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1301.0 - Year Book Australia, 2012  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 24/05/2012   
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National accounts

NATIONAL INCOME, EXPENDITURE AND PRODUCT ACCOUNTS

The Australian national income, expenditure and product accounts are compiled and published each 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).


PRODUCTION ACCOUNT

The production account indicates changes in Australian economic activity over time. Table 30.2 shows annual time series from 2006–07 to 2010–11. Table 30.3 shows expenditure on GDP in volume terms.

In 2010–11, in volume terms (i.e. after the effects of price change are removed from the dollar value of Australia's production), GDP recorded a growth rate of 2.1%.


30.2 PRODUCTION ACCOUNT, Current prices

2006–07
2007–08
2008–09
2009–10
2010–11
$m
$m
$m
$m
$m

Final consumption expenditure
General government
186 689
201 494
220 597
233 697
248 997
Households
606 353
657 717
676 214
712 181
756 144
Total final consumption expenditure
793 042
859 211
896 811
945 878
1 005 141
Gross fixed capital formation
Private
247 653
277 561
283 974
276 406
288 752
Public
51 444
58 797
67 137
79 627
82 668
Total gross fixed capital formation
299 097
336 358
351 111
356 033
371 420
Changes in inventories
2 830
4 733
–3 058
–3 913
5 465
Gross national expenditure
1 094 973
1 200 302
1 244 864
1 298 000
1 382 026
Exports of goods and services
216 795
233 813
284 571
253 762
297 507
less Imports of goods and services
228 702
258 166
277 218
258 383
276 631
Statistical discrepancy(a)
0
0
0
0
–1 733
Gross domestic product
1 083 060
1 175 949
1 252 218
1 293 380
1 401 168
Compensation of employees
527 398
574 581
596 098
618 137
665 951
Gross operating surplus
348 195
383 846
435 943
443 829
486 180
Gross mixed income
92 182
94 527
100 966
103 549
109 944
Total factor income
967 775
1 052 954
1 133 007
1 165 515
1 262 075
Taxes less subsidies on production and imports
115 285
122 995
119 211
127 865
134 699
Statistical discrepancy(b)
0
0
0
0
4 395
Gross domestic product
1 083 060
1 175 949
1 252 218
1 293 380
1 401 168

(a) Expenditure-based.
(b) Income-based.
Source: Australian System of National Accounts, 2010–11 (5204.0).

30.3 EXPENDITURE ON GDP, Volume measures(a)

2006–07
2007–08
2008–09
2009–10
2010–11
$m
$m
$m
$m
$m

Final consumption expenditure
General government
216 468
223 364
229 583
233 697
239 545
Households
663 002
694 206
694 585
712 181
736 733
Total final consumption expenditure
879 529
917 775
924 152
945 878
976 278
Gross fixed capital formation
Private
258 278
284 015
284 483
276 406
287 793
Public
55 532
59 935
64 237
79 627
82 691
Total gross fixed capital formation
313 194
343 308
348 082
356 035
370 484
Domestic final demand
1 191 986
1 261 010
1 272 240
1 301 913
1 346 763
Changes in inventories
3 533
6 121
–2 455
–3 913
5 333
Gross national expenditure
1 192 011
1 263 952
1 267 681
1 298 000
1 352 096
Exports of goods and services
228 442
236 965
241 050
253 762
254 710
less Imports of goods and services
220 778
252 934
244 612
258 383
285 191
Statistical discrepancy(b)
0
0
0
0
–1 558
Gross domestic product
1 201 563
1 246 899
1 263 934
1 293 380
1 320 057

(a) Reference year is 2009–10.
(b) Expenditure-based.
Source: Australian System of National Accounts, 2010–11 (5204.0).


The production 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 30.4 and 30.5 show how the shares of total factor income accruing to compensation of employees and to profits have changed since 1965–66. (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 compensation of employees (COE) share of total factor income was 62% in 1974–75. The COE share in 2010–11 was 53%, steady with the previous year (53%), and one of the lowest levels recorded in the time series presented. The profits share of total factor income has been growing steadily since 1998–99. In 2010–11, the profits share was 28%, the second highest share recorded; the highest was in 2008–09 (29%).

30.4 Compensation of employees share of total factor income


30.5 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 that is not spent in this way is 'saving'. Table 30.6 shows annual time series in current prices from 2006–07 to 2010–11.

Graph 30.7 shows net saving by institutional sector as a proportion of GDP for the years 1965–66 to 2010–11. Household net saving as a percentage of GDP generally fluctuated between 8.6% and 11% between 1965–66 and 1971–72. It then rose to a peak of 13% in 1974–75. The series then generally decreased, eventually reaching its lowest point at 0.3% of GDP in 2002–03. Household net saving as a proportion of GDP remained below 1% until 2005–06, before rising again. By 2010–11, it was 5.4% of GDP and household income exceeded consumption by $76.9 billion (table 30.8).

