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A debt security which is backed by specific assets (such as mortgages over real estate) rather than the general credit-worthiness of the issuing entity.
Assets are a store of value over which ownership rights are enforced by institutional units, individually or collectively, and from which economic benefits may be derived by their owners by holding them, or using them, over a period of time (the economic benefits consist of primary incomes derived from the use of the asset and the value, including possible holding gains/losses, that could be realised by disposing of the asset or terminating it).
Australian production refers to the value at basic prices of goods and services produced in Australia.
A balance sheet is a statement, drawn up in respect to a particular point in time, of the values of assets owned and of the liabilities owed by an institutional unit or group of units. A balance sheet may be drawn up for institutional units, institutional sectors and the total economy.
A balancing item is obtained by subtracting the total value of the entries on one side of an account from the total value of entries the other side. It cannot be measured independently of the other entries. It does not relate to any specific set of transactions, or any set of assets, and so it cannot be expressed in terms of its own price or quantity units.
Balancing item (State Accounts)
The published balancing item in the State Accounts is the residual of Gross State Product (GSP) less state final demand less net international trade in goods and services. It implicitly comprises change in inventories at a State level, plus net interstate trade.
Refers to the period that provides the weights for an index.
The basic price is the amount receivable by the producer from the purchaser for a unit of a good or service produced as output minus any tax payable, and plus any subsidy receivable, on that unit as a consequence of its production or sale. It excludes any transport charges invoiced separately by the producer. Output sold at prices that are not economically significant (see also Economically significant prices) is not valued at these prices. Rather, such output is valued at its cost of production.
Debt securities for which the issuer does not maintain a register of current holders. Settlement of transactions (trades) may be effected by delivery.
Benchmarking can have two meanings. The first refers to the practice of extrapolating from a high quality observation for a particular period, or interpolating between two or more high quality observations, using a lesser quality, but more frequent indicator. The second refers to the practice of imputing quarterly values for a statistic by using a quarterly indicator, such that the resulting quarterly estimates are constrained to sum to the annual estimates.
Bills of exchange
A bill of exchange is an unconditional order drawn (issued) by one party, sent to another party (usually a bank) for acceptance and made out to, or to the order of, a third party, or to bearer (holder). It is a negotiable instrument with an original term to maturity of 180 days or less. Bills of exchange are also known as ‘banker’s acceptance’.
Bonds are long-term securities where the issuer’s pledges to pay the holder the sum of money shown on the face of the document, on a date which at the time of issue is more than one year in the future. Many bonds on issue in Australia pay interest at a set percentage of face value every six months (known as “coupon interest”) for the life of the bond. Such bonds are known as fixed interest bonds. However, there are a significant amount of variable rate bonds and some deep discount (or zero coupon) bonds on issue.
Business and government tourism consumption
Business and government tourism consumption consists of the tourism consumption by resident businesses or governments on tourism related products within Australia. It is also referred to as internal tourism consumption by domestic businesses and government visitors.
The capital account records the values of the non-financial assets that are acquired, or disposed of, by resident institutional units by engaging in transactions, and shows the change in net worth due to saving and capital transfers or internal bookkeeping transactions linked to production (changes in inventories and consumption of fixed capital).
Capital deepening (or capital intensity) refers to changes in the capital to labour ratio. Increased capital deepening means that, on average, each unit of labour has more capital to work with to produce output.
Capital productivity estimates are indexes of real GDP per unit of capital services used in production. They have been derived by dividing the index of the chain volume measure of market sector GDP by an index of capital services. The capital productivity indexes reflect not only the contribution of capital to changes in production, but also the contribution by labour and other factors affecting production.
Capital transfers are transactions in which the ownership of an asset (other than cash and inventories) is transferred from one institutional unit to another, in which cash is transferred to enable the recipient to acquire another asset or in which the funds realised by the disposal of another asset are transferred. Examples include general government capital transfers to private schools for the construction of science blocks or libraries, and transfers to charitable organisations for the construction of homes for the aged.
Captive financial institutions and money lenders
Captive financial institutions and money lenders consist of institutional units providing financial services, where most of either their assets or liabilities are not transacted on the open financial markets.
Central borrowing authorities
A statutory body - often called a Treasury Corporation - established by a State or Territory government to borrow on its behalf and on behalf of its trading enterprises, and to on-lend the funds raised to those bodies. Most borrowing authorities also manage liquid assets on behalf of government bodies.
Chain price indexes are obtained by first weighting together elemental price indexes from the previous financial year to the current financial year to produce annual indexes, or to quarters in the current financial year to produce quarterly indexes, where the weights are calculated using expenditure shares of the previous financial year. Second, the resulting aggregate year-to-year or year-to-quarter price indexes are linked (compounded) together to form a time series. Third, the time series is referenced to 100.0 in the reference year. All quarterly indexes are benchmarked to annual indexes.
Chain volume measure
For certain types of economic analysis it is useful to examine estimates of the principal flows of goods and services in the economy re-valued in such a way as to remove the direct effects of changes in their prices over the period under review. Chain volume measures for GDP and other aggregates are obtained by linking together (compounding) movements in volumes, calculated using the average prices of the previous financial year, and applying the compounded movements to the current price estimates of the reference year.
Changes in inventories
Changes in inventories represent the difference in value between inventories held at the beginning and end of the reference period by enterprises and general government. For national accounting purposes, physical changes in inventories should be valued at the prices current at the times when the changes occur. For these purposes, changes in inventories are obtained after adjusting the increase in book value of inventories by the inventory valuation adjustment. The need for the latter arises because the changes in the value of inventories as calculated from existing business accounting records do not meet national accounting requirements. The inventory valuation adjustment is the difference between the change in (book) value of inventories and the physical changes valued at current prices. The physical changes at average current quarter prices are calculated by applying average quarterly price indexes to the changes in various categories of inventories in volume terms.
A coefficient (I-O) table records the amount of each product (or the amount of output by each industry) used as input per unit of output of the various products/industries.
Collective consumption refers to services provided simultaneously to all members of the community or to all members of a particular section of the community, such as all households living in a particular region. Collective services are automatically acquired and consumed by all members of the community, or group of households in question, without any action on their part. Typical examples are public administration and the provision of security, either at a national or local level. Collective services are the ‘public goods’ of economic theory. By their nature, collective services cannot be sold to individuals on the market, and they are financed by government units out of taxation or other incomes. The defining characteristics of collective services are as follows: collective services can be delivered simultaneously to every member of the community or of particular sections of the community, such as those in a particular region; the use of such services is usually passive and does not require the explicit agreement or active participation of all the individuals concerned; and the provision of a collective service to one individual does not reduce the amount available to others in the same community or section of the community. There is no rivalry in acquisition.
