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Topics @ a Glance - Manufacturing Statistics
Using Manufacturing Statistics
Glossary
 
 



This section provides definitions of terms associated with manufacturing statistics. If you know what term you are looking for, please use any of our glossary section links;

Glossary - A to H

Glossary - I to N

Glossary - O to Z


ABN / ABN unit

The Australian Business Number (ABN) is a single identifier for all business dealings with the Australian Taxation Office (ATO) and for dealings with other government departments and agencies. It is the number provided by ATO at the time of registration of the business. A business can have more than one ABN. The ABN unit is the business or the part of the business with an ABN. In most cases, the ABN unit represents the legal entity. This unit is suitable for ABS statistical needs when the business is simple in structure. For more significant and diverse businesses where the ABN unit is not suitable for ABS statistical needs, the statistical unit used is the type of activity unit (TAU).


Acquisition of fixed tangible assets


Capital expenditure on plant, machinery and equipment, dwellings, other buildings and structures, land, computer software.


Australian and New Zealand Standard Industrial Classification (ANZSIC)
A standard classification developed for use in Australia and New Zealand for the production and analysis of industry statistics. The classification is also aligned with international standards in industry classification. Industry value estimates, industry financial estimates and trade export estimates are all presented in terms of ANZSIC. ANZSIC Division C (Manufacturing) is the broad level used by the Economic Activity Survey on manufacturing. An example of a subdivision is Textile, Leather, Clothing and Footwear Manufacturing (13), which includes groups such as Textile Manufacturing (131) and Clothing and Footwear Manufacturing (135). These groups include at the next level classes such as Wool Scouring (1311) and Natural Textile Manufacturing (1312) in the Textile Manufacturing group, and Clothing Manufacturing (1351) and Footwear Manufacturing (1352) in the Clothing and Footwear group.

For more information, click on this catalogue Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 edition ( cat. no. 1292.0) to see a description and the contents the ANZSIC.


Average hours worked


Aggregate hours worked by a group divided by the number of persons in that group.


Average weekly earnings


Average weekly earnings statistics represent average gross (before tax) earnings of employees excluding retrospective pay, pay in advance, leave loadings and severance and redundancy payments. It is calculated by dividing estimates of gross earnings for a particular week in the middle of the quarter by estimates of the number of employees working full time in the same week. Estimates are produced for ordinary time earnings (excluding overtime earnings) and total earnings.


Business


See Management unit.


Business expenses

See Operating expenses.


Capital expenditure/capital outlays


Acquisition of fixed tangible assets (e.g. land, buildings, plant and machinery), property and intangible assets (e.g. computer software, patents and licences) including those assets acquired under a finance lease. Also includes work done by own employees or proprietors of the business in constructing assets for use by the business or for rental or lease to others.

The term "Net fixed capital expenditure" refers to outlays on fixed assets (i.e. excluding intangible assets) less amounts received from sales of fixed assets.


Capitalised work done for own use or for rental or lease


See the entry for "Own account capital work".

Census

A collection which involves going to every unit of the population being studied. For example, Australia's population census involves asking information from each individual in the population.


Chain volume measures

Chain volume measures represent a replacement methodology for measuring changes in economic activities which are measured in dollar terms and then adjusted to remove the effects of price changes. These measures were previously known as constant price estimates. The "volume measures" part of the term simply means that they measure changes in volume of activity not value of activity. The "chain" part of the term means that the series is rebased every year as results of the annual Economic Activity Survey on manufacturing become available and data for all periods covered by the series are benchmarked to the rebased values. The previous method involved rebasing the series only every five or so years which meant that the quality of prices changes data tended to decay the more removed the current period became from the base year.


Closing inventories


The value of all inventories of finished goods, work-in-progress, raw materials, fuels, containers and packaging as at the end of the financial year. Businesses are asked to value their inventories for statistical purposes using the same method as used in their balance sheets.


