Australian Bureau of Statistics
1218.0 - Standard Economic Sector Classifications of Australia (SESCA), 2002
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 13/09/2002
|Page tools: Print Page RSS Search this Product|
2.39. NPIs that have registered for an Australian Business Number (ABN) are recorded in the ABS Business Register, but not all are specifically identified as NPIs for SISCA purposes. NPIs include trade unions, trade associations, social and sporting clubs, welfare and religious organisations, universities and charitable institutions. Smaller NPIs that have not registered for an ABN are out of scope of the ABS Business Register.
2.40. NPIs can be set up by governments, corporations or households. Some NPIs, particularly those established by governments, may be difficult to distinguish from government units. In such cases, the units may be predominantly funded from taxation through government subsidies or transfers and the critical determinant may be whether the establishing legislation gives the government control of the management of the unit or vests the control in an independent board or similar entity. However, the source of control of NPIs is not always clear-cut and is discussed further in Chapter 3.
2.41. NPIs are subdivided between those that are predominantly engaged in market production (called market NPIs) and those that are predominantly engaged in non-market production (called non-market NPIs). Market NPIs sell their output at economically significant prices; non-market NPIs dispose of their output free of charge or at prices that are not economically significant. However, NPIs that are created by associations of businesses in order to provide services to association members (e.g. trade associations, employer groups, industry chambers, lobbying organisations) are regarded as engaged in market production irrespective of the method of disposing of their output. Contributions made by members to such NPIs are regarded as payments for services rendered.
2.42. The distinction between market and non-market NPIs is important in determining the institutional sector to which individual NPIs are allocated. As with certain government units, difficulties may arise in deciding whether a NPI is disposing of its output at economically significant prices. Other characteristics of NPIs, additional to those specified in SNA93, are often taken into account when deciding whether a NPI is a market NPI or not. These include:
2.43. As with government units, when differences between individual NPIs are minor, the requirement for consistent treatment of the same types of NPIs may be considered more important than the precise application of the rules to each NPI.
This page last updated 19 June 2009
Unless otherwise noted, content on this website is licensed under a Creative Commons Attribution 2.5 Australia Licence together with any terms, conditions and exclusions as set out in the website Copyright notice. For permission to do anything beyond the scope of this licence and copyright terms contact us.