An investment fund established by a trustee company to accept monies it holds in trust and other monies invested by the public. Cash common funds are similar to cash management trusts except that they do not issue units nor do they necessarily issue prospectuses.
Compensation of employees
Compensation of employees is the total remuneration, in cash or in kind, payable by an enterprise to an employee in return for work done by the employee during the accounting period. It is further classified into two sub-components: wages and salaries; and employers’ social contributions. Compensation of employees is not payable in respect of unpaid work undertaken voluntarily, including the work done by members of a household within an unincorporated enterprise owned by the same household. Compensation of employees excludes any taxes payable by the employer on the wage and salary bill (e.g. payroll tax).
Competing imports are those products which are both produced domestically and imported, so that substitution between the two sources of supply is possible.
Computer software refers to computer programs, program descriptions and supporting materials for both systems and applications software. Included are purchased software and, if the expenditure is large, software developed on own-account. It also includes the purchase or development of large databases that the enterprise expects to use in production over a period of more than one year. The ASNA does not separately identify databases from computer software as recommended by the 2008 SNA.
Consumer durable is a good that may be used for purposes of consumption repeatedly or continuously over a period of a year or more
Consumption of fixed capital
Consumption of fixed capital is the value of the reproducible fixed assets used up during a period of account as a result of normal wear and tear, foreseen obsolescence and the normal rate of accidental damage. Unforeseen obsolescence, major catastrophes and the depletion of natural resources are not taken into account.
Contracts, leases and licences are non-produced assets that are constructs of society. They are evidenced by legal or accounting actions, such as the granting of a patent or the conveyance of some economic benefit to a third party. Some entitle their owners to engage in certain specific activities and to exclude other institutional units from doing so except with the permission of the owner. These assets consist of patented entities, leases and other transferable contracts.
Corporations are entities that are capable of generating a profit or other financial gain for their owners; are recognised at law as separate legal entities from their owners who enjoy limited liability; and are set up for purposes of engaging in market production. They also include co-operatives, limited liability partnerships, notional resident units and quasi-corporations.
Coverage ratio (for a product)
A product may be produced by more than one industry. The coverage ration shows what proportion of the total domestic supply of a product is produced by the industry to which the product is primary.
Cultivated biological resources
Cultivated biological resources includes livestock raised for breeding, dairy, wool, etc., and vineyards, orchards and other plantations of trees yielding repeat products that are under the direct control, responsibility and management of institutional units. Immature cultivated assets are excluded unless produced for own use.
Currency consists of notes and coins that are of fixed nominal values and are issued or authorised by the central bank or government. For Australia the currency asset refers solely to domestic currency. There is little foreign currency in general circulation, and significant holdings are classified as foreign deposits.
Current international cooperation
Current international cooperation relates to transfers by the Commonwealth general government sector to non-residents, and includes current transfers to and payments made on behalf of Papua New Guinea, and current transfers under other bilateral aid projects including food aid and disaster relief.
Estimates are valued at the prices of the period to which the observation relates. For example, estimates for 2010-11 are valued using 2010-11 prices. This contrasts to chain volume measures where the prices used in valuation refer to the prices of the previous year.
Current taxes on income, wealth, etc
Current taxes on income, wealth, etc. include taxes on the incomes of households or the profits of corporations, and taxes on wealth that are payable regularly every tax assessment period (as distinct from capital taxes that are levied infrequently).
Current transfers are transactions, other than those classified as capital transfers, in which one institutional unit provides a good, service or cash to another unit without receiving from the latter anything of economic value in return.
Current transfers from the Commonwealth government to State and local government
Current transfers from the Commonwealth government to State and local government include financial assistance grants to the States and Territories; grants to fund State and Territory health care services, education services, social security and welfare services, and similar specific grants for current purposes; special revenue assistance grants provided to certain States and Territories; financial assistance grants for local governments which are provided through the State and Northern Territory governments; and grants for current purposes made directly to local government bodies.
Current transfers to non-profit institutions
Current transfers to non-profit institutions are transfers for non-capital purposes to private non-profit institutions serving households, such as hospitals, independent schools, and religious and charitable organisations.
Databases consist of files of data organised in such a way as to permit resource-effective access and use of the data. The ASNA does not separately identify databases from computer software as recommended by the 2008 SNA.
A financial instrument that evidences the issuer’s promise to repay the principal at face value on maturity. It may be issued to investors at a discount, and/or the issuer may promise to pay interest (usually at six monthly intervals) to the holders. Unlike shares, debt securities do not confer on the holders ownership rights in the issuing entity.
Derivatives are financial instruments that are linked to a specific financial instrument or indicator or commodity, and which provide for market financial risk in a form that can be traded or otherwise offset in the market. Derivatives are used for a number of purposes including risk management, hedging, and speculation. Unlike debt instruments, no principal amount is advanced to be repaid, and no investment income accrues. The value of the derivative derives from the price of the underlying items.
Direct allocation of imports
The direct allocation method of recording imports involves allocating imports to the industries which use them and including them with the primary inputs to these industries in deriving the total production. With this method the intermediate consumption and final demand matrices contain only the use of domestic production, and so the intermediate use matrix does not reflect the full input structure of industries.
Direct requirement coefficients
Direct requirement coefficients refer to the proportion of inputs directly required from industries by industries to produce $100 of output. In calculating the direct requirements coefficients, the flow on effects on industries are not taken into account.
Direct tourism gross domestic product
Direct tourism GDP is direct tourism gross value added plus net taxes on products that are attributable to the tourism industry (tourism net taxes on products). Direct tourism GDP will generally have a higher value than direct tourism value added.
Direct tourism gross value added is the value of direct tourism output at basic prices less the value of inputs used in producing these tourism products. This measure is directly comparable with the value added of ‘conventional’ industries such as mining and manufacturing and should also be used for comparisons across countries.
Direct tourism output
Direct tourism output is the value of goods and services at basic prices which are consumed by visitors and produced in Australia by industries in a direct relationship with visitors.
Debt securities which are issued to investors for less than the value appearing on the face of the security. Holders are not paid interest but rather receive capital gains (the difference between the purchase price and the face value of the security).
Dividends are a form of investment income to which shareholders become entitled as a result of placing funds at the disposal of corporations.
Dividends from public (financial and non-financial) corporations paid to general government
Dividends from public (financial and non-financial) corporations paid to general government represent property income earned by general government on its equity investment in these corporations. They are payable by public corporations from operating surpluses generated through the production process. Included are amounts in the nature of dividends such as transfers of profit, income tax equivalents and wholesale sales tax equivalents.
Domestic tourism consumption
Domestic tourism consumption consists of the tourism consumption by resident visitors on tourism related products within Australia. It is the sum of household tourism consumption and business and government tourism consumption.
