1308.8 - In fACT - Statistical Information on the ACT and Region, February 2010  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 23/02/2010   
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Contents >> Economy >> National accounts

NATIONAL ACCOUNTS

Introduction

Gross State Product

State Final Demand

Gross Household Disposable Income Per Capita


Introduction

National accounts are designed to provide a systematic summary of national economic activity and at the broad level, reflect key economic flows: production, the distribution of incomes, consumption, saving and investment.

State Accounts are essentially a dissection of the Australian Gross Domestic Product (GDP) estimate, contained in Australian System of National Accounts (cat. no. 5204.0). The state and territory equivalents of GDP are referred to as Gross State Product (GSP) and they are presented annually in Australian National Accounts: State Accounts (cat. no. 5220.0). State estimates of final demand (i.e. State Final Demand) are the only state data available quarterly, in Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0).

Australia’s national accounts statistics are based on the latest international standard for national accounting - the System of National Accounts, 1993 (SNA93). Australia's application of these standards is described in Australian System of National Accounts: Concepts, Sources and Methods (cat. no. 5216.0).

While national estimates are based on the concepts and conventions embodied in SNA93, no such detailed standard is available for sub-national (regional/state) accounts. In the main, the national concepts are applicable to state accounts, but there remain a number of conceptual and measurement issues that either do not apply or are insignificant at the state/territory level. Most issues arise for the Transport and storage, Communication services, and Finance and insurance industries (because production often takes place across state borders) and in the treatment of central government. In such cases, conventions need to be established which reflect data availability and/or the needs of users.

The following information papers provide information on topical issues and recent developments relating to national and state accounts:


The information paper Gross State Product using the Production approach GSP(P) provides detailed information about the methods and sources for the compilation of Gross Value Added (GVA) by industry (including Ownership of dwellings and Taxes less subsidies on products) for each state/territory which was introduced in 2007. This paper should be used in conjunction with Australian System of National Accounts: Concepts, Sources and Methods (cat. no. 5216.0) to gain an understanding of the concepts, sources and methods used to compile the state accounts.

Additional information can also be found on the National Accounts under Topics @ a Glance, including upcoming releases and changes.


Gross State Product

GROSS STATE PRODUCT

Australian Capital Territory
Current price
Chain volume measures(a)
$m
% change
$m
% change

2003-04
18 244
6.0
20 925
1.1
2004-05
19 411
6.4
21 574
3.1
2005-06
20 562
5.9
22 598
4.7
2006-07
22 791
10.8
23 712
4.9
2007-08
24 582
7.9
24 582
3.7
2008-09
25 969
5.6
24 916
1.4

(a) Users are cautioned that these estimates are derived indirectly by calculating a deflator from the expenditure component. It is emphasised that, at times, there may be movements that cannot be fully explained in the chain volume estimates of GSP through the use of the proxy deflator (see paragraphs 30 to 34 of the Explanatory Notes of cat. no. 5220.0). Reference year for chain volume measures is 2007-08.
Source: Australian National Accounts: State Accounts (cat. no. 5220.0).


Gross State Product (GSP) is the state/territory equivalent of GDP for Australia. It represents the total market value of goods and services produced within a state or territory within a given period, after deducting the cost of goods and services used up in the process of production, but before deducting allowances for the consumption of fixed capital.

In current prices, the Australian Capital Territory's (ACT) GSP was $25,969m in 2008-09, an increase of 5.6% over 2007-08. GSP increased by 1.4%, from $24,582m to $24,916m in chain volume terms over the same period. In comparison, Australia's GDP increased by 6.0% in current prices and 1.1% in chain volume terms between 2007-08 and 2008-09.

