allocated by purpose (c)125 992129 164274 887Total assets by COFOG288 711299 404Notes: (a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors.(b)The September 2018 comparative figures have been restated to reflect more current information.(c)Represents financial assets which are not able to be allocated by purpose. This mainly includes balances relating to the general government sector’s investment in other sector entities.Other assets and liabilitiesIntroductionThis section sets out other assets and liabilities that arise from the general government sector’s operations.Receivables (a)($ million)201819201920actual30 Sepopening1 Julactual30 SeprevisedbudgetContractual1 150Sales of goods and services9121 00291819Accrued investment income271527640Other receivables888881962(108)Allowance for impairment losses of contractual receivables(138)(139)(138)Statutory3Sales of goods and services5653 016Taxes receivable3 3633 2523 4382 629Fines and regulatory fees2 8812 9743 002323GST input tax credits recoverable419250420(1 271)Allowance for impairment losses of statutory receivables(1 706)(1 836)(1 721)6 400Total receivables6 6516 4056 914Represented by:6 086Current receivables6 3296 0786 493314Noncurrent receivables322327421Note: (a)Note 7.4 provides further information on the impact of the new accounting standards on the 2018-19 comparative figures and the 1 July 2019 opening balances.Payables (a)(b)($ million)201819201920actual30 Sepopening1 Julactual30 SeprevisedbudgetContractual1 387Accounts payable1 8271 9081 7952 200Accrued expenses2 9182 5332 9208 552Grant of right to operate liability (a)9 4029 58710 1101 589Unearned income1 7291 8101 545Statutory333Accrued taxes payable59726014 062Total payables15 93515 91116 430Represented by:4 769Current payables5 5685 4705 5269 292Noncurrent payables10 36710 44110 905Notes: (a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)Note 7.4 provides further information on the impact of the new accounting standards on the 2018-19 comparative figures and the 1 July 2019 opening balances.Public accountIntroductionThis section discloses information in respect of the Public Account, in accordance with the requirements of the Financial Management Act 1994.Consolidated fund receipts and payments (a)($ million)201819201920actual30 Sepactual30 SeppublishedbudgetReceipts5 999Taxation5 88124 437184Fines and regulatory fees1759225 310Grants received5 08922 8711 560Sales of goods and services (b)1 0787 480110Interest received11948460Dividends, income tax equivalent and rate equivalent receipts687513 282Other receipts (b)15966516 505Total operating activities12 56957 61024Total inflows from investing and financing1 2679 17216 528Total receipts13 83666 783Payments to departments3 876Education and Training3 99615 413608Environment, Land, Water and Planning6522 7544 972Health and Human Services5 96518 002..Jobs, Precincts and Regions3822 3382 067Justice and Community Services2 1138 510167Premier and Cabinet1766432 419Transport3 13612 7042 394Treasury and Finance1 22410 61258Parliament65226158Courts17873516 717Total payments17 88671 935(189)Net receipts/(payments)(4 051)(5 152)Notes:(a)On 29 November 2018, the Premier announced various machinery of government changes effective from 1 January 2019. Please see Note 9.8 in the 2018-19 Financial Report for further details.(b)The September 2018 comparative figures have been reclassified to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Trust fund cash flow statement($ million) 201819201920actual30 Sepactual30 SeppublishedbudgetCash flows from operating activitiesReceipts176Taxation19942220Regulatory fees and fines16724 560Grants received5 69517 89324Sale of goods and services28251053Interest received3115512Dividends received24901 087Net transfers from consolidated fund7344 20489Other receipts69976 021Total receipts7 05023 445Payments(66)Payments for employees(77)(263)(5)Superannuation(6)(18)(4 955)Grants and subsidies(5 217)(19 851)(542)Goods and services(671)(1 713)(3)Interest paid(2)(10)(5 571)Total payments(5 973)(21 855)450Net cash flows from operating activities1 0761 590Cash flows from investing activities(53)Purchases of property, plant and equipment(51)(2 715)13Proceeds from sale of property, plant and equipment1158826Net proceeds from customer loans4651 878(731)Other investing activities(448)(675)55Net cash flows from investing activities(21)(1 454)Cash flows from financing activities(870)Net proceeds (repayments) from borrowings(343)49(870)Net cash flows from financing activities(343)49(366)Net cash inflow/(outflow)712186Reconciliation of cash flows to balances held(a)($ million)Balancesheld at30 Jun 2019MarmovementYTDBalancesheld at30 Sep 2019Cash and depositsCash and balances outside of the Public Account..