A1A.5.

The economic type framework (ETF) is the primary framework that is used to classify flows (transactions, holding gains and losses and other volume changes) and stocks (assets and liabilities) according to their economic nature in GFS. The structure of the ETF is hierarchical, and consists of a 1-digit level (division), a 2-digit level (subdivision), a 3-digit level (group), and a 4-digit level (class). The divisions reflect the primary financial statements of the government at the broadest level and the subdivisions describe the major components that form part of each financial statement. Each group and class details the assets, liabilities, revenues and expenses which comprise each subdivision. The divisions are comprised of:

• revenue and expenses (ETF 1);
• statement of sources and uses of cash (ETF 2);
• transactions in financial assets and liabilities (ETF 3);
• transactions in non-financial assets (excluding depreciation) (ETF 4);
• other economic flows of assets and liabilities (ETF 5);
• intra-unit transfers (ETF 6);
• supplementary information (ETF 7); and
• balance sheet (ETF 8).

A1A.6.

The ETF is shown in Table A1A.5 below.

A1A.7.

Revenue and expenses (ETF 1) is the part of the ETF framework that records the revenue and expenses of public sector units in GFS. The full classification of revenue and expenses is shown in Table A1A.6 below:

A1A.8. 

Revenue (ETF 11) consists of all increases in net worth resulting from transactions. Revenue transactions have counterpart entries either in an increase in assets, or a decrease in liabilities, increasing net worth. This category is further classified into:

• taxation revenue (ETF 111);
• sales of goods and services (ETF 112);
• property income (ETF 113);
• other current revenue (ETF 114); and
• capital revenue (ETF 115).

A1A.9.

Taxation revenue (ETF 111) consists of compulsory, unrequited amounts receivable by government units from institutional units. Taxation revenue can be receivable in cash or in kind. It is considered to be unrequited because the government provides nothing directly to the individual unit in exchange for the payment. Governments may use the taxation revenue to provide goods or services to other units, either individually or collectively, or to the community as a whole. This category is further classified into:

• taxes on income (ETF 1111, TC, SDC);
• other current taxes (ETF 1112, TC, SDC);
• taxes on products (ETF 1113, TC, SDC);
• other taxes on production (ETF 1114, TC, SDC); and
• capital taxes (ETF 1115, TC, SDC).

A1A.10.

Taxes on income (ETF 1111, TC, SDC) consists of taxes on income, profits and capital gains which include taxes assessed on the actual or presumed incomes of institutional units. The relevant taxes classification (TC) codes are:

• personal income tax (TC 111, SDC);
• government health insurance levy (TC 112, SDC);
• mining withholding tax (TC 113, SDC);
• capital gains tax on individuals (TC 114, SDC);
• prescribed payments by individuals (TC 115, SDC);
• income and capital gains taxes levied on individuals not elsewhere classified (TC 119, SDC);
• company income tax (TC 121, SDC);
• income tax paid by superannuation funds (TC 122, SDC);
• capital gains taxes on enterprises (TC 123, SDC);
• prescribed payments by enterprises (TC 124, SDC);
• income and capital gains taxes levied on enterprises not elsewhere classified (TC 129, SDC);
• dividend withholding tax (TC 131, SDC);
• interest withholding tax (TC 132, SDC); and
• income taxes levied on non-residents not elsewhere classified (TC 139, SDC).

Includes:  Taxes assessed on holdings of property, land or real estate when these holdings are used as a basis for estimating the income of their owners; taxes on individual or household income such as personal income taxes and surtaxes; taxes on the income of the owners of unincorporated enterprises; income taxes on the income of family estates and trusts; taxes on the income of corporations such as corporate income taxes, corporate profits taxes and corporate surtaxes; taxes on the income of units such as partnerships, sole proprietorships and estates; taxes on capital gains (including capital gains distributions of investment funds) of persons or corporations that become payable during the current reporting period; taxes on winnings from lotteries or gambling; income taxes levied on non-residents; taxes on immovable property such as land, buildings and other structures that are levied on the basis of a presumed net income; taxes on the use of property for residence where the tax is payable by either proprietor or tenant and the amount payable is a function of the user’s personal circumstances such as net income or the number of dependents.

Excludes:   Taxes on the turnover of producers that organise gambling or lotteries (classified to taxes on products (ETF 113), taxes on gambling (TC 44), SDC).

A1A.11.

Other current taxes (ETF 1112, TC, SDC) consists of current taxes on capital and miscellaneous current taxes other than taxes on income, taxes on products and other taxes on production. Current taxes on capital consists of those taxes that are periodically payable on the property or net wealth of institutional units not used by them for production. Miscellaneous current taxes consists of various different kinds of taxes payable periodically. The relevant taxes classification (TC) codes are:

• fringe benefits tax (TC 116, SDC);
• stamp duty on vehicle registration (TC 511, SDC 913);
• heavy vehicle registration fees and taxes (TC 513, SDC 913);
• other vehicle registration fees and taxes (TC 514, SDC 913);
• motor vehicle taxes not elsewhere classified (TC 519, SDC 913); and
• departure tax (TC 533, SDC 913).

Includes:   Vehicle registration fees and taxes payable by persons or households; stamp duty on vehicle registration payable by persons or households; recurrent gross taxes on personal property, jewellery, cattle, other livestock, other particular items of property and external signs of wealth.

Excludes:   Drivers’ licences (classified to administrative fees (ETF 1122, COFOG-A, SDC); broadcasting listeners’ licences (classified to administrative fees (ETF 1122, COFOG-A, SDC); television viewers’ licences (classified to administrative fees (ETF 1122, COFOG-A, SDC).

A1A.12.

Taxes on products (ETF 1113, TC, SDC) consists of taxes that are levied as a product specific unit tax. These taxes are levied per unit of quantity or price per unit of goods and services produced, sold, imported, exported, transferred, leased or delivered. They may be a specific amount per unit of quantity measured either in terms of discrete units or continuous physical variable such as volume, weigh or time or they may be a specific percentage of the price per unit. The relevant taxes classification (TC) codes are:

• general taxes on provision of goods and services (TC 41, SDC);
• excises (TC 42, SDC);
• taxes on international trade (TC 43, SDC);
• taxes on gambling (TC 44, SDC);
• taxes on insurance (TC 45, SDC); and
• taxes on financial and capital transactions (TC 46, SDC).

Includes:   General taxes on provision of goods and services whether levied at manufacturer/producer, wholesale or retail level; value-added taxes; sales taxes; turnover and other general taxes on goods and services; excises; taxes on international trade; taxes on gambling; taxes on insurance; taxes on financial and capital transactions; taxes on the use of one’s own property for special trading purposes such as selling alcohol, tobacco or meat.

A1A.13.

Other taxes on production (ETF 1114, TC, SDC) consists of taxes on production other than taxes on products. These taxes are levied as a result of enterprises engaging in the production of goods and services and they are payable irrespective of the profitability of the production. They may be payable on the labour, fixed produced assets and land used in the production process.

The relevant taxes classification (TC) codes are:

• general payroll taxes (TC 211, SDC);
• superannuation guarantee charge (TC 221, SDC);
• other taxes on employers' payroll and labour force not elsewhere classified (TC 299, SDC);
• taxes on immovable property (TC 31, SDC);
• stamp duty on vehicle registration (TC 511, SDC other than SDC 913)
• road transport and maintenance taxes (TC 512, SDC);
• heavy vehicle registration fees and taxes (TC 513, SDC other than SDC 913);
• other vehicle registration fees and taxes (TC 514, SDC other than SDC 913);
• motor vehicle taxes not elsewhere classified (TC 519, SDC other than SDC 913);
• franchise taxes (TC 52, SDC);
• broadcasting station licences (TC 531, SDC);
• television station licenses (TC 532, SDC);
• departure tax (TC 533, SDC other than SDC 913);
• clean energy and related taxes (TC 534, SDC);
• taxes on the use of goods and performance of activities levied on non-residents (TC 535, SDC); and
• other taxes on the use of goods and performance of activities not elsewhere classified (TC 539, SDC).

Includes:   Taxes on employer’s payroll or workforce; taxes on the use or ownership of immovable property such as land, buildings and other structures; registration taxes on vehicles used by producers; road transport and maintenance taxes; franchise taxes; broadcasting station licences; television station licences; taxes on construction, enlargement or alteration of all buildings or those whose value or use density exceeds a certain threshold; taxes on exploitation of natural resources such as land and subsoil assets not owned by government units, including taxes on extraction and exploitation of minerals and other resources; payments for licences that allow the beneficiary to carry out the business of exploitation of land and subsoil assets.

Excludes:   Betterment levies (classified to capital taxes (ETF 1115, TC, SDC).

A1A.14.

Capital taxes (ETF 1115, TC, SDC) consists of capital levies and taxes on capital transfers. Capital levies are imposed at irregular and infrequent intervals on the value of assets or net worth owned by institutional units. Taxes on capital transfers are imposed at irregular and infrequent intervals on the value of assets transferred between institutional units as a result of legacies, gifts or other transfers. The relevant taxes classification (TC) codes are:

• estate, inheritance and gift taxes (TC 321, SDC).

Includes:    Betterment levies; estate, inheritance and gift taxes which covers taxes on transfers of property at death and on gifts, including gifts made between living members of the same family to avoid, or minimise the payment of inheritance taxes.

A1A.15.

Sales of goods and services (ETF 112) consists of revenue from the direct provision of goods and services by general government and public enterprises. This category is further classified into:

• sales by market establishments (ETF 1121, COFOG-A, SDC);
• administrative fees (ETF 1122, COFOG-A, SDC);
• incidental sales by non-market establishments (ETF 1123, COFOG-A, SDC); and
• imputed sales of goods and services (ETF 1124, COFOG-A, SDC).

A1A.16.

Sales by market establishments (ETF 1121, COFOG-A, SDC) consists of the sales by market establishments that are part of the units for which statistics are being compiled. An establishment is defined as part of an enterprise situated in a single location and at which only a single productive activity is carried out or principal productive activity accounts for most of the value added. A market establishment within a government unit is an establishment that sells or otherwise disposes of all or most of its output at prices that are economically significant.

Includes:    Rental income under operating leases for produced assets such as buildings, ships, aircraft, vehicles and entertainment, literary or artistic originals.

Excludes:   Sales of non-financial assets other than inventories (classified to disposals of non-financial assets (ETF 4211, TALC, COFOG-A, SDC)); rental income from the use of non-produced assets such as land, deposits of minerals and fossil fuels (classified to royalty income (ETF 1135, SDC)).

A1A.17.

Administrative fees (ETF 1122, COFOG-A, SDC) consists of fees for compulsory licences and other administrative fees that are sales of services. These fees are considered a sale of a service when issuing the licence or permit implies a proper regulatory function of the government.

Includes:    Drivers’ licences; court fees; radio and television licences when public authorities provide general broadcasting services; fees payable for voluntary participation in deposit insurance or other guarantee schemes that do not qualify to be a standardised guarantee scheme.

A1A.18.

Incidental sales by non-market establishments (ETF 1123, COFOG-A, SDC) consists of the sales of goods and services by non-market establishments of general government units other than administrative fees. These are sales incidental to the usual social or community activities of government departments and agencies.

Includes:   Sales of products made at vocational schools; seeds from experimental farms; postcards and art reproductions by museums; fees at government hospitals and clinics; tuition fees at government schools; admission fees to government museums, parks and cultural and recreational facilities that are not public corporations

A1A.19.

Imputed sales of goods and services (ETF 1124, COFOG-A, SDC) consists of imputed sales of goods and services when a government unit produces goods and services for the purpose of using them as compensation of employees in kind. In order to indicate the total amount paid as compensation of employees, it is necessary to treat the amount paid in kind as if it had been paid in cash as wages and salaries and then the employees had used this income to purchase the goods and services.

Includes:    Imputed sales of financial services where an employer incurs costs of operating a defined contribution pension scheme itself.

A1A.20.

Property income (ETF 113) consists of the revenue receivable in return for putting financial assets and natural resources at the disposal of other entities. This category is further classified into:

• interest income (ETF 1131, SDC);
• dividend income (including tax equivalents) (ETF 1132, SDC);
• withdrawals from income of quasi-corporations (ETF 1133, SDC);
• land rent income (ETF 1134, SDC);
• royalty income (ETF 1135, SDC);
• revenue from investment funds (ETF 1136, SDC);
• reinvested earnings on foreign direct investment (ETF 1137, SDC); and
• property income not elsewhere classified (ETF 1139, SDC).

A1A.21

Interest income (ETF 1131, SDC) consists of interest income which is a form of investment income that is receivable by the owners of certain kinds of financial assets, such as SDRs, deposits, debt securities, loans and accounts receivable, in return for putting these financial assets and other resources at the disposal of another institutional unit.

Includes:    Interest on advances to the private sector, public corporations, building societies and foreign governments; interest on bank account balances and fixed deposits held with banks, government securities, intra-sector deposits and short term money market balances; imputed interest that originates from interest foregone by employers when they provide loans to employees at reduced, or even zero rates of interest as part of the remuneration in kind of government and public sector employees; interest charged on overdue taxes, and financial intermediation services indirectly measured (FISIM) .

A1A.22.

Dividend income (including tax equivalents) (ETF 1132, SDC) consists of the distributed earnings allocated to government or public sector units, as the owners of equity, for placing funds at the disposal of corporations. Dividend income is generally not funded by sale of assets, capital restructure, borrowings or other credit arrangements.

Includes:   Dividends to public enterprises from subsidiaries; dividends from shares held as investments in private and public corporations; transfers of income from public non-financial corporations and public financial corporations; profits of central banks transferred to government units; profits transferred or distributed from the operation of monetary authority functions outside the central bank; profits transferred by state lotteries that compete with other privately organised lotteries; issue of shares as a dividend; income from public corporations to general government in the nature of income tax equivalents; income from public corporations to general government in the nature of wholesale sales tax equivalents.

Excludes:   Profits of fiscal monopolies (classified to taxes on products (ETF 1113, TC, SDC )); profits of export or import monopolies (classified to taxes on products (ETF 1113, TC, SDC)); dividends declared greatly in excess of the recent level of dividends and earnings (classified to transactions in financial assets (net) (ETF 3111), equity including contributed capital (TALC 424), SDC); interim dividends where evidence exists that such dividends are not from the current period’s operating surplus (classified to transactions in financial assets (net) (ETF 3111), advances other than concessional loans (TALC 433), SDC).

A1A.23.

Withdrawals from income of quasi-corporations (ETF 1133, SDC) consists of that part of distributable income that the owner withdraws from the quasi-corporation.

Excludes:   Withdrawals of funds realised from the sale or other disposal of the quasi-corporation’s assets such as inventories, fixed produced assets, land or other non-produced assets (classified to transactions in financial assets (net) (ETF 3111, equity including contributed capital (TALC 424), SDC); withdrawals of funds realised from the liquidation of large amounts of accumulated retained earnings or other reserves (classified to transactions in financial assets (net) (ETF 3111), equity including contributed capital (TALC 424), SDC).

A1A.24.

Land rent income (ETF 1134, SDC) consists of the revenue receivable by the owners of land (the lessor or landlord) for putting the asset at the disposal of another institutional unit (the lessee or tenant) for use in production.

Includes:    Land rent in the territories; leasing of crown lands; rent payable to general government sector units for the use of inland waters and rivers (for the right to exploit such waters for recreational or other purposes including fishing); rent payable to government sector units for the use of non-cultivated land (for the right to cut timber on such land); permits that allow timber felling in natural forests under strict limits with a fee payable per unit volume of timber felled to ensure the harvest of timber is sustainable.

Excludes:   Rent received for the use of buildings or other produced assets (classified to sales by market establishments (ETF 1121, COFOG-A, SDC)); payments made to the owners of natural forest where a unit is given permission to fell an area of natural forest, or to fell at its discretion without any restriction in perpetuity (classified to disposals of non-financial assets (ETF 4211, TALC, COFOG-A, SDC), non-cultivated biological resources (TALC 313), COFOG-A); payments made to the owners of forests that are produced assets, where a unit is given permission to fell an area of the forest, or to fell at its discretion without any restriction in perpetuity (classified to sales by market establishments (ETF 1121, COFOG-A, SDC)).

A1A.25.

Royalty income (ETF 1135, SDC) consists of the revenue receivable by the owners of a natural resource other than land (the lessor or landlord) for putting the natural resource at the disposal of another institutional unit (a lessee or tenant) for use of the natural resource in production.

Includes:   Off-shore petroleum, mineral royalties; timber royalties not relating to plantation and regrowth forests; payments to general government units in exchange for the right to undertake test drilling or otherwise investigate the existence and location of subsoil assets.

Excludes:   rental of produced assets (classified to sales by market establishments (ETF 1121, COFOG-A, SDC)); severance taxes imposed on the extraction of minerals and fossil fuels from reserves owned privately or by another government (classified to taxation revenue (ETF 1111, TC, SDC); payments for a licence or permit to conduct extraction operations (classified to taxation revenue (ETF 1111, TC, SDC) and taxes on the use of goods and performance of activities levied on non-residents (TC 535)) or other taxes on the use of goods and performance of activities not elsewhere classified (TC 539)).

A1A.26.

Revenue from investment funds (ETF 1136, SDC) consists of increases in the value of investment fund shares (other than from holding gains and after reinvested earnings are deducted) and retained earnings of foreign direct investment funds.

A1A.27.

Reinvested earnings on foreign direct investment (ETF 1137, SDC) consists of the direct investor’s share of the retained earnings of the direct investment enterprise. It is a requirement that the retained earnings of a foreign direct investment enterprise be recorded as if they were distributed and remitted to foreign direct investors in proportion to their ownership of the equity in the enterprise and then reinvested by them by means of additions to equity.

A1A.28.

