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This is the intermediate level within the manufacturing industry division of ANZSIC and is recognised by a three-digit code, e.g. Industry Group 233 for Paper and paper product manufacturing. It gives more detail than the industry subdivision and is created in a way that groups like industry classes together.
This is the broadest level category within the manufacturing industry division of ANZSIC and is recognised by a two-digit code, e.g. Industry Subdivision 23 for Wood and paper product manufacturing. Industry subdivisions are built up from industry groups which, in turn, are built up from industry classes. The following list gives the manufacturing industry subdivision codes and their descriptions:
21 Food, beverage and tobacco mfg
22 Textile, clothing, footwear and leather mfg
23 Wood and paper product mfg
24 Printing, publishing and recorded media
25 Petroleum, coal, chemical and associated product mfg
26 Non-metallic mineral product mfg
27 Metal product mfg
28 Machinery and equipment mfg
29 Other manufacturing
Industry value added (IVA)
IVA represents the value added by an industry to the intermediate inputs used by the industry. Commencing with estimates for 1997-98, IVA has replaced industry gross product (IGP) as the measure of the contribution by manufacturing industries to GDP. See the entry for IGP for an explanation of the differences between IVA and IGP.
The derivation of IVA is as follows:
However, it should be noted that IVA is not a measure of OPBT. 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 (see the entry for operating expenses for further detail).
Industry value added (IVA) per person employed
IVA of manufacturing management units which operated during the year ended 30 June divided by employment at the end of June in the same year.
Intermediate inputs consist of materials and certain services which are used up in the production process. Definitions of relevant component items are also included in this Glossary. It is calculated as:
The management unit is the highest-level accounting unit within a business, having regard to industry homogeneity, for which accounts are maintained. In nearly all cases, it coincides with the legal entity owning the business (i.e. company, partnership, trust, sole proprietorship, etc.). In the case of large diversified businesses, however, there may be more than one management unit, each coinciding with a 'division' or 'line of business'. A division or line of business is recognised where separate and comprehensive accounts are compiled for it. A management unit consists of one or more establishments.
Management units that do not export
Businesses that reported no exports (either by their business or for them by an agent) of goods that they produced.
Management units with exports of more than 50% of sales
Businesses that reported exports (either by their business or for them by an agent) of more than 50% of sales of goods that they produced.
Management units with exports up to and including 50% of sales
Businesses that reported exports (either by their business or for them by an agent) of up to and including 50% of sales of goods that they produced.
An establishment predominantly engaged in manufacturing activities. The data collected for such establishments cover all activities of the establishment (including non-manufacturing activities).
Manufacturing management unit
A management unit predominantly engaged in manufacturing activities. The data collected for such management units cover all activities of the management unit (including non-manufacturing activities).
Net capital expenditure
The value of total capital expenditure less proceeds received from the disposal of assets.
The value of all inventories of finished goods, work-in-progress, raw materials, fuels, containers and packaging at the beginning of the reporting period.
For the purposes of calculating economic and accounting variables for manufacturing industries, operating expenses incurred by businesses are divided into several categories. However, some expenses are excluded entirely from all such calculations. These expenses are extraordinary expenses, capitalised expenses, income tax and other direct taxes, goods and services tax (GST) and excise payable to governments, capital repayments or losses on asset sales, dividends, donations or foreign exchange losses.
Remaining expenses are categorised as follows:
Intermediate input expenses
Intermediate input expenses cover the major expenses incurred by manufacturers in producing and distributing goods and services (except labour costs), namely:
Also included in the calculation of intermediate inputs are advertising expenses, audit and other accounting expenses, bank fees and charges (except interest), cleaning expenses, environmental protection expenses, intellectual property royalty expenses, legal fees, management fees, paper, printing and stationery expenses, postal and telecommunication expenses, staff training expenses, and travelling, accommodation and entertainment expenses.
Excluded from this category are selected labour costs and other operating expenses as defined below:
Selected labour costs
Selected labour costs are:
Other operating expenses
This group of expenses is not included in the calculation of the above economic variables but is included in the calculation of the accounting variable OPBT. Included in this group of expenses are bad and doubtful debts, computer software expenses not capitalised by businesses, depreciation and amortisation, insurance premiums (except workers' compensation and compulsory third party motor vehicle insurance premiums), interest expenses, land rates and taxes, mineral/petroleum exploration expenses not capitalised by businesses, and natural resource royalties expenses.