Dwellings are buildings that are used entirely or primarily as residences, including any associated structures, such as garages, and all permanent fixtures customarily installed in residences. Houseboats, barges, mobile homes and caravans used as principal residences of households are also included, as are historic monuments identified primarily as dwellings. The costs of site clearance and preparation are also included in the value of dwellings.
Economic flows reflect the creation, transformation, exchange, transfer or extinction of economic value. They involve changes in the volume, composition or value of an institutional unit's assets and liabilities.
The economic owner is the institutional unit entitled to claim the benefits associated with the use of the entity in question in the course of an economic activity by virtue of accepting the risk.
Economically significant prices
Economically significant prices are prices which have a significant influence on both the amounts producers are willing to supply and the amounts purchasers wish to buy.
Employees’ social contributions
Social contributions payable by employees to private funded social insurance schemes.
Employers’ contributions to superannuation
Employers’ contributions to superannuation consist of social contributions payable by employers, for the benefit of their employees, to superannuation funds or other institutional units responsible for the administration and management of social insurance schemes. Although they are paid by the employer directly to the superannuation fund, the payments are made for the benefit of the employees. Accordingly, employees are treated as being remunerated by an amount equal to the value of the social contributions payable.
Employers’ imputed social contributions
Some employers provide social benefits directly to their employees, former employees or their dependants from their own resources without involving an insurance enterprise or autonomous pension fund, and without creating a special fund or segregated reserve for the purpose. In the Australian context, employers’ imputed social contributions primarily relate to unfunded superannuation schemes operated by the Commonwealth Government and State Governments. The remuneration imputed for such employees is equal in value to the amount of social contributions that would be needed to secure the de facto entitlements to the social benefits they accumulate.
Employers’ social contributions are payments by employers which are intended to secure for their employees the entitlement to social benefits should certain events occur, or certain circumstances exist, that may adversely affect their employees’ income or welfare—namely work-related accidents and retirement.
The enterprise is an institutional unit comprising a single legal entity, or a grouping of legal entities, within an enterprise group, classifiable to the same institutional subsector, as per the Standard Institutional Sector Classification of Australia (SISCA).
Entertainment, literary or artistic originals
Entertainment, literary or artistic originals are original films, sound recordings, manuscripts, tapes, models, etc., on which drama performances, radio and television programming, musical performances, sporting events, literary and artistic output, etc. are recorded or embodied. Included are works produced on own-account. In some cases there may be multiple originals (e.g. films).
Entrepreneurial income for a corporation, quasi-corporation, or an institutional unit owning an unincorporated enterprise engaged in market production, is defined as its operating surplus (or mixed income), plus property income receivable on the assets owned by the enterprise, less interest payable on the liabilities of the enterprise and rents payable on non-produced non-financial natural resource assets (such as land) rented by the enterprise.
Equity has the distinguishing feature that the holders own a residual claim on the assets of the institutional unit that issued the equity. Equity represents the owner’s funds in the institutional unit.
Exports of goods and services
The value of goods exported and amounts receivable from non-residents for the provision of services by residents.
The external account records all current transactions between Australian residents and non-residents.
The value that appears on the face of a debt security being the amount that the issuing entity promises to pay to the holder when the security matures. Also known as the nominal or par value.
Final consumption expenditure – general government
Net expenditure on goods and services by public authorities, other than those classified as public corporations, which does not result in the creation of fixed assets or inventories or in the acquisition of land and existing buildings or second-hand assets. It comprises expenditure on compensation of employees (other than those charged to capital works, etc.), goods and services (other than fixed assets and inventories) and consumption of fixed capital. Expenditure on repair and maintenance of roads is included. Fees, etc., charged by general government bodies for goods sold and services rendered are offset against purchases. Net expenditure overseas by general government bodies and purchases from public corporations are included. Expenditure on defence assets is classified as gross fixed capital formation.
Final consumption expenditure – households
Net expenditure on goods and services by persons and expenditure of a current nature by private non-profit institutions serving households. This item excludes expenditures by unincorporated businesses and expenditures on assets by non-profit institutions (included in gross fixed capital formation). Also excluded are maintenance of dwellings (treated as intermediate expenses of private enterprises), but personal expenditure on motor vehicles and other durable goods and the imputed rent of owner-occupied dwellings are included. The value of 'backyard' production (including food produced and consumed on farms) is included in household final consumption expenditure and the payment of wages and salaries in kind (e.g. food and lodging supplied free to employees) is counted in both household income and household final consumption expenditure.
The financial account records the net acquisition of financial assets and net incurrence of liabilities for all institutional sectors, by type of financial asset.
Financial assets are mostly financial claims. Financial claims entitle the owner to receive a payment, or a series of payments, from an institutional unit to which the owner has provided funds. Shares are treated as financial assets even though the financial claim their holders have on the corporation is not a fixed or predetermined monetary amount.
Financial corporations are mainly engaged in financial market transactions, which involve incurring liabilities and acquiring financial assets, i.e. borrowing and lending money, providing superannuation, life, health or other insurance, financial leasing or investing in financial assets. Also included are corporations providing financial auxiliary services.
Banks and some other financial intermediaries are able to provide services for which they do not charge explicitly, by paying or charging different rates of interest to borrowers and lenders (and to different categories of borrowers and lenders). For example, they may pay lower rates of interest than would otherwise be the case to those who lend them money and charge higher rates of interest to those who borrow from them. The resulting net receipts of interest are used to defray their expenses and provide an operating surplus. This scheme of interest rates avoids the need to charge their customers individually for services provided and leads to the pattern of interest rates observed in practice. However, in this situation, the national accounts must use an indirect measure, namely FISIM, of the value of the services for which the intermediaries do not charge explicitly.
Whenever the production of output is recorded in the national accounts, the use of that output must be explicitly accounted for elsewhere in the accounts. Hence, FISIM must be recorded as being disposed of in one or more of the following ways: as intermediate consumption by enterprises; as final consumption by households or general government; or as exports to non-residents.
Fixed assets are produced assets that are used repeatedly or continuously in production processes for more than one year. Fixed assets consist of dwellings, non-dwelling construction, machinery and equipment, weapons systems, cultivated biological resources, ownership transfer costs and intellectual property products.
A forward contract or forward rate agreements are arrangements in which two parties, in order to protect themselves against interest rate changes, agree on an interest rate to be paid, at a specified settlement date, on a notional amount of principal that is never exchanged. The only payment that takes place is related to the difference between the agreed forward rate and the prevailing market rate at the time of settlement.
These are mutual organisations whose members originally came from specific crafts or religions. They aim to provide their members with a wide range of cradle-to-grave services. Examples of these are: life, health, disability, funeral, and general insurances; investment services; financial services similar to those provided by credit unions; and retirement and travel services.