Commission manufacturing

Significant amounts of manufacturing are undertaken on a commission basis by one manufacturer on behalf of another manufacturer or by a manufacturer on behalf of a non-manufacturer. Typically, a commission manufacturing transaction will involve a client commissioning the production of goods by utilising materials provided by the client. Ownership of those materials remains with the client. Similarly, the goods made from those materials are owned by the client.

In the Economic Activity Survey, the producing business reports the commission fee as service income along with wages and salaries and any other expenses incurred.

If the client is a manufacturing business, then in addition to data for their own manufacturing operations, the client reports the sales and stocks of the commissioned goods, the cost of the materials provided to the producing business, the commission fee paid and the value of any other intermediate inputs related to the commission transaction. If the client is not a manufacturing business, no data are reported by the client.

Company profits before income tax

Net operating profit or loss before income tax and extraordinary items and is net of capital profits or losses arising from the sale of businesses' own capital goods and dividends received.


Cost of sales


Cost of sales is calculated as opening inventories less closing inventories plus payroll tax and fringe benefits tax, land rates and taxes and computer software expenses and intermediate input expenses.


Degree of transformation

As manufacturing relates to the physical or chemical transformation of materials or components into new products, the number and complexity of these processes form the basis for the classification of these products by degree of transformation. Degree of transformation is a classification variable within the Trade Export Classification (TREC) developed by the Department of Foreign Affairs and Trade (DFAT). ABS' classification is based on TREC. The categories used for publication purpose are as follows:

  • Simply transformed manufacturers - commodities in which a singular raw material or a small number of raw materials in combination, have undergone a single or multiple number of basic refining or manufacturing processes, in order to change the physical or chemical characteristics of those raw material/s. There is usually only a small number of processes involved, and the process themselves are generally quite simple. An example is textile yarn.
  • Moderately transformed manufacturers - commodities which by a single or sequence of manufacturing processes have changed the physical or chemical characteristics of a refined and processed raw material into a distinctive and recognisable product. Examples are bar or rod of metal, or carpets.
  • Elaborately transformed manufacturers - commodities which have undergone a number and/or complex process to arrive as end use products. Examples are tableware of ceramics, motor vehicle or photocopier.

Depreciation and amortisation

Includes depreciation allowed on buildings and other fixed tangible assets.


Dividends received


Payments received from related and unrelated businesses.


Earnings before interest and tax


Trading profit plus interest income, other operating income less selected labour costs,depreciation and amortisation and other expenses.


Employed persons (Labour Force Survey)


Persons aged 15 and over who, during the reference week:
  • worked for one hour or more for pay, profit, commission or payment in kind in a job or business, or on a farm (comprising employees, employers and own account workers); or
  • worked for one hour or more without pay in a family business or on a farm (i.e. contributing family workers); or
  • were employees who had a job but were not at work and were: on paid leave; on leave without pay for less
  • than four weeks up to the end of the reference week; stood down without pay because of bad weather or plant breakdown at their place of employment for less than four weeks up to the end of the reference week; on strike or locked out; on workers' compensation and expected to be returning to their job; or receiving wages or salary while undertaking full-time study; or
  • were employers, own account workers or contributing family workers who had a job, business or farm, but were not at work.

Employee


A person who works for a public or private employer and receives remuneration in wages, salary, commission, tips, piece-rates or pay in kind, or in their own business, either with or without employees, if that business was an incorporated business.


Employment (Economic Activity Survey)


The number of working proprietors and working partners, plus all employees for whom pay as you earn (PAYE) tax is deducted (including permanent, part-time, temporary and casual employees, and managerial and executive employees) during the last pay period ending in June. Employees absent on paid or prepaid leave are included, as are employees on workers' compensation who continue to be paid through the payroll system. Non-salaried directors, self-employed persons such as consultants and for whom PAYE tax is not deducted and volunteer workers are excluded.


Environment protection expenditure

Includes capital and current expenditure to protect the environment. Capital expenditure is the amount of outlays for the purchase of assets designed specifically to assist with environment protection. It includes expenditure on the acquisition of plant, machinery, equipment and land; and capitalised wages and salaries. Current expenditure generally relates to payments of a non-capital nature, for example payments to government agencies or private businesses for waste removal services, environmental audits, site cleaning and environmental impact assessments.