GROSS STATE PRODUCT AND GROSS DOMESTIC PRODUCT, Per capita - Per capita: Chain volume measures

Australian Capital Territory
Australia
Current prices
Chain volume measures
Current prices
Chain volume measures
$m
% change
$m
% change
$m
% change
$m
% change

2003-04
55 959
5.4
64 181
0.5
43 227
6.2
51 763
2.9
2004-05
59 151
5.7
65 742
2.4
45 722
5.8
52 602
1.6
2005-06
61 861
4.6
67 989
3.4
48 720
6.6
53 446
1.6
2006-07
67 615
9.3
70 345
3.5
52 288
7.3
54 585
2.1
2007-08
71 862
6.3
71 862
2.2
55 650
6.4
55 650
2.0
2008-09
74 658
3.9
71 630
-0.3
57 903
4.0
55 195
-0.8

Source: Australian National Accounts: State Accounts (cat. no. 5220.0).


The ACT's GSP per capita was $74,658 in current prices in 2008-09, an increase of 3.9% over 2007-08 and 28.9% higher than GDP per capita for Australia ($57,903).

In chain volume terms, GSP for the ACT was $71,630 per capita in 2008-09, which was 0.3% lower than in 2007-08 ($71,862). GDP per capita for Australia was $55,195 in 2008-09, 0.8% lower than in 2007-08 ($55,650). GSP per capita for the ACT was 29.8% higher than Australia's GDP per capita in 2008-09 in chain volume terms.

INDUSTRY GROSS VALUE ADDED, Chain volume measures(a) - 2008-09

Australian Capital Territory
Australia
$m
$m

Agriculture, forestry and fishing
18
30 979
Mining
17
80 830
Manufacturing
298
103 139
Electricity, gas, water and waste services
607
27 806
Construction
1 809
81 601
Wholesale trade
326
53 824
Retail trade
740
54 189
Accommodation and food services
522
26 801
Transport, postal and warehousing
573
59 499
Information media and telecommunications
576
34 234
Financial and insurance services
1 382
118 181
Rental, hiring and real estate services(b)
683
36 033
Professional, scientific and technical services
1 410
70 517
Administrative and support services
525
28 182
Public administration and safety
8 780
60 677
Education and training
1 207
48 731
Health care and social assistance
1 174
66 654
Arts and recreation services
361
10 112
Other services
494
21 837
Ownership of dwellings
1 657
85 311
Gross value added at basic prices
23 156
1 099 137
Taxes less subsidies on products
1 655
89 266
Statistical discrepancy (P)
105
6 093
Gross state/domestic product
24 916
1 194 496

(a) Reference year for chain volume measures is 2007-08.
(b) Excludes ownership of dwellings.
Source: Australian National Accounts: State Accounts (cat. no. 5220.0).

INDUSTRY GROSS VALUE ADDED, Contributions to growth - Chain volume measures(a) - 2008-09
Graph: INDUSTRY GROSS VALUE ADDED, Contributions to growth—Chain volume measures(a)—2008-09


GVA is the value of output at basic prices minus the value of intermediate consumption at purchasers' prices. The term is used to describe gross product by industry. State GVA in current prices is not directly compiled so the Australian GVA by industry is allocated to the states using factor income shares. GVA is compiled in volume terms; for most industries an output indicator approach is used to create the chain volume measures of GVA by industry for each of the states and territories.

In chain volume terms, Professional, scientific and technical services contributed the most to the growth of the ACT's GSP in 2008-09, with 0.3 percentage points (21.4%) of the 1.4% annual growth. Australia's largest contributor to the 1.1% growth in GDP was Agriculture, forestry and fishing, at 0.4 percentage points (36.4%).


State Final Demand

STATE/DOMESTIC FINAL DEMAND

Australian Capital Territory
Australia
Current prices
Chain volume measures(a)
Current prices
Chain volume measures(a)
$m
% change
$m
% change
$m
% change
$m
% change

2003-04
27 944
6.1
31 810
4.1
882 425
7.4
995 677
6.0
2004-05
30 361
8.6
33 495
5.3
945 851
7.2
1 042 922
4.7
2005-06
32 549
7.2
35 170
5.0
1 016 335
7.5
1 087 973
4.3
2006-07
38 329
17.8
39 498
12.3
1 101 258
8.4
1 136 632
4.5
2007-08
41 117
7.3
41 117
4.1
1 200 292
9.0
1 200 292
5.6
2008-09
42 523
3.4
41 398
0.7
1 270 026
5.8
1 225 865
2.1

(a) Reference year for chain volume measures is 2008-09.
Source: Australian National Accounts: State Accounts (cat. no. 5220.0).