A futures contract is an agreement to buy/sell a standard quantity of a commodity - such as gold, $US or bank bills of exchange - on a specific future date at an agreed price determined at the time the contract is traded on the futures exchange.
The goods and services account shows how all output from within the production boundary, plus imports, is accounted for in one of the other two basic activities of the ASNA, consumption (i.e. intermediate or final) of goods and services or accumulation (capital formation) of goods and services, plus exports.
Goods and services tax (GST)
The GST is a tax of 10 per cent on the price of most goods and services in Australia, including those that are imported. It does not apply to sales of goods or services that are either exempt (GST-free) or input-taxed.
Government actual final consumption
Government actual final consumption is equal to government final consumption expenditures on collective services such as defence.
Government units are unique types of legal entities established by political processes and having legislative, judicial or executive authority over other institutional units.
Gross disposable income – households
Gross disposable income—households is gross household income less income tax payable, other current taxes on income, wealth etc., consumer debt interest, interest payable by unincorporated enterprises and dwellings owned by persons, net non-life insurance premiums and other current transfers payable by households.
Gross domestic product
Gross domestic product is the total market value of goods and services produced in Australia within a given period after deducting the cost of goods and services used up in the process of production, but before deducting allowances for the consumption of fixed capital. Thus gross domestic product, as here defined, is 'at market prices'. It is equivalent to gross national expenditure plus exports of goods and services less imports of goods and services.
Gross farm product
Gross farm product is that part of gross domestic product which derives from production in agriculture and services to agriculture.
Expenditure on new fixed assets plus net expenditure on second-hand fixed assets, whether for additions or replacements. Expenditure on new roadworks (or on upgrading existing roads) is included, but expenditure on road repair and maintenance is classified as government final consumption expenditure.
Gross fixed capital formation – private corporations
Expenditure on fixed assets broken down into dwellings, non-dwelling construction, machinery and equipment, cultivated biological resources, intellectual property products and ownership transfer costs. The machinery and equipment category includes plant, machinery, equipment, vehicles, etc. Expenditure on repair and maintenance of fixed assets is excluded, being chargeable to the production account. Additions to fixed assets are regarded as capital formation. Also included is compensation of employees paid by private enterprise in connection with own-account capital formation. Expenditure on dwellings, non-dwelling construction, and machinery and equipment is measured as expenditure on new and second-hand assets, less sales of existing assets. Ownership transfer costs comprise stamp duty, real estate agents' fees and sales commissions, conveyancing fees and miscellaneous government charges.
Gross fixed capital formation – public corporations
Expenditure on new fixed assets plus net expenditure on second-hand fixed assets and including both additions and replacements. Also included is compensation of employees paid by public corporations in connection with capital works undertaken on own account.
Gross income – households
Gross income—households is the total income, whether in cash or kind, receivable by persons normally resident in Australia. It includes both income in return for productive activity (such as compensation of employees, the gross mixed income of unincorporated enterprises, gross operating surplus on dwellings owned by persons, and property income receivable) and transfers receivable (such as social assistance benefits and non-life insurance claims).
Gross mixed income of unincorporated enterprises (GMI)
Gross mixed income of unincorporated enterprises is the term reserved for the surplus accruing to owners of unincorporated enterprises from processes of production (as defined for gross operating surplus) before deducting any explicit or implicit interest, rents or other property incomes payable on the financial assets, non-produced non-financial natural resource assets (such as land) required to carry on the production and before deducting consumption of fixed capital. However, GMI is measured after the deduction of FISIM and the insurance service charge. The owners, or other members of their households, may work without receiving any wage or salary. Mixed income therefore includes both gross operating surplus for unincorporated enterprises and returns for the proprietors' own labour (akin to wages and salaries). In practice, all unincorporated enterprises owned by households that are not quasi-corporations are deemed to fall into this category, except owner-occupiers in their capacity as producers of housing services for own final consumption, and households employing paid domestic staff (an activity which is deemed to generate zero surplus).
Gross national disposable income (GNDI)
Gross national disposable income (GNDI) is equivalent to gross national income plus all secondary income in cash or in kind receivable by resident institutional units from the rest of the world, less all secondary income in cash or in kind payable by resident institutional units to the rest of the world.
Gross national expenditure (GNE) is the total expenditure within a given period by Australian residents on final goods and services (i.e. before allowances for capital goods and services used up during the period in the process of production). It is equivalent to gross domestic product plus imports of goods and services less exports of goods and services.
Gross national income (GNI)
Gross national income (GNI) is the aggregate value of gross primary incomes for all institutional sectors, including net primary income receivable from non-residents.
Gross non-farm product
Gross non-farm product arises from production in all industries other than agriculture.
Gross operating surplus (GOS)
Gross operating surplus is a measure of the surplus accruing to owners from processes of production before deducting any explicit or implicit interest charges, rents or other property incomes payable on the financial assets, non-produced non-financial natural resource assets (such as land) required to carry on the production and before deducting consumption of fixed capital. However, GOS is measured after the deduction of FISIM and the insurance service charge. It excludes gross mixed income which is the surplus accruing to owners of unincorporated enterprises. Gross operating surplus is also calculated for general government, where it equals general government's consumption of fixed capital.
Gross State Product (GSP)
Gross State Product (GSP) is defined equivalently to Gross Domestic Product (GDP) but refers to production within a state or territory rather than to the nation as a whole. See Gross Domestic Product (GDP).
Gross value added
Gross value added is defined as the value of output at basic prices minus the value of intermediate consumption at purchasers' prices. The term is used to describe gross product by industry and by sector. Basic prices valuation of output removes the distortion caused by variations in the incidence of commodity taxes and subsidies across the output of individual industries.
A household is a group of persons who share the same living accommodation, who pool some, or all, of their income and wealth and who consume certain types of goods and services collectively, mainly housing and food.
Household actual final consumption
Household actual final consumption includes: the value of the households expenditures on consumption goods and services including expenditures on non-market goods or services sold at prices that are not economically significant; government final consumption expenditures on education, health, social security and welfare, sport and recreation and culture, which are considered to be individual services; and services provided by non-profit institutions serving households as they are treated as individual services.
Household claims on technical reserves of life insurance corporations and pension funds
This represents households’ net equity in, or claims on, the reserves of life insurance corporations and pension funds. In the case of life insurance corporations, it equates in large measure with the net policy liabilities of life offices to households. In the case of pension funds, it represents the funds’ obligations to members including any surpluses and reserves. A claim by householders on insurance technical reserve of non-resident pension funds is also included.
Household production for own final use
Household production for own final use is defined as those productive activities that result in goods or services consumed or capitalised by the households that produce them.
Household saving ratio
The ratio of household net saving to household net disposable income. Household net saving is calculated as household net disposable income less household final consumption expenditure. Household net disposable income is calculated as household gross disposable income less household consumption of fixed capital.