Property income not elsewhere classified (ETF 1139, SDC) consists of property income that cannot be classified to interest income (ETF 1131, SDC), dividend income (including tax equivalents) (ETF 1132, SDC), withdrawals from income of quasi-corporations (ETF 1133, SDC), land rent income (ETF 1134, SDC), royalty income (ETF 1135, SDC), revenue from investment funds (ETF 1136, SDC) or reinvested earnings on foreign direct investment (ETF 1137, SDC).

A1A.29.

Other current revenue (ETF 114) consists of current revenue other than from taxation, sales of goods and services; property income, current grants and current transfers.

This category is further classified into:

• revenue from current grants and subsidies (ETF 1141, SDC);
• fines, penalties and forfeits (ETF 1142, SDC);
• premiums, fees and current claims related to non-life insurance and standardised guarantee schemes (ETF 1143, SDC); and
• other current revenue not elsewhere classified (ETF 1149, SDC).

A1A.30.

Revenue from current grants and subsidies (ETF 1141, SDC) consists of revenue from grants for current purposes, and subsidies for current purposes. Current grants are current transfers receivable by government units, from other resident or non-resident government units or international organisations and that do not meet the definition of a tax, subsidy or a social contribution. Grants are normally receivable in cash, but may also take the form of the receipt of goods or services (in kind). Subsidies are current, unrequited transfers that government units make to enterprises on the basis of the level of their production activities or the quantities or values of the goods or services they produce, sell, export or import. Where current grants and subsidies are subject to contractual arrangements, the amount accruing in a period is the amount over which the recipient has gained control.

Includes:    Grants in kind include goods and services that are consumed such as food contributions, blankets and medical and rescue services and supplies.

A1A.31.

Fines, penalties and forfeits (ETF 1142, SDC) consists of revenue from fines, penalties and forfeits. Fines and penalties are compulsory current transfers imposed on units by courts of law or quasi-judicial bodies for violations of laws or administrative rules. Forfeits are amounts that were deposited with a general government unit pending a legal or administrative proceeding and that have been transferred to the general government unit as part of the resolution of that proceeding.

Includes:    Out-of-court agreements; bail set by courts when bail conditions have been violated; fines and penalties charged on overdue taxes; and penalties imposed for the evasion of taxes.

Excludes:   Penalties imposed by tax authorities when it is not possible to separate payments of fines or other penalties from the taxes to which they relate (classified to the relevant category under taxation revenue (ETF 111); and penalties imposed by tax authorities that relate to unidentifiable taxes and that are not able to be separated from the taxes to which they relate (classified to other current taxes (ETF 1113, TC, SDC).

A1A.32.

Premiums, fees and current claims related to non-life insurance and standardised guarantee schemes (ETF 1143, SDC) consists of non-life insurance premiums receivable by insurance schemes to provide entitlement to insurance against risks; non-exceptional claims receivable from insurance schemes by beneficiaries; and fees receivable for the issuance of standardised guarantees.

A1A.33.

Other current revenue not elsewhere classified (ETF 1149, SDC) consists of current revenue that cannot be classified to revenue from current grants and subsidies (ETF 1141, SDC), fines, penalties and forfeits (ETF 1142, SDC) or premiums, fees and current claims related to non-life insurance and standardised guarantee schemes (ETF 1143, SDC).

Includes:    Revenue of local governments in lieu of municipal rates; conscience money; unclaimed money such as unclaimed lottery prizes; unclaimed TAB dividends; and unclaimed money in bank accounts.

A1A.34.

Capital revenue (ETF 115) consists of grants for capital purposes. This category is further classified into:

• revenue from capital grants (ETF 1151, SDC);
• assets acquired below market value (ETF 1152, TALC, COFOG-A, SDC);
• capital claims related to non-life insurance and standardised guarantee schemes (ETF 1153, SDC); and
• capital revenue not elsewhere classified (ETF 1159, SDC).

A1A.35.

Revenue from capital grants (ETF 1151, SDC) consists of revenue from grants for capital purposes. Capital grants are capital transfers receivable by government units, from other resident or non-resident government units or international organisations and that do not meet the definition of a tax, subsidy or a social contribution. Grants are normally receivable in cash, but may also take the form of the receipt of goods or services. Where capital grants are subject to contractual arrangements, the amount accruing in a period is the amount over which the recipient has gained control. A capital grant in kind necessarily concerns the change of ownership of a product previously recorded as a non-financial asset in the accounts of the donor government.

Includes:    Aid of a capital nature.

A1A.36.

Assets acquired below market value (ETF 1152, TALC, COFOG-A, SDC) consists of the capital grant received when capital assets are acquired below current market value or without cost. The capital grant is equal to the difference between the current market value and the acquisition cost of the asset. This type of acquisition is recorded by imputation of equivalent transactions when they are of an economic nature and where valuations are realistically obtainable.

A1A.37.

Capital claims related to non-life insurance and standardised guarantee schemes (ETF 1153, SDC) consists of exceptionally large insurance settlements receivable in the wake of a catastrophic event or disaster.

A1A.38.

Capital revenue not elsewhere classified (ETF 1159, SDC) consists of capital revenue that cannot be classified to revenue from capital grants (ETF 1151, SDC), assets acquired below market value (ETF 1152, TALC, COFOG-A, SDC) or capital claims related to non-life insurance and standardised guarantee schemes (ETF 1153, SDC).

Includes:   Transfers to sinking funds, capital levies from local government,

Excludes:   Insurance settlement payments receivable for damage to property of a capital nature (classified to capital claims related to non-life insurance and standardised guarantee schemes (ETF 1162)).

A1A.39.

Expenses (ETF 12) consists of all decreases in net worth resulting from transactions. Expense transactions have counterpart entries either in a decrease in assets or an increase in liabilities, decreasing net worth. Refunds, recoveries of overpayments, receivables on erroneous payments and similar transactions are transactions that are classified as a reduction in expense with a corresponding reduction in liabilities or an increase in financial assets, and as such, increase net worth. This category is further classified into:

• superannuation expenses (ETF 121);
• other employee expenses (ETF 122);
• non-employee expenses (ETF 123);
• depreciation (ETF 124);
• current transfer expenses (ETF 125);
• capital transfer expenses (ETF 126);
• interest expenses (ETF 127); and
• other property expenses (ETF 128).

A1A.40.

Superannuation expenses (ETF 121) consists of accrued and imputed expenses under both defined contribution and defined benefit superannuation schemes in return for services provided by employees in the current period. A defined contribution superannuation scheme is one where the benefits payable to the employee on retirement are determined by the funds that have accumulated from employer and employee contributions over the working life of the employee, together with income and capital gains/losses arising from the investment of the accumulated funds. The funds are accumulated in a separate superannuation fund managed by a board of trustees or guardians of the scheme (autonomous fund). The general government employer has a responsibility to make the regular agreed contributions to the fund, but then has no further superannuation liability towards their employees. A defined benefit superannuation scheme is one where the benefits payable to the employee on retirement are defined by some formula normally related to participants’ length of service and salary. This category is further classified into:

• superannuation expenses – defined contribution scheme (ETF 1211, COFOG-A, SDC);
• superannuation expenses – defined benefit scheme (ETF 1212, COFOG-A, SDC); and
• imputed employers’ contribution – defined benefit scheme (ETF 1213, COFOG-A, SDC).

A1A.41

Superannuation expenses - defined contribution scheme (ETF 1211, COFOG-A, SDC) consists of the amounts payable by employers to defined contribution superannuation schemes for the benefit of their employees.

A1A.42.

Superannuation expenses - defined benefit scheme (ETF 1212, COFOG-A, SDC) consists of the amounts payable by employers to defined benefit superannuation schemes for the benefit of their employees.

A1A.43

Imputed employers' contributions - defined benefit scheme (ETF 1213, COFOG-A, SDC) consists of the amount of employer contributions to defined benefit superannuation schemes that would be needed to secure the de-facto entitlements to the benefits accumulated by their employees. Some employers provide benefits directly to their employees, former employees or their dependants from their own resources without involving an autonomous superannuation fund and without creating a special fund or segregated reserve for the purpose. This category is generally unused as superannuation is compulsory in Australia.

A1A.44.

Other employee expenses (ETF 122) consists of all employee expenses other than superannuation contributions, in cash or in kind, payable to an individual in an employer / employee relationship in return for work performed by the latter during the reporting period. This category is further classified into:

• wages, salaries and supplements in cash (ETF 1221, COFOG-A, SDC);
• wages and salaries in kind (ETF 1222, COFOG-A, SDC);
• Fringe Benefits Tax (FBT) expenses (ETF 1223, COFOG-A, SDC);
• workers’ compensation expenses (ETF 1224, COFOG-A, SDC); and
• other employee expenses not elsewhere classified (ETF 1229, COFOG-A, SDC).

A1A.45

Wages, salaries and supplements in cash (ETF 1221, COFOG-A, SDC) consists of compensation of employees payable in cash, or any other financial instruments used as means of payments, in return for work performed.

Includes:    Basic wages or salaries payable at regular weekly, monthly or other intervals, including payments by results and piecework payments; enhanced payments or special allowances for working overtime, at nights, on weekends or other irregular hours; allowances for working away from home or in disagreeable or hazardous circumstances; expatriation allowances for working abroad; supplementary allowances payable regularly such as housing allowances or allowances to cover the costs of travel to and from work; wages or salaries payable to employees away from work for short periods such as on vacation or as a result of a temporary halt to production; annual supplementary pay such as bonuses; ad hoc bonuses or other exceptional payments linked to the overall performance of the enterprise made under incentive schemes; commission, gratuities and tips received by employees; amounts withheld from wages and salaries by the employer for administrative convenience or for other reasons such as income taxes or other deductibles, payable by the employee; employee benefits, such as a car or extra pension contributions, that is acquired from the employer by foregoing some salary.

Excludes:   Wages and salaries connected with own account capital formation (classified to own-account capital formation (ETF 4113, TALC, COFOG-A), and also classified to either own-account wages, salaries and supplements in cash (ETF 7621, TALC, COFOG-A) or own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A)); reimbursement by the employer of costs incurred by its employees in order to enable them to take up their jobs or to carry out their work such as reimbursement of travel, relocation or related expenses made by employees when they take up new jobs or are required by their employers to move their homes to different parts of the country or to another country and reimbursement of costs incurred by employees on tools, equipment, special clothing or other items that are needed exclusively or primarily to enable them to carry out their work (classified to use of goods and services (ETF 1233, COFOG-A, SDC)); usage of labour hire agencies (classified to use of goods and services (ETF 1233, COFOG-A, SDC)).

A1A.46

Wages and salaries in kind (ETF 1222, COFOG-A, SDC) consists of compensation of employees payable in the form of goods, services, interest foregone and shares issued to employees in return for work performed. Almost any kind of goods or services may be provided as wages and salaries in kind. It includes goods and services provided without charge or at reduced prices. The goods and services provided in kind to employees are not necessary to enable the employees to perform their work.

Includes:    Meals and drinks provided on a regular basis including any subsidy element of an office canteen; clothing or footwear that employees may choose to wear frequently outside of the workplace and while at work; housing services or accommodation of a type that can be used by all members of the household to which the employee belongs; services of vehicles or other durables provided for the personal use of employees; goods and services produced by the employer such as free travel on government airplanes or trains; sports, recreation or holiday facilities for employees and their families; transportation to and from work; free or subsidised parking when it would otherwise have to be paid for; childcare for the children of employees; the value of the interest foregone by employers when they provide loans to employees at reduced or even zero rates of interest for purposes of buying houses, vehicles, furniture or other goods or services; bonus shares or stock options distributed to employees.

Excludes:   Wages and salaries in kind connected with own account capital formation (classified to own-account capital formation (ETF 4113, TALC, COFOG-A ), and also classified to own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A)).

A1A.47.

Fringe Benefits Tax (FBT) expenses (ETF 1223, COFOG-A, SDC) consists of fringe benefits tax payable on certain benefits employers provide to their employees or their employees’ associates in place of salary or wages.

A1A.48.

Workers’ compensation expenses (ETF 1224, COFOG-A, SDC) consists of workers’ compensation amounts payable by employers under legislation for work-related injury and illness suffered by employees.

A1A.49.

Other employee expenses not elsewhere classified (ETF 1229, COFOG-A, SDC) consists of employee expenses that cannot be classified to superannuation expenses – defined contribution scheme (ETF 1211, COFOG-A, SDC), superannuation expenses - defined benefit scheme (ETF 1212, COFOG-A, SDC), imputed employers’ contributions – defined benefit scheme (ETF 1213, COFOG-A, SDC), wages, salaries and supplements in cash (ETF 1221, COFOG-A, SDC), wages and salaries in kind (ETF 1222, COFOG-A, SDC), Fringe Benefits Tax (FBT) expenses (ETF 1223, COFOG-A, SDC) or workers’ compensation expenses (ETF 1224, COFOG-A, SDC).

Includes:    Accrued expenses for the current period relating to accident compensation premium, sick leave, annual leave, long service leave retirement and redundancy.

A1A.50.

Non-employee expenses (ETF 123) consists of operating expenses that are not related to the compensation of employees. This category is further classified into:

• production tax expenses (ETF 1231, COFOG-A, TC, SDC);
• social benefits to households in goods and services (ETF 1232, COFOG-A, SDC);
• use of goods and services (ETF 1233, COFOG-A, SDC); and
• non-employee expenses not elsewhere classified (ETF 1239, COFOG-A, SDC).

A1A.51.

Production tax expenses (ETF 1231, COFOG-A, TC, SDC) consists of taxes on production or indirect tax expenses.

A1A.512

Social benefits to households in goods and services (ETF 1232, COFOG-A, SDC) consists of expenditure by government on goods and services produced by market producers that are provided directly to households as social transfers in kind.

Includes:    Medical and pharmaceutical benefits; telephone rental concessions; concessional railway fares; rental subsidies; reduced utility charges.

A1A.53.

Use of goods and services (ETF 1233, COFOG-A, SDC) consists of the value of goods and services used for the production of market and non-market goods and services.

Includes:   Amounts payable to contractors, self-employed outworkers and other workers who are not employees of general government or public sector units; use of goods and services when such use is mandatory in order to enable employees to carry out their work whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; tools or equipment used exclusively or mainly at work whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; clothing or footwear of a kind that ordinary consumers do not choose to purchase or wear and which are worn exclusively or mainly at work such as protective clothing, overalls or uniforms whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; accommodation services at the place of work of a kind that cannot be used by the households to which the employees belong such as barracks, cabins, dormitories and huts; special meals or drinks necessitated by exceptional working conditions, while travelling for business reasons or meals or drinks provided to employees while on active duty whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; travel, relocation or related expenses when employees take up new jobs or are required by their employers to move their homes to different parts of the country or to another country whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; changing facilities, washrooms, showers and baths necessitated by the nature of the work; first aid facilities, medical examinations or other health checks required because of the nature of the work; goods and services used by a donor government unit to produce non-market goods and services consumed by other governments and international organisations; goods and services acquired so that government employees can conduct relief operations in a foreign country after a natural disaster; all goods and services consumed by a general government unit to produce non-market goods and services that are distributed as social benefits in kind or distributed to households in particular circumstances such as following a natural disaster; memberships dues and subscription fees such as payments by public corporations of membership dues or subscriptions to market non-profit institutions serving businesses such as chambers of commerce or trade associations; costs incurred on inexpensive, durable goods such as small/hand tools (saws, spades, knives, axes, hammers, screwdrivers, spanners, wrenches) when such expenses are incurred regularly and are small compared with the costs incurred for the acquisition of machinery and equipment; goods and services consumed for the ordinary maintenance and repair of fixed produced assets; goods and services used in research and development where it is clear that the activity does not create any future economic benefit for its owner; materials to produce coins or notes of the national currency or amounts payable to contractors to produce the currency; single-use weapons such as ammunition, missiles, rockets, bombs or torpedoes once used; payments by the lessee for rental of a fixed asset under an operating lease; and explicit fees for financial services.

Excludes:   Depreciation (classified to depreciation of fixed produced assets (non defence) (ETF 1241) or depreciation of fixed produced assets (defence) (ETF 1242, TALC, COFOG-A)); the use of goods and services in own account capital formation (classified to own-account capital formation (ETF 4113, TALC, COFOG-A) and also classified to own-account use of goods and services (ETF 7631)); goods purchased by government and distributed without transformation (classified to social benefits to households in goods and services (ETF 1232, COFOG-A, SDC), subsidies on products (ETF 1252, COFOG-A, SDC), current grant expenses (ETF 1251, COFOG-A, SDC), or current transfer expenses not elsewhere classified (ETF 1259, COFOG-A, SDC)); goods and services not produced by the donor government unit but are distributed as social benefits in kind or distributed to households in particular circumstances (classified to social benefits to households in goods and services (ETF 1232, COFOG-A, SDC)); memberships dues and subscription fees payable to international organisations when there is a possibility, even if unlikely, of repayment of the full amount (classified to transactions in financial assets (net) (ETF 3111), equity including contributed capital (TALC 424), SDC)); unrequited membership dues and subscription fees payable to international organisations, foreign governments or other general government units (classified to current grant expenses (ETF 1251, COFOG-A, SDC) or current transfers not elsewhere classified (ETF 1259, COFOG-A, SDC)); goods and services acquired to increase inventories of materials and supplies, work in progress, finished goods and goods for resale (classified to change in inventories (ETF 4111, inventories ( TALC 21), COFOG-A)); expenditure on new military equipment, including large military weapons systems and armoured vehicles acquired by the police and internal security services (classified to acquisitions of new non-financial assets (ETF 4114, TALC, COFOG-A, SDC), weapons systems (TALC 151), COFOG-A); single-use weapons such as ammunition, missiles, rockets, bombs or torpedoes until used (classified to change in inventories (ETF 4111), military inventories (TALC 215), COFOG-A); amounts payable for the use of non-produced naturally occurring assets such as land (classified to land rent and royalty expenses ( ETF 1283, COFOG-A, SDC)).

