Australian Bureau of Statistics

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8126.0 - Information and Communication Technology, Australia, 2002-03  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 07/09/2004   
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Bad and doubtful debts


Refers to the amount of accounts receivable that are either written off, or estimated to be uncollectible during an accounting period, that are expensed in an accounting period's profit calculations.


Businesses at end June


Refers to the number of ABN units or type of activity units (TAU) operating at the end of June. See Explanatory Notes paragraphs 8-12 for more information.


Capital Expenditure


Refers to costs capitalised in a business' books for land, buildings, plant, machinery and equipment, intangible assets and all other costs capitalised. Included are the value of capitalised work done by the business' own employees and progress payments made to contractors for capital work done.


Depreciation and amortisation


These refer to financial charges made in the accounts to reflect that part of the value of an asset which may be regarded as having been used up in producing revenue in a particular accounting period.


Earnings before interest and tax (EBIT)


A measure of the profit/loss of a business prior to any deductions for interest expenses or income tax. It is derived as:

      Total income
      plus Any changes in levels of trading stock inventories
      less Total expenses excluding interest expenses
      equals EBIT

Employer contributions into superannuation


Refers to all employer contributions into superannuation including salary sacrifice.


Employment at end June


Includes full-time and part-time employees, employees absent on paid or prepaid leave, managerial and executive employees, permanent, temporary and casual employees and working proprietors and partners. Non-salaried directors, persons paid by commission only and self-employed persons such as consultants and contractors are excluded.


Exports (f.o.b.)


The value of exports is the free on board (f.o.b.) transaction value of the goods expressed in Australian dollars. The f.o.b. value includes the value of packaging (other than containerisation) and excludes freight and insurance costs for the overseas route.


Fringe benefits tax


Fringe benefits tax is paid by employers when certain benefits in excess of normal wages or salaries (e.g. free or discounted goods) are received by their employees in connection with their employment.


Information and Communication Technology (ICT)


Information and Communication Technology refers to the technologies and services that enable information to be accessed, stored, processed, transformed, manipulated and disseminated, including the transmission or communication of voice, image and/or data over a variety of transmission media.


ICT Computer services industry grouping


Refers to businesses classified to the following classes of the Australian and New Zealand Standard Industrial Classification (ANZSIC):

  • 7831, Data processing services;
  • 7832, Information storage and retrieval services;
  • 7833, Computer maintenance services; and
  • 7834, Computer consultancy services.

ICT Employees


Refers to all employees who spent the majority of their time engaged in ICT activity and includes help desk staff, information technology managers, electronics engineers, system managers, administrators, analysts, designers and programmers, application programmers and computer and communication technicians. Data entry and call centre staff are excluded.


ICT Goods


Information and Communication Technology goods broadly cover:

  • computer and communications hardware and their parts, components and consumables;
  • other electronic hardware that can be networked (e.g. digital multifunctional photocopiers, cash registers, automatic teller machines, etc.); and
  • packaged and customised software.

Excluded from ICT goods in the Australian definition are equipment in which the presence of microprocessors is predominantly used for the control of a process or the setting of functions (e.g. robots, scientific and health equipment).


ICT income


Consists of all income from the sale, distribution and provision of ICT goods and services.


ICT industry grouping


Refers to the Division or Group of the Australian and New Zealand Standard Industrial Classification (ANZSIC) that selected ICT activity falls within.


ICT Manufacturing industry grouping


Refers to businesses classified to the following classes of the Australian and New Zealand Standard Industrial Classification (ANZSIC):

  • 2841, Computer and business machine manufacturing;
  • 2842, Telecommunication, broadcasting and transceiving equipment manufacturing;
  • 2849, Electronic equipment manufacturing n.e.c.; and
  • 2852, Electric cable and wire manufacturing.