Household tourism consumption
Household tourism consumption consists of the tourism consumption by resident households on tourism related products within Australia.
Illegal production is:
Implicit price deflator (IPD)
An IPD is obtained by dividing a current price value by its real counterpart (the chain volume measure). When calculated from the major national accounting aggregates, such as gross domestic product, IPDs relate to a broader range of goods and services in the economy than that represented by any of the individual price indexes published by the Australian Bureau of Statistics. Movements in an implicit price deflator reflect both changes in price and changes in the composition of the aggregate for which the deflator is calculated.
Imports of goods and services
The value of goods imported and amounts payable to non-residents for the provision of services to residents.
Imputed tourism consumption
Imputed tourism consumption consists of imputations made for the consumption by visitors of certain goods and services for which they do not make a payment. Imputation is confined to a small number of cases where a reasonably satisfactory basis for the valuation of the implied transaction is available, and where their inclusion is consistent with the production boundary in the core national accounts.
The income account shows how gross disposable income is used for final consumption expenditure and the consumption of fixed capital (depreciation), with the balance being net saving.
Income flows are divided into primary income and secondary income. Primary incomes are incomes that accrue to institutional units as a consequence of their involvement in processes of production or ownership of assets that may be needed for purposes of production. Secondary incomes are incomes that are redistributed between institutional units by means of payments and receipts of current transfers. Income redistribution also includes social transfers in kind.
Income tax consists of taxes on the income of households, corporations and non-residents, and taxes on wealth which are levied regularly (wealth taxes which are levied irregularly are classified as capital taxes and are recorded in the sectoral capital accounts).
Indirect allocation of imports
The indirect allocation method of recording imports includes those imports in the intermediate use of industries and in the final use categories without distinguishing the imports from the products with which they compete. This allows the intermediate use matrix to fully reflect the input structures of industries. With this method the imports are also listed under the industries’ use of primary inputs, but after deriving total production.
The chain of calculations of output requirements can be continued beyond the direct requirements of an industry. For example, in order to produce output from the chemicals industry, inputs are required directly from the mining industry. Tor produce this indirect requirement of the mining industry, the chemical industry needs, in turn, additional output from the mining industry, and so on in a convergent infinite series. The example has been confined to two industries directly dependent on each other, but indirect requirements can arise even in the absence of direct dependence. For example, the mining industry may not directly require any inputs from agriculture, but it requires inputs from chemicals which cannot be satisfied without input from agriculture. Therefore, there is an indirect requirement by mining for agricultural input.
An individual consumption good or service is one that is acquired by a household and used to satisfy the needs and wants of members of that household. Individual goods and services can always be bought and sold on the market, although they may also be provided free, or at prices that are not economically significant, or as transfers in kind. Individual goods and services are essentially ‘private’, as distinct from ‘public’.
An industry consists of a group of establishments engaged in the same, or similar kinds, of activity.
The informal sector is defined as:
Input-Output Industry Group (IOIG)
IOIGs are based on the Australian and New Zealand Standard Industrial Classification (ANZSIC) and the I-O tables are published at this level of industry.
Input-Output Product Classification (IOPC)
The IOPC is the detailed level product classification, organised according to the industry to which each product is primary. I-O tables are compiled at this level of product classification.
Input-Output Product Group (IOPG)
IOPGs are groups of IOPCs aggregated to the IOIGs to which they are primary. I-O tables are published at this level of product classification.
Input and output tables are a means of presenting a detailed analysis of the process of production and the use of goods and services (products) and the income generated in the production process; they can be either in the form of (a) supply and use tables or (b) symmetric input and output tables.
Debt securities whose issuer maintains a register of current holders. Accordingly, settlement of transactions (trades) in these securities is affected by assignment (marked transfer), not delivery.
The resident units that make up the total economy are grouped into four mutually exclusive institutional sectors, namely: the non-financial corporations sector; the financial corporations sector; the general government sector; and the household sector, which includes non-profit institutions serving households.
An institutional unit is an economic entity that is capable, in its own right, of owning assets, incurring liabilities, and engaging in economic activities and in transactions with other entities. There are two main types of institutional units, namely persons or groups of persons in the form of households, and legal or social entities whose existence is recognised by law or society independently of the persons, or other entities, that may own or control them. The individual members of multi-person households are not treated as separate institutional units. Legal or social entities that engage in economic activities in their own right, such as corporations, NPIs or government units, are considered institutional units as they are responsible and accountable for the economic decisions or actions they take.
Insurance service charge
Insurance service charge is the imputed charge for the service of arranging the financial protection or security which insurance is intended to provide. This is not separately charged by insurance enterprises.
Insurance technical reserves
Insurance technical reserves comprise financial assets that are reserves against outstanding risks, reserves for with-profit insurance, prepayments of premiums and reserves against outstanding claims. Insurance technical reserves may be liabilities not only of life or non-life insurance enterprises (whether mutual or incorporated) but also of autonomous pension funds, which are included in the insurance enterprise subsector, and certain non-autonomous pension funds that are included in the institutional sector that manages the funds. Insurance technical reserves are subdivided between net equity of households on life insurance reserves and on pension funds, and prepayments of premiums and reserves against outstanding claims.
Intellectual property products
Intellectual property products are as a result of research and development, investigation or innovations leading to knowledge that the developers can market or use for their own benefit. These are produced fixed assets and include computer software, research and development, entertainment, literary or artistic originals, and mineral exploration intended to be used for more than a year.
Interest is receivable by the owners of financial assets such as deposits, loans, and securities other than shares for putting the financial asset at the disposal of another institutional unit.
Intermediate consumption consists of the value of the goods and services consumed as inputs by a process of production, excluding the consumption of fixed capital.
Internal tourism consumption
Internal tourism consumption consists of all tourism consumption of visitors, both resident and non-resident, within Australia. It is the sum of domestic tourism consumption and international tourism consumption.
International tourism consumption
International tourism consumption consists of the tourism consumption with Australia by non-residents on tourism related products. It is also referred to as internal tourism consumption by international visitors.
Intra-industry flows refer to the production by units in an industry and use of that production by other units within the same industry. Australian I-O tables include the values of these flows.
Inventories consist of stocks of outputs that are held at the end of a period by the units that produced them prior to their being further processed, sold, delivered to other units or used in other ways, and stocks of products acquired from other units that are intended to be used for intermediate consumption or for resale without further processing.
Labour productivity estimates are indexes of real GDP per person employed or per hour worked. The estimates in the ASNA have been derived by dividing the chain volume measure of GDP by hours worked. Labour productivity indexes not only reflect the contribution of labour to changes in product per labour unit, but are also influenced by the contribution of capital and other factors affecting production.
