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Budget Variances Commentary

Explanations of major variances

Affected line items

The Mint has experienced unprecedented demand for, and sales of, circulating coin. The Commonwealth relief measures implemented to assist with the impacts of COVID-19 have had a significant effect on the circulating coin demand. This has been sustained throughout 2020-21 with the effects on circulating coin expected to continue in alignment with COVID-19 impacts.

Cash Flow Statement - Cash Received - Face value - circulating coin, Goods and services

Numismatic and collectible (including investment and precious metal coins) products have seen strong demand in the 2020-21 financial year with associated increases in the uptake of e-commerce channels by Mint customers. This has seen higher than anticipated numismatic and collectible revenues for the 2020-21 financial year.

Statement of Comprehensive Income - Revenue from contracts with customers

The Mint's employee numbers have reduced by approximatly four percent while the employee costs have remained relatively consistent this year. Significant production activity has required all staff to remain actively engaged. Any retiring staff positions have been replaced or ASL positions allocated to another area of growth in the Mint. Efficiency improvements have enabled increased capacity with the Mint utilising current employees to meet the increased activity.


Supplier costs have increased in the 2020-21 financial year in line with increased circulating coin, numismatic and collectible coin sales. This has resulted in a corresponding increase in cash received for the supply of goods and services and the cash paid to suppliers.


The Mint will return any surplus as a result of numismatic and collectible coin sales to the Commonwealth and this will be calculated based on the retained numismatic and collectible surplus less any new working capital required. Retained numismatic and collectible surplus is the after tax difference between revenue received and expenses incurred in the prior financial year.

Cash Flow Statement - Cash Used - Employees, Suppliers, Payments to the Commonwealth - Seigniorage

The Mint’s payables balance is significantly higher than budget due to the higher than anticipated sales of circulating coin. The payables balance contains the seigniorage ($45m) which will be payable in October 2021 for the period 1 July 2020 to 30 June 2021.

Statement of Financial Position - Other payables

The increase from last year is mainly attributed to an increase in scrap material being written off during the year with approximately $1.6m metal and packaging and approximately $1.6m of dies and other related tooling.

Statement of Comprehensive Income - Write-down and impairment of assets

The Mint's was budgeted to increase its employee numbers in the 2021 financial year however, the Mint's employee numbers have reduced by approximatly four percent while the employee costs have remained relatively consistent this year. Significant production activity has required all staff to remain actively engaged. Any retiring staff positions have been replaced or ASL positions allocated to another area of growth in the Mint. Efficiency improvements have enabled increased capacity with the Mint utilising current employees to meet the increased activity.

Statement of Comprehensive Income - Employee benefits

During 2020-21 there were purchases of assets including production equipment, enhancement of the retail and visitor experience and upgrades to IT systems ($3.6m) and depreciation ($6.2) resulting in a decrease in the value of assets of $2.6m. Expenditure on capital projects was limited by the impacts of COVID-19 and the ability to engage with suppliers, many of whom are located overseas.

Statement of Financial Position - Non-Financial Assets

Inventory balances were lower than budget due to significant sales of circulating coin. During the 2020-21 financial year, Commonwealth relief measures related to COVID-19 had a significant impact on the demand for circulating coin.


Numismatic and collectible programs that were postponed in 2020 due to COVID-19, were released in the 2020-21 financial year. This saw a corresponding reduction in the inventory balances for numismatic and collectible products. Investment and bullion coin products saw higher than anticipated demand leading to a shorter than expected dwell time of precious metal products in inventory. This has resulted in reduced end of year raw material, semi-processed and finished goods inventory balances.

Statement of Financial Position - Inventories

Cash balances were higher than budget due to the significant increase in demand for circulating coin due to COVID-19 support measures and significant growth in the precious metal numismatic and collectible products (investment products). The seigniorage (45m) payment to the Commonwealth's Official Public Account will be settled in October 2021.

Statement of Financial Position - Cash and cash equivalents