Data presented in this publication have been compiled from the standard financial accounts of businesses; therefore, the definition of each reported item aligns closely with that adopted in standard business accounting practice. Definitions of particular terms, as used in this publication, are also included. Terms for employment at end of June and derivative items are not included, but will be included with the later release of these data.
The statistical unit used to represent businesses, and for which statistics are reported, in most cases. The ABN unit is the business unit which has registered for an ABN, and thus appears on the ATO administered Australian Business Register. In most cases, the ABN unit represents the legal entity. This unit is suitable for ABS statistical needs when the business is simple in structure. For more significant and diverse businesses where the ABN unit is not suitable for ABS statistical needs, the statistical unit used is the type of activity unit (TAU).
See the entry for fixed capital expenditure.
Acquisitions to disposals
The number of times that the value of assets acquired exceeds the value of disposal of assets, i.e. acquisitions / disposal of assets.
The reported total book value of assets as at the end of the reporting period. Comprises current assets (such as inventories and trade debtors) and non-current assets (such as property, plant and machinery needed for normal operations, capitalised interest, patents, licences and goodwill).
Bad and doubtful debts
Represents the amount of bad and doubtful debts written-off, net of bad and doubtful debts previously written-off but recovered.
Data produced taking into account the quantification of differences in the scope of (usually) consecutive survey population characteristics, thus enabling serial analysis of selected data items. See Appendix 2 for details.
Represents the ABN unit or type of activity unit (TAU) which are the two standard units for each of the 2001-02 and 2002-03 utilities industries collections. For details, see Explanatory Notes paragraphs 4-9.
Business Activity Statement (BAS) total sales
Represented by the form item G1 Total sales on businesses' Business Activity Statements, supplied by them to the ATO. This item comprises all payments and other consideration (including GST) received during the nominated tax period for supplies made in the course of business.
Capital expenditure on dwellings, other buildings and structures
Capital expenditure incurred acquiring dwellings, other buildings and structures, including roads, warehouses, offices, transmission lines, pipelines, pumping stations, dams, bridges, etc.
Capital expenditure on land
Capital expenditure incurred acquiring land.
Capital expenditure on plant, machinery and equipment
Capital expenditure incurred acquiring plant, machinery and other equipment. Note that this category includes the acquisition of motor vehicles.
Goods drawn from inventories for use as fixed tangible assets in capital work done by own employees for own use or for rental or lease.
Capital work done for own use
Capitalised work done by the employees or proprietors of a business in manufacturing, constructing, installing or repairing assets, in mineral and petroleum exploration activities, and the in-house development of computer software, for use by the business or for rental or lease. This work is valued at the capitalised costs of the materials and the wages and salaries involved.
Capitalised wages and salaries
Capitalised payments for work done by own employees in manufacturing, constructing or installing assets, or in developing computer software in-house for use by the business or for rental or lease.
Change in inventories
The value of total closing inventories less total opening inventories.
The value of all inventories of finished goods (including mineral ores), work-in-progress, raw materials, fuels, containers and packaging materials at the end of the reporting period.
Contract, subcontract and commission expenses
Payments to other businesses and self-employed persons for work done or sales made on a contract or commission basis. Payments to persons paid by commission without a retainer are also included. For the electricity supply industry, includes transmission fees, distribution fees, network charges and grid fees. (Pipeline charges are included in freight and cartage expenses).
Cost of sales
The sum of purchases, selected expenses and opening inventories less closing inventories.
The value of closing trading inventories (i.e. at the end of the reporting period) plus the value of other current assets such as cash, short-term deposits, prepayments and short-term loans to employees.
The book value of current liabilities at the end of the reporting period. This includes provisions for taxation, leave, claims, trade creditors and other accounts payable, and bank overdrafts.
The number of times current assets exceed current liabilities, i.e. current assets / current liabilities.
Debt to assets
The percentage of assets financed by debt instead of equity, i.e. (liabilities / assets) x 100.