A1A.54

Non-employee expenses not elsewhere classified (ETF 1239, COFOG-A, SDC) consists of non-employee expenses that cannot be classified to production tax expenses (ETF 1231, COFOG-A, TC, SDC), social benefits to households in goods and services (ETF 1232, COFOG-A, SDC) or use of goods and services (ETF 1233, COFOG-A, SDC).

A1A.55.

Depreciation (ETF 124) consists of expenses relating to the accounting process where the costs of assets are written off over their useful life. Depreciation usually relates to non-current tangible assets which are written off because they wear out or become obsolete. This category is further classified into:

• depreciation of fixed produced assets (non-defence) (ETF 1241, TALC, COFOG-A); and
• depreciation of fixed produced assets (defence) (ETF 1242, TALC, COFOG-A).

A1A.56.

Depreciation of fixed produced assets (non-defence) (ETF 1241, TALC, COFOG-A) consists of amounts charged to current operations in respect of the consumption of non-current tangible produced assets not related to defence weapons systems.

A1A.57.

Depreciation of fixed produced assets (defence) (ETF 1242, TALC, COFOG-A) consists of amounts charged to current operations in respect of the consumption of non-current tangible produced assets related to defence weapons systems.

A1A.58.

Current transfer expenses (ETF 125) consists of regular transfer payments that are current in nature and where no economic benefits are received in return for payment. This category is further classified into:

• current grant expenses (ETF 1251, COFOG-A, SDC);
• subsidies on products (ETF 1252, COFOG-A, SDC);
• other subsidies on production (ETF 1253, COFOG-A, SDC);
• current monetary transfers to households (ETF 1254, COFOG-A, SDC);
• tax expenses (ETF 1255, COFOG-A, TC, SDC);
• premiums, fees and current claims related to non-life insurance and standardised guarantee schemes (ETF 1256, COFOG-A, SDC); and
• current transfer expenses not elsewhere classified (ETF 1259, COFOG-A, SDC).

A1A.59.

Current grant expenses (ETF 1251, COFOG-A, SDC) consists of current transfers payable by government units to other resident or non-resident government units, international organisations, public enterprises, non-profit institutions serving business and others that do not meet the definition of a tax, subsidy or social contribution. Grants are normally payable in cash, but may also take the form of provision of goods or services in kind.

Includes:    Grants in kind of goods and services that are consumed such as food contributions, blankets, medical and rescue services and supplies; grants for current purposes to private non-profit organisations serving households including grants to hospitals, independent schools, religious and charitable organisations; grants made to foreign governments and international organisations including grants made for aid projects; current grants from one level of government to another; current grants between units within the same level of government; any grants which are not specifically defined as capital grants, current grants to public enterprises and non-profit institutions serving business.

A1A.60

Subsidies on products (ETF 1252, COFOG-A, SDC) consists of current unrequited transfers that government units make to enterprises on the basis of the level of their production activities or the quantities or values of the goods or services they produce, sell, export or import. A subsidy on a product usually becomes payable when the good or service is produced, sold, exported or imported, but it may also be payable in other circumstances such as when a good is transferred, leased, delivered or used for own consumption or own-account capital formation. Subsidies are payable to producers only, not to final consumers.

Includes:    Direct foreign trade subsidies such as subsidies on imported or exported goods and services that become payable when the goods cross the frontier of the economic territory or when the services are delivered to resident institutional units (import subsidies) or to non-resident units (export subsidies); implicit subsidies resulting from the operation of an official system of multiple exchange rates or resulting from payable tax credits; losses of government trading organisations whose function is to buy products and then sell them at lower prices to residents or non-residents, when they are incurred as a matter of deliberate government economic or social policy; subsidies payable to resident producers in respect of their production that is used or consumed within the economic territory; regular transfers paid to corporations and quasi-corporations that are intended to compensate for recurrent losses incurred on their productive activities as a result of charging prices that are lower than their average costs of production as a matter of deliberate government economic and social policy; and subsidies resulting from the central bank accepting interest rates lower than prevailing market rates.

A1A.61.

Other subsidies on production (ETF 1253, COFOG-A, SDC) consists of current unrequited transfers that government units make to enterprises as a consequence of engaging in production but that are not related to specific products.

Includes:    Subsidies on payroll or workforce which are payable on the total wage or salary bill, the size of the total workforce or the employment of particular types of persons such as physically handicapped persons or persons who have been unemployed for long periods; subsidies to reduce pollution which are transfers intended to cover some or all of the costs of additional processing undertaken to reduce or eliminate the discharge of pollutants into the environment.

Excludes:   Payment of interest or other debt service cost on behalf of other producer units without acquiring an effective claim on the original debtor (classified to capital grant expenses (ETF 1261, COFOG-A, SDC) or capital transfer expenses not elsewhere classified (ETF 1269, COFOG-A, SDC)); transfers made by government to other resident or non-resident units to finance all or part of the costs of their acquiring non-financial assets (classified to capital grant expenses (ETF 1261, COFOG-A, SDC) or capital transfer expenses not elsewhere classified ( ETF 1269, COFOG-A, SDC)); extraordinary payments into social insurance funds insofar as these payments are designed to increase the actuarial reserves of these funds (classified to capital grant expenses (ETF 1261, COFOG-A, SDC ) or capital transfer expenses not elsewhere classified (ETF 1269, COFOG-A, SDC )); transfers made by general government units to corporations and quasi-corporations to cover large operating deficits accumulated over two or more years or exceptional losses due to factors outside the control of the enterprise (classified to capital transfer expenses not elsewhere classified (ETF 1269, COFOG-A, SDC )); the cancellation of debts which institutional units have incurred to government units, such as debt resulting from loans advanced by a government unit to a non-financial enterprise that does not have the ability to make repayments due to trading losses accumulated over several financial years (classified to capital grant expenses (ETF 1261, COFOG-A, SDC) or capital transfer expenses not elsewhere classified (ETF 1269, COFOG-A, SDC)); payments made by general government for damage to, or losses of, capital goods as a result of acts of war, other political events or national disasters (classified to capital grant expenses (ETF 1261, COFOG-A, SDC) or capital transfer expenses not elsewhere classified (ETF 1269, COFOG-A, SDC)); transfers to households but intended to supplement household income or defray household expense (classified to current monetary transfers to households (ETF 1254, COFOG-A, SDC)); transfers made by a general government unit that has assumed responsibility for pension claims on public enterprises (classified to capital transfer expenses not elsewhere classified (ETF 1269, COFOG-A, SDC)); payments made by general government to market producers to pay entirely, or in part, for goods and services that those market producers provide directly and individually to households in the context of social risks or needs and to which the households have a right (classified to current monetary transfers to households (ETF 1254, COFOG-A, SDC)).

A1A.62.

Current monetary transfers to households (ETF 1254, COFOG-A, SDC) consists of current transfers receivable by households intended to provide for the needs that arise from social risks such as sickness, unemployment, retirement, housing, education or family circumstances. These benefits are payable in cash or in kind to protect the entire population or specific segments of it against certain social risks.

Includes:    Provision of medical services, old age pensions; unemployment compensation; work for the dole schemes; personal benefit payments to Australian citizens resident overseas; payable tax credits paid to households intended to provide for the needs that arise from certain events or circumstances.

Excludes:   transfers made in response to events or circumstances such as natural disasters (classified to current transfer expenses not elsewhere classified (ETF 1259, COFOG-A, SDC)).

A1A.63.

Tax expenses (ETF 1255, COFOG-A, TC, SDC) consists of direct tax expenses of public enterprises.

Includes:    All tax expenses of general government units such as state / territory government payroll taxes and Commonwealth Government fringe benefits tax.

Excludes:   Indirect tax expenses (taxes on production) of public enterprises (classified to production tax expenses (ETF 1231, COFOG-A, TC, SDC)).

A1A.64.

Premiums, fees and current claims related to non-life insurance and standardised guarantee schemes (ETF 1256, COFOG-A, SDC) consists of non-life insurance premiums and fees payable to secure entitlement to insurance against risk; non-exceptional claims payable by insurance schemes to beneficiaries; and fees payable to obtain standardised guarantees.

Excludes:   Exceptionally large insurance settlements payable in the wake of a catastrophic event or disaster (classified to capital claims related to non-life insurance and standardised guarantee schemes (ETF 1263, COFOG-A, SDC).

A1A.65.

Current transfer expenses not elsewhere classified (ETF 1259, COFOG-A, SDC) consists of current transfer expenses that cannot be classified to current grant expenses (ETF 1251, COFOG-A, SDC), subsidies on products (ETF 1252, COFOG-A, SDC),other subsidies on production (ETF 1253, COFOG-A, SDC), current monetary transfers to households (ETF 1254, COFOG-A, SDC), tax expenses (ETF 1255, COFOG-A, TC, SDC) or premiums, fees and current claims related to non-life insurance and standardised guarantee schemes (ETF 1256, COFOG-A, SDC).

Includes:    Current transfers to non-profit institutions in the form of membership dues, subscription and voluntary donations whether made on a regular or occasional basis; transfers in kind such as food, clothing, blankets and medicines to charities for distribution to households; current taxes, compulsory fees and fines imposed by one unit of general government or public corporation on another government unit or public corporation; payable tax credits; fines and penalties imposed by courts of law or quasi-judicial bodies; payments of compensation for injury to persons or damage to property caused by general government or public sector units excluding payments of non-life insurance claims; purchase of goods and services from market producers that are distributed directly to households for final consumption other than social benefits; levies paid to fire boards and town planning authorities; levies paid to county councils by constituent municipal and shire councils.

A1A.66.

Capital transfer expenses (ETF 126) consists of unrequited payments of a capital nature, that are usually non-recurrent and irregular for donor or recipient. This category is further classified into:

• capital grant expenses (ETF 1261, COFOG-A, SDC);
• assets donated (ETF 1262, TALC, COFOG-A);
• capital claims related to non-life insurance and standardised guarantee schemes (ETF 1263, COFOG-A, SDC); and
• other capital transfer expenses not elsewhere classified (ETF 1269, COFOG-A, SDC).

A1A.67.

Capital grant expenses (ETF 1261, COFOG-A, SDC) consists of capital transfers payable by government units to other resident or non-resident government units or international organisations that do not meet the definition of a tax, subsidy or social contribution. Grants are normally payable in cash, but may also take the form of provision of goods or services in kind.

Includes:    Unrequited payments by government to finance the acquisition of non-financial assets by the recipient, to compensate the recipient for damage or destruction of non-financial assets or to increase the financial capital of the recipient; grants to private enterprises, individuals and private non-profit institutions to contribute towards the cost of capital expenditure; compensation to primary industry marketing authorities for losses on overseas debts resulting from devaluations; home savings grants; grants towards science laboratories and libraries in private schools and university residential colleges; grants made by public authorities to other public authorities to contribute towards the cost of capital development; grants between different levels of government; grants within one level of government.

A1A.68.

Assets donated (ETF 1262, TALC, COFOG-A, SDC) consists of donated assets which are included in GFS by imputation of equivalent transactions when they are of an economic nature and where valuations are realistically obtainable.

A1A.69.

Capital claims related to non-life insurance and standardised guarantee schemes (ETF 1263, COFOG-A, SDC) consists of exceptionally large insurance settlements payable in the wake of a catastrophic event or disaster.

Excludes: Current claims payable related to non-life insurance schemes (classified to premiums, fees and claims payable related to non-life insurance and standardised guarantee schemes (ETF 1256, COFOG-A, SDC)).

A1A.70.

Capital transfer expenses not elsewhere classified (ETF 1269, COFOG-A, SDC) consists of capital transfer expenses that cannot be classified to capital grant expenses (ETF 1261, COFOG-A, SDC), assets donated (ETF 1262, TALC, COFOG-A) or capital claims related to non-life insurance and standardised guarantee schemes (ETF 1263, COFOG-A, SDC).

Includes:   Capital taxes imposed by one unit of general government on another government unit or public corporations; major non-recurrent exceptional payments in compensation for extensive damages or serious injuries such as those arising from catastrophes not covered by insurance policies; capital transfers to corporations, quasi-corporations, non-profit institutions serving households, households and non-residents in cash or in kind to cancel or assume a debt by mutual agreement with the debtor without acquiring an effective financial claim on the original debtor; transfers payable to corporations and quasi-corporations to cover large operating deficits accumulated over two or more years; payment of interest or other debt service costs on behalf of other producer units without acquiring an effective claim on the original debtor; amounts payable in excess of the value of liabilities for the provision of pension entitlements assumed by other units; bad debts written off by mutual agreement between debtor and creditor.

A1A.71.

Interest expenses (ETF 127) consists of investment income that is receivable by the owners of certain kinds of financial assets such as Special Drawing Rights (SDRs), deposits, debt securities, loans and other accounts receivable, for putting these financial and other resources at the disposal of another institutional unit. This category is further classified into:

• interest on defined benefit superannuation (ETF 1271, COFOG-A, SDC); and
• interest expenses not elsewhere classified (ETF 1279, COFOG-A, SDC).

A1A.72.

Interest on defined benefit superannuation (ETF 1271, COFOG-A, SDC) consists of the interest accrued on defined benefit superannuation liabilities during the reporting period.

A1A.73.

Interest expenses not elsewhere classified (ETF 1279, COFOG-A, SDC) consists of requited transfer payments made to the owners of certain kinds of financial assets, such as SDRs, deposits, debt securities, loans and accounts receivable, in return for putting the financial assets at the disposal of the reporting institutional unit. The liabilities giving rise to interest expense are all claims of creditors upon debtors.

Includes:   Interest payable on overdue taxes where it is possible to separate payments of interest from the taxes to which they relate; interest on advances, overdrafts, bonds and bills; interest component of finance leases; accrued or accumulated interest that is added to a loan principal instead of being expensed in the current period

Excludes:   Interest on defined benefit superannuation (classified to interest on defined benefit superannuation (ETF 1271, COFOG-A, SDC)); net settlement payments under a swap or forward rate agreement contract (classified to transactions in financial assets (net) (ETF 3111, financial derivatives (TALC 422 ) or (TALC 522), SDC; interest payable on overdue taxes where it is not possible to separate payments of interest from the taxes to which they relate (classified to the relevant category under taxation revenue (ETF 111)).

A1A.74.

Other property expenses (ETF 128) consists of the expenses payable, other than interest, to the owners of financial assets or natural resources when they put them at the disposal of another unit. This category is further classified into:

• income transferred by public corporations as dividends (including tax equivalents) (ETF 1281, COFOG-A, SDC);
• withdrawal from income of quasi-corporations (ETF 1282, COFOG-A, SDC);
• land rent and royalty expenses (ETF 1283, COFOG-A, SDC);
• dividends to shareholders (ETF 1284, COFOG-A, SDC);
• reinvested earnings on foreign direct investment (ETF 1285, COFOG-A, SDC);
• property expense for investment income disbursements (ETF 1286, COFOG-A, SDC); and
• other property expenses not elsewhere classified (ETF 1289, COFOG-A, SDC).

A1A.75.

Income transferred by public corporations as dividends (including tax equivalents) (ETF 1281, COFOG-A, SDC) consists of the distributed earnings allocated to government or public sector units, as the owners of equity, for placing funds at the disposal of corporations. It includes all distributions of profits by public corporations to their shareholders or owners, except for distributions by fiscal, export or import monopolies.

Includes:    Income transferred by public corporations as income tax equivalents; income transferred by public corporations as wholesale sales tax equivalents.

Excludes:   Dividends paid to private sector shareholders (classified to dividends to shareholders (ETF 1284, COFOG-A, SDC)).

A1A.76.

Withdrawal from income of quasi-corporations (ETF 1282, COFOG-A, SDC) consists of that part of distributable income that the owner withdraws from the quasi-corporation.

Excludes:   Withdrawals of funds realised by the sale or other disposal of the quasi-corporation’s assets such as inventories, fixed produced assets, land or other non-produced assets (classified to transactions in financial assets (net) (ETF 3111), equity including contributed capital (TALC 424), SDC); funds withdrawn by liquidating large amounts of accumulated retained earnings or other reserves of the quasi-corporation (classified to transactions in financial assets (net) (ETF 3111), equity including contributed capital (TALC 424), SDC).

A1A.77.

Land rent and royalty expenses (ETF 1283, COFOG-A, SDC) consists of the expense payable to the owners of a natural resource (the lessor or landlord) for putting the natural resource at the disposal of another institutional unit (a lessee or tenant) for use of the natural resource in production.

Includes:    Resource leases on land, subsoil resources and on other natural resources.

A1A.78.

Dividends to shareholders (ETF 1284, COFOG-A, SDC) consists of that part of the income of public sector units which is transferred to private sector shareholders as dividends.

Excludes:   Dividends paid to parent governments or parent public sector units (classified to income transferred by public corporations as dividends (including tax equivalents) (ETF 1281, COFOG-A, SDC)).

A1A.79.

Reinvested earnings on foreign direct investment (ETF 1285, COFOG-A, SDC) consists of the direct investor’s share of the retained earnings of the direct investment enterprise. It is a requirement that the retained earnings of a foreign direct investment enterprise be recorded as if they were distributed and remitted to foreign direct investors in proportion to their ownership of the equity in the enterprise and then reinvested by them by means of additions to equity.

A1A.80.

Property expense for investment income disbursements (ETF 1286, COFOG-A, SDC) consists of property income attributed to insurance policy holders, superannuation entitlements and holders of investment fund shares.

A1A.81.

Other property expenses not elsewhere classified (ETF 1289, COFOG-A, SDC) consists of other property expenses that cannot be classified to income transferred by public corporations as dividends (including tax equivalents) (ETF 1281, COFOG-A, SDC), withdrawal from income of quasi-corporations (ETF 1282, COFOG-A, SDC), land rent and royalty expenses (ETF 1283, COFOG-A, SDC), dividends to shareholders (ETF 1284, COFOG-A, SDC), reinvested earnings on foreign direct investment (ETF 1285, COFOG-A, SDC) or property expense for investment income disbursements (ETF 1286, COFOG-A, SDC).

