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1301.0 - Year Book Australia, 2005  
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Contents >> National accounts >> National income, expenditure and product accounts

The Australian national income, expenditure and product accounts are compiled and published in some detail every quarter, in Australian National Accounts: National Income, Expenditure and Product (5206.0), and in greater detail once a year, in Australian System of National Accounts (5204.0).

GDP account

The GDP account indicates changes in Australian production over time. Tables 29.6 and 29.7 show the GDP account in current prices for a number of years between 1965-66 and 2002-03 - table 29.6 shows a series of snapshots at five-yearly intervals to 1990-91, while table 29.7 shows annual time series from 1995-96 to 2002-03. Table 29.8 shows expenditure on GDP in real or chain volume terms.

In real terms (i.e. after the effects of price change are removed from the dollar value of Australia's production), there was a fall in production during 1990-91. Since the recession in 1990-91, GDP has grown in each year. Although growth in 1991-92 was relatively low (0.3%), by 1995-96 it had accelerated to 4.2%, a growth rate which was generally maintained until 1999-2000. GDP growth has fluctuated since then, at 2.0%, 3.9% and 2.8% in 2000-01, 2001-02 and 2002-03 respectively.


29.6 GDP ACCOUNT, Current prices - Five-yearly intervals

1965-66
1970-71
1975-76
1980-81
1985-86
1990-91
$m
$m
$m
$m
$m
$m

Final consumption expenditure
 General government
3,146
5,547
14,715
27,123
49,760
74,663
 Households
13,746
21,515
45,459
84,097
144,502
233,726
 Total final consumption expenditure
16,892
27,062
60,175
111,220
194,263
308,390
Gross fixed capital formation
 Private
5,082
8,388
13,328
29,256
45,959
67,027
 Public
2,040
2,896
6,582
9,926
19,182
23,238
 Total gross fixed capital formation
7,122
11,284
19,910
39,182
65,141
90,267
Changes in inventories
84
586
180
446
870
-1,366
Gross national expenditure
24,098
38,933
80,265
150,849
260,274
397,291
Exports of goods and services
3,136
5,086
11,225
22,604
38,948
66,259
less Imports of goods and services
3,683
5,214
11,163
25,530
47,199
66,948
Statistical discrepancy(a)
-386
-459
-801
-2,023
-3,458
1,283
Gross domestic product
23,164
38,345
79,526
145,900
248,566
397,885
Compensation of employees
11,329
19,320
43,919
75,044
123,434
192,723
Gross operating surplus
5,096
9,175
17,299
36,169
68,337
118,690
Gross mixed income
4,638
6,343
10,704
19,904
28,738
42,545
Total factor income
21,063
34,838
71,922
131,117
220,509
353,958
Taxes less subsidies on production and imports
2,079
3,151
7,895
14,753
27,805
43,407
Statistical discrepancy(b)
22
356
-291
30
252
520
Gross domestic product
23,164
38,345
79,526
145,900
248,566
397,885

(a) Expenditure-based.
(b) Income-based.

Source: Australian System of National Accounts, 2002-03 (5204.0).