Depreciation and amortisation
Depreciation/amortisation allowed on buildings and other fixed tangible assets. Includes, for lessees only, depreciation/amortisation in respect of finance leases.
Disposal of assets
Proceeds from the sale of selected tangible assets: land, dwellings, other buildings and structures, plant, machinery and equipment. Includes the disposal of motor vehicles. Excludes intangible assets, such as patents, licences and goodwill.
Earnings before interest and tax (EBIT)
Profit prior to the deduction of interest expenses and income tax.
Electricity supply industry
Comprises businesses classified to ANZSIC Group 361 ELECTRICITY SUPPLY. This group consists of units mainly engaged in the generation, transmission or distribution of electricity. It excludes units mainly engaged in the construction, repair or maintenance of electricity transmission towers or lines, power station buildings or water storage dams, included in Division E CONSTRUCTION.
Employer contributions into superannuation
Includes salary sacrifice. Also includes all employer contributions to superannuation funds (including the employer productivity contribution) and provisions for employer contributions to superannuation funds. Employee contributions are excluded.
The enterprise is an institutional unit comprising:
- a single legal entity or business entity, or
- more than one legal entity or business entity within the same enterprise group and in the same institutional sub-sector (i.e. they are all classified to a single Standard Institutional Sector Classification of Australia (SISCA) sub-sector).
A unit covering all the operations in Australia of one or more legal entities under common ownership and/or control. It covers all the operations in Australia of legal entities which are related in terms of the current Corporations Law (as amended by the Corporations Legislation Amendment Act 1991), including legal entities such as companies, trusts and partnerships. Majority ownership is not required for control to be exercised.
Fixed capital expenditure
Total expenditure on acquiring fixed tangible assets, before deduction of trade-in allowances, and including expenses (except capitalised interest) incurred during the year. Fixed tangible assets include land, dwellings, other buildings and structures, plant, machinery and equipment. Intangible assets such as capitalised exploration expenditure, patents, licences and goodwill are excluded. For further details, see capital expenditure entries.
Freight and cartage expenses
Includes pipeline charges. Excludes the cost of delivery by own vehicles and employees, as well as overseas freight and cartage on goods exported.
Funding from government for operational costs
Funding from federal, state and/or local government for operational costs (e.g. wages and salaries, rent, food). Includes bounties, subsidies, export grants, apprenticeship and traineeship schemes, community service obligation, and amounts reimbursed under the Australian Government's Diesel Fuel Rebate Scheme.
Funding from government for specific capital items
As reported by providers.
Gas supply industry
Comprises businesses classified to ANZSIC Group 362 GAS SUPPLY. This group consists of units mainly engaged in the manufacture of town gas from coal and/or petroleum or in the distribution of manufactured town gas, natural gas or liquefied petroleum gas through a system of mains, including pipelines operated on own account. It excludes units mainly engaged in:
Industry value added (IVA)
- treating natural gas to produce purified natural gas or liquefied hydrocarbon gases, or operating natural gas absorption or separation plants, included in Division B MINING
- manufacturing liquefied petroleum gases in conjunction with petroleum refining, included in Division C MANUFACTURING
- construction, repair or maintenance of gas mains, included in Division E CONSTRUCTION
- wholesaling or retailing liquefied petroleum gas in bottles or bulk (except through a mains system), included in Division F WHOLESALE TRADE
- operating pipelines for the transport of gas on a contract or fee basis, included in Division I TRANSPORT AND STORAGE.
IVA represents the value added by an industry to the intermediate inputs used by the industry. IVA is the measure of the contribution by utilities businesses to gross domestic product.
The derivation of IVA 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|
|less||Intermediate input expenses|
(for details, see the entry for operating expenses)
However, it should be noted that IVA is not a measure of operating profit before tax (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 to selected labour costs
IVA of businesses which operated during the year ended 30 June divided by selected labour costs, i.e. industry value added / selected labour costs.
Premiums for fire, general, accident, public liability, optional third-party and comprehensive motor vehicle insurance, professional indemnity insurance and common law liability.