Export orientation


The value of exports as a percentage of the size of the market.


Exports or imports classified to industry of origin

This concept allocates internationally traded commodities back to the industry of origin rather than to the industries of the businesses actually undertaking the imports or exports. However, because it is not always known which industry actually produced a particular set of traded commodities, all commodities are allocated to the industry which produces most of that type of commodity i.e. the industry most likely to have been the source.


Fixed tangible assets


Includes land, buildings and other structures, plant, machinery and equipment and computer software (if capitalised).


Full-time employees


Permanent, temporary and casual employees who normally work the agreed or award hours for a full-time employee in their occupation and who received pay for any part of the reference period. If agreed or award hours do not apply, employees are regarded as full time if they ordinarily work 35 hours or more per week.


Full-time workers


Employed persons who usually worked 35 hours or more a week (in all jobs) and others who, although usually working less than 35 hours a week, worked 35 hours or more during the reference week.


Gross earnings


Payments to employees before tax and other items (such as superannuation) are deducted. They comprise amounts paid from interstate or overseas; ordinary time and overtime earnings; over award payments; penalty payments, shift and other remunerative allowances; commissions and retainers; bonuses and similar payments; payments under incentive or piecework; payments under profit-sharing schemes; leave loadings; annual and long service leave payments; sick leave payments; advance and retrospective payments; salaries and fees paid to company directors, members of boards, committees, commissions, councils, etc.; amounts paid to employees on workers' compensation who continue to be paid through the payroll; and severance, termination and redundancy payments.


Gross factor incomes


Used in one of the four national accounting approaches for measuring production for the economy as a whole. It is the incomes for the factors of production which equals compensation of employees plus gross operating surplus plus gross mixed income. The sum of factors incomes and net taxes on production and imports equal Gross Domestic Product (GDP). This measure is used to measure states' contribution to GDP.


Gross mixed income


The surplus accruing to owners of unincorporated enterprises from the processes of production.


Gross operating surplus


Industry value added less labour costs. See "industry value added".


Gross output


Sales of goods and services plus government funding for operational costs plus capital work done for own use plus closing inventories minus opening inventories.


Gross value added (GVA)


In national accounting terms, the contribution of an industry to the overall production of goods and services in an economy is measured by gross value added (GVA). GVA is the value of output minus the value of inputs used in production. GVA for an industry is the sum of GVA made by each producer in the industry. The sum of GVA across all industries plus taxes less subsidies on products equals Gross Domestic Product (GDP). See Measure of production for the difference between industry GVA and industry value added.


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Import penetration

The value of imports as a percentage of the size of the market.


Income from sales of goods and services

This item includes income from sales of goods by the business and income from services provided such as commission income, repair and service income and fees, management fees, rent leasing and hiring income, delivery and installation charges, income from consulting services, sponsorship income, membership/subscription fees and royalties income. State/territory income from sales of goods and services is reported by businesses for the sales of goods and services from each state/territory in which the business operates.

Data on this item produced by the Quarterly Business Indicators Survey is different from "sales and service income" produced by the Economic Activity Survey. The Quarterly Business Indicators Survey includes royalty income in "income from sales of goods and services", but this is excluded from "sales and service income" in the Economic Activity Survey.


Industry class


Within ANZSIC, there is a structure comprising four levels ranging from industry division (broadest level) to the industry class (finest level). At the industry class level, the activities are narrowly defined and recognised by a four digit code e.g. industry class 1313 for Synthetic Textile Manufacturing.


Industry group



This is the intermediate level within the manufacturing industry division of ANZSIC and is recognised by a three digit code e.g. industry group 131 for Textile Manufacturing. It gives more detail than the industry subdivision and is created in a way that groups like industry classes together.


Industry of origin


This concept allocates internationally traded commodities back to the industry of original manufacture rather than to the industries of the businesses actually undertaking the imports or exports. However, because it is not always known which manufacturing industry actually produced a particular set of traded commodities, all commodities are allocated to the industry which produces most of that type of commodity i.e. the industry most likely to have been the source.