(11)(11)Deposits held with the Public Account – specific trusts19(2)17Other balances held in the Public Account4 424(3 648)775Total cash and deposits4 443(3 661)781InvestmentsInvestments held with the Public Account – specific trusts1 0163811 397Total investments1 0163811 397Total fund balances5 459(3 280)2 178Less funds held outside the public accountCash..(11)(11)Total fund balances held outside the Public Account..(11)(11)Total fund balances held in the Public Account5 459(3 269)2 189Note:(a)See Note 6.4 for details of securities and investments including amounts held in the Public Account on behalf of trust accounts.Details of securities held($ million) 201819201920actual30 Sepopening1 Julactual30 Sep2 422Amounts invested on behalf of specific trust accounts1 0351 4142 228General account balances4 4247754 650Total Public Account5 4592 189Represented by:3 766Stock, securities, cash and investments4 5271 635Add cash advanced for:..Temporary Advance from the Treasury Corporation of Victoria to the Consolidated Fund pursuant to section 38 of the Financial Management Act 1994350..884Advances pursuant to sections 36 and 37 of the Financial Management Act 19945825544 650Total Public Account5 4592 189Other disclosuresIntroductionThis section includes several additional disclosures that assist the understanding of this financial report.Other gains/(losses) from other economic flows($ million)201819201920actual30 Sepactual30 Seppublishedbudget(109)Net (increase)/decrease in allowances for credit losses(143)(192)(1)Amortisation of intangible nonproduced assets(1)(6)(2)Bad debts written off(1)(169)(3)Other gains/(losses)(26)(21)(116)Total other gains/(losses) from other economic flows(171)(388)Reconciliation of cash and cash equivalents($ million)201819201920actual30 Sepactual30 Sep1 748Cash1 0364 191Deposits at call5 3075 940Cash and cash equivalents6 343..Bank overdraft..5 940Balances as per cash flow statement6 343Reconciliation of net result to net cash flows from operating activities (a)($ million) 201819201920actual to Sepactualto Sep692Net result(967)Noncash movements726Depreciation and amortisation88730Interest accretion694Revaluation of investments2..Assets (received)/provided free of charge41Discount/premium on other financial assets/borrowings1..Foreign currency dealings(3)760Noncash items total959Movements included in investing and financing activities..Net gain/loss from sale of investments(2)(5)Net gain/loss from sale of nonfinancial assets(9)(5)Items included in investing and financing activities total(11)Movements in assets and liabilities102Increase/(decrease) in provision for doubtful debts1322 515Increase/(decrease) in payables(91)(127)Increase/(decrease) in employee benefits14265Increase/(decrease) in superannuation277(70)Increase/(decrease) in other provisions30(8)(Increase)/decrease in receivables115(506)(Increase)/decrease in other nonfinancial assets(910)2 171Changes in assets and liabilities total(433)3 619Net cash flows from operating activities(452)Note: (a)The September 2018 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Adoption of the new Accounting Standards This note explains the impact of the adoption of the following new accounting standards for the first time, from 1 July 2019:AASB 15 Revenue from Contracts with Customers;AASB 1058 Income of Not-for-Profit Entities; AASB 16 Leases; andAASB 1059 Service Concession Arrangements: Grantors. The scope, high level requirements and estimated impacts of these new standards were outlined in Note?1.7.2 of the Estimated Financial Statements for 2019-20, presented in Chapter 1 of 2019-20 Budget Paper No. 5 Statement of Finances.The transitional impacts of applying the new accounting standards are reported in the tables below. Transitional impacts of the new Accounting Standards ($ million)Before newaccounting standardsNet impact of new accounting standardsAfter newaccounting standards201819actual 30?Sep201819actual 30?Sep201819actual 30?SepComprehensive operating statementRevenue from transactions16 5894516 634Expenses from transactions15 7577015 827Net result from transactions – net operating balance832(25)807Total other economic flows included in net result(115)..