The number of times that businesses can meet their interest expenses from their earnings before interest and tax, i.e. earnings before interest and tax / interest expenses.
Includes interest paid on loans from banks, finance companies, insurance companies and related or unrelated businesses, and in respect of finance leases.
Includes interest received from bank accounts, loans and finance leases and earnings on discounted bills. Excludes charges between companies in the same TAU.
Intermediate input expenses
For details, see the entry for operating expenses.
Intermediate inputs consist of materials and certain services which are used up in the production process.
The calculation is:
|Intermediate input expenses|
(for details, see the entry for operating expenses)
Inventories - opening/closing
The value of all inventories of finished goods (including mineral ores), work-in-progress, raw materials, fuels, containers, etc. at the beginning and end of the reporting period, respectively.
The reported total book value of liabilities as at the end of the reporting period. Comprises current liabilities (such as trade creditors and provisions for employee entitlements) and non-current liabilities (such as provisions for employee entitlements, bank loans, debentures and unsecured notes). Provisions for employee entitlements include annual leave, leave bonuses, long service leave, and severance, termination and redundancy payments, but exclude fringe benefits and payroll tax, employer contributions to superannuation funds, and workers' compensation costs.
The number of times current assets other than inventories exceed current liabilities, i.e. (current assets - closing inventories) / current liabilities.
For collections prior to 2001-02, the management unit was the highest-level accounting unit within a business, having regard to industry homogeneity, for which accounts were maintained. In nearly all cases, it coincided with the legal entity owning the business (i.e. company, partnership, trust, sole operator, etc.).
Motor vehicle running expenses
Includes expenditure on registration fees, compulsory third-party insurance premiums, fuel and repair and maintenance expenses. Excludes expenses for off-road motor vehicles (e.g. forklifts, mobile plant).
Natural resource royalties expenses
Includes payments under mineral lease arrangements, and resource rent taxes and royalties. Excludes payments for royalties from intellectual property (e.g. patents, copyrights, etc.), which are included under other operating expenses.
Net capital expenditure
The value of total capital expenditure less proceeds received from the disposal of fixed tangible assets.
Net capital expenditure to assets
The percentage of the total book value of assets spent on net capital expenditure, i.e. (net capital expenditure / assets) x 100.
Total assets minus total liabilities, and is equal to the interest of shareholders or other owners in the assets of the business. Also called 'owner's equity'.
The book value of non-current assets at the end of the reporting period. This includes plant and machinery needed for normal operations, capitalised interest, property and goodwill.
The book value of non-current liabilities at the end of the reporting period. This includes provisions for employee entitlements, bank loans, debentures and unsecured notes.
The value of all inventories of finished goods (including mineral ores), work-in-progress, raw materials, fuels, containers and packaging materials at the beginning of the reporting period.
For the purposes of calculating economic and accounting variables for utilities industries, operating expenses incurred by businesses are divided into several categories. However, some expenses are excluded entirely from all such calculations: excluded 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 and foreign exchange losses.
Those expenses used for calculations are categorised as follows:
Intermediate input expenses
This category covers the major expenses incurred by businesses in producing and distributing goods and services (except labour costs), and comprises two sub-categories of operating expenses:
Purchases of goods, materials and services used in production, which include:
Expenses related to the sale of goods and administrative expenses, which include:
- purchases of materials, components, explosives, containers and packaging materials, electricity, fuels and water
- purchases of goods (including electricity, gas and water for distribution) for resale (without any further processing or assembly)
- motor vehicle running expenses
- freight and cartage expenses
- repair and maintenance expenses
- rent, leasing and hiring expenses (excluding finance lease payments)
- contract, subcontract and commission expenses.
Excluded from intermediate input expenses are selected labour costs and other operating expenses as detailed below:
Selected labour costs
- management fees/charges paid to related and unrelated businesses
- bank charges other than interest
- audit and other accounting expenses
- legal fees
- advertising expenses
- postal and telecommunication expenses
- office supplies and printing expenses
- travelling, accommodation and entertainment expenses
- staff training
- payments for royalties from intellectual property (e.g. patents, copyrights, etc.).