29.7 GDP ACCOUNT, Current prices

1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
$m
$m
$m
$m
$m
$m
$m
$m

Final consumption expenditure
General government
92,956
96,173
101,332
108,266
113,305
120,390
127,413
134,311
Households
301,069
314,565
335,102
354,420
374,922
404,271
426,154
452,629
Total final consumption expenditure
394,025
410,738
436,434
462,686
488,226
524,661
553,567
586,940
Gross fixed capital formation
Private
88,029
95,040
108,722
113,721
125,711
120,623
134,452
157,703
Public
23,571
22,550
20,748
25,278
24,898
24,678
26,448
28,268
Total gross fixed capital formation
111,600
117,588
129,473
138,999
150,609
145,301
160,900
185,971
Changes in inventories
-813
-10
62
4,662
1,791
510
1,136
445
Gross national expenditure
504,812
528,316
565,969
606,346
640,626
670,471
715,603
773,356
Exports of goods and services
99,095
105,160
113,744
112,025
126,222
153,854
153,340
148,409
less Imports of goods and services
101,078
103,590
118,482
126,456
140,811
153,205
154,573
167,093
Statistical discrepancy(a)
-
-
-
-
-
-
-
-1,420
Gross domestic product
502,828
529,886
561,229
591,917
626,037
671,120
714,370
753,252
Compensation of employees
241,100
257,968
268,912
286,610
302,116
321,024
337,657
360,012
Gross operating surplus
153,623
162,189
177,700
183,069
196,422
210,279
225,766
240,334
Gross mixed income
49,064
47,969
50,062
52,396
54,272
57,522
65,365
61,683
Total factor income
443,787
468,126
496,674
522,075
552,810
588,825
628,788
662,029
Taxes less subsidies on production and imports
59,041
61,760
64,555
69,842
73,227
82,295
85,582
92,474
Statistical discrepancy(b)
-
-
-
-
-
-
-
-1,251
Gross domestic product
502,828
529,886
561,229
591,917
626,037
671,120
714,370
753,252

(a) Expenditure-based.
(b) Income-based.

Source: Australian System of National Accounts, 2002-03 (5204.0).

29.8 EXPENDITURE ON GDP, Chain volume measures(a)

1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
$m
$m
$m
$m
$m
$m
$m
$m

Final consumption expenditure
General government
108,468
110,031
114,186
118,808
122,278
124,769
127,413
130,616
Households
341,003
350,892
367,713
385,440
401,059
412,726
426,154
443,168
Total final consumption expenditure
449,374
460,858
481,852
504,218
523,315
537,479
553,567
573,784
Gross fixed capital formation
Private
92,976
102,700
116,625
120,731
133,083
122,189
134,452
155,965
Public
23,720
23,132
21,231
25,473
25,252
24,712
26,448
28,187
Total gross fixed capital formation
114,017
123,050
135,087
144,366
156,052
146,076
160,899
184,149
Domestic final demand
565,572
586,478
619,494
650,426
681,730
684,307
714,467
757,936
Changes in inventories
-255
-821
-28
5,397
3,721
1,210
1,136
520
Gross national expenditure
562,312
583,144
616,018
652,186
682,062
683,923
715,603
758,456
Exports of goods and services
112,701
124,514
129,113
131,743
144,373
154,975
153,340
152,435
less Imports of goods and services
107,311
117,967
129,436
135,685
153,126
151,191
154,573
175,319
Statistical discrepancy(b)
-
-
-
-
-
-
-
-1,363
Gross domestic product
569,125
590,471
616,805
649,550
673,944
687,720
714,370
734,209

(a) Reference year is 2001-02.
(b) Expenditure-based.

Source: Australian System of National Accounts, 2002-03 (5204.0).


The GDP account can also be used to show changes in the share of income accruing to labour (i.e. compensation of employees) compared with the share accruing to capital (i.e. profits, defined as the gross operating surplus of non-financial and financial corporations). Graphs 29.9 and 29.10 show how the shares of total factor income accruing to wages and to profits have changed since 1966-67. (Total factor income is equal to the sum of compensation of employees, gross operating surplus and gross mixed income.)

The highest recorded value of the wages share of total factor income was 61.5% in 1974-75. The wages share has recovered somewhat from its low value of 52.8% in 1988-89, but at 54.4% for 2002-03 it remains below the level recorded for most of the 1970s and early-1980s. In 2002-03 the profits share of total factor income of 25.0% for private and public corporations is the highest recorded value.

Graph 29.9: WAGES SHARE OF TOTAL FACTOR INCOME



Graph 29.10: PROFITS SHARE OF TOTAL FACTOR INCOME


National income account

The national income account shows the sources of national income and how much of this income is spent on final consumption. That part of income which is not spent in this way is saving. Tables 29.11 and 29.12 show the income account for a number of years between 1965-66 and 2002-03 - table 29.11 shows a series of snapshots at five-yearly intervals to 1990-91, while table 29.12 shows annual time series from 1995-96 to 2002-03.