A1A.82.

The statement of sources and uses of cash (ETF 2) (formerly known as the cash flow statement in Australian GFS) is the part of the ETF which records the total amount of cash generated through the operating activities of the government during the current period, and includes transactions in non-financial assets settled in cash and transactions involving financial assets and liabilities settled in cash. The full classification of the statement of sources and uses of cash is shown in Table A1A.7 below:

A1A.83.

Cash flows from operating activities (ETF 21) consists of cash flows from the operating activities or normal business of public sector units. This category is further classified into:

• cash receipts from operating activities (ETF 211);
• cash payments for employee expenses (ETF 212); and
• cash payments for non-employee expenses (ETF 213).

A1A.84.

Cash receipts from operating activities (ETF 211) consists of cash inflows from operating activities during the current period. This category is further classified into:

• taxes received (ETF 2111, SDC);
• cash received from sales of goods and services (ETF 2112, SDC);
• grants and subsidies received (ETF 2113, SDC);
• income transferred from public corporations (ETF 2114, SDC);
• interest received (ETF 2115, SDC); and
• cash receipts from operating activities not elsewhere classified (ETF 2119, SDC).

A1A.85.

Taxes received (ETF 2111, SDC) consists of cash received from compulsory levies imposed by government on other entities.

A1A.86.

Cash received from sales of goods and services (ETF 2112, SDC) consists of cash received from the direct provision of goods and services by general government and public enterprises.

A1A.87.

Grants and subsidies received (ETF 2113, SDC) consists of cash received from voluntary transfers by government and other entities.

A1A.88.

Income transferred from public corporations (ETF 2114, SDC) consists of cash received from public corporations in the form of dividends or tax equivalent payments.

A1A.89.

Interest received (ETF 2115, SDC) consists of cash received by owners of financial assets in the form of interest.

A1A.90.

Cash receipts from operating activities not elsewhere classified (ETF 2119, SDC) consists of other cash receipts from operating activities that cannot be classified to taxes received (ETF 2111, SDC), cash received from sales of goods and services (ETF 2112, SDC), grants and subsidies received (ETF 2113, SDC), income transferred from public corporations (ETF 2114, SDC) or interest received (ETF 2115, SDC).

A1A.91.

Cash payments for employee expenses (ETF 212) consists of cash outflows for employee expenses from operating activities during the current period. This category is further classified into:

• cash paid for employee superannuation – defined contribution scheme (ETF 2121, SDC);
• cash paid for employee superannuation – defined benefit scheme (ETF 2122, SDC);
• salary sacrifice expenses – superannuation (ETF 2123, SDC);
• salary sacrifice expenses – items other than superannuation (ETF 2124, SDC); and
• cash payments for employee expenses not elsewhere classified (ETF 2129, SDC).

A1A.92.

Cash paid for employee superannuation – defined contribution scheme (ETF 2121, SDC) consists of cash paid by government entities to defined contribution superannuation schemes in respect of employee superannuation.

A1A.93.

Cash paid for employee superannuation – defined benefit scheme (ETF 2122, SDC) consists of cash paid by government entities to defined benefit superannuation schemes in respect of employee superannuation.

A1A.94.

Salary sacrifice expenses – superannuation (ETF 2123, SDC) consists of cash paid by government entities to provide salary sacrificing arrangements for superannuation contributions to employees.

A1A.95.

Salary sacrifice expenses – items other than superannuation (ETF 2124, SDC) consists of cash paid by government entities to provide salary sacrificing arrangements other than superannuation contributions to employees.

A1A.96.

Cash payments for employee expenses not elsewhere classified (ETF 2129, SDC) consists of cash payments for employee expenses that cannot be classified to cash paid for employee superannuation – defined contribution scheme (ETF 2121, SDC), cash paid for employee superannuation – defined benefit scheme (ETF 2122, SDC), salary sacrifice expenses – superannuation (ETF 2123, SDC) or salary sacrifice expenses – items other than superannuation (ETF 2124, SDC)..

A1A.97.

Cash payments for non-employee expenses (ETF 213) consists of cash outflows for non-employee expenses from operating activities during the current period. This category is further classified into:

• cash paid for the purchase of other goods and services (ETF 2131, SDC);
• subsidies paid (ETF 2132, SDC);
• grants paid (ETF 2133, SDC);
• other transfer payments (ETF 2134, SDC);
• interest paid (ETF 2135, SDC);
• distributions paid (ETF 2136, SDC); and

• cash payments for non-employee expenses not elsewhere classified (ETF 2139, SDC).

A1A.98.

Cash paid for the purchase of other goods and services (ETF 2131, SDC) consists of cash paid by public sector units for the purchase of other goods and services.

A1A.99.

Subsidies paid (ETF 2132, SDC) consists of voluntary cash transfers by public sector units in the form of subsidies.

A1A.100.

Grants paid (ETF 2133, SDC) consists of voluntary cash transfers by public sector units in the form of grants.

Includes:   Current and capital grants paid in cash.

A1A.101.

Other transfer payments (ETF 2134, SDC) consists of cash transfers by public sector other than those in the form of subsidies or grants paid.

Includes:    Other current and capital transfers paid in cash.

A1A.102.

Interest paid (ETF 2135, SDC) consists of cash transfers by public sector units in the form of interest.

Includes:   Interest paid in cash on advances, loans, overdrafts, bonds and bills and deposits.

A1A.103.

Distributions paid (ETF 2136, SDC) consists of cash transfers by public enterprises to their parent entities and other shareholders in the form of dividends, transfer of profits or other similar distributions.

A1A.104.

Cash payments for non-employee expenses not elsewhere classified (ETF 2139, SDC) consists of cash payments for non-employee expenses that cannot be classified to cash paid for the purchase of other goods and services (ETF 2131, SDC), subsidies paid (ETF 2132, SDC), grants paid (ETF 2133, SDC), other transfer payments (ETF 2134, SDC), interest paid (ETF 2135, SDC) or distributions paid (ETF 2136, SDC).

A1A.105.

Cash flows from transactions in non-financial assets (ETF 22) consists of net expenditure on non-financial assets by public sector units. This category is further classified into:

• expenditure on non-financial assets (net) (ETF 221).

A1A.106.

Expenditure on non-financial assets (net) (ETF 221) consists of net expenditure on new and second-hand non-financial assets. This category is further classified into:

• purchases of new non-financial assets (ETF 2211, SDC);
• purchases of second-hand non-financial assets (ETF 2212, SDC); and
• sales of non-financial assets (ETF 2213, SDC).

Includes:    Net expenditure on mineral deposits, timber tracts and similar non-reproducible tangible assets; net expenditure on intangible assets such as patents and copyrights.

A1A.107.

Purchases of new non-financial assets (ETF 2211, SDC) consists of purchases of new fixed produced assets, that is, tangible assets intended to be used in the production process for longer than one year.

Includes:    Fixed produced assets constructed on own account and valued at cost of materials and capitalised salaries and wages; reimbursements received by public authorities for amounts spent on capital works while acting as an agent for other government and private bodies; purchase of vacant land; purchase of land with improvements; outright purchases of intangible assets such as patents and copyrights; second-hand assets imported into the country for the first time.

Excludes:   Houses built for sale (classified to change in inventories (ETF 4111, TALC, COFOG-A)); assets acquired under finance lease arrangements (classified to acquisitions of non-financial assets under new finance leases (ETF 4112, TALC, COFOG-A, SDC)).

A1A.108.

Purchases of second-hand non-financial assets (ETF 2212, SDC) consists of purchases of second-hand fixed produced assets, that is, tangible assets which have been previously used in production in the country.

Excludes:   Second-hand non-financial assets imported into the country for the first time (classified to purchases of new non-financial assets (ETF 2211, SDC)); second-hand assets acquired under finance lease arrangements (classified to acquisitions of non-financial assets under new finance leases (ETF 4112, TALC, COFOG-A, SDC)).

A1A.109.

Sales of non-financial produced assets (ETF 2213, SDC) consists of sales of fixed produced assets.

Includes:    Sales of previously rented dwellings, non-residential buildings and used plant and equipment; sales of land including the sale of residential leases in the ACT; sales of land and buildings as a package where a separate value cannot be determined for the land component; outright sales of intangible assets such as patents and copyrights.

A1A.110.

Cash flows from transactions in financial assets for policy purposes (ETF 23) consists of cash flows from transactions in financial assets for policy purposes by government entities. This category is further classified into:

• advances paid (net) (ETF 231); and
• equity acquisitions, disposals and sale of equity (net) (ETF 232).

A1A.111.

Advances paid (net) (ETF 231) consists of advances (net of repayments) paid to other public authorities. Advances are the creation of financial assets with the aim of funding particular enterprise, household or government activities. They are distinguished from other financial assets such as investments in that they are motivated by public policy purposes while investments are motivated by liquidity management purposes and the need to earn a return. This category is further classified into:

• advances paid - concessional loans (ETF 2311, SDC);
• advances paid other than concessional loans (ETF 2312, SDC); and
• repayments of advances (ETF 2313, SDC).

A1A.112

Advances paid - concessional loans (ETF 2311, SDC), consists of advances paid in the form of loans with below market interest rates.

A1A.113.

Advances paid other than concessional loans (ETF 2312, SDC) consists of advances paid in the form of loans other than concessional loans.

Includes:    Advances from one level of government to another, between government units at the same level of government, and other entities; advances to purchasers of assets sold to private enterprises; advances for the purchase of homes; advances for war service land settlement; advances to purchases of assets sold to persons and non-profit institutions; advances by public authorities to foreign governments and organisations; subscriptions to international agencies such as the International Bank for Reconstruction and Development and the International Development Association; capital contributions and provision of funds to public financial corporations for re-lending to specific categories of new borrowers.

A1A.114.

Repayments of advances (ETF 2313, SDC) consists of repayments of advances made by public authorities to private enterprises, persons, non-profit institutions, foreign governments and organisations and other public authorities for policy purposes.

Excludes:   Amounts on-passed by public enterprises to their parent governments from the liquidation of assets, capital restructuring, etc., (classified to transactions in financial assets (net) (ETF 3111), equity including contributed capital (TALC 424), SDC); proceeds received by government from sales to the private sector of some or all equity in public enterprises (classified to equity disposals and sale of equity (ETF 2322, SDC)).

A1A.115.

Equity, acquisitions, disposals and sale of equity (net) (ETF 232) consists of the acquisition and disposal by government of shares and other equity in public and private enterprises. This category is further classified into:

• equity acquisitions (ETF 2321, SDC); and
• equity disposals and sale of equity (ETF 2322, SDC).

A1A.116.

Equity acquisitions (ETF 2321, SDC) consists of shares and other equity in public and private enterprises acquired during the current reporting period.

A1A.117.

Equity disposals and sale of equity (ETF 2322, SDC) consists of proceeds received from disposals of some or all equity in public and private enterprises.

Includes:    Proceeds received by general government from sales of public enterprises; proceeds received by public enterprises from sales of subsidiary public enterprises.

A1A.118.

Cash flows from investments in financial assets for liquidity management purposes (ETF 24) consists of cash flows from investment in financial assets for liquidity management purposes by public sector units.

A1A.119.

Increase in investments (ETF 241) consists of the creation of financial assets through lending money for the purpose of earning a return and managing liquidity. This category is further classified into:

• increase in investments (ETF 2411, SDC).

A1A.120.

Increase in investments (ETF 2411, SDC) consists of the creation of financial assets through lending money for the purpose of earning a return and managing liquidity. Investments included in this category are generally long-term assets.

Excludes:   Increase in short-term assets (classified to increase / (decrease) in cash held (ETF 2611, SDC)).

A1A.121.

Cash flows from financing activities (ETF 25) consists of cash flows from the financing activities of public sector units. This category is further classified into:

• advances received (net) (ETF 251);
• borrowing (net) (ETF 252);
• deposits received (ETF 253); and
• other financing (net) (ETF 259).

A1A.122.

Advances received (net) (ETF 251) consists of advances (net of repayments) received from other public authorities. Advances are the creation of financial assets with the aim of funding particular enterprise, household or government activities. They are distinguished from other financial assets such as investments in that they are motivated by public policy purposes while investments are motivated by liquidity management purposes and the need to earn a return. This category is further classified into:

• advances received - concessional loans (ETF 2511, SDC);
• advances received other than concessional loans (ETF 2512, SDC); and
• advances repaid (ETF 2513, SDC).

A1A.123.

Advances received - concessional loans (ETF 2511, SDC) consists of advances received in the form of loans at below market interest rates.

A1A.124

Advances received other than concessional loans (ETF 2512, SDC) consists of advances received in the form of loans other than concessional loans.

A1A.125.

Advances repaid (ETF 2513, SDC) consists of the repayment of advances from other public authorities.

A1A.126

Borrowing (net) (ETF 252) consists of the net borrowing by public authorities from public and private bodies and individuals within Australia and from abroad. This item is further classified into:

• borrowing (net) (ETF 2521, SDC).

A1A.127.

Borrowing (net) (ETF 2521, SDC) consists of net borrowing by public authorities from public and private bodies and individuals within Australia and from abroad. Net borrowing is equal to gross borrowing less the repayment of past borrowing. Gross borrowing is the creation of liabilities through the sale of bonds and bills in the capital market or by raising loans through direct agreements with lenders.

Includes:    Net borrowing from the International Bank for Reconstruction and Development; net borrowing under credit arrangements with foreign government and authorities; the issue of stocks and bonds abroad less redemptions; repayments of the principal component of finance leases.

Excludes:   An increase in liability or borrowing related to the initial entry into a finance lease or similar arrangement (classified to transactions in liabilities (ETF 3211), finance leases (TALC 531), SDC); cash repayments of interest associated with a finance lease or similar arrangement (classified to interest paid (ETF 2135, SDC)); interest repayments associated with a finance lease or similar arrangement (classified to interest expenses not elsewhere classified (ETF 1279, COFOG-A, SDC)).

A1A.128

Deposits received (ETF 253) consists of the net increase in cash held by public sector units as a result of deposits received. This category is further classified into;

• increase in deposits received (ETF 2531, SDC).

A1A.129.

Increase in deposits received (ETF 2531, SDC) consists of the net increase in cash held by public sector units as a result of a net change to its liabilities generated by taking deposits from a private body or other government unit.

Includes:    Cash held in public accounts by treasuries on behalf of other government units, for example public non-financial corporations which operate through a trust account held in the public accounts; deposits lodged by public non-financial corporations and other public sector units with central borrowing authorities and by private sector entities with public financial corporations.

A1A.130.

Other financing (net) (ETF 259) consists of cash flows from other financing activities. This category is further classified into:

• other financing not elsewhere classified (ETF 2599, SDC).

A1A.131.

Other financing not elsewhere classified (ETF 2599, SDC) consists of other financing transactions resulting in cash flows in the period that cannot be classified to advances received - concessional loans (ETF 2511, SDC), advances received other than concessional loans (ETF 2512, SDC), advances repaid (ETF 2513, SDC), borrowing (net) (ETF 2521, SDC) or increase in deposits received (ETF 2531, SDC).

A1A.132

Increase / (decrease) in cash held (ETF 26) consists of increases and decreases in the stock of cash on hand and cash equivalents held during the accounting period. This category is further classified into:

• increase / (decrease) in cash held (ETF 261).

A1A.133.

Increase / (decrease) in cash held (ETF 261) consists of increases and decreases in the stock of cash on hand and cash equivalents held during the accounting period. This category is further classified into:

• increase / (decrease) in cash held (ETF 2611, SDC).

A1A.134.

Increase / (decrease) in cash held (ETF 2611, SDC) consists of the increase/decrease in the value of cash on hand and cash equivalents. Cash on hand refers to notes and coins held and deposits held at call with financial institutions. Cash equivalents refer to highly liquid investments which are readily convertible to cash on hand at the investor’s option.

Includes:    Increases in cash and bank balances; funds lodged with treasuries or central bank authorities; balances at call; foreign cash and deposits; funds investment by public authorities for a fixed period of time (short term); transactions in Special Drawing Rights; deposits of gold and currency with the IMF less receipts representing revenue from the IMF’s gold disbursements.

A1A.135.

Transactions in financial assets and liabilities (ETF 3) is the part of the ETF which describes transactions that affect the stock positions of financial assets and liabilities in GFS. The full classification of transactions in financial assets and liabilities is shown in Table A1A.8 below.

A1A.136.

Transactions in financial assets and liabilities (net) (ETF 31) consists of the transactions that affect the stock positions of financial assets. This category is further classified into:

• transactions in financial assets (net) (ETF 311).

A1A.137.

Transactions in financial assets (net) (ETF 311) consists of the transactions that affect stock positions of financial assets. This category is further classified into:

• transactions in financial assets (net) (ETF 3111, TALC, SDC)

A1A.138.

Transactions in financial assets (net) (ETF 3111, TALC, SDC) consists of the transactions that affect stock positions of financial assets. It includes the total value of each category of financial assets acquired in transactions during the reporting period minus the total value of each category of financial assets disposed of in transactions during the reporting period.

A1A.139.

Transactions in liabilities (net) (ETF 32) consists of the transactions that affect stock positions of liabilities. This category is further classified into:

• transactions in liabilities (net) (ETF 321).

A1A.140.

Transactions in liabilities (net) (ETF 321) consists of the transactions that affect stock positions of liabilities. This category is further classified into:

• transactions in liabilities (net) (ETF 3211, TALC, SDC).

A1A.141.

Transactions in liabilities (net) (ETF 3211, TALC, SDC) consists of the transactions that affect stock positions of liabilities. It includes the total value of each category of liabilities incurred in transactions during the reporting period minus the total value of each category of liabilities extinguished in transactions during the reporting period.