(115)Net result718(25)692($ million)Before newaccounting standardsNet impact ofnew accounting standardsAfter newaccounting standardsOpening 1?July 2018201819 actual 30?SepOpening 1?July 2019Opening 1?July 2018201819 actual 30?SepOpening 1?July 2019Opening 1?July 2018201819 actual 30?SepOpening 1?July 2019Total assets264 294265 065273 4399 2429 82216 064273 536274 887289 503Financial liabilities40 20737 74643 0611 5411 9306 94841 74839 67650 009Other liabilities39 97141 25547 7344 7244 9195 90944 69546 17453 643Total liabilities80 17879 00190 7956 2656 84912 85886 44385 850103 653Net debt20 00318 67722 4071 7672 1566 94821 77020 83329 355Net worth184 116186 064182 6442 9772 9733 207187 093189 038185 851Accumulated surplus/(deficit)52 57454 49652 4733 0293 0043 09255 60357 50055 565Controlled entitiesNote 9.8 Controlled entities in the 2018-19 Financial Report for the State of Victoria lists significant controlled entities, which were consolidated in that financial report. The following are changes from 1 July 2019 of general government sector entities, which have been consolidated in this financial report:General governmentDepartment of Health and Human Services NCN Health (a)Great Ocean Road Health (b)Department of Premier and CabinetPortable Long Service Authority (c)Department of Transport (d)Notes:(a)Effective from 1 July 2019, Numurkah District Health Service, Cobram District Health and Nathalia District Hospital were amalgamated into NCN Health.(b)Effective from 1 July 2019, Lorne Community Hospital and Otway Health were amalgamated into Great Ocean Road Health.(c)The Portable Long Service Authority was established under the Long Service Benefits Portability Act 2018, and by Order of the Governor in Council, commenced on 1?July?2019. (d)Effective from 1 July 2019, the Public Transport Development Authority and Roads Corporation (with the exception of registration and licensing and some heavy vehicle functions) were consolidated into the Department of Transport. Glossary of technical termsThe 2018-19 Financial Report for the State of Victoria (Note 9.9) summarises the major technical terms used in this report.Results quarter by quarter – Victorian general government sectorIntroductionThis section includes the comprehensive operating statement, balance sheet and cash flow statement for the past five quarters in accordance with the requirements of the Financial Management Act 1994.Consolidated comprehensive operating statement for the past five quarters (a)($ million)201819201920SepDecMarJunSepRevenue from transactionsTaxation revenue5 8965 0307 7634 8965 839Interest revenue210206191209160Dividends, income tax equivalent and rate equivalent revenue822489760357Sales of goods and services1 9051 9261 8961 9701 947Grant revenue7 9237 8789 1658 3377 822Other revenue6188576091 258652Total revenue from transactions16 63416 14519 72117 27416 477Expenses from transactionsEmployee expenses6 0816 2136 1966 9166 578Net superannuation interest expense167180170172141Other superannuation671711690725752Depreciation725735743844886Interest expense525575546606564Grant expense2 8533 1273 8583 5163 259Other operating expenses4 8065 1014 8126 2635 102Total expenses from transactions15 82716 64217 01419 04117 282Net result from transactions – net operating balance807(497)2 707(1 767)(805)Other economic flows included in net resultNet gain/(loss) on disposal of nonfinancial assets5(55)(15)279Net gain/(loss) on financial assets or liabilities at fair value(4)(195)72911Share of net profit/(loss) from associates/joint venture entities....1....Other gains/(losses) from other economic flows(116)(190)(166)(449)(171)Total other economic flows included in net result(115)(439)(109)(330)(161)Net result692(936)2 598(2 098)(967)Other economic flows – other comprehensive incomeItems that will not be reclassified to net resultChanges in nonfinancial assets revaluation surplus37131144 114229Remeasurement of superannuation defined benefits plans1 213(2 304)(1 087)(1 192)(976)Other movements in equity14249751(57)Items that may be reclassified subsequently to net resultNet gain/(loss) on financial assets at fair value(12)(36)(15)(2)(17)Net gain/(loss) on equity investments in other sector entities at proportional share of the carrying amount of net assets..(1 240)..