29.11 NATIONAL INCOME ACCOUNT, Current prices - Five-yearly intervals

1965-66
1970-71
1975-76
1980-81
1985-86
1990-91
$m
$m
$m
$m
$m
$m

INCOME

Compensation of Employees
11,329
19,320
43,919
75,044
123,434
192,723
Gross operating surplus
5,096
9,175
17,299
36,169
68,337
118,690
Gross mixed income
4,638
6,343
10,704
19,904
28,738
42,545
Taxes less subsidies on production and imports
2,079
3,151
7,895
14,753
27,805
43,407
Net primary income from non-residents
-308
-600
-1,202
-2,397
-6,853
-17,224
Gross national income
22,834
37,389
78,615
143,473
241,461
380,141
Net secondary income from non-residents
-90
-110
-287
-441
-384
453
Gross disposable income
22,744
37,279
78,328
143,032
241,077
380,594

USE OF DISPOSABLE INCOME

Final consumption expenditure
General government
3,146
5,547
14,715
27,123
49,760
74,663
Households
13,746
21,515
45,459
84,097
144,502
233,726
Total final consumption expenditure
16,892
27,062
60,175
111,220
194,263
308,390
Net saving(a)
1,917
3,751
5,980
9,690
7,379
7,826
Consumption of fixed capital
3,933
6,466
12,169
22,134
39,435
64,378
Total use of gross disposable income
22,744
37,279
78,328
143,032
241,077
380,594

(a) Net saving is derived as a balancing item.

Source: Australian System of National Accounts, 2002-03 (5204.0)


29.12 NATIONAL INCOME ACCOUNT, Current prices

1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
$m
$m
$m
$m
$m
$m
$m
$m

INCOME

Compensation of Employees
241,100
257,968
268,912
286,610
302,116
321,024
337,657
360,012
Gross operating surplus
153,623
162,189
177,700
183,069
196,422
210,279
225,766
240,334
Gross mixed income
49,064
47,969
50,062
52,396
54,272
57,522
65,365
61,683
Taxes less subsidies on production and imports
59,041
61,760
64,555
69,842
73,227
82,295
85,582
92,474
Net primary income from non-residents
-19,533
-19,151
-18,091
-18,430
-18,249
-19,241
-20,273
-22,555
Gross national income
483,295
510,735
543,138
573,487
607,788
651,879
694,097
731,948
Net secondary income from non-residents
64
-21
22
-749
218
32
-17
-220
Gross disposable income
483,359
510,714
543,160
572,738
608,006
651,911
694,080
731,728

USE OF DISPOSABLE INCOME

Final consumption expenditure
General government
92,956
96,173
101,332
108,266
113,305
120,390
127,413
134,311
Households
301,069
314,565
335,102
354,420
374,922
404,271
426,154
452,629
Total final consumption expenditure
394,025
410,738
436,434
462,686
488,226
524,661
553,567
586,940
Net saving(a)
10,750
19,646
20,654
18,837
21,705
20,925
25,724
23,178
Consumption of fixed capital
78,584
80,330
86,072
91,215
98,075
106,325
114,789
121,610
Total use of gross disposable income
483,359
510,714
543,160
572,738
608,006
651,911
694,080
731,728

(a) Net saving is derived as a balancing item.

Source: Australian System of National Accounts, 2002-03 (5204.0).