Other operating expenses
- wages and salaries (including provisions for employee entitlements)
- employer contributions into superannuation including salary sacrifice
- workers' compensation premiums and other costs.
Some expenses are excluded from the calculation of intermediate input expenses and selected labour costs, but are included in the calculation of the accounting variable operating profit before tax (OPBT). These expenses include:
Operating profit before tax (OPBT)
- 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 tax and land rates
- natural resource royalties expenses
- payroll tax and fringe benefits tax.
Profit before extraordinary items are brought to account and prior to the deduction of income tax and appropriations to owners (e.g. dividends paid).
Includes natural resource royalties income, dividend income and other income such as net profit (or loss) on the sale of fixed tangible assets, net profit (or loss) resulting from variations in foreign exchange rates/transactions, and funding from federal, state and/or local government for specific capital items. It excludes extraordinary profits or losses, i.e. those not associated with the normal operations of the business and of a non-recurring nature.
Other selected expenses
Includes expenditure on management fees/charges paid to related and unrelated businesses, bank charges other than interest, audit and other accounting expenses, legal fees, advertising expenses, postal and telecommunication expenses, office supplies and printing expenses, travelling, accommodation and entertainment expenses, staff training, payments for royalties from intellectual property (e.g. patents, copyrights, etc.), payroll tax, fringe benefits tax, land tax, land rates, and computer software expenses not capitalised.
Purchases and selected expenses
Purchases of goods and materials, rent, leasing and hiring expenses, freight and cartage expenses, motor vehicle running expenses, repair and maintenance expenses, contract, subcontract and commission expenses, and other selected expenses.
Purchases of goods and materials
Purchases of materials, components, explosives, containers, packaging materials, fuels, electricity and water, and purchases of other goods for resale. Also includes capitalised purchases. Excludes purchases of parts and fuels for motor vehicles, apart from fuels for off-road vehicles, such as forklifts and mobile plant, which are included.
For each collection year, 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 (apart from employment) 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 2002-03 collection, a business may have reported data for the year ended 31 December 2002.
Rent, leasing and hiring expenses
Operating lease payments for land, dwellings, other buildings and structures, motor vehicles, plant, machinery and other equipment. Finance lease payments are excluded.
Rent, leasing and hiring income
For details, see the entry for sales and service income.
Repair and maintenance expenses
Includes computer software and hardware maintenance, and repair and maintenance of off-road motor vehicles. Excludes wages and salaries of own employees and the repair and maintenance costs of on-road motor vehicles.
Return on assets
Operating profit before tax as a percentage of the total book value of assets, i.e. (operating profit before tax / assets) x 100.
Return on funds
Earnings before interest and tax (EBIT) as a percentage of the sum of shareholders' funds and non-current liabilities, i.e. EBIT / (net worth + non-current liabilities) x 100.
Sales and service income
Sales of goods
Income from services
- whether or not produced by the business (including goods produced for the business on a commission basis). Includes sales or transfers to related businesses or to overseas branches of the business, progress payments relating to long term contracts if they are billed in the period, delivery charges not separately invoiced to customers, and sales of goods produced by the business from crude materials purchased. Excludes excise and duties received on behalf of the Government, sales of fixed tangible assets, natural resource royalties income, interest income, and delivery charges separately invoiced to customers. Exports are valued free on board (f.o.b.) (i.e. export freight charges are excluded).
- includes income from rates (e.g. water, sewerage, irrigation and drainage rates)
Rent, leasing and hiring income
- includes income from consulting services, repair, maintenance and service income and fees, contract, subcontract and commission income, management fees/charges from related and unrelated businesses, installation charges, delivery charges separately invoiced to customers and royalties from intellectual properties (e.g. patents, copyrights, etc.). For the electricity supply and gas supply industries, also includes transmission and distribution income. Excludes natural resource royalties income, interest income, and delivery charges not separately invoiced to customers.