A1A.142.

Transactions in non-financial assets (ETF 4) is the part of the ETF that describes transactions that affect stock positions of non-financial assets The full classification of transactions in non-financial assets is shown in Table A1A.9 below.

A1A.143.

Transactions in non-financial assets  (ETF 4) consists of the transactions that affect stock positions of non-financial assets. It includes the total value of non-financial assets acquired in transactions during the reporting period minus the total value of non-financial assets disposed of in transactions during the reporting period. This category is further classified into:

• acquisitions of non-financial assets (ETF 41); and
• disposals of non-financial assets (ETF 42).

A1A.144

Acquisitions of non-financial assets (ETF 41) consists of the total value of non-financial assets acquired in transactions during the reporting period. This category is further classified into:

• acquisitions of non-financial assets (ETF 411).

A1A.145.

Acquisitions of non-financial assets (ETF 411) consists of the total value of non-financial assets acquired in transactions during the reporting period. This category is further classified into:

• change in inventories (ETF 4111, TALC, COFOG-A);
• acquisitions of non-financial assets under new finance leases (ETF 4112, TALC, COFOG-A);
• own-account capital formation (ETF 4113, TALC, COFOG-A);
• acquisitions of other new non-financial assets (ETF 4114, TALC, COFOG-A);
• acquisitions of second-hand non-financial assets (ETF 4115, TALC, COFOG-A); and
• costs of ownership transfer on non-produced assets other than land (ETF 4116, TALC, COFOG-A).

A1A.146.

Change in inventories (ETF 4111, TALC, COFOG-A) consists of the value of additions to inventories minus the value of withdrawals from inventories minus the value of any recurrent losses of goods held in inventories during the reporting period.

A1A.147.

Acquisitions of non-financial assets under new finance leases (ETF 4112, TALC, COFOG-A, SDC) consists of the value of non-financial assets acquired under finance leases during the reporting period.

A1A.148.

Own-account capital formation (ETF 4113, TALC, COFOG-A) consists of the value of non-financial assets produced for own use. Further detailed information on own-account capital formation is recorded under own-account capital formation (ETF 76).

A1A.149.

Acquisitions of other new non-financial assets (ETF 4114, TALC, COFOG-A, SDC) consists of the value of non-financial assets acquired during the reporting period other than those acquired under finance leases.

Excludes:   Non-financial assets acquired under finance leases (classified to acquisition of non-financial assets under new finance leases (ETF 4112, TALC, COFOG-A, SDC)).

A1A.150.

Acquisitions of second-hand non-financial assets (ETF 4115, TALC, COFOG-A, SDC) consists of the value of second-hand non-financial assets acquired during the reporting period.

A1A.151.

Costs of ownership transfer on non-produced assets other than land (ETF 4116, TALC, COFOG-A, SDC) consists of the costs associated with acquiring and disposing of non-produced assets other than land.

Includes:   All professional charges or commission incurred by both units acquiring or disposing of an asset such as fees paid to lawyers, architects, surveyors, engineers and valuers and commissions paid to estate agents and auctioneers; any trade and transport costs separately invoiced to the purchaser; all taxes payable by the unit acquiring the asset on the transfer of ownership of the asset; any tax payable on the disposal of an asset; any delivery and installation or disinstallation costs not included in the price of the asset being acquired or disposed of; any terminal costs incurred at the end of an asset’s life such as those required to render the structure safe or to restore the environment in which it is situated.

Excludes:   Costs of ownership transfer on land (classified to either change in inventories (ETF 4111), acquisitions of non-financial assets under new finance leases (ETF 4112), own-account capital formation (ETF 4113), acquisitions of other new non-financial assets (ETF 4114) or acquisitions of second-hand non-financial assets (ETF 4115), land improvements (TALC 113), COFOG-A, SDC).

A1A.152.

Disposals of non-financial assets (ETF 42) consists of the value of non-financial assets disposed of in transactions during the reporting period. This category is further classified into:

• disposals of non-financial assets (ETF 421).

A1A.153

Disposals of non-financial assets (ETF 421) consists of the value of non-financial assets disposed of in transactions during the reporting period. This category is further classified into:

• disposals of non-financial assets (ETF 4211, TALC, COFOG-A).

A1A.154.

Disposals of non-financial assets (ETF 4211, TALC, COFOG-A, SDC) consists of the value of non-financial assets disposed of in transactions during the reporting period.

A1A.155.

Other economic flows of assets and liabilities (ETF 5) is the part of the ETF which records changes in the volume or value of assets and liabilities that do not result from transactions. The full classification of the other economic flows of assets and liabilities (ETF 5) is shown in Table A1A.10 below.

A1A.156.

Other economic flows of assets and liabilities (ETF 5) consists of changes in assets, liabilities and net worth that are not the result of transactions. This category is further classified into:

• holding gains and losses (revaluations) (ETF 51); and
• other changes in volume (ETF 52).

A1A.157

Holding gains and losses (revaluations) (ETF 51) consists of gains and losses on the monetary value of assets and liabilities held by public sector units. This category is further classified into:

• holding gains and losses (revaluations) (ETF 511).

A1A.158.

Holding gains and losses (revaluations) (ETF 511) consists of changes in the monetary value of assets and liabilities resulting from changes in the level and structure of prices, excluding qualitative or quantitative changes in the assets. This category is further classified into:

• holding gains and losses on financial assets (ETF 5111, TALC);
• holding gains and losses on non-financial assets (ETF 5112, TALC); and
• holding gains and losses on liabilities (ETF 5113, TALC).

A1A.159.

Holding gains and losses on financial assets (ETF 5111, TALC) consists of changes in the monetary value of financial assets resulting from changes in the level and structure of prices, excluding qualitative or quantitative changes in the assets.

A1A.160.

Holding gains and losses on non-financial assets (ETF 5112, TALC) consists of changes in the monetary value of non-financial assets resulting from changes in the level and structure of prices, excluding qualitative or quantitative changes in the assets.

A1A.161.

Holding gains and losses on liabilities (ETF 5113, TALC) consists of changes in the monetary value of liabilities resulting from changes in the level and structure of prices, excluding qualitative or quantitative changes in the liabilities.

A1A.162.

Change in net worth due to holding gains and losses (ETF 512) is further classified into:

• change in net worth due to holding gains and losses (ETF 5121).

A1A.163.

Change in net worth due to holding gains and losses (ETF 5121) consists of the sum of the positive and negative holding gains and holding losses on all assets and liabilities.

A1A.164.

Other changes in volume (ETF 52) consists of the value of qualitative or quantitative changes in the volume of assets and liabilities. This category is further classified into:

• other changes in volume (ETF 521).

A1A.165.

Other changes in volume (ETF 521) consists of any changes in the value of assets and liabilities that do not result from transactions or holding gains. These changes can be the result of events that involve the appearance or disappearance of existing resources as economic assets; the effects of external events (exceptional and unexpected) on some of the economic benefits derivable from assets and corresponding liabilities; and changes in classification. This category is further classified into:

• other changes in the volume of financial assets (ETF 5211, TALC);
• other changes in the volume of non-financial assets (ETF 5212, TALC); and

• other changes in the volume of liabilities (ETF 5213, TALC).

A1A.166.

Other changes in the volume of financial assets (ETF 5211, TALC) consists of any changes in the value of financial assets that do not result from transactions or holding gains.

Includes:    Bad debts written off unilaterally.

A1A.167.

Other changes in the volume of non-financial assets (ETF 5212, TALC) consists of any changes in the value of non-financial assets that do not result from transactions or holding gains.

A1A.168.

Other changes in the volume of liabilities (ETF 5213, TALC) consists of any changes in the value of liabilities that do not result from transactions or holding gains.

A1A.169.

Change in net worth due to other changes in volume (ETF 522) is further classified into:

• change in net worth due to other changes in volume (ETF 5221).

A1A.170.

Change in net worth due to other changes in volume (ETF 5221) consists of the sum of the positive and negative other changes in the volume of all assets and liabilities.

A1A.171.

Intra-unit transfers (ETF 6) is the part of the ETF which records the internal transactions that pass between the various funds and accounts of a public sector unit. Intra-unit transfers are used exclusively by the ABS for balancing purposes in GFS. The full classification of intra-unit transfers (ETF 6) are shown in Table A1A.11 below.

A1A.172.

Intra-unit transfers (ETF 6) consists of the internal transactions that pass between the various funds and accounts of a public sector unit. Intra-unit transfers are used exclusively by the ABS for balancing purposes in GFS. This category as further classified into:

• intra-unit transfers (ETF 60).

A1A.173.

Intra-unit transfers (ETF 60) consists of the internal transactions that pass between the various funds and accounts of a public sector unit. Intra-unit transfers are used exclusively by the ABS for balancing purposes in GFS. This category as further classified into:

• intra-unit transfers (ETF 600).

A1A.174.

Intra-unit transfers (ETF 600) consists of the internal transactions that pass between the various funds and accounts of a public sector unit. Intra-unit transfers are used exclusively by the ABS for balancing purposes in GFS. They do not appear in published GFS data and are used primarily for the editing of input data. This category as further classified into:

• intra-unit payments (ETF 6001); and
• intra-unit receipts (ETF 6002).

A1A.175.

Intra-unit payments (ETF 6001) consists of payments of intra-unit transfers.

A1A.176.

Intra-unit receipts (ETF 6002) consists of receipts of intra-unit transfers.

A1A.177.

Supplementary information (ETF 7) is the part of the ETF which records the additional GFS data required for international statistical reporting purposes and national accounting purposes. The full classification of supplementary information (ETF 7) is shown in Table A1A.12 below:

A1A.178.

Supplementary information (ETF 7) consists of items of additional economic interest in GFS. This category is further classified into:

• memorandum items – balance sheet (ETF 71);
• contingent liabilities (ETF 72);
• provisions for doubtful debts (ETF 73);
• debt maturity (ETF 74);
• salary sacrifice expenses (ETF 75); and
• own-account capital formation (ETF 76).

A1A.179.

Memorandum items - balance sheet (ETF 71) are recorded in GFS to provide additional information about items related to (but not included on) the GFS balance sheet. Memorandum items in GFS differ to those of commercial accounting in that they are compulsory rather than optional as in commercial accounting. This category is further classified into:

• implicit transfers (ETF 711);
• liabilities in arrears and related charges (ETF 712); and
• non-performing loans (ETF 713).

A1A.180.

Implicit transfers (ETF 711) consists of the implied transfers arising through concessional lending arrangements, and through other circumstances. This category is further classified into:

• implicit transfers receivable from concessional loans (ETF 7111); and
• implicit transfers payable due to concessional loans (ETF 7112).

A1A.181.

Implicit transfers receivable from concessional loans (ETF 7111) consists of the benefits receivable by borrowers of loans with concessional interest rates. The benefit receivable is equal to the difference between the actual interest payable and the amounts that would be payable if market-equivalent interest prevailed.

A1A.182.

Implicit transfers payable due to concessional loans (ETF 7112) consists of the benefits transferred to borrowers of loans with concessional interest rates. The benefit is equal to the difference between the actual interest payable and the amounts that would be payable if market-equivalent interest prevailed.

A1A.183.

Liabilities in arrears and related charges (ETF 712) consists of arrears on financial instruments, which are amounts that are both unpaid and past the due date for payment, and additional charges relating to arrears. This category is further classified into:

• total arrears (ETF 7121); and
• interest on arrears (ETF 7122).

A1A.184.

Total arrears (ETF 7121) consists of amounts due on financial instruments that are both unpaid and past the due date for payment.

A1A.185.

Interest on arrears (ETF 7122) consists of interest accrued on liabilities in arrears, both principal and interest arrears.

Includes:    Additional charges relating to arrears such as penalties.

A1A.186.

Non-performing loans (ETF 713) consists of loan assets for which payments of principal and interest are past due by three months (90 days) or more; interest payments equal to three months (90 days) interest or more have been capitalised (reinvested to the principal amount) or payment has been delayed by agreement; or evidence exists to reclassify a loan as non-performing even in the absence of a 90 day past due payment, such as when the debtor files for bankruptcy.

A1A.187.

Contingent liabilities (ETF 72) consists of the value of obligations that do not arise unless a particular, discrete event(s) occurs in the future. The key difference between contingent liabilities and actual liabilities is that one or more conditions must be fulfilled before a financial transaction is recorded. Contingent liabilities are not recognised as liabilities prior to their associated condition(s) being fulfilled. This category is further classified into:

• explicit contingent liabilities (ETF 721); and
• implicit contingent liabilities (ETF 722).

A1A.188.

Explicit contingent liabilities (ETF 721) consists of legal or contractual financial arrangements that give rise to conditional requirements to make payments of economic value. The requirements become effective if one or more stipulated conditions arise. This category is further classified into:

• loan and other debt instrument guarantees (ETF 7211);
• other one-off guarantees (ETF 7212);
• legal claims (ETF 7213);
• indemnities (ETF 7214);
• uncalled share capital (ETF 7215); and
• explicit contingent liabilities not elsewhere classified (ETF 7219).

A1A.189.

Loan and other debt instrument guarantees (ETF 7211) consists of publicly guaranteed debt that is defined as debt liabilities of public and private sector units, the servicing of which is contractually guaranteed by public sector units. Guarantors guarantee the servicing of existing debts of other public and private sector units. Guarantors are only required to make a payment if the debtor defaults.

A1A.190.

Other one-off guarantees (ETF 7212) consists of commitments by one party to bear the risk of non-payment by another party for instruments other than loan and other debt instruments.

Includes:   Credit guarantees such as lines of credit and loan commitments which provide a guarantee that undrawn funds will be available in the future but no financial asset/liability exists until such funds are actually provided or advanced — the undrawn lines of credit and undisbursed loan commitments are contingent liabilities of the issuing institutions; contingent “credit availability” guarantees; contingent credit facilities; letters of credit which are promises to make payment upon the presentation of pre-specified documents; underwritten note issuance facilities which provide a guarantee that a borrower will be able to issue short-term notes and that the underwriting institution(s) will take up any unsold portion of the notes (a liability / asset will be created only when funds are advanced by the underwriting institution(s) and the unutilised portion is a contingent liability); other note guarantee facilities providing contingent credit or back-up purchase facilities such as revolving underwriting facilities, multiple options facilities, and global note facilities (these back-up purchase facilities are provided by banks and non-bank financial institutions and the unutilised amounts of these facilities are contingent liabilities).

A1A.191.

Legal claims (ETF 7213) consists of potential legal claims stemming from pending court cases.

A1A.192.

Indemnities (ETF 7214) consists of commitments to accept the risk of loss or damage another party might suffer.

Includes:    Indemnities against unforeseen tax liabilities arising in government contracts with other units.

A1A.193.

Uncalled share capital (ETF 7215) consists of obligations for units to provide additional capital, on demand, to an entity of which they are a shareholder, such as an international financial institution.

A1A.194.

Explicit contingent liabilities not elsewhere classified (ETF 7219) consists of other explicit contingent liabilities that cannot be classified to loan and other debt instrument guarantees (ETF 7211), other one-off guarantees (ETF 7212), legal claims (ETF 7213), indemnities (ETF 7214) or uncalled share capital (ETF 7215).

A1A.195.

Implicit contingent liabilities (ETF 722) consists of obligations that do not arise from a legal or contractual source but are recognised after a condition or event is realised. This category is further classified into:

• present value of implicit obligations for future social security benefits (ETF 7221); and
• implicit contingent liabilities not elsewhere classified (ETF 7229).

A1A.196.

Present value of implicit obligations for future social security benefits (ETF 7221) consists of the present value of obligations for future social security benefits (other than employment-related retirement benefits) that are under an implicit guarantee by government to assume these liabilities on behalf of another party if certain conditions arise. In Australia, the only type of social security benefits that involve a contractual liability for public sector units relate to employment related retirement benefits. Therefore a zero balance is reported for this category in Australian GFS. The category is maintained as part of the classification to align with the international GFS standards.

A1A.197.

Implicit contingent liabilities not elsewhere classified (ETF 7229) consists of implicit contingent liabilities that cannot be classified to present value of implicit obligations for future social security benefits (ETF 7221).

Includes: Ensuring solvency of the banking sector; covering the obligations of state / territory and local governments or the central bank in the event of a default; assuming unguaranteed debt of public sector units; potential spending for natural disaster relief.

A1A.198.

Provisions for doubtful debts (ETF 73) is further classified into:

• provisions for doubtful debts (ETF 731).

A1A.199.

Provisions for doubtful debts (ETF 731) is further classified into:

• provisions for doubtful debts (ETF 7311, TALC. SDC).

A1A.200.

Provisions for doubtful debts (ETF 7311, TALC, SDC) consists of provisions for anticipated doubtful debts during the reporting period. Provisions for doubtful debts are not recognised as transactions in GFS, but are recorded in the AGFS as part of the supporting information so that the ABS can derive the face value of financial assets and liabilities which is required for international statistical reporting. Provisions or allowances for doubtful debts are not included in GFS output and accounts receivable in the balance sheet is recorded gross of such provisions or allowances.

A1A.201.

Debt maturity (ETF 74) consists of debt classified according to the time until the debt is extinguished as outlined in the contract between the debtor and the creditor. In this context, maturity relates to original maturity, which is the period from the issue date until the final contractually scheduled payment date; or remaining maturity or residual maturity which is the period from the reference date (balance sheet date) until the final contractually scheduled payment date. This category is further classified into:

• debt by maturity valued at market value (ETF 741).

A1A.202.

Debt by maturity valued at market value (ETF 741) consists of debt, valued at market value, classified according to the time until the debt is extinguished as outlined in the contract between the debtor and the creditor This category is further classified into:

• short-term debt by original maturity valued at market value (ETF 7411, TALC);
• long-term debt with payment due within one year or less valued at market value (ETF 7412, TALC); and
• long-term debt with payment due in more than one year valued at market value (ETF 7413, TALC).