Graph 29.13 shows net saving by institutional sector as a proportion of GDP for the years 1966-67 to 2002-03. Household net saving as a percentage of GDP generally rose between 1966-67 and 1974-75, but has fallen subsequently from its high of 11.1% in 1974-75 to a position in 2002-03 where, for the first time, consumption by households exceeded income and, consequently, household net saving was negative (-$11.0b) (table 29.15). General government net saving was negative from 1975-76 to 1996-97 (except for 1988-89 and 1989-90). In 2002-03 it was positive at 1.8% ($13.3b). In 2002-03 net saving of non-financial corporations was 1.2% of GDP ($8.9b). Net saving of financial corporations was negative from 1982-83 to 1986-87, the only period for which this sector has recorded negative net saving. In 2002-03 net saving of financial corporations was 1.6% of GDP ($11.9b).

Graph 29.13: NET SAVING, By sector - Share of GDP


National capital account

The national capital account shows how the saving from the national income account and consumption of fixed capital (depreciation) are used to finance gross fixed capital formation. If, as is currently the case for Australia, the nation's saving and consumption of fixed capital are not sufficient to pay for all the fixed capital needed for Australian production, the shortfall must be borrowed from overseas. The amount borrowed from overseas is shown in the national capital account as a negative entry for net lending to non-residents.

Tables 29.14 and 29.15 show the national capital account for a number of years between 1965-66 and 2002-03 - table 29.14 shows a series of snapshots at five-yearly intervals to 1990-91, while table 29.15 shows annual time series from 1995-96 to 2002-03.


29.14 NATIONAL CAPITAL ACCOUNT, Current prices - Five-yearly intervals

1965-66
1970-71
1975-76
1980-81
1985-86
1990-91
$m
$m
$m
$m
$m
$m

Net saving
Non-financial corporations
259
319
-1,629
100
1,427
-9,324
Financial corporations
131
278
733
308
-1,868
4,592
General government
267
551
-751
-3,174
-9,153
-6,387
Households
1,260
2,603
7,628
12,456
16,974
18,946
Total net saving
1,917
3,751
5,980
9,690
7,379
7,826
Consumption of fixed capital
3,933
6,466
12,169
22,134
39,435
64,378
Net capital transfers receivable from non-residents
46
56
-27
167
830
2,071
Gross saving and capital transfers
6,250
10,908
18,861
32,343
47,301
74,276
Gross fixed capital formation
Private
5,082
8,388
13,328
29,256
45,959
67,027
Public corporations
951
1,371
2,790
5,584
10,664
12,271
General government
1,089
1,525
3,792
4,342
8,518
10,967
Total gross fixed capital formation
7,122
11,284
19,910
39,182
65,141
90,267
Changes in inventories
Private non-farm
147
366
91
115
882
-1,125
Farm and public authorities
-63
220
89
331
-12
-241
Total changes in inventories
84
586
180
446
870
-1,366
Acquisitions less disposals of non-produced non-financial assets
-
-
-
-
-
-7
Statistical discrepancy(a)
-409
-815
-510
-2,053
-3,710
763
Net lending to non-residents
-899
-782
-1,454
-5,597
-14,658
-15,382
Total capital accumulation and net lending
6,250
10,908
18,861
32,343
47,301
74,276

(a) Expenditure-based discrepancy less income-based discrepancy.

Source: Australian System of National Accounts, 2002-03 (5204.0).


