Non-financial corporations sector
3.12. This sector comprises all resident corporations and quasi-corporations mainly engaged in the production of market goods and/or non-financial services (as defined in paragraphs 3.54-3.57), and holding companies (as defined in paragraph 2.21) with mainly non-financial corporations as subsidiaries. Also included are NPIs that mainly engage in market production of goods and non-financial services. These NPIs include those set up by associations of non-financial corporations to mainly provide member corporations with services, for which the members pay directly or by way of regular membership fees.
3.13. For the purposes of sector classification, ancillary corporations are merged with their parent corporation and are therefore included in the non-financial corporations sector if the parent corporation is mainly engaged in production of market goods and/or non-financial services. Ancillary corporations are wholly owned subsidiary corporations that mainly provide services to their parent corporation or other corporations in the same enterprise group.
3.14. The corporations and quasi-corporations in this sector may be controlled by other corporations, households, NPIs, government units or non-resident units.
3.15. Practical circumstances limit the extent to which the ABS includes non-financial quasi-corporations in the non-financial corporations sector. In general, full coverage can be assumed for only the following categories of non-financial quasi-corporations:
- unincorporated enterprises owned by government units which sell output at market rates
- unincorporated partnerships of companies and trading trusts
- unincorporated enterprises controlled by non-resident units
3.16. There are particular difficulties in determining which non-financial unincorporated enterprises owned by households qualify as quasi-corporations. Rather than adopt a piecemeal approach, the ABS does not treat household-operated non-financial unincorporated enterprises as quasi-corporations unless they fall into one of the categories above.
- unincorporated enterprises assessable for income tax purposes as companies.