Industry subdivision


This is the broadest level category within the manufacturing industry division of ANZSIC and is recognised by a two digit code e.g. industry subdivision 13 Textile, Leather, Clothing and Footwear Manufacturing. Industry subdivisions are built up from industry groups which, in turn, are built up from industry classes.

The manufacturing industry subdivisions and their numeric codes are:

11 Food Product Manufacturing
12 Beverage and Tobacco Product Manufacturing
13 Textile, Leather, Clothing and Footwear Manufacturing
14 Wood Product Manufacturing
15 Pulp, Paper and Converted Paper Product Manufacturing
16 Printing (including the Reproduction of Recorded Media)
17 Petroleum and Coal Product Manufacturing
18 Basic Chemical and Chemical Product Manufacturing
19 Polymer Product and Rubber Product Manufacturing
20 Non-Metallic Mineral Product Manufacturing
21 Primary Metal and Metal Product Manufacturing
22 Fabricated Metal Product Manufacturing
23 Transport Equipment Manufacturing
24 Machinery and Equipment Manufacturing
25 Furniture and Other Manufacturing

Industry value added (IVA)

IVA represents the value added by an industry to the intermediate inputs used by the industry. IVA is the measure of the contribution by businesses, in the selected industry, to gross domestic product. See Measure of production for the difference between industry GVA and industry value added.

The derivation of IVA for individual businesses depends on whether they are classified as market or non-market producers. Non-market producers are those institutions which provide goods or services either free or at prices that are not economically significant. In other words, their prices are not significantly influenced by the amounts that producers are willing to supply, nor the amounts that users are willing to pay to purchase the goods or services being provided. Conversely, market producers provide goods and services at prices that are economically significant.

For market producers, the derivation of IVA is as follows:

Sales and service income
plusFunding from federal, state or local governments for operational costs
plusCapital work done for own use
plusClosing inventories
lessOpening inventories
lessPurchase of goods and materials
lessOther intermediate input expenses
equalsIVA
However, it should be noted that IVA is a measure of economic activity and is not equivalent to operating profit before tax (OPBT). Wage and salary expenses and most other labour costs are not taken into account in its calculation for market producers, and nor are most insurance premiums, interest expenses or depreciation and a number of lesser expenses (see the entry for total expenses for further details). On the income side, OPBT includes total income, whereas IVA only includes sales and service income.

As a principle, the output of non-market production is valued at cost, including intermediate input expenses. As shown in the above derivation, purchases and other intermediate input expenses are deducted from output in order to arrive at IVA. Accordingly, the derivation of IVA for non-market producers can be described as follows:

Selected labour costs
plusDepreciation and amortisation
equalsIVA

Estimates of industry value added are obtained by summing the contributions of businesses classified to that industry, both market and (if any) non-market producers. Market producers predominate in most industries.

Industry value added is related to, but different from, the national accounting variable gross value added. For national accounts purposes, gross value added is calculated by adjusting industry value added to include General government units and also to account for some other effects.


Insurance premiums


Payments in respect of different types of insurance, excluding workers' compensation costs (included in labour costs) and compulsory third party motor vehicle insurance premiums (included in motor vehicle running expenses).


Interest coverage


The number of times over that businesses can meet their interest expenses from their earnings before interest, i.e. the value of earnings before interest and tax divided by the value of interest expenses.


Interest expenses


Interest paid on loans from banks and other financial institutions, interest paid in respect of finance leases, interest paid on loans from related businesses, interest equivalents such as hedging costs and expenses associated with discounted bills. Excludes bank service charges and fees.


Interest income


Includes interest received from bank etc accounts, loans, finance leases and earnings on discounted bills.


Intermediate input expenses


Intermediate input expenses cover the major expenses incurred by manufacturers in producing and distributing goods and services produced (except labour costs) i.e. purchases of materials, components, containers and packaging materials, electricity, fuels and water, motor vehicle running expenses, freight and cartage expenses, repair and maintenance expenses, rent leasing and hiring expenses (except for finance lease payments) and contract, subcontract and commission expenses.

