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1308.8 - In fACT - Statistical Information on the ACT and Region, Aug 2008  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 20/08/2008   
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Contents >> Economy >> National Accounts

NATIONAL ACCOUNTS

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 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 Theme Page, including upcoming releases and changes.


Gross State Product

GROSS STATE PRODUCT

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

2001-02
14 998.0
6.6
17 916.0
2.9
2002-03
16 459.0
9.7
18 540.0
3.5
2003-04
17 769.0
8.0
18 873.0
1.8
2004-05
18 828.0
6.0
19 334.0
2.4
2005-06
19 994.0
6.2
19 994.0
3.4
2006-07
21 586.0
8.0
20 985.0
5.0

(a) Users are cautioned that these estimates are derived indirectly by calculating a deflator from the expenditure components. 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 2005-06.
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 $21 586m in 2006-07, an increase of 8.0% over 2005-06. GSP increased by 5.0%, from $19 994m to $20 985m in chain volume terms over the same period. In comparison, Australia's GDP increased by 8.2% in current prices and 3.2% in chain volume terms between 2005-06 and 2006-07.

GROSS STATE/DOMESTIC PRODUCT, Per capita

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

2001-02
46 839.0
5.4
55 951.0
1.8
37 677.0
5.3
43 605.0
2.4
2002-03
51 054.0
9.0
57 509.0
2.8
39 574.0
5.0
44 466.0
2.0
2003-04
54 902.0
7.5
58 311.0
1.4
42 092.0
6.4
45 710.0
2.8
2004-05
57 764.0
5.2
59 316.0
1.7
44 368.0
5.4
46 447.0
1.6
2005-06
60 530.0
4.8
60 530.0
2.0
47 136.0
6.2
47 136.0
1.5
2006-07
64 591.0
6.7
62 793.0
3.7
50 264.0
6.6
47 954.0
1.7

(a) Users are cautioned that these estimates are derived indirectly by calculating a deflator from the expenditure components. 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 2005-06.
Source: Australian National Accounts: State Accounts (cat. no. 5220.0).


The ACT's GSP per capita was $64 591 in current prices in 2006-07, an increase of 6.7% over 2005-06 and 28.5% higher than GDP per capita for Australia overall ($50 264).

In chain volume terms, GSP for the ACT was $62 793 per capita, which was 3.7% higher than in 2005-06 ($60 530). GDP per capita for Australia was $47 954 in 2006-07, 1.7% higher than in 2005-06 ($47 136). GSP per capita for the ACT was 30.9% higher than Australia's GDP per capita in 2006-07, and the highest of all states and territories.

INDUSTRY GROSS VALUE ADDED: Chain volume measures - 2006-07

Australian Capital Territory
Australia
$m
$m

Agriculture, forestry and fishing
19
21 298
Mining
3
69 879
Manufacturing
340
101 325
Electricity, gas and water
471
21 811
Construction
1 468
67 363
Wholesale trade
369
46 010
Retail trade
944
56 851
Accommodation, cafes and restaurants
394
20 468
Transport and storage
403
46 262
Communication services
495
25 283
Finance and insurance
711
72 693
Property and business services
2 626
117 591
Government administration and defence
6 014
39 646
Education
1 122
41 755
Health and community services
1 184
58 024
Cultural and recreational services
568
14 852
Personal and other services
540
18 430
Total all industries
19 418
917 739
Dwellings owned by persons
1 748
78 200
Taxes less subsidies on products
1 489
81 295
Statistical Discrepancy (P)
78
-1 520
Gross state/domestic product
20 985
998 274

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

INDUSTRY GROSS VALUE ADDED, Contributions to growth: Chain volume measures - 2006-07
Graph: INDUSTRY GROSS VALUE ADDED, Contributions to growth: ^Chain volume measures—2006–07


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, Government administration and defence contributed the most to the growth of the ACT's GSP in 2006-07, with 1.7 percentage points (34.0%) of the 5% annual growth. The next largest contributor was Dwellings owned by persons, with 0.4 percentage points (8.0%). Australia's largest contributors to the 3.2% of GDP were Mining, Construction and Property and business services, each contributing 0.5 percentage points (15.6%).


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

2001-02
22 627.0
8.1
25 687.0
5.3
734 711.0
7.0
802 303.0
4.4
2002-03
25 469.0
12.6
27 915.0
8.7
796 199.0
8.4
849 594.0
5.9
2003-04
27 158.0
6.6
28 994.0
3.9
856 819.0
7.6
899 404.0
5.9
2004-05
29 387.0
8.2
30 331.0
4.6
915 266.0
6.8
942 173.0
4.8
2005-06
31 832.0
8.3
31 832.0
4.9
981 359.0
7.2
981 359.0
4.2
2006-07
34 802.0
9.3
33 624.0
5.6
1 054 420.0
7.4
1 021 655.0
4.1

(a) Reference year for chain volume measures is 2005 - 06.
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 nearly $34b in 2006-07, and increase of 5.6% over 2005-06. This compares with a 4.1% increase in DFD for Australia.