29.15 NATIONAL CAPITAL ACCOUNT, Current prices

1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
$m
$m
$m
$m
$m
$m
$m
$m

Net saving
Non-financial corporations
4,125
1,994
4,253
-721
-6,928
-4,417
10,505
8,917
Financial corporations
3,073
2,076
4,234
679
4,892
9,414
6,556
11,946
General government
-11,738
-2,996
4,082
10,333
17,367
1,916
3,110
13,324
Households
15,290
18,572
8,085
8,546
6,373
14,012
5,553
-11,009
Total net saving
10,750
19,646
20,654
18,837
21,705
20,925
25,724
23,178
Consumption of fixed capital
78,584
80,330
86,072
91,215
98,075
106,325
114,789
121,610
Net capital transfers receivable from non-residents
1,045
1,323
1,097
1,186
1,136
1,182
1,186
1,431
Gross saving and capital transfers
90,379
101,299
107,823
111,237
120,915
128,433
141,699
146,219
Gross fixed capital formation
Private
88,029
95,040
108,722
113,721
125,711
120,623
134,452
157,703
Public corporations
11,322
9,525
8,013
11,621
9,018
8,600
10,020
10,702
General government
12,249
13,025
12,735
13,658
15,879
16,078
16,429
17,566
Total gross fixed capital formation
111,600
117,588
129,473
138,999
150,609
145,301
160,900
185,971
Changes in inventories
Private non-farm
-487
2,402
-418
4,675
1,864
1,047
910
1,241
Farm and public authorities
-326
-2,412
480
-13
-73
-537
226
-796
Total changes in inventories
-813
-10
62
4,662
1,791
510
1,136
445
Acquisitions less disposals of non-produced non-financial assets
-25
6
-30
19
83
73
170
133
Statistical discrepancy(a)
-
-
-
-
-
-
-
-169
Net lending to non-residents
-20,382
-16,285
-21,680
-32,443
-31,567
-17,451
-20,507
-40,161
Total capital accumulation and net lending
90,379
101,299
107,823
111,237
120,915
128,433
141,699
146,219

(a) Expenditure-based discrepancy less income-based discrepancy.

Source: Australian System of National Accounts, 2002-03 (5204.0).


Graph 29.16 shows gross fixed capital formation (investment) by institutional sector as a proportion of GDP. For non-financial corporations this proportion generally fell during the 1970s, then rose to a peak of 13.1% in 1981-82. It has subsequently been above 10% except for the years 1991-92 to 1993-94, and in 2000-01. In 2002-03 investment by non-financial corporations was 11.2% of GDP. Household investment has generally remained at around 9% of GDP but rose sharply in 2002-03 to 10.3%. General government investment as a proportion of GDP peaked at 4.8% in 1975-76. It has generally fallen since and was 2.3% of GDP in 2002-03. Financial corporations investment peaked in 1989-90 at 1.9% of GDP, and was 0.9% of GDP in 2002-03.

Graph 29.16: GROSS FIXED CAPITAL FORMATION, By sector - Share of GDP



Graph 29.17 shows net lending by institutional sector as a proportion of GDP. A positive percentage for a sector indicates that it is a net lender to other sectors; a negative percentage indicates that it is a net borrower. The household sector has been a net lender for most years. As a proportion of GDP, net lending by households peaked in 1974-75 at 8.4%. Since then it has trended downwards, household lending being -5.2% in 2002-03. Non-financial corporations have been net borrowers over the whole period from 1965-66 to 2002-03, and the amounts borrowed have fluctuated significantly from year to year. As a proportion of GDP, their net borrowing was 2.5% in 2002-03. After being a net borrower throughout the 1980s, the financial corporations sector returned to being a net lender in 1990-91 and has remained so since then. In 2002-03 financial corporations net lending represented 1.5% of GDP. After recording a record level of borrowing in 1992-93 as a proportion of GDP (6.4%), general government borrowing steadily declined. In 1997-98 the sector became a net lender except for 2000-01 and 2001-02 when it became a net borrower again. In 2002-03 general government net borrowing represented 0.8% of GDP.

Graph 29.17: NET LENDING, By sector - Share of GDP



External account

The external account is derived from the detailed balance of payments current and capital accounts (see Chapter 30 International accounts and trade). It shows Australia's exports and imports, incomes and transfers received by Australian residents from non-residents, and incomes and transfers payable to non-residents by Australian residents. The balance on the external account is net lending to non-residents. This is the same as the balance in the national capital account.

Tables 29.18 and 29.19 show the external account for a number of years between 1965-66 and 2002-03 - table 29.18 shows a series of snapshots at five-yearly intervals to 1990-91, while table 29.19 shows annual time series from 1995-96 to 2002-03.