Land 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
A legal entity is defined as a unit covering all the operations in Australia of an entity which possesses some or all of the rights and obligations of individual persons or corporations, or which behaves as such in respect of those matters of concern for economic statistics.
The legal owner of entities such as goods and services, natural resources, financial assets and liabilities is the institutional unit entitled in law and sustainable under the law to claim the benefits associated with the entities.
A liability is an obligation which requires one unit (the debtor) to make a payment or a series of payments to the other unit (the creditor) in certain circumstances specified in a contract between them.
Listed shares are equity securities listed on an exchange.
Livestock assets are classified as either fixed assets or inventories. Those livestock which are used in production of other products (e.g. breeding stock, animals for entertainment, sheep for wool and dairy cattle) are fixed assets. Inventories cover all other livestock types and include those animals raised for meat or other one-off products (e.g. leather).
Loans are borrowings which are not evidenced by the issue of debt securities, and are not usually traded and their value does not decline even in a period of rising interest rates.
Long-term debt securities
Long-term debt securities are debt securities with an original term to maturity of more than one year. They include Treasury bonds, semi-government securities, corporate securities, asset backed bonds and convertible notes prior to conversion. Long-term debt securities also include subordinated debt.
Machinery and equipment
Machinery and equipment includes transport equipment and other machinery and equipment, other than that acquired by households for final consumption. Tools that are relatively inexpensive and purchased at a relatively steady rate, such as hand tools, are excluded. Also excluded are machinery and equipment integral to buildings such as lifts, these being included in dwellings and non-residential buildings.
Machinery and equipment acquired by households for final consumption (e.g. motor vehicles) are not treated as fixed assets. However, they are included in the memorandum item ‘consumer durables’ in the balance sheet for households. Houseboats, barges, mobile homes and caravans used by households as principal residences are included in dwellings.
If the transactions are valued at basic prices, the margins are recorded as intermediate consumption (e.g. transport, wholesale trade) of the intermediate users or final buyers. If transactions are valued at purchasers’ prices the value of margins in included, along with taxes less subsidies on products with the purchasers’ price of the good to which the margin relates.
Output that is sold at prices that are economically significant or otherwise disposed of on the market, or intended for sale or disposal on the market.
The 'market sector' is defined to include all industries except for Public administration and safety (O); Education and training (P); Health care and social assistance (Q) and Ownership of dwellings.
Mineral exploration is the value of expenditures on exploration for petroleum and natural gas and for non-petroleum mineral deposits. These expenditures include pre-licence costs, licence and acquisition costs, appraisal costs and the costs of actual test drilling and boring, as well as the costs of aerial and other surveys, transportation costs etc., incurred to make it possible to carry out the tests.
Monetary gold is treated as a financial asset. Monetary gold is gold owned by monetary authorities (or others subject to effective control by monetary authorities) that is held as a financial asset and as a component of official reserves. Other gold held by any entity (including non-reserve gold held by monetary authorities and all gold held by financial institutions other than the central bank) is treated as a commodity.
Monetary transactions occur when the institutional units involved make or receive payments, or incur liabilities or receive assets denominated in units of currency.
Money market funds (MMFs)
Money market funds invest in transferable debt instruments with a residual maturity of not more than one year, bank deposits and instruments that pursue a rate of return that approaches the interest rates of money market instruments
Multifactor productivity estimates are indexes of real GDP per combined unit of labour and capital. They have been derived by dividing chain volume estimates of market sector GDP by a combined measure of hours worked and capital services.
Calculated as the sum of the net saving of each of the resident sectors - households and unincorporated enterprises, non-financial corporations, financial corporations and general government.
Natural resources are non-produced non-financial assets consisting of land, mineral and energy resources, native standing timber and radio spectra.
Net domestic product
Calculated as GDP less consumption of fixed capital.
Net equity in reserves
Net equity in reserves represents policy-holders’ claims on life insurance businesses and pension funds. These technical reserves are calculated by deducting all repayable liabilities from the value of total assets.
Net errors and omissions
Net errors and omissions is the difference between net lending or borrowing in the capital account and the net change in financial position in the financial account.
Net lending(+)/Net borrowing (–)
The residual item in the capital account which shows each sector's net acquisition of financial assets. It is calculated as Gross saving and capital transfers less Total capital accumulation. In concept it is the same as the item Net change in financial position in the financial account.
Net lending to non-residents
Net lending to non-residents is the excess of net acquisition of financial assets in the rest of the world by resident institutional units over their net incurrence of liabilities in the rest of the world.
Net non-life insurance premiums are defined as non-life insurance premiums plus premium supplements less the non-life insurance service charge.
Net saving – corporations
Net saving—corporations is equal to the gross income receivable by corporations less income payable and consumption of fixed capital. Income receivable by corporations includes gross operating surplus, property income and current transfers receivable. Income payable includes property income and current transfers (including income taxes) payable.
Net saving – general government
Net saving—general government is the surplus of general government gross income over current use of income. Current use of income includes final consumption expenditure and current transfers (interest and other property income payable, social assistance benefits payments to residents, transfers to non-profit institutions, subsidies, etc.).
Net saving – households
Net saving—households is equal to gross household disposable income less household final consumption expenditure and consumption of fixed capital. Household saving is estimated as the balancing item in the households income account. It includes saving through life insurance and pension funds (including net earnings on these funds), increased equity in unfunded superannuation schemes.
Net secondary income from non-residents
Net secondary income from non-residents comprises all transfers to or from non-residents to resident government or private institutional units which are not payments for goods and services, compensation of employees or property income.
In the national and sectoral balance sheets, net worth represents the difference between the stock of assets (both financial and non-financial) and the stock of liabilities (including shares and other equity).
Neutral holding gains/losses
The value of the holding gain that would accrue if the price of the asset changed in the same proportion as the general price level.
Nominal holding/gains losses
On a given quantity of asset, it is the value of the benefit accruing to the owner of that asset as a result of a change in its price or, more generally, its monetary value, over time.
Non-dwelling construction consist of non-residential buildings and other structures. ‘Non-residential buildings’ are buildings other than dwellings, including fixtures, facilities and equipment that are integral parts of the structures and costs of site clearance and preparation.
‘Other structures’ are structures other than buildings, including streets, sewers and site clearance and preparation other than for residential or non-residential buildings. Also included are shafts, tunnels and other structures associated with the extraction of mineral and energy resources. Major improvements to land, such as dams, are also included.
Non-financial assets are assets for which no corresponding liabilities are recorded.
Non-financial corporations are corporations whose principal activity is the production of market goods or non-financial services.
Non-life insurance claims
Non-life insurance claims are the claims payable in settlement of damages that result from an event covered by a non-life insurance policy in the current accounting period.
Goods and services produced by any institutional unit that are supplied free or at prices that are not economically significant.
