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 2003-04 is converted into an average annual change, a, as follows:
a = (1 + p)1/3 - 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 three years, then at the end of the three years it will have grown by a total p%.
Bad and doubtful debts
This item represents the amount of accounts receivable which is either written off or estimated to be uncollectable during the current accounting period, and which is charged to profit as an expense in that period. It is net of any previous bad or doubtful debt recovered during the period.
Bank charges other than interest
This item refers to the bank-imposed cost of banking services to the business. It includes bankcard and other credit card charges and excludes Government debit tax and other duties payable to Government.
Bed and breakfast
This item refers to locations which provide accommodation on a room/suite basis. They generally consist of a small number of rooms/suites and provide no meals other than breakfast.
Capital expenditure
This item refers to the cost of outlays for the purchase of assets, including legal fees, real estate transfer costs, assets acquired under finance leases. It also includes capitalised work done by own employees and progress payments made to contractors for capital work done by them.
Capital expenditure on renovations and refurbishments
This item refers to capital expenditure on renovations and refurbishments of existing accommodation premises.
Casual/temporary employees
Casual/temporary employees are those persons employed by the business who are not entitled to paid leave.
Conventions and meetings income
This item represents income from the provision of accommodation, food, beverages, room/equipment hire, etc. specifically for on-site and off-site conventions and meetings.
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 and gas charges
These charges relate to the consumption of electricity and/or gas during the normal operation of the business.
Employees
This item represents all employees on the payroll for the last pay period ending in June 2004. 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 2004. 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 associates of employees) in connection with their employment.
Gambling income
This item refers to income from poker/gaming machines. For businesses operating in Victoria, Tasmania and the Northern Territory, 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.
Holiday parks/caravan parks/camping grounds
This item refers to locations whose main activity is the provision of non-residential accommodation. Holiday parks generally provide a variety of accommodation options, such as caravan park, motel, villa or cabin accommodation. Caravan parks generally provide sites for caravans or mobile homes. Camping grounds generally offer campsites.
Industry value added
Industry value added is an estimate of the difference between the market value of the output of an industry, and the purchases of materials and expenses incurred in the production of that output. For market producers, it has been derived by determining the income associated with the production (in this case, sales of goods and services, changes in level of trading stock inventories, operational funding from government and capital work done by own employees for own use or for rental or lease), and subtracting the direct costs of producing these outputs (purchases of goods and services used in the production of goods for resale and selected expenses related to the sale of goods and to administrative expenses, exclusive of indirect taxes such as payroll tax, fringe benefits tax and land rates).
Insurance premiums
Insurance premiums are expenses incurred by a business 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 taxes
Land tax is an annual tax levied on the owner of the land. This item also includes land rates, which are annual charges levied by local government for the provision of local government services.
Laundry and cleaning services
This item refers to payments to other businesses for the provision of laundry and cleaning services, including the cost of such services recoverable from guests. Laundry services include dry cleaning. Cleaning services include the cleaning of buildings, offices, windows and furniture, but exclude carpet cleaning.
Licensed hotels
This item refers to locations which are licensed to operate a public bar, and which provide accommodation on a room/suite basis, with a bath/shower and toilet in most guest rooms, but which do not have full cooking facilities (i.e. hot plates and oven/microwave) in most guest rooms.
Management fees expenses
This item includes fees and charges paid to related and unrelated businesses for management services, but excludes interest and rent, leasing and hiring expenses.
Management fees income
This item includes income from the provision of management services to related or unrelated businesses.
Motels
This item refers to locations which are not licensed to operate a public bar, and which provide accommodation on a room/suite basis, with a bath/shower and toilet in most guest rooms, but which do not have full cooking facilities (i.e. hot plates and oven/microwave) in most guest rooms.
Operating profit before tax
This item is a measure of profit (or loss) 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 margin
This represents the percentage of businesses' sales of goods and services which becomes profit after all operating expenses have been deducted. It is derived by expressing total operating profit before tax as a percentage of total sales of goods and services.
Other accommodation
This item includes holiday flats, guest houses and student residences.
Other contract, subcontract and commission expenses
This item refers to payments to other businesses and to self-employed persons for work done on a contract or commission basis and not elsewhere covered.
Other services income
This item includes income from catering and other commissions/concessions, contract or subcontract services, consulting services, leisure services, (such as gymnasium and solarium fees) and takings from (non-gaming) coin-operated amusement machines.
Payments to employment agencies for staff
These are payments made to employment agencies for the supply or recruitment of staff.
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 per week or more and are entitled to paid leave.
Permanent part-time employees
This item refers to permanent employees who work less than 35 hours per week and are entitled to paid leave.
Poker/gaming machine and other gambling taxes
This item includes all taxes/levies paid to the government and funds transferred to government bodies in accordance with gambling regulations. These taxes include goods and services tax.
Private caravan parks
See Holiday parks/caravan parks/camping grounds.
Purchases expenses
Purchases expenses represent the cost of non-capitalised goods and related services used in the production of the final output of a business. It includes purchases of liquor and other beverages, foodstuffs for use in preparing meals, other goods for resale, (such as merchandise), and other non-capitalised purchases, (such as guest supplies and replacement items). Contract, subcontract and commission expenses, capitalised purchases, and parts and fuel for motor vehicles are excluded.
Rent, leasing and hiring expenses
These expenses represent the costs of the rent, leasing (excluding finance leases) and hiring of vehicles, land, buildings, machinery, equipment and any other property from other businesses or individuals.
Rent, leasing and hiring income
Rent, leasing and hiring income is revenue derived from the rent, leasing or hiring of assets such as land, buildings, vehicles, machinery or equipment to other businesses or individuals.
Repair and maintenance expenses
This item represents costs associated with work undertaken on plant and machinery, etc., to maintain normal business operations. It includes computer software and hardware repair and maintenance but excludes costs associated with the repair and maintenance of motor vehicles and wages and salaries paid to own employees.
Sale of liquor and other beverages
This item includes income from the sale of beer, wine, spirits, soft drinks (including water), tea, coffee and other beverages. It excludes income from catering commissions/concessions.
Sale of other goods
This item includes income from the sale of such items as confectionery, souvenirs, cigarettes, groceries and food sold in takeaway packs or containers.
Serviced apartments
This item refers to self-contained units with on-site servicing (e.g. cleaning services) available for short-term hire.
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
This item refers to income received from the provision of meals sold for consumption on the premises and from off-premises catering. It excludes income from catering commissions/concessions and from the sale of takeaway food or liquor and other beverages.
Telecommunication services expenses
This item refers to all payments (of a non-capital nature) for telecommunication services which engage wire, cable or radio transmission. It includes the cost of leased lines for computer and Internet services, but excludes installation costs and the cost of leasing telecommunication equipment.
Telecommunication services income
This item refers to income received from the provision of telecommunication services to guests.
Travel agent and frequent flyer commission expenses
This item includes payments made to agents for accommodation bookings and for membership and maintenance of frequent flyer programs.
Visitor hostels
This item refers to locations which provide accommodation to visitors on a bed basis (rather than by room).
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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