General government net saving as a proportion of GDP was positive from 1965–66 to 1973–74 before turning negative from 1974–75 to 1996–97 (except for 1988–89). It remained positive from 1997–98 to 2007–08. In 2010–11, general government net saving was negative at –$27.8 billion, while net saving of non-financial corporations was 2.6% of GDP ($36.3b). Net saving of financial corporations has been positive at between 1% and 3% of GDP for virtually all of its history except for 1988–89 and 1989–90, where it rose above 3%. In 2010–11, net saving of financial corporations was 2.5% of GDP ($35.1b).


30.6 NATIONAL INCOME ACCOUNT, Current prices

2006–07
2007–08
2008–09
2009–10
2010–11
$m
$m
$m
$m
$m

INCOME

Compensation of employees
527 398
574 581
596 098
618 137
665 951
Gross operating surplus
348 195
383 846
435 943
443 829
486 180
Gross mixed income
92 182
94 527
100 966
103 549
109 944
Taxes less subsidies on production and imports
115 285
122 995
119 211
127 865
134 699
Net primary income from non-residents
–48 398
–49 986
–46 078
–47 816
–52 437
Gross national income
1 034 662
1 125 963
1 206 140
1 245 564
1 344 337
Net secondary income from non-residents
–305
100
–1 365
–1 956
–2 011
Gross disposable income
1 034 357
1 126 063
1 204 775
1 243 608
1 342 326

USE OF GROSS DISPOSABLE INCOME

Final consumption expenditure
General government
186 689
201 494
220 597
233 697
248 997
Households
606 353
657 717
676 214
712 181
756 144
Total final consumption expenditure
793 042
859 211
896 811
945 878
1 005 141
Net saving(a)
70 625
82 728
109 475
90 688
119 890
Consumption of fixed capital
170 690
184 124
198 489
207 042
217 294
Total use of gross disposable income
1 034 357
1 126 063
1 204 775
1 243 608
1 342 326

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

Source: Australian System of National Accounts, 2010–11 (5204.0).

30.7 Net saving, Relative to 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. Between 2006–07 and 2010–11, Australia's saving and consumption of fixed capital were not sufficient to pay for all the fixed capital needed for Australian production; therefore, 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. Table 30.8 shows the annual time series from 2006–07 to 2010–11 in current prices.

Graph 30.9 shows gross fixed capital formation (investment) by institutional sector as a proportion of GDP. Investment by non-financial corporations generally fell during the mid 1970s but stabilised in the 1980s and 1990s (it has generally been above 10% of GDP). In 2010–11, investment by non-financial corporations was 13% of GDP. Household investment as a proportion of GDP remained steady at around 10% of GDP throughout the time series and in 2010–11, the ratio to GDP was 8.9%. General government investment as a proportion of GDP peaked at 5.4% in 1967–68 and 1968–69, and has generally fallen since then. It was 4.2% of GDP in 2010–11. The highest ever level of financial corporations investment, expressed as a proportion of GDP, was recorded in 1989–90 and 1990–91 (1.8%). It has generally fallen since and was 0.7% of GDP in 2010–11.

Graph 30.10 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.


30.8 NATIONAL CAPITAL ACCOUNT, Current prices

2006–07
2007–08
2008–09
2009–10
2010–11
$m
$m
$m
$m
$m

Net saving
Non-financial corporations
10 138
11 911
40 097
34 401
36 267
Financial corporations
8 886
21 246
23 258
15 155
35 114
General government
31 428
25 017
–30 421
–28 618
-27 788
Households
20 170
24 556
76 539
69 748
76 924
Total national net saving
70 625
82 728
109 475
90 688
119 890
Consumption of fixed capital
170 690
184 124
198 489
207 042
217 294
Net capital transfers receivable from non-residents
142
231
367
287
287
Gross saving and capital transfers
241 173
266 621
307 597
297 443
336 898
Gross fixed capital formation
Private
247 653
277 561
283 974
276 406
288 752
Public corporations
18 986
21 290
23 104
25 484
24 623
General government
32 458
37 507
44 033
54 143
58 045
Total gross fixed capital formation
299 097
336 358
351 111
356 033
371 420
Changes in inventories
Private non-farm
2 477
4 981
–2 242
–5 532
2 657
Farm and public authorities
353
–248
–816
1 619
2 808
Total changes in inventories
2 830
4 733
–3 058
–3 913
5 465
Acquisitions less disposals of non-produced non-financial assets
–423
1
244
4
17
Statistical discrepancy(a)
0
0
0
0
–6 128
Net lending to non-residents
–60 329
–74 471
–40 701
–54 684
–33 876
Total capital accumulation and net lending
241 173
266 621
307 597
297 443
336 898

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

Source: Australian System of National Accounts, 2010–11 (5204.0).