State Final Demand (SFD) for the individual states and territories is conceptually equivalent to Domestic Final Demand (DFD) for Australia. It is the aggregate obtained by summing government final consumption expenditure, household final consumption expenditure, private gross fixed capital formation and the gross fixed capital formation of public corporations and general government.

In chain volume terms, SFD for the ACT was $41b in 2008-09, an increase of 0.7% over 2007-08. Nationally, there was a 2.1% increase in DFD.

In current price terms, SFD for the ACT was $43b in 2008-09, an increase of 3.4% over 2007-08. DFD for Australia increased by 5.8% over the same period.

COMPONENTS OF FINAL, Current prices - 2008-09

Australian Capital Territory
Australia
$m
$m

Final consumption expenditure
General government
21 786
215 613
Households
13 697
690 695
Gross fixed capital formation
Dwellings
1 038
69 631
Ownership transfer costs
316
14 696
Non-dwelling construction
1 342
86 648
Machinery and equipment
984
92 865
Cultivated biological resources
-
3 097
Intellectual property products
621
31 818
Private
4 302
298 755
Public
2 738
64 964
State/Domestic final demand
42 523
1 270 026

- nil or rounded to zero (including null cells)
Source: Australian National Accounts: State Accounts (cat. no. 5220.0).

COMPONENTS OF FINAL DEMAND, Percentage share: Current prices - 2008-09
Graph: COMPONENTS OF FINAL DEMAND, Percentage share: Current prices—2008-09


Final consumption expenditure is the net expenditure on goods and services by either public authorities (General government final consumption expenditure or GFCE) or persons and private non-profit institutions serving households (Household final consumption expenditure or HFCE). This is expenditure which does not result in the creation of fixed assets or inventories or in the acquisition of land and existing buildings or second-hand assets.

By contrast, gross fixed capital formation (GFCF) measures expenditure on fixed assets, and includes compensation of employees but not repair or maintenance of fixed assets. GFCF is divided into private and public corporations. By splitting final demand into these components, the structural differences between the ACT and Australia can be highlighted. Each of the components displayed in the table Components of Final Demand total to State Final Demand for ACT and Domestic Final Demand for Australia.

In current prices, GFCE represented 51.2% ($22b) of SFD in the ACT in 2008-09, compared to 17.0% of DFD nationally.

In contrast, HFCE represented 32.2% of the total final demand in the ACT, compared to 54.4% of Australia's DFD.

There was also a significant difference in expenditure on private GFCF. It was proportionately lower in the ACT than for Australia as a whole in 2008-09, accounting for 10.1% of SFD in the ACT versus 23.5% of DFD nationally.

FINAL CONSUMPTION EXPENDITURE, Australian Capital Territory: Chain volume measures
Graph: FINAL CONSUMPTION EXPENDITURE, Australian Capital Territory: Chain volume measures


In chain volume terms, HFCE accounted for 38.0% of total final consumption expenditure in the ACT in 2008-09, with GFCE accounting for 62.0%. These proportions have remained relatively constant over time.

HOUSEHOLD FINAL CONSUMPTION EXPENDITURE: Current prices - 2008-09

Australian Capital Territory
Australia
$m
$m

Food
1 397
74 070
Alcoholic beverages and tobacco
540
24 865
Clothing and footwear
416
22 280
Rent and other dwelling services
2 668
126 600
Electricity, gas and other fuel
618
14 810
Furnishings and other household equipment
798
36 000
Health
509
37 487
Transport
1 303
75 574
Communications
324
18 913
Recreation and culture
1 385
76 814
Education services
482
23 246
Hotels, cafes and restaurants
806
47 368
Miscellaneous goods and services
2 515
112 668
Net expenditure interstate
-63
-
Total(a)
13 697
690 695

- nil or rounded to zero (including null cells)
(a) Total for Australia includes net expenditure overseas.
Source: Australian National Accounts: State Accounts (cat. no. 5220.0).

