GLOSSARY
Advertising income
This item includes income received by an organisation for promotional and publicity campaigns aimed at bringing the activities of the organisation to the attention of consumers for the purpose of increasing sales.
Advertising, marketing and promotion expenses
Advertising expenses include all costs incurred by the business for promotional and publicity campaigns aimed at bringing the activities and services of the business to the attention of consumers for the purpose of increasing sales. Marketing expenses are the costs incurred in the long-range promotion of the business and its goods or services. Promotion expenses are those costs associated with generating public awareness of the business and/or its products.
Average annual percentage change
A percentage change, p, from 2000-01 to 2004-05 is converted into an average annual change, a, as follows:
a = (1 + p)1/4 - 1
The average annual percentage change is not an arithmetic average of the actual percentage changes from year to year. It is labelled the 'average' change because if any value increases by a% every year for four years, then at the end of the four years it will have grown by a total p%.
Capital cities and suburbs
Capital cities and suburbs are the metropolitan areas of Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart, Canberra and Darwin.
Casual employees
This item refers to employees who are not entitled to paid leave.
Casual playing fees
This item includes green fees and income from hire of equipment when charged as part of the playing fee. It excludes membership fees.
Commissions from Keno
This item includes commissions received by businesses acting as agents for the sale of Keno products.
Commissions from TAB
This item includes commissions received by businesses acting as agents for the sale of TAB products.
Commission/venue share from poker/gaming machines
This item includes income received by businesses for the operation of poker/gaming machines on their premises. Businesses receiving this commission are located in Victoria and Tasmania where the clubs, pubs, taverns or bars do not own the machines operated on their premises.
Commissions from vending machines and amusement machines
This item includes commissions received from vending machines and amusement machines owned by other entities.
Contract payments to professional sports persons
This expense items refers to payments made to a person in return for the provision of sports related services. This items includes payments made to sports persons by commission without a retainer.
Depreciation and amortisation
This item refers to regularly recurring financial charges made in the accounts to reflect that part of the value of the asset which may be regarded as having been used up in producing revenue in a particular accounting period. Depreciation generally refers to physical (tangible) non-current assets, and amortisation generally refers to intangible non-current assets.
Electricity, gas and water charges
These charges relate to the consumption of electricity, gas and/or water during the normal operations of the business.
Employees
This item represents all employees on the payroll for the last pay period ending in June 2005. Employees absent on paid or prepaid leave are included. Subcontractors and persons solely paid by commission without a retainer are excluded.
Employer contributions to superannuation funds
This item represents the cost of the employer's contributions during the reference period, made on behalf of employees, including salary sacrificed amounts.
Employment at end June
This item represents all working proprietors and partners and employees on the payroll of the business during the last pay period ending in June 2005. Permanent, temporary and casual employees and employees absent on paid or prepaid leave are included. Non-salaried directors, self-employed persons such as consultants and contractors, persons paid by commission only and volunteers are excluded.
Fringe benefits tax
Fringe benefits tax is payable by employers when certain benefits in excess of normal wages or salaries (e.g. free or discounted goods or services) are received by their employees (or associated employees) in connection with their employment.
Gambling income
This item refers to income from poker/gaming machines, TAB and Keno commissions.
Government funding
This item refers to project or program payments made by federal, state/territory or local government in the form of operational funds for ongoing operations and capital funds to purchase or improve equipment or property.
Grants, distribution and affiliation fees paid to other organisations
This item includes payments to in-house groups or clubs, affiliated sporting clubs, community groups in clubs and associations and peak bodies. It excludes sponsorship expenses and donations.
Income from sale of liquor and other beverages
This item includes beer, wine, spirits, and other beverages sold for consumption on the premises with or without meals, and for consumption off the premises.
Industry value added (IVA)
IVA represents the value added by an industry to the intermediate inputs used by the industry. IVA is the measure of the contribution by businesses, in the selected industry, to gross domestic product.
The derivation of IVA for market producers is as follows:
sales and service income
plus funding from federal, state and/or local government for operational costs
plus capital work done for own use
plus closing inventories
less opening inventories
less intermediate input expenses
less capitalised purchases
equals IVA.
Wage and salary expenses and most other labour costs are not taken into account in its calculation and nor are most insurance premiums, interest expenses or depreciation and a number of lesser expenses including bad debts, computer software expensed and state gambling taxes.
The derivation of IVA for non-market producers is as follows:
labour costs
plus depreciation
plus land tax
plus capital work done for own use
less capitalised purchases
equals IVA.
However, it should be noted that IVA is not a measure of operating profit before tax.
Insurance premiums
Insurance premiums are expenses incurred by a business/organisation in respect of different types of insurance policies but excluding workers' compensation and compulsory third party motor vehicle insurance.
Interest expenses
These are outflows of funds related to the cost of borrowing money.
Interest income
This item represents income earned through the lending out of funds owned by the business.