Intermediate input expenses also include advertising expenses, audit and other accounting expenses, bank fees and charges (except interest), cleaning expenses, environmental protection expenses, intellectual property royalty expenses, legal fees, management fees, paper, printing and stationery expenses, postal and telecommunication expenses, purchases of finished goods for resale, staff training expenses, and travel, accommodation and entertainment expenses.


Intermediate inputs


Intermediate inputs consist of materials and certain services which are used up in the production and distribution processes. Definitions of relevant component items are also included in this Glossary. It is calculated as:
Intermediate input expenses
plus Opening inventories
less Closing inventories


Inventories

All inventories of materials etc., work in progress and finished goods owned by the business, whether held at locations of the business or elsewhere. Inventories are recorded at book value at the end of the period.

Investment rate

The proportion of industry value added used to acquire capital, i.e.capital expenditure divided by IVA multiplied by 100.


Labour costs


Comprises wages and salaries, employer contributions into superannuation, workers' compensation premiums/costs, fringe benefits tax and payroll tax.


Large businesses


Businesses which employ 100 or more people plus any incorporated businesses with zero employment and sales of $50 million or more. See the entry for business size for further explanation.


Long-term debt to equity ratio


The value of non-current liabilities divided by the value of net worth. An increase in this ratio signifies that an industry's debt position has worsened relative to its capacity to repay.


Management unit


The management unit is the highest-level unit within a business, having regard to industry homogeneity, for which accounts are maintained. In nearly all cases, the management unit is simply the legal entity which owns the business (that is, company, partnership, trust, sole operator, etc.). In the case of large diversified businesses, however, there may be more than one management unit, each coinciding with a 'division' or 'line of business'. A division or line of business is recognised where separate and comprehensive accounts are compiled for it. For the purposes of interpreting manufacturing data, "management unit" and "business" can be regarded as being synonymous.


Manufacturing


Manufacturing is defined by the Australia and New Zealand Industrial Classification (ANZSIC) as the physical or chemical transformation of materials or components into new products, whether the work is performed by machinery or by hand.


Manufacturing management unit


A management unit predominantly engaged in manufacturing activities. The data collected for such management units cover all activities of the management unit (including in respect of non-manufacturing activities). Conversely, there are some management units predominantly engaged in non-manufacturing activities which have one or more establishments which engage in manufacturing activities and which are excluded.


Median value


The median is the middle observation in a set of observations ranked from largest to smallest i.e. that observation for which there are as many observations with higher values as there are observations with lower values. For example if the set were made up of the integers 1 to 9, then the median value would be the number 5 because it has four values higher and four values lower.


Medium sized businesses


Businesses which employ 20 to 99 people plus any incorporated businesses with zero employment and sales between $10 million and $50 million. See the entry for business size for further explanation.


Net fixed capital expenditure

The difference between total acquisitions and disposals of fixed tangible assets.


New capital expenditure


Refers to the acquisition of new tangible assets either on own account or under a finance lease and includes major improvements, alterations and additions. In general, this is expenditure charged to fixed tangible assets accounts excluding expenditure on second hand assets unless these are imported for the first time.


Net worth


Total assets minus total liabilities and is equal to the interests of shareholders or other owners in the assets of the business.


Non-employing businesses


Unincorporated businesses which do not employ staff and which have not registered as group employers with the Australian Taxation Office. Typically, such businesses will have one or two working proprietors or partners but no other staff.


Number of employees


All wage and salary earners who received pay for any part of the relevant pay period. All permanent, temporary, casual, managerial and executive employees are included. Part-time and casual employees who may have received pay for only a few hours during the reference period are included. Employees on paid leave and those employees on workers' compensation who continue to be paid through the employer's payroll are also included. Casual employees who work on an irregular basis and who were not paid for the relevant pay period, employees on leave without pay, on strike or stood down without pay for the whole of the pay period are excluded.