HOUSEHOLD FINAL CONSUMPTION EXPENDITURE, Percentage share: Current prices - 2008-09
Graph: HOUSEHOLD FINAL CONSUMPTION EXPENDITURE, Percentage share: Current prices—2008-09


In 2008-09 those components of HFCE which took up the largest proportions of total expenditure in current prices were consistent between ACT households and households across Australia as a whole: Rent and other dwelling services was the single largest expenditure item (19.5% for the ACT versus 18.3% for Australia), followed by Miscellaneous goods and services (18.4% for the ACT versus 16.3% nationally), while Food (10.2%) was the next largest in the ACT as opposed to Australia which had Recreation and culture as the next largest (11.1%).

Expenditure on Communications took up the lowest proportion of HFCE for the ACT in 2008-09 (2.4%). For Australia it was Electricity, gas and other fuel for Australia (2.1%).

GROSS FIXED CAPITAL FORMATION, Australian Capital Territory - Chain volume measures
Graph: GROSS FIXED CAPITAL FORMATION, Australian Capital Territory—Chain volume measures


The ACT's expenditure on private fixed capital formation, in chain volume terms, was $4.2b in 2008-09, up 3.8% on the $4.1b spent in 2007-08.

Expenditure on public fixed capital formation, in chain volume terms, was $2.7b in 2008-09, down $80m (-2.9%) on 2007-08.

TOTAL FACTOR INCOME: Current prices - 2008-09

Value
% change from previous year
$m
%

Australian Capital Territory

Compensation of employees
16 602
8.3
Gross operating surplus
6 083
2.6
Gross mixed income
1 167
-0.8
Total factor income
23 852
6.3

Australia

Compensation of employees
607 511
5.6
Gross operating surplus
422 065
8.2
Gross mixed income
95 142
1.6
Total factor income
1 124 718
6.2

Source: Australian National Accounts: State Accounts (cat. no. 5220.0).


Total Factor Income (TFI) is that part of the cost of producing the GDP which consists of gross payments to factors of production, these payments being compensation of employees and gross operating surplus. TFI represents the value added by these factors in the process of production and is equivalent to gross state/domestic product less taxes plus subsidies on production, and imports.

TFI for the ACT grew by 6.3% (+$1.4b) in the 2008-09 financial year, to $23.9b. This was in line with the national average growth of 6.2%.

Of the components of TFI, Compensation of employees had the strongest growth over the previous financial year, at 8.3% (+$1.3b). In comparison, at the national level Gross operating surplus had the strongest growth with 8.2%.


Gross Household Disposable Income Per Capita

GROSS HOUSEHOLD DISPOSABLE INCOME PER CAPITA, By states and territories: Current prices

2008-09
$

Australian Capital Territory
54 890
New South Wales
38 541
Victoria
35 886
Queensland
32 898
South Australia
34 053
Western Australia
39 011
Tasmania
33 275
Northern Territory
38 433
Australia
36 602

Source: Australian National Accounts: State Accounts (cat. no. 5220.0).


Gross state product per capita does not measure income received by residents of a particular state or territory because a proportion of income generated in the production process may be transferred to other states/territories or overseas (and conversely income may be received from other states/territories or from overseas). A measure that takes these interstate or overseas flows into account is gross household disposable income per capita.

Households in the ACT recorded the highest level of gross household disposable income per capita of all states and territories in 2008-09, in current price terms. At $54,890 per capita, this was $15,879 more than the next highest jurisdiction, Western Australia ($39,011) and $18,288 higher than for Australia as a whole. Queensland recorded the lowest gross household disposable income per capita in 2008-09 ($32,898).

Differences between states and territories are driven by a number of factors: average wage levels; proportion of the population in employment; the age distribution of the population and differences in the level of dwelling rent, including that imputed to owner occupiers. For example, one reason for the high level recorded for the ACT is the territory's high labour force participation rate - in December 2009 the trend participation rate for the ACT was 72.4%, versus 65.2% for Australia.




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