29.18 EXTERNAL ACCOUNT, Current Prices - Five-yearly intervals

1965-66
1970-71
1975-76
1980-81
1985-86
1990-91
$m
$m
$m
$m
$m
$m

Imports of goods and services
3,683
5,214
11,163
25,530
47,199
66,948
Primary income receivable
Compensation of employees
11
17
44
110
164
429
Property income
400
760
1,587
3,147
8,879
20,552
Total primary income receivable
411
777
1,631
3,257
9,043
20,981
Secondary Income
169
358
773
1,264
1,797
2,422
Capital transfers to non-residents
40
78
203
320
486
653
Acquisitions less disposals of non-produced non-financial assets
-
-
-
-
-
-7
Net lending
-899
-782
-1,454
-5,597
-14,658
-15,382
Resources provided by non-residents
3,404
5,645
12,316
24,774
43,867
75,615
Exports of goods and services
3,136
5,086
11,225
22,604
38,948
66,259
Primary income payable
Compensation of employees
10
13
59
119
165
432
Property income
93
164
370
741
2,025
3,325
Total primary income payable
103
177
429
860
2,190
3,757
Secondary income payable
79
248
486
823
1,413
2,875
Capital transfers from non-residents
86
134
176
487
1,316
2,724
Resources provided to non-residents
3,404
5,645
12,316
24,774
43,867
75,615

Source: Australian System of National Accounts, 2002-03 (5204.0).


29.19 EXTERNAL ACCOUNT, Current prices

1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
$m
$m
$m
$m
$m
$m
$m
$m

Imports of goods and services
101,078
103,590
118,482
126,456
140,811
153,205
154,573
167,093
Primary income receivable
Compensation of employees
458
539
792
854
963
1,065
1,054
877
Property income
26,215
27,175
27,683
27,864
31,055
34,379
34,366
35,772
Total primary income receivable
26,673
27,714
28,475
28,718
32,018
35,444
35,420
36,649
Secondary Income
3,228
3,561
3,971
5,247
4,407
4,421
4,297
4,453
Capital transfers to non-residents
907
877
971
1,011
1,199
1,260
1,357
1,293
Acquisitions less disposals of non-produced non-financial assets
-25
6
-30
19
83
73
170
133
Net lending
-20,382
-16,285
-21,680
-32,443
-31,567
-17,451
-20,507
-40,161
Resources provided by non-residents
111,479
119,463
130,189
129,008
146,763
176,609
174,260
168,320
Exports of goods and services
99,095
105,160
113,744
112,025
126,222
153,854
153,340
148,409
Primary income payable
Compensation of employees
610
678
747
797
826
896
878
897
Property income
6,530
7,885
9,637
9,491
12,943
15,307
14,269
13,197
Total primary income payable
7,140
8,563
10,384
10,288
13,769
16,203
15,147
14,094
Secondary income payable
3,292
3,540
3,993
4,498
4,625
4,453
4,280
4,233
Capital transfers from non-residents
1,952
2,200
2,068
2,197
2,335
2,442
2,543
2,724
Resources provided to non-residents
111,479
119,463
130,189
129,008
146,763
176,609
174,260
168,320

Source: Australian System of National Accounts, 2002-03 (5204.0).


Australia has generally been a net borrower of funds from overseas. In the national accounts, this situation is reflected by a negative value for net lending to non-residents. The only exception to this pattern was in 1972-73 when Australia was a net lender to non-residents. Net borrowing from non-residents (i.e. negative net lending to non-residents), expressed as a proportion of GDP, increased significantly during the early-1980s and has remained at relatively high levels since then. Graph 29.20 shows net lending to non-residents as a proportion of GDP since 1966-67.

Graph 29.20: NET LENDING TO NON-RESIDENTS, Share of GDP


The importance of foreign trade to the Australian economy is illustrated by graph 29.21, which shows the ratios of exports and imports of goods and services to GDP for the financial years 1966-67 to 2002-03. In 2002-03 the import ratio was 22.2% and the export ratio was 19.7%.

Graph 29.21: EXPORTS AND IMPORTS, Share of GDP


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