ICT specialists


Comprises those businesses whose ICT income (as defined above) is 50% or more of the total income of the business, with the exception of businesses classified to the following classes of the Australian and New Zealand Standard Industrial Classification (ANZSIC), who are defined as ICT specialist businesses regardless of their income:

  • Class 2842, Telecommunication, broadcasting and transceiving equipment manufacturing;
  • Class 4613, Computer wholesaling;
  • Class 7120, Telecommunications services;
  • Class 7831, Data processing services;
  • Class 7832, Information storage and retrieval services;
  • Class 7833, Computer maintenance services; and
  • Class 7834, Computer consultancy services.

ICT Telecommunication services industry grouping


Refers to businesses classified to the following class of the Australian and New Zealand Standard Industrial Classification (ANZSIC):

  • 7120, Telecommunication services.

ICT Wholesale trade industry grouping


Refers to businesses classified to the following classes of the Australian and New Zealand Standard Industrial Classification (ANZSIC):

  • 4613, Computer wholesaling;
  • 4614, Business machine wholesaling; and
  • 4615, Electrical and electronic equipment wholesaling n.e.c.

Imports (customs value)


The value of imports is the Australian Customs value. This includes inland freight, insurance and other distributive services in the exporting country, up to the place of export and is usually the same as or very close to the f.o.b. value.


Income from provision of Computer services


Refers to a range of computer services including provision of customised software services and solutions, software maintenance, web site design and/or Internet consultancy, computer systems analysis, hardware consultancy, maintenance and repair, disaster recovery, data processing services, computer time sharing, information storage and retrieval.


Income from provision of Telecommunication services


Refers to a range of telecommunication services including provision of basic telephony, mobile and paging services, data and text services, Internet service provision, inter-carrier charges, leased lines and other infrastructure services, sales of capacity to other telecommunication providers, satellite and other telecommunication services.


Industry value added (IVA)


Industry value added for market producers is an estimate of the difference between the value of the output for an industry and the purchases of materials and selected expenses incurred in the production of that output.


It is derived as:

      Income derived from the sales of goods and services
      plus Operational funding from government
      plus Any changes in levels of trading stock inventories
      less Purchases of materials, components and services used in the production of goods for sale.
      less Expenses related to the sale of goods and administrative expenses (excluding indirect taxes such as payroll tax, fringe benefits tax, land tax and land rates)
      plus Own account capital work
      less Capitalised purchases of materials
      equals IVA

Insurance premiums


Refers to expenses incurred by a business in respect of different types of insurance policies. Excluded are workers' compensation and compulsory third party motor vehicle insurance premiums.


Labour costs


Included are wages and salaries, employer contributions into superannuation, workers' compensation premiums/costs, fringe benefits tax and payroll tax.


Operating profit before tax (OPBT)


A measure of profit (or loss) before extraordinary items are brought to account and prior to the deduction of income tax and appropriation to owners. It is derived as:

      Total Income
      plus Closing Inventories
      less Total expenses
      less Opening inventories
      equals OPBT

Other income


Refers to all income items not separately itemised, such as dividend income, funding from Federal, State and Local Government and net profit (loss) on foreign exchange rates, sale of non-current assets and share trading. Extraordinary items are excluded.


Other operating expenses


Refers to all expense items not separately itemised, such as printing and postal charges, motor vehicle running expenses and bank charges. Extraordinary items are excluded.


Payments to contractors and consultants for computing and telecommunication services


Refers to payments to other businesses and self-employed persons for computing and telecommunication services work done or sales made on a contract or commission basis.


Payroll tax


Refers to a tax levied by state and territory governments upon the amount of wages and salaries paid by a business.


Profit margin


Refers to the average proportion contributed by sales of goods and services to the profit of businesses. It is derived as:

      Operating profit before tax
      divided by revenue from sales of goods and services
      times 100
      equals Profit margin

Total expenses


Refers to the sum of all expense items excluding extraordinary items.


Total income


Refers to the sum of all income items excluding extraordinary items.


Wages and salaries


Refers to wages and salaries and selected provisions for employee entitlements. Included are, severance, termination and redundancy payments, bonuses and payments for annual and other types of leave, salaries and fees of directors and retainers and commissions of persons who received a retainer. Payments related to salary sacrifice are excluded.


Workers' compensation premiums/costs


Refers to the compulsory insurance cover to be 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.


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