Other intermediate input expenses
Intermediate input expenses less purchases.
Own account capital work
Work done by the employees or proprietors of a management unit for use by the business or for rental or lease to other businesses that is capitalised. The main types of work included are the manufacturing, constructing, installing or repairing of assets and the in-house development of computer software. This work is valued at the capitalised costs of the materials and the wages and salaries involved.
Conceptually, under the current international standards, this item should also include own account mineral exploration and own account production of iterary, entertainment or artistic originals. However, these activities are relatively unimportant for manufacturers and have not been measured for manufacturing industries.
Purchases of materials, components, containers and packaging materials, electricity, fuels and water, and purchases of goods for resale. The purchase of parts and fuel for motor vehicles run by businesses is excluded.
Businesses are asked to report data for the financial year ended 30 June. However, if a business has a different financial year, it is asked to report for the 12 month period which ends between 1 October of the previous year and 30 September of the current year. This period is then used as a substitute for the financial year ended 30 June. For example, for the 2000-01 collection, a business may have reported data for the year ended 31 December 2000.
Sales and service income
Sales of goods whether or not produced by the business (including goods produced for the business on a commission basis) and income from service activities. Both are valued net of discounts given and exclusive of GST. Sales of goods includes progress payments relating to long term contracts if they are billed in the period and delivery charges not separately invoiced to customers, but excludes excise and duties receivable on behalf of the government. Exports are valued free on board (f.o.b.) (i.e. export freight charges are excluded). Service income includes income from work done or sales made on a commission basis, income from repair, maintenance or servicing, advertising income, installation and delivery charges separately invoiced to customers, and management fees/charges received from related and unrelated businesses. Management units with significant activities in more than one state/territory were asked to report sales and service income for each state/territory in which the business operated.
Under the current international standards, income from intellectual property royalties and rent, leasing and hiring income (except from finance leases) are also classified as service income. Rent, leasing and hiring income is income derived from the ownership of land, buildings, vehicles, machinery or equipment, excluding income from finance leases.
For further explanation on the treatment of commission manufacturing activities, see the entry for commission manufacturing.
Sales and service income per person employed
Sales and service income of manufacturing management units which operated during the year ended 30 June divided by employment at the end of June in the same year.
Sales of goods produced (table 6)
Sales of goods produced by this management unit.
Total capital expenditure
The total capital expenditure on the acquisition of plant, machinery and equipment, dwellings, other buildings and structures, and of other assets (including land and intangible assets). Also included is capitalised work done for own use.
Total disposal of assets
Proceeds received from the disposal of plant, machinery, equipment, land, dwellings, other buildings and structures, and intangible assets.
Sales and service income, funding by federal, state or local governments for operational costs, and capitalised work done by the business' own employees or proprietors for use by the business unit or for rental or lease to other businesses.
Excluded from turnover are interest income, income from natural resource royalties, funding by federal, state or local governments for specific capital items, dividends, and receipts from the sale of fixed tangible assets.
Conceptually, turnover also includes transfers out of goods by establishments. From the 2000-01 collection, data are no longer collected from establishments. Hence, the previously published turnover data item has been replaced by the sales and service income data item.
Note (a): The tables in Appendix 3 show selected data items, including turnover, for manufacturing establishments and management units for 1999-2000. Appendix 3 is designed to provide a bridge between the previous establishment based series and the new manufacturing management unit based series.
Note (b): Turnover data for manufacturing establishments includes transfers to other establishments of the same business. They are valued, for statistical purposes, at commercial value (i.e. the value which would have applied had the establishments concerned been under separate ownership).
Note (c): The turnover data for manufacturing management units shown in the tables in Appendix 3, by definition, exclude transfers out.
Wages and salaries
The gross wages and salaries (including capitalised wages and salaries) of all employees of the business (i.e. management unit). The item 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. The drawings of working proprietors and partners are also excluded. Management units with significant activities in more than one state/territory were asked to report wages and salaries for each state/territory in which the business operated.
Wages and salaries to sales and service income ratio
The wages and salaries paid by manufacturing management units which operated during the year ended 30 June as a proportion of the sales and service income of manufacturing management units which operated during the same year.
Workers' compensation premiums/costs
As reported by providers.
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