Non-monetary transactions are transactions that do not involve the exchange of cash, or assets or liabilities that are not denominated in units of currency.
Non-money market financial investment funds (NMMF)
Non-money market financial investment funds (NMMF) invest in financial assets other than short-term assets.
Non-observed economy (NOE)
The NOE refers to economic activities that are often missing from the data sources used to compile the national accounts (see underground production).
Non-produced assets are non-financial assets that come into existence other than through processes of production. Non-produced assets that occur in nature is where ownership has been enforced or transferred. Environmental assets over which ownership rights have not, or cannot, be enforced, such as international waters or air space, are excluded. They consist of Natural resources (such as land, mineral and energy resources, native standing timber and radio spectra); Contracts, leases and licences; and Purchased goodwill and marketing assets. Purchased goodwill and marketing assets are not included in the ASNA.
Non-produced non-financial natural resource asset
Non-produced assets that occur in nature over which ownership rights have been enforced, such as land, mineral and energy resources, native standing timber and radio spectra.
Non-profit institutions are legal or social entities created for the purpose of producing goods or services whose status does not permit them to be a source of income, profit or other financial gain for the units that establish, control or finance them.
One name paper includes promissory notes, treasury notes and certificate of deposits issued by banks.
Options are contracts that give the purchaser the right, but not the obligation, to buy (a ‘call’ option) or to sell (a ‘put’ option) a particular financial instrument or commodity at a predetermined price (the ‘strike’ price) within a given time span (American option) or on a given date (European option).
Orchards are any plants that can produce a marketable quantity of fruit for more than one year in which the grower intends to obtain a future benefit from the sale of the fruits borne. It can include trees, vines, bushes and shrubs. The costs to be capitalised as part of the value of fruit and nut bearing plants are the establishment costs involved in planting the new nursery plant and then maintenance costs associated with making the plant grow.
Other accounts receivable/payable
This term is used in two ways. Firstly it is the financial asset consisting of two subordinate classifications: ‘trade credit and advances’, and ‘other accounts receivable/payable’. Alternatively, the item can refer to the actual classification ‘other accounts receivable/payable’.
Accounts receivable and payable include items other than those in the previous paragraph (e.g. in respect of taxes, dividends, purchases and sales of securities, rent, wages and salaries and social contributions). Interest accruing that is not capitalised in the underlying asset may be included.
Other changes in real net wealth
Calculated as the sum of real holding gains, net capital transfers and other changes in volume.
These arise due to a different treatment of stock and flow concepts between the balance sheet and capital account estimates. Net capital formation in the balance sheet includes plantation standing timber inventories. These are included in the change in net worth in the balance sheet and excluded from the capital account.
Other changes in the volume of assets
Other changes in the volume of assets are changes in the value of assets and liabilities over the accounting period arising from events other than transactions and revaluations.
Other current taxes on income, wealth etc.
Other current taxes on income, wealth etc. consists mainly of payments by households to obtain licences to own or use vehicles, boats or aircraft, and for licences to hunt, shoot or fish.
Other current transfers
Other current transfers consist of all current transfers between resident institutional units or between resident and non-resident units other than current taxes on income, wealth, etc. and social benefits in kind.
Other deposits comprise all claims, other than transferable deposits, that are represented by evidence of deposit. Typical forms of deposits that should be included are savings deposits (which are always non-transferable), fixed-term deposits and non-negotiable certificates of deposit.
Other flows are changes in the value of assets and liabilities that do not take place through transactions. They are either other changes in the volume of assets or liabilities, or holding gains and losses.
Other subsidies on production consist of all subsidies, except subsidies on products, which resident enterprises may receive as a consequence of engaging in production. Other subsidies on production include: subsidies related to the payroll or workforce numbers (including subsidies payable on the total wage or salary bill), on numbers employed, or on the employment of particular types of persons, e.g. persons with disabilities or persons who have been unemployed for a long period.
Other taxes on production
Other taxes on production consist of all taxes that enterprises incur as a result of engaging in production, except taxes on products. Other taxes on production include: taxes related to the payroll or workforce numbers excluding compulsory social security contributions paid by employers and any taxes paid by the employees themselves out of their wages or salaries; recurrent taxes on land, buildings or other structures; some business and professional licences where no service is provided by the Government in return; taxes on the use of fixed assets or other activities; stamp duties; taxes on pollution; and taxes on international transactions.
Outbound tourism consumption
Outbound tourism consumption consists of the tourism consumption by resident visitors outside of Australia while on an international trip. It is also referred to as tourism imports.
Output consists of those goods and services that are produced within an establishment that become available for use outside that establishment, plus any goods and services produced for own final use.
Output for own final use
Output for own final use includes output for own final consumption and output for own gross fixed capital formation.
Ownership transfer costs
The costs of ownership transfer consist of the following kinds of items: all professional charges, taxes payable or commissions incurred by the units acquiring and disposing of the asset (e.g. fees paid to lawyers, architects, surveyors, engineers, valuers, etc., and commissions paid to estate agents, auctioneers, etc.). The assets on which ownership transfer costs may apply include dwellings, non-dwelling buildings and land.
Payments in kind occur when an employee accepts payment from an employer in the form of goods and services instead of money (or some other financial asset).
Pension fund claims on life insurance corporations reserves
This category represents pension funds’ net equity in, or claims on, life insurance corporation reserves.
Perpetual inventory model (PIM)
The PIM is a method of constructing estimates of capital stock and consumption of fixed capital from time series of gross fixed capital formation. It allows an estimate to be made of the stock of fixed assets in existence and in the hands of producers which is generally based on estimating how many of the fixed assets, installed as a result of gross fixed capital formation undertaken in previous years, have survived to the current period.
Placements are customers’ account balances with entities not regarded as deposit-taking institutions. Examples are account balances of State and local public non-financial corporations with their central borrowing authorities, of public sector pension funds with their State Treasuries, and 11am money placed with corporate treasuries.
Prepayments of premiums and reserves against outstanding claims
Prepayments of premiums and reserves against outstanding claims are reserves in the form of prepayments of premiums which result from the fact that, in general, insurance premiums are paid in advance. Such reserves are assets of the policy-holders.
Reserves against outstanding claims are reserves that insurance enterprises hold in order to cover the amounts they expect to pay out in respect of claims that are not yet settled or claims that may be disputed. Reserves against outstanding claims are considered to be assets of the beneficiaries.
Primary incomes are incomes that accrue to institutional units as a consequence of their involvement in processes of production or ownership of assets that may be needed for purposes of production. They are payable out of the value added created by production. The primary incomes that accrue by lending or renting financial or non-produced non-financial natural resource assets, including land, to other units for use in production are described as ‘property incomes’. Receipts from taxes on production and imports are treated as primary incomes of governments even though not all of them may be recorded as payable out of the value added of enterprises. Primary incomes exclude social contributions and benefits, current taxes on income, wealth, etc. and other current transfers.