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Operating profit before tax (OPBT)

A measure of profit before extraordinary items are brought into account and prior to the deduction of income tax and appropriations to owners (e.g. dividends paid).


Opening inventories


The value of all inventories of finished goods, work-in-progress, raw materials, fuels, containers and packaging as at the start of the financial year. Businesses are asked to value their inventories for statistical purposes using the same method as used in their balance sheets.


Own account capital work


Capitalised work done by the employees or proprietors of a business for use by the business or for rental or lease to other businesses. The main types of work are manufacturing, constructing, installing or repairing assets and development of computer software. This work is valued at the capitalised costs of the materials and the wages and salaries involved.

Conceptually, this item should also include own account mineral exploration and own account production of literary, entertainment or artistic originals. However, these activities are relatively unimportant for manufacturers and have not been measured for manufacturing industries.

Part-time employees

Permanent, temporary and casual employees who are not classified as full-time employees as defined.


Petajoule


Physical measure of energy use. Equals 1015 joules.


Private new capital expenditure

Private new capital expenditure refers to the acquisition of new tangible assets, by private businesses, either on own account or under a finance lease and includes major improvements, alterations and additions. In general, this is expenditure charged to fixed tangible assets accounts excluding expenditure on second hand assets unless these are imported for the first time.


Profit margin


The percentage of operating income available as operating profit, i.e. the value of OPBT multiplied by 100 and the result divided by the value of operating income. Excludes businesses which operated during the year but which were not operating at the end of the year.


Purchases


Purchases of materials, components, supplies, consumables, containers, packaging materials, electricity, fuels (except for motor vehicles) and water. It also includes purchases of goods for resale without processing.


Research and development (R&D) activity


In the business context this is systematic investigation or experimentation involving innovation or technical risk, the outcome of which is new knowledge, with or without a specific practical application or new or improved products, processes materials, devices or services. R&D activity extends to modifications to existing products/processes. R&D activity ceases and pre-production begins when work is no longer experimental.


Research and development expenditure

Includes capital, labour costs and other current expenditure on research and development activity. Capital expenditure is the amount spent on the acquisition of fixed tangible assets such as land, buildings, vehicles, plant, machinery and equipment attributable to R&D activity. Labour costs include wages and salaries, overtime allowances, penalty rates, leave loadings, bonuses, commission payments, all paid leave, employer contributions to superannuation and pension schemes, payroll tax, fringe benefits tax, payments to contract staff on the payroll, severance, termination and redundancy payments and workers compensation insurance. Other current expenditures are expenditure on materials, fuels, rent and hiring, repairs and maintenance, data processing etc. and the proportion of expenditure on general services and overheads which is attributable to R&D activity.


Research and development (R&D) expenditure on waste management and environmental protection


Includes wages and salaries of employees engaged in research and development (R&D) as well as payments made to private businesses for R&D relating to the prevention, reduction or elimination of pollution or any other degradation of the environment.


Royalty expenses


Payments made by a business for the use of rights owned by another business or person. Included in other operating expenses.

Sales and service income

Includes revenue from the sale of minerals and other goods and service income (e.g. minerals bought for re-sale, waste materials, repair and service income, contract, subcontract and commission income, installation charges) and rent, leasing and hiring income. Sales are valued net of sales tax, excise and other duties collected on behalf of governments (e.g. the coal export levy and petroleum production excise duty).

Data on this item produced by the Economic Activity Survey is different from "income from sales of goods and services" produced by the Quarterly Business Indicators Survey. The Quarterly Business Indicators Survey includes royalty income in "income from sales of goods and services", but this is excluded from "sales and service income" in the Economic Activity Survey.


Sample

A part of a population selected for the purpose of studying certain characteristics of an entire population of interest.


Sample Error


Estimates in ABS sample surveys such as the Economic Activity Survey are based on information obtained from a sample drawn from the total population in scope of the collection. As such they are subject to sampling variability; that is, the estimate may differ from the figures that would have been produced if all businesses had been included in the collection. One measure of the likely difference is given by the standard error (SE), which indicates the extent to which an estimate might have varied by chance because only a sample was taken. There are about two chances in three that a sample estimate will differ by less than one SE from the figure that would have been obtained if all businesses had been included, and about nineteen chances in twenty that the difference will be less than two SEs.