In current price terms, SFD for the ACT was $35b in 2006-07, an increase of 9.3% over 2005-06. DFD for Australia increased by 7.4% over the same period.

COMPONENTS OF FINAL DEMAND: Current prices - 2006-07

Australian Capital Territory
Australia
$m
$m

Final consumption expenditure
General government
17 773
190 970
Households
11 464
581 873
Gross fixed capital formation
Machinery and equipment
811
74 580
Non-dwelling construction
1 327
66 662
Livestock
-
1 421
Intangible fixed assets
267
13 778
Dwellings
985
64 096
Ownership transfer costs
356
17 973
Private
3 746
238 510
Public
1 820
43 067
State final demand
34 802
-
Domestic final demand
-
1 054 420

- 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 - 2006-07
Graph: COMPONENTS OF FINAL DEMAND, Percentage share: Current prices—2006-07


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 51.0% ($18b) of SFD in the ACT in 2006-07, compared to 18.1% of DFD nationally.

In contrast, HFCE represented 32.9% ($11b) of the total final demand in the ACT, compared to 55.2% 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 2006-07, accounting for 10.8% of SFD in the ACT versus 22.6% 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 39.8% of total final consumption expenditure in the ACT in 2006-07, with general government accounting for 60.2%. These proportions have remained relatively constant over time.

HOUSEHOLD FINAL CONSUMPTION EXPENDITURE: Current prices - 2006-07

Australian Capital Territory
Australia
$m
$m

Food
1 202
64 926
Alcoholic beverages and tobacco
452
22 403
Clothing and footwear
439
21 161
Rent and other dwelling services
2 085
102 205
Electricity, gas and other fuel
354
12 049
Furnishings and other household equipment
760
31 624
Health
414
30 312
Transport
1 147
68 629
Communications
305
16 220
Recreation and culture
1 436
68 632
Education services
358
20 007
Hotels, cafes and restaurants
811
44 331
Miscellaneous goods and services
1 812
79 374
Net expenditure interstate
-112
-
Total(a)
11 464
581 873

- 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 - 2006-07
Graph: HOUSEHOLD FINAL CONSUMPTION EXPENDITURE, Percentage share: ^Current prices—2006-07


In 2006-07 those components of HFCE which took up the largest proportions of total expenditure were consistent between ACT households and households across Australia as a whole: Rent and other dwelling serviceswas the single largest expenditure item (18.2% for the ACT and 17.6% Australia as a whole), followed by Miscellaneous goods and services(15.8% for the ACT versus 13.6% nationally), then Recreation and culture (12.5% and 11.8% respectively).

Expenditure on Communications took up the lowest proportion of HFCE in 2006-07, for the ACT and Australia as a whole. For the ACT it accounted for 2.7% of HFCE, for Australia 2.8%.

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 $3.6b in 2006-07, up 10.7% on the $3.3b spent in 2005-06.

Expenditure on public fixed capital formation, in chain volume terms, was $1.8b, up $163m (9.7%) on 2005-06.

TOTAL FACTOR INCOME: Current prices - 2006-07

Value
% change from previous year
$m
%

Australian Capital Territory

Compensation of employees
13 378
10.9
Gross operating surplus
5 239
1.1
Gross mixed income
1 089
11.3
Total factor income
19 706
8.2

Australia

Compensation of employees
500 899
7.8
Gross operating surplus
345 856
10.7
Gross mixed income
85 551
3.0
Total factor income
932 305
8.4

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 8.2% ($1 615m) in the 2006-07 financial year, to $19 706m. This was close to the national average growth of 8.4% ($7.8b to $9.3b).

Of the components of factor income, Gross mixed income recorded the strongest growth over the previous financial year, at 11.3% ($111m). Compensation of employees also had strong growth, at 10.9% ($1 320m). Gross operating surplus was the weakest, recording 1.1% growth over the previous financial year ($59m). In comparison, at the national level Gross operating surplus had the strongest growth with 10.7% ($3.3b) - Compensation of employees grew by 7.8% ($3.5b), and Gross mixed income by 3.0% ($2 485m).


Gross Household Disposable Income Per Capita

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

2006-07
$

Australian Capital Territory
49 923
New South Wales
31 460
Victoria
31 965
Queensland
28 750
South Australia
28 964
Western Australia
31 562
Tasmania
26 752
Northern Territory
31 980
Australia
31 061

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 2006-07, in current price terms. At $49 923 per capita, this was nearly $18 000 more than the next highest juristiction, the Northern Territory ($31 980) and nearly $19 000 higher than for Australia as a whole. Tasmania recorded the lowest gross household disposable income per capita in 2006-07 ($26 752).

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 June 2007 the trend participation rate for the ACT was 73.1%, versus 64.9% for Australia as a whole.


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