These are valued net of discounts given and exclusive of goods and services tax (GST). Extraordinary items are also excluded.
- derived from the ownership of land, dwellings, buildings and other structures, motor vehicles, plant, machinery and other equipment. Royalties from intellectual property are also included. Excludes royalties from mineral leases, income from finance leases and payments received under hire purchase arrangements. This item is included in sales and service income, but is not separately published. (Under the current international standards, rent, leasing and hiring income (except from finance leases) is classified as service income.)
Sales and service income to assets
The number of times the value of sales and service income exceeds the value of assets, i.e. sales and service income / assets.
Selected labour costs
See the entry for operating expenses.
Standard Institutional Sector Classification of Australia
The SISCA is the central classification among ABS Standard Economic Sector Classifications. It is based on the System of National Accounts 1993 (SNA93) institutional sector classification, and includes the sectors: non-financial corporations, financial corporations, general government, households, non-profit institutions serving households, and rest of the world (which includes only non-resident units, these being excluded from all other sectors). For more information, users should refer to Standard Economic Sector Classifications of Australia (SESCA) (cat. no. 1218.0).
See the entry for employer contributions into superannuation.
A measure of profit directly attributable to trading in goods and services. It is derived by subtracting the cost of sales from the value of sales and service income plus the value of capitalised purchases.
It should not be inferred that all of this profit is available as surplus as other expenses such as selected labour costs, depreciation, insurance premiums, royalties, bad debts and interest have not been taken into account. Also, other income items such as funding from government and interest income have not been included.
Trading profit margin
Trading profit as a percentage of sales and service income, i.e. (trading profit / sales and service income) x 100.
Type of activity unit (TAU)
The TAU is comprised of one or more business entities, sub-entities or branches of a business entity within an enterprise group that can report production and employment data for similar economic activities. When a minimum set of data items are available, a TAU is created which covers all the operations within an industry subdivision (and the TAU is classified to the relevant subdivision of the ANZSIC). Where a business cannot supply adequate data for each industry, a TAU is formed which contains activity in more than one industry subdivision.
In most cases, TAUs concorded with the management units used prior to the 2001-02 year.
Businesses classified to ANZSIC Division D ELECTRICITY, GAS AND WATER SUPPLY. This division comprises three industry groups: 361 ELECTRICITY SUPPLY, 362 GAS SUPPLY and 370 WATER SUPPLY, SEWERAGE AND DRAINAGE SERVICES. See Explanatory Notes paragraphs 10-17 for details.
Wages and salaries
The gross wages and salaries (including capitalised wages and salaries) of all employees of the business. 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 are also excluded.
Wages and salaries to sales and service income ratio
The wages and salaries paid by utilities industries businesses which operated during the year ended 30 June as a proportion of the sales and service income of utilities industries businesses which operated during the same year.
Water supply, sewerage and drainage services industry
Comprises businesses classified to ANZSIC Group 370 WATER SUPPLY, SEWERAGE AND DRAINAGE SERVICES. This group comprises two classes:
Workers' compensation premiums/costs
- 3701 WATER SUPPLY This class consists of units mainly engaged in the storage, purification or distribution of water, by pipeline or carrier. It includes the operation of irrigation systems concerned with the supply of water to farms, and the supply of steam or hot water. This class excludes units mainly engaged in:
- operating irrigation systems concerned with the distribution of water on farms, included in Division A AGRICULTURE, FORESTRY AND FISHING
- the construction or repair of water storage dams, mains or pumping stations, included in Division E CONSTRUCTION.
- 3702 SEWERAGE AND DRAINAGE SERVICESThis class consists of units mainly engaged in operating sewerage or drainage systems or sewerage treatment plants. It excludes units mainly engaged in the construction or repair of sewerage or storm water drainage systems, included in Division E CONSTRUCTION.
As reported by providers.