A1A.203.

Short-term debt by original maturity valued at market value (ETF 7411, TALC) consists of debt, valued at market value, payable on demand.

A1A.204.

Long-term debt with payment due within one year or less valued at market value (ETF 7412, TALC) consists of debt, valued at market value, with a maturity of one year or less.

A1A.205.

Long-term debt with payment due in more than one year valued at market value (ETF 7413, TALC) consists of debt, valued at market value, with a maturity of more than one year or no stated maturity.

Excludes: Debt valued at market value, that is payable on demand (classified to short-term debt by original maturity valued at market value (ETF 7411, TALC)).

A1A.206

Salary sacrifice expenses (ETF 75) consists of the value of benefits supplied by a public sector employer to employees under a salary sacrifice arrangement. These expenses are collected as part of the Australian GFS for national accounting purposes and contains details not normally used in GFS. This category is further classified into:

• salary sacrifice expenses (ETF 751).

A1A.207.

Salary sacrifice expenses (ETF 751) consists of the employer’s expense when an employee agrees to forego part of their future salary or wages in return for their employer providing benefits of a similar value. This category is further classified into:

• salary sacrifice expenses – superannuation (ETF 7511, SDC); and
• salary sacrifice expenses not elsewhere classified (ETF 7519, SDC).

A1A.208.

Salary sacrifice expenses – superannuation (ETF 7511, SDC) consists of expenses incurred by the employer when an employee agrees to forego part of their future salary or wages in return for their employer providing superannuation benefits of a similar value.

A1A.209.

Salary sacrifice expenses not elsewhere classified (ETF 7519, SDC) consists of expenses incurred by the employer when an employee agrees to forego part of their future salary or wages in return for their employer providing benefits of a similar value other than superannuation.

A1A.210.

Own-account capital formation (ETF 76) consists of the value of the production of non-financial assets for own use. This category is further classified into:

• own-account superannuation payments (ETF 761);
• own-account employee payments other than superannuation (ETF 762); and
• own-account non-employee payments (ETF 763).

A1A.211.

Own-account superannuation payments (ETF 761) consists of accrued and imputed costs under both defined contribution and defined benefit superannuation schemes in return for work related to own-account capital formation. A defined contribution superannuation scheme is one where the benefits payable to the employee on retirement are determined by the funds that have accumulated from employer and employee contributions over the working life of the employee, together with income and capital gains / losses arising from the investment of the accumulated funds. The funds are accumulated in a separate superannuation fund managed by a board of trustees or guardians of the scheme (autonomous fund). The government employer has a responsibility to make the regular agreed contributions to the fund, but then has no further superannuation liability towards their employees. A defined benefit superannuation scheme is one where the benefits payable to the employee on retirement are defined by some formula normally related to participants’ length of service and salary. This category is further classified into:

• own-account actual employers' contributions – defined contribution scheme (ETF 7611, TALC, COFOG-A);
• own-account actual employers' contributions – defined benefit scheme (ETF 7612, TALC, COFOG-A); and
• own-account imputed employers’ contributions – defined benefit scheme (ETF 7613, TALC, COFOG-A).

A1A.212.

Own-account actual employers' contributions – defined contribution scheme (ETF 7611, TALC, COFOG-A) consists of the amounts payable by employers to defined contribution superannuation schemes for the benefit of their employees, in return for work related to own-account capital formation.

A1A.213.

Own-account actual employers' contributions – defined benefit scheme (ETF 7612, TALC, COFOG-A).This category consists of the amounts payable by employers to defined benefit superannuation schemes for the benefit of their employees, in return for work related to own-account capital formation.

A1A.214.

Own-account imputed employers’ contributions – defined benefit scheme (ETF 7613, TALC, COFOG-A) consists of the amount of employer contributions to defined benefit superannuation schemes that would be needed to secure the de-facto entitlements to the benefits accumulated by their employees, in return for work related to own-account capital formation. Some employers provide benefits directly to their employees, former employees or their dependants from their own resources without involving an autonomous superannuation fund and without creating a special fund or segregated reserve for the purpose.

A1A.215.

Own-account employee payments other than superannuation (ETF 762) consists of all employee payments other than superannuation contributions, in cash or in kind, payable to an individual in an employer-employee relationship in return for work performed by the latter related to own-account capital formation. This category is further classified into:

• own-account wages, salaries and supplements in cash (ETF 7621, TALC, COFOG-A);
• own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A);
• own-account salary sacrifice payments - superannuation (ETF 7623, TALC, COFOG-A);
• own-account salary sacrifice payments - other than superannuation (ETF 7624, TALC, COFOG-A);
• own-account Fringe Benefits tax (FBT) payments (ETF 7625, TALC, COFOG-A);
• own-account workers’ compensation payments (ETF 7626, TALC, COFOG-A); and
• own-account employee payments not elsewhere classified (ETF 7629, TALC, COFOG-A).

A1A.216.

Own-account wages, salaries and supplements in cash (ETF 7621, TALC, COFOG-A) consists of compensation of employees payable in cash, or any other financial instruments used as means of payments, in return for work related to own-account capital formation.

Includes:    Basic wages or salaries payable at regular weekly, monthly or other intervals, including payments by results and piecework payments; enhanced payments or special allowances for working overtime, at nights, on weekends or other irregular hours; allowances for working away from home or in disagreeable or hazardous circumstances; expatriation allowances for working abroad; supplementary allowances payable regularly such as housing allowances or allowances to cover the costs of travel to and from work; wages or salaries payable to employees away from work for short periods such as on vacation or as a result of a temporary halt to production; annual supplementary pay such as bonuses; ad hoc bonuses or other exceptional payments linked to the overall performance of the enterprise made under incentive schemes; commission, gratuities and tips received by employees; amounts withheld from wages and salaries by the employer for administrative convenience or for other reasons such as income taxes or other deductibles, payable by the employee; employee benefits, such as a car or extra pension contributions, that is acquired from the employer by foregoing some salary.

A1A.217.

Own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A) consists of compensation of employees payable in the form of goods, services, interest foregone and shares issued to employees in return for work related to own-account capital formation. Almost any kind of goods or services may be provided as wages and salaries in kind. It includes goods and services provided without charge or at reduced prices. The goods and services provided in kind to employees are not necessary to enable the employees to perform their work.

Includes:    Meals and drinks provided on a regular basis including any subsidy element of an office canteen; clothing or footwear that employees may choose to wear frequently outside of the workplace and while at work; housing services or accommodation of a type that can be used by all members of the household to which the employee belongs; services of vehicles or other durables provided for the personal use of employees; goods and services produced by the employer such as free travel on government airplanes or trains; sports, recreation or holiday facilities for employees and their families; transportation to and from work; free or subsidised parking when it would otherwise have to be paid for; childcare for the children of employees; the value of the interest foregone by employers when they provide loans to employees at reduced or even zero rates of interest for purposes of buying houses, vehicles, furniture or other goods or services; bonus shares or stock options distributed to employees.

A1A.218.

Own account salary sacrifice payments – superannuation (ETF 7623, TALC, COFOG-A) consists of salary sacrifice payments relating to superannuation provided by the employer to employees working on own-account capital formation.

A1A.219.

Own account salary sacrifice payments – items other than superannuation (ETF 7624, TALC, COFOG-A) consists of salary sacrifice payments relating to items other than superannuation provided by the employer to employees working on own-account capital formation.

A1A.220.

Own-account Fringe Benefits Tax (FBT) payments (ETF 7625, TALC, COFOG-A) consists of fringe benefits tax payable on certain benefits employers provide to their employees or their employees’ associates in place of salary or wages, in return for work related to own-account capital formation.

A1A.221.

Own-account workers’ compensation payments (ETF 7626, TALC, COFOG-A) consists of workers’ compensation amounts payable by employers under legislation for work-related injury and illness suffered by employees, in return for work related to own-account capital formation.

A1A.222.

Own-account employee payments not elsewhere classified (ETF 7629, TALC, COFOG-A) consists of employee payments incurred in return for work related to own-account capital formation that cannot be classified to own-account wages, salaries and supplements in cash (ETF 7621, TALC, COFOG-A), own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A), own-account salary sacrifice payments - superannuation (ETF 7623, TALC, COFOG-A), own-account salary sacrifice payments - other than superannuation (ETF 7624, TALC, COFOG-A); own-account Fringe Benefits tax (FBT) payments (ETF 7625, TALC, COFOG-A) or own-account workers’ compensation payments (ETF 7626, TALC, COFOG-A).

Includes: Accrued expenses for the current period relating to accident compensation premium, sick leave, annual leave, long service leave retirement and redundancy.

A1A.223.

Own-account non-employee payments (ETF 763) consists of the value of payments connected to work relating to own-account capital formation that are not related to the compensation of employees. This category is further classified into:

• own-account use of goods and services (ETF 7631, TALC, COFOG-A);
• own-account depreciation of non-financial produced assets (ETF 7632, TALC, COFOG-A);
• own-account other taxes on production less other subsidies on production (ETF 7633, TALC, COFOG-A); and
• own-account non-employee payments not elsewhere classified (ETF 7639, TALC, COFOG-A).

A1A.224.

Own-account use of goods and services (ETF 7631, TALC, COFOG-A) consists of the value of goods and services acquired for use in own-account capital formation.

Includes:    Amounts payable to contractors, self-employed outworkers and other workers who are not employees of general government or public sector units; use of goods and services when such use is mandatory in order to enable employees to carry out their work whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; tools or equipment used exclusively or mainly at work whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; clothing or footwear of a kind that ordinary consumers do not choose to purchase or wear and which are worn exclusively or mainly at work such as protective clothing, overalls or uniforms whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; accommodation services at the place of work of a kind that cannot be used by the households to which the employees belong such as barracks, cabins, dormitories and huts; special meals or drinks necessitated by exceptional working conditions, while travelling for business reasons or meals or drinks provided to employees while on active duty whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; travel, relocation or related expenses when employees take up new jobs or are required by their employers to move their homes to different parts of the country or to another country whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; changing facilities, washrooms, showers and baths necessitated by the nature of the work; first aid facilities, medical examinations or other health checks required because of the nature of the work; costs incurred on inexpensive, durable goods such as small / hand tools (saws, spades, knives, axes, hammers, screwdrivers, spanners, wrenches) when such expenses are incurred regularly and are small compared with the costs incurred for the acquisition of machinery and equipment; goods and services consumed for the ordinary maintenance and repair of fixed produced assets; payments by the lessee for rental of a fixed asset under an operating lease.

A1A.225.

Own-account depreciation of non-financial produced assets (ETF 7632, TALC, COFOG-A) consists of the depreciation of produced assets attributed to use in own-account capital formation.

A1A.226.

Own-account other taxes on production less other subsidies on production (ETF 7633, TALC, COFOG-A) consists of other taxes on production associated with own-account capital formation minus other subsidies on production associated with own-account capital formation.

A1A.227.

Own-account non-employee payments not elsewhere classified (ETF 7639, TALC, COFOG-A) consists of non-employee expenses associated with work related to own–account capital formation that cannot be classified to own-account use of goods and services (ETF 7631, TALC, COFOG-A), own-account depreciation of non-financial produced assets (ETF 7632, TALC, COFOG-A) or own-account other taxes on production less other subsidies on production (ETF 7633, TALC, COFOG-A).

A1A.228.

Balance sheet (ETF 8) is the part of the ETF which records an institutional unit's stock of assets and liabilities and net worth at a specific point in time. This information is used to compile the balance sheet at the end of each accounting period. The full classification is found in Table A1A.13 below:

A1A.229.

Balance sheet (ETF 8) consists of the stock of assets and liabilities of a public sector unit at a specific point in time. This category is further classified into:

Non-financial assets

• fixed produced assets (ETF 81);
• other produced assets (ETF 82);
• non-produced assets (ETF 83);

Financial assets and liabilities

• financial assets (ETF 84); and
• liabilities (ETF 85).

A1A.230.

Fixed produced assets (ETF 81) is further classified into:

• buildings and structures (ETF 811);
• machinery and equipment (ETF 812);
• cultivated biological resources (ETF 813);
• intellectual property products (ETF 814); and
• weapons systems (ETF 815).

A1A.231.

Buildings and structures (ETF 811) is further classified into:

• Dwellings (ETF 8111) and is further discussed in paragraph A1A.262 of this manual;
• Buildings other than dwellings (ETF 8112) and is further discussed in paragraph A1A.263 of this manual;
• Land improvements (ETF 8113) and is further discussed in paragraph A1A.264 of this manual; and
• Structures not elsewhere classified (ETF 8119) and is further discussed in paragraph A1A.265 of this manual.

A1A.232.

• transport equipment (ETF 8121) and is further discussed in paragraph A1A.267 of this manual;
• information, communication and telecommunications equipment (ETF 8122) and is further discussed in paragraph A1A.268 of this manual; and
• machinery and equipment not elsewhere classified (ETF 8129) and is further discussed in paragraph A1A.269 of this manual.

A1A.233.

Cultivated biological resources (ETF 813) is further classified into:

• animal resources yielding repeat products (ETF 8131); and
• tree, crop and plant resources yielding repeat products (ETF 8132).

A1A.234.

Intellectual property products (ETF 814) is further classified into:

• research and development (ETF 8141);
• mineral exploration and evaluation (ETF 8142);
• computer software (ETF 8143);
• databases (ETF 8144);
• entertainment, literary and artistic originals (ETF 8145); and
• intellectual property products not elsewhere classified (ETF 8149).

A1A.235.

Weapons systems (ETF 815 and ETF 8151) is further discussed in paragraph A1A.280 of this manual.

A1A.236.

Other produced assets (ETF 82) is further classified into:

• inventories (ETF 821);
• valuables (ETF 822); and
• other produced assets (ETF 823).

A1A.237.

Inventories (ETF 821) is further classified into:

• Inventories - materials and supplies (ETF 8211) and is further discussed in paragraph A1A.283 of this manual;
• Inventories - work in progress (ETF 8212) and is further discussed in paragraph A1A.284 of this manual;
• Inventories - finished goods (ETF 8213) and is further discussed in paragraph A1A.285 of this manual;
• Inventories - goods for resale (ETF 8214) and is further discussed in paragraph A1A.286 of this manual; and
• Inventories - military inventories (ETF 8215) and is further discussed in paragraph A1A.287 of this manual.

A1A.238

Valuables (ETF 822 and ETF 8221) is further discussed in paragraph A1A.288 of this manual.

A1A.239.

Other produced assets (ETF 823) is further classified into:

• other produced assets not elsewhere classified (ETF 8239) and is further discussed in paragraph A1A.290 of this manual.

A1A.240

Non-produced assets (ETF 83) is further classified into:

• tangible non-produced assets (ETF 831);
• intangible non-produced assets (ETF 832); and
• other non-produced assets (ETF 839).

A1A.241.

Tangible non-produced assets (ETF 831) is further classified into:

• land (ETF 8311) and is further discussed in paragraph A1A.294 of this manual;
• mineral and energy resources (ETF 8312) and is further discussed in paragraph A1A.295 of this manual;
• non-cultivated biological resources (ETF 8313) and is further discussed in paragraph A1A.296 of this manual;
• water resources (ETF 8314) and is further discussed in paragraph A1A.297 of this manual;
• radio spectra (ETF 8315) and is further discussed in paragraph A1A.298 of this manual; and
• tangible non-produced assets not elsewhere classified (ETF 8319) and is further discussed in A1A.299 of this manual.

A1A.242.

Intangible non-produced assets (ETF 832) is further classified into:

• marketable operating leases (ETF 8321) and is further discussed in paragraph A1A.301 of this manual;
• permits to use natural resources (ETF 8322) and is further discussed in paragraph A1A.302 of this manual;
• permits to undertake specific activities (ETF 8323) and is further discussed in paragraph A1A.303 of this manual;
• entitlement to future goods and services on an exclusive basis (ETF 8324) and is further discussed in paragraph A1A.304 of this manual;
• goodwill and marketing assets (ETF 8325) and is further discussed in paragraph A1A.305 of this manual; and

• intangible non-produced assets not elsewhere classified (ETF 8329) and is further discussed in paragraphs 8.142 and 8.144 of this manual.

A1A.243.

Other non-produced assets (ETF 833) is further classified into:

• other non-produced assets not elsewhere classified (ETF 8339) and is further discussed in paragraph A1A.308 of this manual.

A1A.244.

Financial assets (ETF 84) is further classified into:

• currency and deposits (ETF 841);
• securities and related assets (ETF 842);
• loans and placements (ETF 843);
• insurance, superannuation and standardised guarantee schemes (ETF 844); and
• other financial assets (ETF 845).

A1A.245.

Currency and deposits (ETF 841) is further classified into:

• cash and deposits (ETF 8411) ) and is further discussed in paragraph A1A.311 of this manual;
• Special Drawing Rights (SDRs) (ETF 8412) and is further discussed in paragraph A1A.312 of this manual;
• monetary gold (bullion) (ETF 8413) and is further discussed in paragraph A1A.313 of this manual; and
• monetary gold (allocated and unallocated) (ETF 8414) and is further discussed in paragraph A1A.304 of this manual.

A1A.246.

Securities and related assets (ETF 842) is further classified into:

• debt securities (ETF 8421) and is further discussed in paragraph A1A.316 of this manual;
• financial derivatives (ETF 8422) and is further discussed in paragraph A1A.317 of this manual;
• employee stock options (ETF 8423) and is further discussed in paragraph A1A.318 of this manual;
• equity including contributed capital (ETF 8424) and is further discussed in paragraph A1A.319 of this manual; and
• investment fund shares or units (ETF 8425) and is further discussed in paragraph A1A.320 of this manual.

A1A.247.