30.9 Investiment, Relative to GDP

30.10 Net lending, Relative to GDP


The household sector has been a net lender for most years since 1965–66. As a proportion of GDP, net lending by households peaked in 1974–75 at 9.6%. Since then it has trended downwards and the household sector changed from a net lender to a net borrower in 1988–89 and 1989–90. Between 1993–94 and 2007–08, it was a net borrower and in 2010–11 household net lending was 2.6%. Non-financial corporations have been net borrowers over the period 1965–66 to 2010–11 (except for between 1991–92 and 1993–94), and the amounts borrowed have fluctuated significantly from year to year. As a proportion of GDP, their net borrowing was 2.8% in 2010–11.

In 2010–11, net lending of financial corporations represented 2.4% of GDP, with the highest recorded level 2.9% in 1988–89. After a record level of borrowing as a proportion of GDP in 1992–93 (6.4%), general government borrowing steadily declined up until 2000–01. From 2002–03 to 2007–08, the sector was a net lender. Since 2008–09, general government has been a net borrower and in 2010–11, its net borrowing represented 5.1% of GDP.


EXTERNAL ACCOUNT

The external account is derived from the detailed balance of payments current and capital accounts (see chapter 31 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. Table 30.11 shows the annual time series in current prices from 2006–07 to 2010–11.

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 (graph 30.12). The only exception to this pattern was in 1972–73. Net borrowing from non-residents, expressed as a proportion of GDP, increased significantly in the early 1980s and has remained at relatively high levels since then. The ratio of net borrowing from overseas to GDP in 2010–11 was 2.4%, down from 4.2% in 2009–10. Graph 30.12 shows net lending to non-residents as a proportion of GDP since 1965–66.


30.11 EXTERNAL ACCOUNT, Current prices

2006–07
2007–08
2008–09
2009–10
2010–11
$m
$m
$m
$m
$m

INCOME ACCOUNT

Income of non-residents
Imports of goods and services
228 702
258 166
277 218
258 383
276 631
Primary income receivable
Compensation of employees
2 794
2 882
3 217
3 239
3 344
Property income receivable
82 531
90 874
85 361
81 389
90 992
Total primary income receivable
85 325
93 756
88 578
84 628
94 336
Secondary income receivable
6 304
6 148
7 571
8 319
8 383
Total income of non-residents
320 331
358 070
373 367
351 330
379 350
Uses of income of non-residents
Exports of goods and services
216 795
233 813
284 571
253 762
297 507
Primary income payable
Compensation of employees
1 564
1 682
1 717
1 704
1 794
Property income payable
35 363
42 088
40 783
35 108
40 105
Total primary income payable
36 927
43 770
42 500
36 812
41 899
Secondary income payable
5 999
6 248
6 206
6 363
6 372
Balance on external income account
60 610
74 239
40 090
54 393
33 572
Total use of income of non-residents
320 331
358 070
373 367
351 330
379 350

CAPITAL ACCOUNT

Balance on external income account
60 610
74 239
40 090
54 393
33 572
Capital transfers receivable
142
231
367
287
287
less Capital transfers payable
Total net capital transfers
142
231
367
287
287
Gross saving and capital transfers
60 752
74 470
40 457
54 680
33 859
Acquisitions less disposals of non-produced non-financial assets
423
–1
–244
–4
–17
Net lending (+) / net borrowing (–)
60 329
74 471
40 701
54 684
33 876
Total capital accumulation and net lending (+) / net borrowing (–)
60 752
74 470
40 457
54 680
33 859

Source: Australian System of National Accounts, 2010–11 (5204.0).

30.12 Net lenting to overseas, Relative to GDP


The growing importance of international trade to the Australian economy is illustrated by graph 30.13, which shows the ratios of exports and imports of goods and services to GDP in current prices since 1965–66. In 2010–11, the imports ratio was 20% and the exports ratio was 21%. Since 2000–01, the volume of imports has grown more strongly, up 120%, compared with 24% growth in the volume of exports.

30.13 Exports and Imports, Relative to GDP

 

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Statistics contained in the Year Book are the most recent available at the time of preparation. In many cases, the ABS website and the websites of other organisations provide access to more recent data. Each Year Book table or graph and the bibliography at the end of each chapter provides hyperlinks to the most up to date data release where available.


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