(1 414)..Total other economic flows – other comprehensive income1 252(3 319)(982)1 557(821)Comprehensive result – total change in net worth1 945(4 255)1 617(541)(1 787)KEY FISCAL AGGREGATESNet operating balance807(497)2 707(1 767)(805)Less: Net acquisition of nonfinancial assets from transactions1 0391 4227382 232859Net lending/(borrowing)(231)(1 919)1 968(3 999)(1 664)Note: (a)The 2018-19 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Consolidated balance sheet at the end of the past five quarters (a)($ million)201819201920SepDecMarJunSepAssetsFinancial assetsCash and deposits5 9404 5675 7229 7756 343Advances paid8 9638 6928 4418 3407 884Receivables6 4005 7388 3766 6286 405Investments, loans and placements3 9403 9655 0592 5393 000Investments accounted for using the equity method5253454545Investments in other sector entities102 157102 040102 979101 825102 737Total financial assets127 453125 055130 621129 153126 414Nonfinancial assetsInventories171177177165177Nonfinancial assets held for sale391361345223216Land, buildings, infrastructure, plant and equipment144 644146 444147 582154 358158 891Other nonfinancial assets2 2292 3012 1522 1903 013Total nonfinancial assets147 434149 283150 256156 937162 297Total assets274 887274 338280 877286 089288 711LiabilitiesDeposits held and advances received5 5305 3305 1405 1464 688Payables14 06213 87514 50015 92315 911Borrowings34 14635 55539 01341 43845 044Employee benefits6 8937 1417 0568 0208 034Superannuation24 25726 60027 69928 63229 884Other provisions9621 0531 0701 0721 085Total liabilities85 85089 55594 477100 230104 647Net assets189 038184 783186 400185 859184 064Accumulated surplus/(deficit)57 50054 47855 99755 57377 321Reserves131 538130 305130 403130 286106 742Net worth189 038184 783186 400185 859184 064FISCAL AGGREGATESNet financial worth41 60435 50036 14428 92221 767Net financial liabilities60 55466 54066 83572 90380 971Net debt20 83323 66124 93225 93032 506Note: (a)The 2018-19 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Consolidated cash flow statement for the past five quarters (a)($ million)201819201920SepDecMarJunSepCash flows from operating activitiesReceiptsTaxes received5 9945 6315 0586 5505 870Grants7 9277 8779 1638 3867 827Sales of goods and services (b)2 1271 9602 3201 8742 333Interest received209203194203171Dividends, income tax equivalent and rate equivalent receipts822989756398Other receipts3 348378283945516Total receipts19 68616 34817 11518 52216 815PaymentsPayments for employees(6 211)(5 994)(6 369)(6 158)(6 592)Superannuation(572)(853)(848)(1 156)(616)Interest paid(516)(509)(512)(541)(488)Grants and subsidies(2 870)(3 173)(3 852)(3 330)(3 255)Goods and services (b)(5 687)(5 003)(4 382)(4 952)(6 100)Other payments(211)(202)(174)(204)(216)Total payments(16 068)(15 734)(16 137)(16 341)(17 267)Net cash flows from operating activities3 6196149772 181(452)Cash flows from investing activitiesCash flows from investments in nonfinancial assetsPurchases of nonfinancial assets(2 174)(2 766)(1 937)(2 980)(2 310)Sales of nonfinancial assets45395310642Net cash flows from investments in nonfinancial assets(2 129)(2 726)(1 884)(2 874)(2 268)Net cash flows from investments in financial assets for policy purposes729156298261398Subtotal(1 400)(2 570)(1 585)(2 613)(1 870)Net cash flows from investments in financial assets for liquidity management purposes(35)(123)(1 036)2 825(489)Net cash flows from investing activities(1 435)(2 693)(2 621)212(2 359)Cash flows from financing activitiesAdvances received (net)(831)(258)(251)(50)(365)Net borrowings(1 576)9072 9881 656(165)Deposits received (net)(94)596256(93)Net cash flows from financing activities(2 501)7072 7981 661(622)Net increase/(decrease) in cash and cash equivalents(317)(1 372)1 1544 053(3 432)Cash and cash equivalents at beginning of the reporting period6 2575 9404 5675 7229 775Cash and cash equivalents at end of the reporting period5 9404 5675 7229 7756 343FISCAL AGGREGATESNet cash flows from operating activities3 6196149772 181(452)Net cash flows from investments in nonfinancial assets(2 129)(2 726)(1 884)(2 874)(2 268)Cash surplus/(deficit)1 490(2 112)(907)(693)(2 719)Notes: (a)The 2018-19 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)These items are inclusive of goods and services tax.Style conventionsFigures in the tables and in the text have been rounded. Discrepancies in tables between totals and sums of components reflect rounding. Percentage changes in all tables are based on the underlying unrounded amounts.The notation used in the tables is as follows:n.a.not available or not applicable1?billion1?000?million1 basis point0.01?per cent..zero, or rounded to zero(xxx.x)negative numbers ................
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