Loans and placements (ETF 843) is further classified into:

• finance leases (ETF 8431) and is further discussed in paragraph A1A.322 of this manual;
• advances - concessional loans (ETF 8432) and is further discussed in paragraph A1A.323 of this manual;
• advances other than concessional loans (ETF 8433) and is further discussed in paragraph A1A.324 of this manual; and
• loans and placements not elsewhere classified (ETF 8439) and is further discussed in paragraph A1A.325 of this manual.

A1A.248.

Insurance, superannuation and standardised guarantee schemes (ETF 844) is further classified into;

• non-life insurance technical reserves (ETF 8441) and is further discussed in paragraph A1A.327 of this manual;
• life insurance and annuities entitlements (ETF 8442) and is further discussed in paragraph A1A.328 of this manual;
• provisions for defined benefit superannuation (ETF 8443) and is further discussed in paragraph A1A.329 of this manual;
• claims of superannuation funds on superannuation fund manager (ETF 8444) and is further discussed in paragraph A1A.330 of this manual; and
• provisions for calls under standardised guarantee schemes (ETF 8445) and is further discussed in paragraph A1A.331 of this manual.  

A1A.249.

Other financial assets (ETF 845) is further classified into:

• provisions for employee entitlements other than superannuation (ETF 8451) and is further discussed in paragraph A1A.333 of this manual;
• accounts receivable (ETF 8452) and is further discussed in paragraph A1A.334 of this manual; and
• other financial assets not elsewhere classified (ETF 8459) and is further discussed in paragraph A1A.335 of this manual.

A1A.250.

Liabilities (ETF 85) is further classified into:

• currency and deposits (ETF 851);
• securities and related liabilities (ETF 852);
• loans and placements (ETF 853);
• insurance, superannuation and standardised guarantee schemes (ETF 854); and
• other liabilities (ETF 855).

A1A.251.

Currency and deposits (ETF 851) is further classified into:

• cash and deposits (ETF 8511) and is further discussed in paragraph A1A.338 of this manual; and
• Special Drawing Rights (SDRs) (ETF 8512) and is further discussed in paragraph A1A.339 of this manual.

A1A.252.

Securities and related liabilities (ETF 852) is further classified into:

• debt securities (ETF 8521) and is further discussed in paragraph A1A.341 of this manual;
• financial derivatives (ETF 8522) and is further discussed in paragraph A1A.342 of this manual;
• employee stock options (ETF 8523) and is further discussed in paragraph A1A.343of this manual;
• equity including contributed capital (ETF 8524) and is further discussed in paragraph A1A.344 of this manual; and
• investment fund shares or units (ETF 8525) and is further discussed in paragraph A1A.345 of this manual.

A1A.253.

Loans and placements (ETF 853) is further classified into:

• finance leases (ETF 8531) and is further discussed in paragraph A1A.347 of this manual;
• advances - concessional loans (ETF 8532) and is further discussed in paragraph A1A.348 of this manual;
• advances other than concessional loans (ETF 8533) and is further discussed in paragraph A1A.349 of this manual; and
• loans and placements not elsewhere classified (ETF 8539) and is further discussed in paragraph A1A.350 of this manual.

A1A.254.

Insurance, superannuation and standardised guarantee schemes (ETF 854) is further classified into:

• non-life insurance technical reserves (ETF 8541) and is further discussed in paragraph A1A.352 of this manual;
• life insurance and annuities entitlements (ETF 8542) and is further discussed in paragraph A1A.353 of this manual;
• provisions for defined benefit superannuation (ETF 8543) and is further discussed in paragraph A1A.354 of this manual;
• claims of superannuation funds on superannuation manager (ETF 8544) and is further discussed in paragraph A1A.355 of this manual; and
• provisions for calls under standardised guarantee schemes (ETF 8545) and is further discussed in paragraph A1A.356 of this manual.

A1A.255.

Other liabilities (ETF 855) is further classified into;

• provisions for employee entitlements other than superannuation (ETF 8551) and is further discussed in paragraph A1A.358 of this manual;
• accounts payable (ETF 8552) and is further discussed in paragraph A1A.359 of this manual; and
• other liabilities not elsewhere classified (ETF 8559) and is further discussed in paragraph A1A.360 of this manual.

A1A.256.

Net worth (ETF 86) is further classified into:

• net worth (ETF 861).

A1A.257.

Net worth (ETF 861) is further classified into:

• net worth (ETF 8611).

A1A.258.

Net worth (ETF 8611) consists of the total value of a unit's assets minus the total value of its liabilities.

A1A.259.

The type of asset and liability classification (TALC) is a classification used for the identification of non-financial assets and financial assets and liabilities for GFS output purposes. The structure of the TALC is hierarchical and consists of a 1-digit level (division), a 2-digit level (group) and a 3-digit level (class). The division distinguishes between government non-financial assets and financial assets or liabilities, the group reflects the type of asset or liability at a broad level and the class reflects the details of the individual assets and liabilities which comprise each group. Further information on the TALC may be found in Chapter 8, Chapter 9 and Chapter 10 of this manual. The TALC is shown in Table A1A.14 below.

A1A.260.

Produced assets (TALC 1) are assets that are used repeatedly or continuously in production processes for more than one year. This category is further classified into:

• buildings and structures (TALC 11);
• machinery and equipment (TALC 12);
• cultivated biological resources (TALC 13);
• intellectual property products (TALC 14); and
• weapons systems (TALC 15).

A1A.261.

Buildings and structures (TALC 11) is further classified into:

• dwellings (TALC 111);
• buildings other than dwellings (TALC 112);
• land improvements (TALC 113); and
• structures not elsewhere classified (TALC 119).

The value of buildings and structures includes all amounts payable for site clearance and preparation and the cost of all fixtures, facilities and equipment that are integral parts of buildings structures. Public monuments in the form of buildings and structures are included in this category. This encompasses the construction of new public monuments, as well as major improvements to existing public monuments. Public monuments are identifiable because of particular historical, national, regional, local, religious or symbolic significance. In principle, public monuments should be included in dwellings (TALC 111), buildings other than dwellings (TALC 112) or structures not elsewhere classified (TALC 119) as appropriate. In practice, it may be desirable to classify them as other structures. Refer to paragraph 7.42 to 7.43 of the IMF GFSM 2014 for further information on public monuments.

A1A.262.

Dwellings (TALC 111) consists of buildings, or designated parts of buildings, that are used entirely or primarily as residences including any associated structures such as garages, and all permanent fixtures customarily installed in residences.

Includes:    Houseboats, barges, mobile homes and caravans used as principal residences; public monuments identified primarily as dwellings; dwellings acquired by government for military personnel; incomplete dwellings where the ultimate user is deemed to have taken economic ownership because the construction is own account or as evidenced by the existence of a contract of sale or purchase; costs of site clearance and preparation for new dwellings.

A1A.263.

Buildings other than dwellings (TALC 112) consists of whole buildings or parts of buildings not designated as dwellings and all fixtures, facilities and equipment that are integral parts of these structures.

Includes:    Office buildings; schools; hospitals; prisons; buildings for public entertainment; warehouses and industrial buildings; commercial buildings; hotels and restaurants; public monuments identified primarily as non-residential buildings; costs of site clearance and preparation for new buildings.

A1A.264.

Land improvements (TALC) consists of the result of actions that lead to major improvements in the quantity, quality or productivity of land, or prevent its deterioration.

Includes:    Activities that are integral to the land in question such as land reclamation, land clearance, land contouring, creation of wells and watering holes; preparation for the erection of buildings; planting of crops; and costs of ownership transfer on land.

Excludes:   Construction of seawalls, dikes, dams and major irrigation systems that are not integral to the land and often affect land belonging to several owners and which are often carried out by government (classified to structures not elsewhere classified (TALC 119)).

A1A.265.

Structures not elsewhere classified (TALC 119) consists of all structures other than buildings.

Includes:    Highways; streets; roads; bridges; elevated highways; tunnels; railways; subways; airfield runways; sewers; waterways; harbours; dams; shafts, tunnels and other structures associated with mining mineral and energy resources; communication lines; power lines; long distance pipelines; local pipelines; cables; outdoor sport and recreation facilities; mining and manufacturing constructions; construction of seawalls, dikes, flood barriers and similar structures intended to improve the quality and quantity of land adjacent to them; infrastructure necessary for aquaculture such as fish farms and shellfish beds; public monuments that cannot be identified as dwellings or buildings other than dwellings; buildings and structures acquired for military purposes that are used repeatedly, or continuously, in processes of production for more than one year; costs of site clearance and preparation; construction of major irrigation systems that are not integral to the land and often affect land belonging to several owners.

A1A.266.

Machinery and equipment (TALC 12) is further classified into:

• transport equipment (TALC 121);
• information, communication and telecommunications equipment (TALC 122); and
• machinery and equipment not elsewhere classified (TALC 129).

Machinery and equipment forming an integral part of a building or other structure are included in the value of the building or structure rather than in this category.

A1A.267.

Transport equipment (TALC 121) consists of equipment for moving people and objects.

Includes:    Motor vehicles; trailers; semitrailers; ships; railway and tramway locomotives and rolling stock; aircraft; motorcycles; bicycles; spacecraft.

Excludes:   Houseboats, barges, mobile homes and caravans used as principal residences (classified to TALC 111 Dwellings); transport equipment acquired by households for final consumption.

A1A.268.

Information, computer and telecommunications equipment (TALC 122) consists of devices using electronic controls and also the electronic components forming part of these devices.

Includes:    Products that form part of computing machinery and parts and accessories thereof such as processors, hard drives, monitors and keyboards; television and radio transmitters; television; video; digital cameras; telephone sets.

Excludes:   Computer software (classified to computer software (TALC 143)); computer equipment acquired by households for final consumption.

A1A.269.

Machinery and equipment not elsewhere classified (TALC 129) consists of all machinery and equipment that cannot be classified to transport equipment (TALC 121) or information, computer and telecommunications equipment (TALC 122).

Includes:    General-purpose and special-purpose machinery; office and accounting equipment; electrical machinery; medical appliances; precision and optical instruments; furniture; watches and clocks; musical instruments; sports goods; paintings, sculptures and other works of art; antiques; and collections of considerable value that are not held primarily as stores of value but are owned and displayed for the purpose of producing museum and similar services.

Excludes:   Tools, such as hand tools, that are inexpensive and purchased at a relatively steady rate and do not form a large share of the stock of machinery and equipment (classified to use of goods and services (ETF 1233, COFOG-A, SDC)); weapons systems (classified to weapons systems (TALC 151)); items of considerable value that are owned primarily as stores of value that are not intended for use in production (classified to valuables (TALC 221)); machinery and equipment that form an integral part of a building or other structure (classified to buildings other than dwellings (TALC 112) or structures not elsewhere classified (TALC 119)); machinery and equipment acquired by households for final consumption.

A1A.270.

Cultivated biological resources (TALC 13) is further classified into:

• animal resources yielding repeat products (TALC 131); and
• tree, crop and plant resources yielding repeat products (TALC 132). whose natural growth and regeneration are under the direct control, responsibility and management of institutional units.

A1A.271.

Animal resources yielding repeat products (TALC 131) consists of animal resources that yield repeat products and that are under the direct control, responsibility and management of institutional units.

Includes:    Breeding stocks; dairy cattle; draft animals; sheep or other animals used for wool production; animals used for transportation, racing or entertainment; aquatic resources yielding repeat products; immature animal resource assets produced on own account.

Excludes:   Immature animal resource assets unless produced for own use (classified to inventories – work in progress (TALC 211)); animals raised for slaughter, including poultry (classified to inventories – work in progress (TALC 211)).

A1A.272.

Tree, crop and plant resources yielding repeat products (TALC 132) consists of tree, crop and plant resources that yield repeat products and that are under the direct control, responsibility and management of institutional units.

Includes:    Trees, vines and shrubs cultivated for fruits, nuts, sap, resin, bark and leaf products; vineyards, orchards and plantations; immature tree, crop and plant resource assets produced on own account.

Excludes:   Trees grown for timber that yield a finished product once only when they are ultimately felled (classified to inventories - goods for resale (TALC 214)); grains or vegetables that produce only a single crop when they are harvested (classified to inventories - goods for resale (TALC 214)); immature tree, crop and plant resource assets unless produced on own account (classified to inventories – work in progress (TALC 211)).

A1A.273.

Intellectual property products (TALC 14) are the result of research, development, investigation or innovation leading to knowledge that the developers can market or use to their own benefit in production because use of the knowledge is restricted by means of legal or other protection. This category is further classified into:

• research and development (TALC 141);
• mineral exploration and evaluation (TALC 142);
• computer software (TALC 143);
• databases (TALC 144);
• entertainment, literary and artistic originals (TALC 145); and
• intellectual property products not elsewhere classified (TALC 149).

A1A.274.

Research and development (TALC 141) consists of expenditure on creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and use of this stock of knowledge to devise new applications.

Includes:    Research and development that provides an economic benefit to its owner.

Excludes:   Research and development work that does not provide an economic benefit to its owner (classified to non-employee expenses not elsewhere classified (ETF 1239, COFOG-A, SDC)).

A1A.275.

Mineral exploration and evaluation (TALC 142) consists of expenditure on exploration for petroleum, natural gas and non-petroleum deposits and subsequent evaluation of the discoveries made.

Includes:    Pre-licence costs; licence costs; acquisition costs; appraisal costs; costs of aerial and other surveys; test drilling and boring costs; transportation and other costs incurred to make exploration possible.

A1A.276.

Computer software (TALC 143) consists of computer programs, program descriptions and supporting materials for both systems and applications software that are expected to be used for more than one year.

Includes:    Purchased software; software developed on own account; software intended only for own use; software intended for sale by means of copies.

A1A.277.

Databases (TALC 144) consists of files of data organised in such a way as to permit resource-effective access and use of the data.

Includes:    Purchase, development or extension of computer databases that are expected to be used in production for more than one year.

A1A.278.

Entertainment, literary and artistic originals (TALC 145) consists of original films, sound recordings, manuscripts, tapes and models in which drama performances, radio and television programming, musical performances, sporting events and literary and artistic output are recorded or embodied.

Includes:    Purchased entertainment, literary and artistic works; entertainment, literary and artistic works produced on own account.

A1A.279.

Intellectual property products not elsewhere classified (TALC 149) consists of intellectual property products that cannot be classified to research and development (TALC 141), mineral exploration and evaluation (TALC 142), computer software (TALC 143), databases (TALC 144) or entertainment, literary and artistic originals (TALC 145).

Includes:     New information and specialised knowledge not elsewhere classified which is restricted for use by the units that have established ownership rights over the information or to other units licensed by the owners.

A1A.280.

Weapons systems (TALC 15 and TALC 151) consists of military vehicles and equipment designed to launch weapons of destruction, that are used continuously for more than one year in the provision of defence services, even if their peacetime use is simply to provide deterrence.

Includes:    Warships, submarines, military aircraft, tanks, missile carriers; launchers; single-use weapons with a highly destructive capability which provide an ongoing service of deterrence against aggressors such as ballistic missiles.

Excludes:   Single-use weapons such as missiles, rockets and bombs (classified to TALC 215 Military inventories).

A1A.281.

Other produced assets (TALC 2) consists of all produced assets other than fixed produced assets. This category is further classified into:

• inventories (TALC 21);
• valuables (TALC 22); and
• other produced assets (TALC 23).

A1A.282.

Inventories (TALC 21) are goods and services which came into existence in the current period or in an earlier period and that are held for sale, use in production or other use at a later date. Inventories consists of stocks of goods that are still held by the units that produced them prior to their being further processed, sold, delivered to other units or used in other ways; products acquired from other units that are intended to be used in the production of market and non-market goods and services by units, or for resale without further processing; and goods that are held for strategic and emergency purposes, goods held by market regulatory organisations and other goods of special importance to the nation. This category is further classified into:

• materials and supplies (TALC 211);
• work in progress (TALC 212);
• finished goods (TALC 213);
• goods for resale (TALC 214); and
• military inventories (TALC 215).

A1A.283.

Inventories - materials and supplies (TALC 211) consists of all goods held with the intention of using them as inputs to a production process.

Includes: Office supplies; fuel; foodstuffs.

Excludes: Costs of ownership transfer.

A1A.284.

Inventories - work in progress (TALC 212) consists of goods and services that are not yet sufficiently processed to be in a state in which it is normally supplied to other institutional units.

Includes: Growing crops; computer programs in development; and architectural drawings that are in the process of completion.

Excludes: Partially completed projects for which the ultimate owner is deemed to have taken economic ownership in stages, either when the production is for own use and the new owner assumes the risks and benefits associated with the incomplete asset, or when evidenced by specific clauses in a contract of sale or purchase (classified to the appropriate category within fixed produced assets (TALC 1)); costs of ownership transfer.

A1A.285.

Inventories - finished goods (TALC 213) consists of goods that are the output of a production process, are still held by their producer and are not expected to be processed further by the producer before being supplied to other units. Finished goods may only be held by the units that produce them.

Includes: Architectural drawings that are completed and awaiting the ultimate owner to take ownership.

Excludes: Costs of ownership transfer.

A1A.286.

Inventories - goods for resale (TALC 214) consists of goods acquired for the purpose of reselling or transferring to other units without being further processed. Goods for resale may be transported, stored, graded, sorted, washed or packaged by their owners to present them for resale in ways that are attractive to their customers or beneficiaries but they are not otherwise transformed.

Includes: Goods purchased by general government units for provision free of charge or at prices that are not economically significant to other units; goods acquired by general government for distribution as social transfers in kind but that have not yet been so delivered; strategic stocks which are held for strategic and emergency purposes; goods held by market regulatory organisations; and commodities of special importance to the nation such as grain and petroleum.

Excludes: Costs of ownership transfer.

A1A.287.

Military inventories (TALC 215) consists of single-use items delivered by weapons or weapons systems.