Labour costs
These include staff related costs such as wages and salaries (including moneys paid directly to freelancers via the payroll), fringe benefits tax and payroll tax, employer contributions to superannuation funds, workers' compensation premiums, and provision expenses for employee entitlements.
Land tax and land rates
Land tax is an annual tax assessed to the owner of the land. Land rates are annual charges levied by local government for the provision of local government services. This is a combination of these two items.
Licensed gaming staff
Licensed gaming staff refers to those employees employed as either gaming machine managers or gaming machine operators. They are normally approved or licensed by the relevant state board or department. This allows these employees to work within gaming areas containing poker and other gaming machines.
Net takings from poker/gaming machines
This item includes takings from poker/gaming machines net of payouts to players. For businesses operating in Victoria and Tasmania, it represents venue share or commission from poker/gaming machines. For businesses operating in other states or territories, it represents takings from poker/gaming machines net of payouts to players.
Operating profit/surplus before tax
This item is a measure of profit/surplus (or loss/deficit) during the reference period, taken before extraordinary items are brought to account and prior to the deduction of income tax and appropriations to owners (i.e. dividends paid, drawings). It is derived by subtracting total expenses from total income, and adding the difference between closing inventory and opening inventory for the period.
Operating profit/surplus margin
This represents the percentage of businesses' sales of goods and services which becomes profit/surplus after all operating expenses have been deducted. It is derived by expressing total operating profit/surplus before tax as a percentage of total sales of goods and services.
Other contract, subcontract and commission expenses
This item includes payments to other businesses and self-employed persons for work done or sales made on a contract or commission basis and not elsewhere covered.
Other grants, distributions and affiliation fees
This item includes affiliation fees received from related sporting clubs and organisations, payments from peak bodies and funding from international, national or state sporting bodies. It excludes funding from government, sponsorship and donations.
Paid live performances
This item represents appearances or gigs by any performer or group before a live audience.
Payments to employment agencies for staff
This item includes payment to employment agencies for procuring the services of staff. This is commonly a temporary contract between the client and the employment agency.
Payroll tax
Payroll tax is a tax levied by state and territory governments upon the amount of wages and salaries paid by a business.
Permanent full-time employees
This item refers to permanent employees who work 35 hours or more per week and were entitled to paid leave.
Permanent part-time employees
This item refers to permanent employees who work less than 35 hours per week and were entitled to paid leave.
Poker/gaming machine and other gambling taxes and levies
This expense item includes all taxes/levies paid to the government and funds transferred to government bodies in accordance with gambling regulations. These taxes and levies are paid by the owners of the poker/gaming machines and other gambling facilities.
Purchases
This includes purchases of liquor and other beverages, foodstuffs for use in preparing meals and takeaway food, merchandise/goods for resale and other non-capitalised purchases.
Rent, leasing and hiring expenses
Rent, leasing and hiring expenses are the costs for the rent, leasing (excluding finance leases) and hiring of land, buildings and other structures, sporting venues, facilities and equipment, vehicles, machinery and any other property from other businesses/organisations or individuals.
Rent, leasing and hiring income
Rent, leasing and hiring income is revenue derived from the renting, leasing or hiring of assets such as land, buildings, vehicles, machinery or equipment to other businesses or individuals.
Repair and maintenance expenses
This item includes costs associated with work undertaken on plant and machinery etc. to maintain normal business operations.
Sponsorship and fundraising income
This item includes income received from sponsors either on a financial or on a value-in-kind basis. The item also includes donations and bequests received and income from other fundraising sources such as raffles.
Sponsorship expenses
Sponsorship expenses are the costs incurred in the public support/promotion of sporting, arts or cultural activities.
Takings from accommodation
This item refers to income received from the provision of short-term accommodation. All takings from meals are excluded, including the meals component where meals and accommodation are a combined charge.
Takings from meals and food sales
This item includes the total income derived from the provision of bistro/restaurant services and snack bars owned and operated by the business/organisation.
Takings from subscriptions/membership fees
This item refers to the amount received in respect of participants and players’ fees, social members and members’ subscriptions.
Wages and salaries
This item refers to the gross wages and salaries (including capitalised wages and salaries) of all employees of the business. It includes severance, termination and redundancy payments, salaries and fees of directors and executives, retainers and commissions of persons who received a retainer, bonuses, and annual and other types of leave. Provision expenses for employee entitlements (e.g. provisions for annual leave and leave bonus, long service leave, sick leave, and severance, termination and redundancy payments) are also included. Payments related to salary sacrifice and payments to self-employed persons such as consultants, contractors and persons paid solely by commission without a retainer, are excluded.
Workers’ compensation costs
Workers' compensation is a compulsory insurance cover taken out by all employers, except for self-insured workers, according to legislative schemes to cover employees suffering injury or disease in the course of, or arising out of, employment.
Working proprietors and partners of unincorporated businesses
A working proprietor operates his or her own business (a sole proprietorship), while a partner, along with one or more other partners, operates a partnership. Working proprietors and partners are the owners of their business and as such, they are not considered to be employees of that business.
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