In publications such as Australian Industry, (cat. no. 8155.0), sampling variability of the estimates is measured by the relative standard error (RSE). The RSE is obtained by expressing the SE as a percentage of the estimate to which it refers. If an estimate is identified by a carrot (^) the RSE lies between 10 and 25%. For an estimate identified by a single asterisk (e.g. *2) the RSE lies between 25% and 50%. If an estimate is identified by a double asterisk (e.g. **1) the RSE is above 50%. Separate indication of the RSEs of all estimates is available on request.


Sample survey

A collection which involves gathering information from a subset or sample of the population being studied. The sample design is critical as it must be representative of the population or it will lead to false conclusions.


Selected labour costs


Comprise employer contributions into superannuation, workers' compensation premium/costs, fringe benefits costs and payroll tax.


Service income


Income received from service activities. Included are income from work done or sales made on a commission basis, agency commissions, income from repair, maintenance or servicing, installation and delivery charges separately invoiced to customers, advertising income and management fees/charges received from related or unrelated businesses. Service income is valued net of discounts given. For periods commencing with 1997-98, under new international standards, rent, leasing and hiring income (except from finance leases) and income from intellectual property royalties have also been classified as service income. Rent, leasing and hiring income is revenue derived from the ownership of land, buildings, vehicles, machinery or equipment, excluding any income from finance leases. For further explanation on the treatment of commission manufacturing activities see the entry for "Commission manufacturing".


Small businesses


Businesses which employ fewer than 20 people (unless they have zero employment and sales over $10 million). Excludes non-employing unincorporated businesses. See the entry for business size for further explanation.


Stratified sampling

Sampling procedure in which the population units, before a sample is selected, are classified into mutually exclusive and exhaustive groups (called strata), and a sample is taken from each of these groups. For example, a National survey may be run by taking a sample from each of the states and territories. In this case the states and territories would be the strata. Note that one advantage of stratification is that different selection methods and different estimation methods may be used in separate strata.


Taxes paid

The taxes include mineral royalties, licence fees, income tax expense, land taxes and rates, payroll tax, fringe benefits tax and fuel excise and other taxes.


Trading profit


A measure of profit directly attributable to trading in goods and services. It is derived by deducting the cost of sales and service income.


Trading profit margin

Derived by expressing total trading profit as a percentage of total sales and service income, i.e. (Trading profit/Sales and service income) x 100.

Type of activity unit (TAU)

The TAU is comprised of one or more business entities, sub-entities or branches of a business entity within an enterprise group that can report production and employment data for similar economic activities. When a minimum set of data items are available, a TAU is created which covers all the operations within an industry subdivision (and the TAU is classified to the relevant subdivision of the ANZSIC). Where a business cannot supply adequate data for each industry, a TAU is formed which contains activity in more than one industry subdivision. In most cases, TAUs concord with the management units used prior to the 2001-02 year.

Unemployed persons classified by industry and occupation

Unemployed persons who had worked full time for two weeks or more in the last two years are classified according to the industry and occupation of their most recent full-time job.

Volume measures

See chain volume measures.

Wages and salaries

Refers to payments made to all permanent, part-time and temporary employees on the payroll during the financial year. Such payments include severance, termination and redundancy payments, overtime earnings, penalty payments and shift allowances, all paid leave, leave loadings and bonuses. Also includes capitalised wages.

Wages and salaries to turnover ratio

The wages and salaries paid by manufacturing business which operated during the year ended 30 June as a proportion of the turnover of manufacturing business which operated during the same year.


Weighting up


The process where each unit in a sample population has its response inflated to represent the response from all similar units in the population. The 'weight' conferred refers to the number of units in the population represented by each unit in the sample (e.g. in a 5% sample, the weight is 20).

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Using Manufacturing Statistics

'Topics @ a glance' Manufacturing



Commonwealth of Australia 2008

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