Includes: Ammunition; missiles, rockets, bombs.

Excludes: Single-use weapons with a highly destructive capability which provide an ongoing service of deterrence against aggressors such as ballistic missiles (classified to weapons systems ( TALC 151)), and costs of ownership transfer.

A1A.288.

Valuables (TALC 22) is further classified into:

• valuables (TALC 221).

A1A.289.

Valuables (TALC 221) are produced assets of considerable value that are not used primarily for purposes of production or consumption but are held as stores of value over time. Valuables are expected to appreciate, or at least not to decline, in real value and they do not deteriorate over time under normal conditions.

Includes: Non-monetary gold and other precious stones and metals that are not intended to be used as materials and supplies in the processes of production; paintings, sculptures and other objects recognised as works of art or antiques held primarily as stores of value over time; jewellery of significant value fashioned out of precious stones and metals; collections; and commemorative coins that are not in circulation as legal tender.

Excludes: Collections of considerable value that are not held primarily as stores of value but are owned and displayed for the purpose of producing museum and similar services (classified to machinery and equipment not elsewhere classified (TALC 129)).

A1A.290.

Other produced assets (TALC 23) is further classified into:

• other produced assets not elsewhere classified (TALC 239)..

A1A.291.

Other produced assets not elsewhere classified (TALC 239) consists of produced assets other than fixed produced assets that cannot be classified to inventories (TALC 21) or valuables (TALC 22).

A1A.292.

Non-produced assets (TALC 3) consists of assets that are not outputs from the processes of production. This category is further classified into:

• tangible non-produced assets (TALC 31);
• intangible non-produced assets (TALC 32); and
• other non-produced assets (TALC 39).

A1A.293.

Tangible non-produced assets (TALC 31) are naturally occurring assets over which ownership rights are enforced. This category is further classified into:

• land (TALC 311);
• mineral and energy resources (TALC 312);
• non-cultivated biological resources (TALC 313);
• water resources (TALC 314);
• radio spectra (TALC 315); and
• tangible non-produced assets not elsewhere classified (TALC 319).

Excludes: Environmental assets over which ownership rights cannot be acquired such as the open sea or air.

A1A.294.

Land (TALC 311) consists of the ground, including the soil covering and any associated surface waters, over which ownership rights are enforced and from which economic benefits can be derived by their owners by holding or using them.

Includes: Land holdings; reservoirs, lakes, rivers and other inland waters over which ownership rights can be exercised; and non-cultivated biological resources that have economic value included in the value of the associated land.

Excludes: Water bodies from which water is regularly extracted, against payment, for use in production (including for irrigation) (classified to water resources (TALC 314)); buildings and other structures constructed on the land or through it, such as roads, office buildings and tunnels (classified to buildings other than dwellings (TALC 112), or structures not elsewhere classified (TALC 119)); land improvements (classified to land improvements (TALC 113)); the costs of ownership transfer on land (classified to land improvements (TALC 113)); subsoil assets (classified to mineral and energy resources (TALC 142 )); non-cultivated biological resources (classified to non-cultivated biological resources (TALC 313 )); water resources below the ground (classified to water resources (TALC 314); cultivated components of vineyards, orchards and other plantations of trees, animals and crops (classified to animal resources yielding repeat products (TALC 131) or tree, crop and plant resources yielding repeat products (TALC 132)).

A1A.295.

Mineral and energy resources (TALC 312) consists of mineral and energy reserves located on or below the earth’s surface that are economically exploitable, given current technology and relative prices. Ownership rights to the mineral and energy resources are usually separable from those to the land itself.

Includes: Deposits under the sea; known reserves of oil, natural gas and coal; known reserves of metallic ores including ferrous, non-ferrous and precious metal ores; non-metallic mineral reserves including stone quarries, clay and sand pits, chemical and fertiliser mineral deposits, deposits of salt, quartz, gypsum, natural gem stones, asphalt, bitumen and peat.

Excludes: Mine shafts, wells and other subsoil extraction facilities (classified to structures not elsewhere classified ( TALC 119)).

A1A.296.

Non-cultivated biological resources (TALC 313) consists of animals, birds, fish and plants that yield both once-only and repeat products over which ownership rights are enforced but for which natural growth or regeneration is not under the direct control, responsibility and management of any institutional units.

Includes: Virgin forests and fisheries that are commercially exploitable.

Excludes: Non-cultivated biological resources that have economic value included in the value of the associated land (classified to land (TALC 311)).

A1A.297.

Water resources (TALC 314) of surface and groundwater resources used for extraction to the extent that their scarcity leads to the enforcement of ownership or use rights, market valuation and some measure of economic control.

A1A.298.

Radio spectra (TALC 315) consists of the electromagnetic spectrum which includes the range of radio frequencies used in the transmission of sound, data and television.

A1A.299.

Tangible non-produced assets not elsewhere classified (TALC 319) consists of tangible non-produced assets that cannot be classified to land (TALC 311), mineral and energy resources (TALC 312), non-cultivated biological resources (TALC 313), water resources (TALC 314) or radio spectra (TALC 315).

A1A.300.

Intangible non-produced assets (TALC 32) are assets that are constructs of society evidenced by legal or accounting actions. Such assets entitle their owners to engage in certain specific activities or to produce certain specific goods or services and to exclude other units from doing so except with the permission of the owner. The owners of the assets may be able to earn monopoly profits by restricting the use of the assets to themselves. This category is further classified into:

• marketable operating leases (TALC 321);
• permits to use natural resources (TALC 322);
• permits to undertake specific activities (TALC 323);
• entitlements to future goods and services on an exclusive basis (TALC 324);
• goodwill and marketing assets (TALC 325); and
• intangible non-produced assets not elsewhere classified (TALC 329).

A1A.301.

Marketable operating leases (TALC 321) consists of third-party property rights relating to fixed produced assets. The lease confers economic benefits to the holder in excess of the fees payable, and the holder can realise these benefits legally and practically, through transferring them. For example, where a tenant of a building has a fixed rental but the building could fetch a higher rental in the absence of the lease. If, in these circumstances, the tenant is able both legally and practically to sublet the building, then the tenant has an asset of the type of a marketable operating lease.

A1A.302.

Permits to use natural resources (TALC 322) consists of third-party property rights relating to natural resources. For example, where an institutional unit holds a fishing quota and is able, both legally and practically, to sell this to another unit.

A1A.303.

Permits to undertake specific activities (TALC 323) consists of permits that are limited in number and so allow the holder to earn monopoly profits where the monopoly profits do not come from the use of an asset belonging to the permit-issuer and the permit holder is able both legally and practically to sell the permit to a third party.

Includes: Taxi licences, casino licences.

A1A.304.

Entitlement to future goods and services on an exclusive basis (TALC 324) consists of the case where one party which has contracted to purchase goods or services at a fixed price at a time in the future is able to transfer the obligation of the second party to the contract, to a third party.

Includes: Footballers’ contracts; a publisher’s exclusive right to publish new works by a named author; the right to issue recordings by named musicians.

A1A.305.

Goodwill and marketing assets (TALC 325) consists of goodwill and marketing assets. Goodwill is the excess that potential purchasers of an enterprise are often prepared to pay above the net value of the enterprise’s individually identified and valued assets and liabilities. It reflects the value of corporate structures and the value to the business of an assembled workforce and management, corporate culture, distribution networks and customer base. Goodwill cannot be separately identified and sold to another party. Marketing assets are items such as brand names, mastheads, trademarks, logos and domain names.

A1A.306.

Intangible non-produced assets not elsewhere classified (TALC 329) consists of intangible non-produced assets that cannot be classified to marketable operating leases (TALC 321), permits to use natural resources (TALC 322), permits to undertake specific activities (TALC 323), entitlements to future goods and services on an exclusive basis (TALC 324) or goodwill and marketing assets (TALC 325).

A1A.307.

Other non-produced assets (TALC 33) is further classified into:

• other non-produced assets not elsewhere classified (TALC 339).

A1A.308.

Other non-produced assets not elsewhere classified (TALC 339) consists of non-financial non-produced assets that cannot be classified to tangible non-produced assets (TALC 31) or intangible non-produced assets (TALC 32).

A1A.309.

Financial assets (TALC 4) consists of financial claims and monetary gold in the form of gold bullion held by monetary authorities as a reserve asset. Financial claims are assets that typically entitle the owner of the asset (the creditor) to receive funds or other resources from another unit, under the terms of a liability. They provide benefits to the creditor by acting as a store of value or by generating interest, other property income or holding gains. This category is further classified into:

• currency and deposits (TALC 41);
• securities and related assets (TALC 42);
• loans and placements (TALC 43);
• insurance, superannuation and standardised guarantee schemes (TALC 44); and
• other financial assets (TALC 45).

A1A.311.

Currency and deposits (TALC 41) is further classified into:

• cash and deposits (TALC 411);
• Special Drawing Rights (SDRs) (TALC 412);
• monetary gold (bullion) (TALC 413); and
• monetary gold (allocated and unallocated) (TALC 414).

A1A.311.

Cash and deposits (TALC 411) consists of:

• cash in the form of notes and coins that are of fixed nominal values and are issued or authorised by the central bank or government; and
• deposits which refers to all claims on the deposit taking corporations (including the central bank) and in some cases, general government or other institutional units.

Includes: Notes and coins on hand; cheques held but not yet deposited; cash and deposits in both Australian currency and foreign currency; deposits placed in the short-term money market such as grants received from the Commonwealth and deposited overnight; units issued by cash management trusts; withdrawable share capital of building societies; claims on the IMF that are components of international reserves and are not evidenced by loans; repayable margin payments in cash related to financial derivative contracts; sight deposits that permit immediate cash withdrawals but not direct third-party transfers; savings and fixed-term deposits; overnight and very short-term repurchase agreements that are included in the national measures of broad money; foreign currency deposits that are blocked because of the rationing of foreign exchange as a matter of national policy; seignorage.

Excludes: Gold and commemorative coins that are not in circulation as legal tender or monetary gold (classified to valuables (TALC 221) or inventories – materials and supplies (TALC 211)); unallocated gold accounts held by monetary authorities as reserves assets (classified to monetary gold (allocated and unallocated) (TALC 414)); claims on the IMF that are evidenced by loans (classified to loans and placements not elsewhere classified (TALC 439)).

A1A.312.

Special Drawing Rights (SDRs) (TALC 412) consists of international reserve assets created by the International Monetary Fund (IMF) and allocated to its members to supplement reserve assets. SDR holdings represent each holder’s unconditional right to obtain foreign exchange or other reserve assets from other IMF members.

A1A.313.

Monetary gold (gold bullion) (TALC 413) consists of gold bullion, in the form of coins, ingots or bars with a purity of at least 995 parts per 1000, to which the monetary authorities (or others who are subject to the effective control of the monetary authorities) have title and is held as a reserve asset. Monetary gold in the form of bullion is a type of financial asset that has no counterpart liability in GFS and is restricted to central banks or central governments. A central bank is a public financial corporation that issues bank notes and coins and holds the international reserves of the country (in Australia, this is the Reserve Bank of Australia). Gold bullion is traded on organised markets or through bilateral arrangements between central banks.

Excludes: Gold not held as a reserve asset but held primarily as a store of value (classified to valuables (TALC 221)); gold not held as a reserve asset but used in a production process (classified to inventories – materials and supplies (TALC 211)); allocated or unallocated gold accounts held as reserve assets (classified to monetary gold (allocated and unallocated) (TALC 414)); deposits, loans and debt securities denominated in gold (classified to cash and deposits (TALC 411), loans and placements not elsewhere classified ( TALC 439) and debt securities (TALC 421) respectively)).

A1A.314.

Monetary gold (allocated and unallocated) (TALC 414) consists of allocated and unallocated gold accounts to which the monetary authorities (or others who are subject to the effective control of the monetary authorities) have title and is held as a reserve asset. Allocated gold accounts provide ownership of a specific piece of gold. The ownership of the gold remains with the entity placing it for safe custody. Unallocated gold accounts represent a claim against the account custodian to deliver gold. For these accounts, the account provider holds title to a reserve base of physical gold and issues claims to account holders denominated in gold.

Excludes: gold not held as a reserve asset but held primarily as a store of value (classified to valuables (TALC 221)); gold not held as a reserve asset but used in a production process (classified to inventories – materials and supplies (TALC 211 )); unallocated gold accounts not held as reserve assets (classified to cash and deposits (TALC 411)); deposits, loans and debt securities denominated in gold (classified to cash and deposits (TALC 411), loans and placements not elsewhere classified (TALC 439) and debt securities (TALC 421) respectively)).

A1A.315.

Securities and related assets (TALC 42) is further classified into:

• debt securities (TALC 421);
• financial derivatives (TALC 422);
• employee stock options (TALC 423);
• equity including contributed capital (TALC 424); and
• investment fund shares or units (TALC 425).

A1A.316.

Debt securities (TALC 421) consists of negotiable financial instruments serving as evidence of a debt.

Includes: Bills such as treasury bills, negotiable certificates of deposit, bankers’ acceptances, promissory notes, and commercial paper; bonds and debentures; bonds that are convertible into shares; zero-coupon bonds; deep-discount bonds; loans that have become negotiable from one holder to another and where there is evidence of secondary market trading; non-participating preferred stocks or shares; asset-backed securities; collateralised debt obligations; stripped securities; and index-linked securities.

A1A.317.

Financial derivatives (TALC 422) consists of financial instruments that are linked to another specific financial instrument or indicator or commodity, through which specific financial risks, such as interest rate risk, foreign exchange risk, equity and commodity price risks and credit risks, can be traded in their own right in financial markets.

Includes: Options, warrants including detachable warrants, forward-type contracts such as futures, forward rate agreements and forward foreign exchange contracts; swap contracts such as currency swaps, interest rate swaps and cross-currency interest rate swaps; credit derivatives such as total return swaps and credit default swaps; and stock options granted to employees that can be traded on financial markets without restriction; repurchase agreements; securities repurchase agreements which involve the sale of securities for cash, at a specified price, with a commitment to repurchase the same or similar securities at a fixed price either on a specified future data or with an open maturity; securities lending which involves security holders transferring securities to another party, subject to the stipulation that the same or similar securities be returned on a specified date or on demand; gold swaps which involve an exchange of gold for foreign exchange deposits with an agreement that the transaction be reversed at an agreed future date at an agreed gold price; and off-market swaps which involve swap contracts that have a non-zero value at inception as a result of having reference rates priced differently from current market values.

Excludes: Instruments with embedded derivatives (these are classified according to the primary characteristics of the instrument); central bank swap arrangements (classified to advances other than concessional loans (TALC 433)); repayable margin payments made in cash (classified to currency and deposits TALC 511); repayable margin payments made in assets other than cash (not recorded as a transaction or change in stock position because no change in economic ownership has occurred).

A1A.318.

Employee stock options (TALC 423) consists of options to buy the equity of a company, offered to employees of the company as a form of remuneration.

Includes: Stock options provided to suppliers of goods and services.

Excludes: Stock options granted to employees that can be traded on financial markets without restriction (classified to financial derivatives (TALC 422)).

A1A.319.

Equity including contributed capital (TALC 424) consists of all instruments and records that acknowledge claims on the residual value of a corporation or quasi-corporation, after the claims of all creditors have been met.

Includes: Listed and unlisted shares; stocks; participations; depository receipts which are securities that represent ownership of securities listed in other economies.

A1A.320.

Investment fund shares or units (TALC 425) consists of collective investment undertakings through which investors pool funds for investment in financial or non-financial assets. These funds issue shares (if a corporate structure is used) or units (if a trust structure is used). Investment fund shares or units refer to the shares issued by mutual funds and unit trusts, rather than the shares they may hold.

Includes: Money market funds; non-money market funds.

A1A.321.

Loans and placements (TALC 43) is further classified into:

• finance leases (TALC 431);
• advances - concessional loans (TALC 432);
• advances other than concessional loans (TALC 433); and
• loans and placements not elsewhere classified (TALC 439).

A1A.322.

Finance leases (TALC 431) consists of contracts under which the lessor, as legal owner of the asset, conveys substantially all risks and rewards of ownership of the asset to the lessee.

A1A.323.

Advances - concessional loans (TALC 432) consists of loans with concessional interest rates.

A1A.324.

Advances other than concessional loans (TALC 433) consists of loans and other non-equity financial assets acquired for policy rather than for liquidity management purposes. As a general rule, all loans made by general government to other government bodies, except loans made by central borrowing authorities, are deemed to be for policy purposes.

Includes: Long and short-term loans, non-marketable debentures; and long and short term promissory agreements (bonds and bills) issued to public sector units for the purposes of achieving government policy objectives.

Excludes: Government equity in public corporations (classified to equity including contributed capital (TALC 424)); grants (classified to revenue from current grants and subsidies (ETF 1141, SDC) or revenue from capital grants (ETF 1151, SDC)); concessional loans (classified to advances – concessional loans (TALC 432)); investment for liquidity management and income generation purposes.

A1A.325.

Loans and placements not elsewhere classified (TALC 439) consists of financial instruments that are created when a creditor lends funds directly to a debtor and receives a non-negotiable document as evidence of the asset.

Includes: Overdrafts, mortgage loans; loans to finance trade credit and advances; claims on the IMF in the form of loans.

Excludes: Concessional loans (classified to advances - concessional loans (TALC 432)); trade credit and advances (classified to accounts receivable (TALC 452)); accounts receivable (classified to accounts receivable (TALC 452)); loans that have become negotiable from one holder to another and where there is evidence of secondary market trading (classified to debt securities (TALC 421)); financial assets created by finance leases (classified to finance leases (TALC 431)); loans acquired for policy rather than for liquidity management purposes (classified to advances other than concessional loans (TALC 433)).

A1A.326.

Insurance, superannuation and standardised guarantee schemes (TALC 44) is further classified into;