Primary input content
The primary input content per $100 of use by an industry shows the ultimate content (resulting from total requirements) of each primary input in $100 of that industry’s use.
Primary inputs include compensation of employees, gross operating surplus and gross mixed income, taxes less subsidies on products, other taxes less subsidies on production and imports.
Produced assets are non-financial assets that have come into existence as outputs from production processes. Produced assets consist of fixed assets, inventories and valuables. However, valuables are not included in the ASNA.
The producers' price is the amount receivable by the producer from the purchaser for a unit of a good or service.
Production accounts record the expenses incurred in production and the receipts from sales of goods and services.
A common method of examining changes in productivity over an extended period involves identifying and dividing the data into productivity 'growth cycles'. Year to year changes in measured productivity may reflect changes that are conceptually distinct from the notion of productivity. By analysing averages of productivity statistics between growth cycle peaks, the effects of some of these temporary influences can be minimised, allowing better analysis of the drivers of productivity growth in different periods. Productivity growth cycle peaks are determined by comparing the annual MFP estimates with their corresponding long-term trend estimates. The peak deviations between these two series are the primary indicators of a growth-cycle peak, although general economic conditions at the time are also considered.
Property income is the income receivable by the owner of a financial asset or a non-produced non-financial natural resource asset in return for providing funds to, or putting the non-produced non-financial natural resource asset at the disposal of, another institutional unit. Property incomes are received by the owners of financial assets and non-produced non-financial natural resource assets (mainly land and mineral and energy resources). Institutional units with funds to invest do so by lending them to other institutional units. As a result, financial assets are created, the owners of which are entitled to receive property incomes in the form of interest and dividends. Owners of land and mineral and energy resources may put these assets at the disposal of other units by arranging contracts or leases under which the tenants, or users of the assets, agree to pay to the owners property incomes in the form of rent.
Property income flows attributable to insurance policy holders
Property income flows attributable to insurance policy holders include imputed flows relating to life insurance, superannuation and non-life insurance operations. These include imputed interest from life insurance and pension funds to households; premium supplements which are an imputed property income flow from non-life insurance corporations to policy-holders; and imputed interest from the general government sector to households, which is recorded on the account of the unfunded superannuation schemes operated by the general government sector.
Public unit trust
A trust which issues units to the general public within Australia for the purpose of investing the pooled monies. A public unit trust must have registered a prospectus with the Australian Securities and Investments Commission and be governed by a trust deed between its management company and a trustee company. The units may or may not be listed on the Australian Securities Exchange.
Purchased goodwill and marketing assets
The difference between the value paid for an enterprise as a going concern and the sum of its assets less the sum of its liabilities. It is a non-produced non-financial asset. It is not included in the ASNA.
The purchasers' price is the amount paid by the purchaser, excluding any deductible tax, in order to take delivery of a unit of a good or service at the time and place required by the purchaser. The purchaser’s price of a good includes any transport charges paid separately by the purchaser to take delivery at the required time and place.
Quasi-corporations are unincorporated enterprises that function as if they were corporations. Three main kinds of quasi-corporations are recognised by the 2008 SNA, namely: an unincorporated enterprise owned by government units engaged in market production and operated in a similar way to publicly owned corporations; unincorporated enterprises, including unincorporated partnerships, owned by households, which are operated as if they were privately owned corporations; and unincorporated enterprises which belong to institutional units resident abroad such as permanent branches, or offices of production units belonging to foreign enterprises which engage in significant amounts of production over long, or indefinite, periods of time.
Real gross domestic income
Real gross domestic income measures the purchasing power of the total incomes generated by domestic production.
It is calculated by:
In the derivation of the aggregate, all of the adjustments are made using the chain volume aggregation method used to derive all of the ABS chain volume estimates.
Real gross national income
Real gross national income (RGNI) is the real aggregate value of gross primary incomes for all institutional sectors, including net primary income receivable from non-residents.
It is calculated by adjusting real gross domestic income for the real impact of primary income flows (property income and labour income) to and from overseas.
Real holding gains
A real holding gain/loss is the difference between the nominal holding gain/loss on assets and liabilities, and the neutral holding gain. It is the value of the additional command over real resources accruing to the holder of an asset as a result of a change in its price relative to the prices of goods and services in the economy.
Real net national disposable income is calculated by:
Real incomes payable and receivable are calculated by dividing the nominal income flows by the implicit price deflator for gross national expenditure. In the derivation of the aggregate, all of the adjustments are made using the chain volume aggregation method used to derive all of the ABS chain volume estimates.
Re-exports are goods imported into Australia and then exported without having been used or transformed in any way.
In connection with price or volume indexes, the reference period means the period to which the indexes relate. It is typically set equal to 100 for price indexes and to the corresponding current price values of the reference year for volume indexes, and it does not necessarily coincide with the base period.
Reinvested earnings are imputed transactions related to that component of income that is not distributed to equity and or unit holders in direct foreign investment enterprises, and resident and non-resident investment funds in the form of dividends.
Rent on natural resources
Rent on natural resources is the income receivable by the owner 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.
A repurchase agreement (repo) involves the sale of securities or other assets with a commitment to repurchase equivalent assets at a specified date.
Research and development
Research and development (R&D) is creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and to enable this stock of knowledge to be used to devise new applications. It is included in Intellectual property products as a produced fixed asset.
The residence of each institutional unit is the economic territory with which it has the strongest connection, in other words, its centre of predominant economic interest.
Rest of the world
The rest of the world consists of all non-resident institutional units that enter into transactions with resident units, or have other economic links with resident units.
Revaluations are holding gains or losses arising from changes in the market prices of assets and liabilities during the accounting period.
Secondary income consists of receipts and payments of current transfers.
Services from consumer durables
Represents the value of services provided by consumer durables to the household in the accounting period. It arises because consumer durables, unlike other final consumption goods, are not used up in the accounting period in which they are purchased. It is measured in the same way as consumption of fixed capital, i.e. as the reduction in value of the stock of consumer durables during the accounting period resulting from physical deterioration, normal obsolescence or normal accidental damage. Unforeseen obsolescence is not taken into account.
Ideally, the service flow would be calculated in a manner analogous to the estimation of flows of capital services within the general capital stock model. Flows of capital services and flows of consumption of fixed capital are related but different concepts. Capital services relate to the changing efficiency of an asset whereas depreciation relates to the changing price of an asset.
Short-term debt securities
Short-term debt securities are debt securities with an original maturity of one year or less. They include bills of exchange, promissory notes (also called ‘one name paper’), Treasury notes and bank certificates of deposit.
Social assistance benefits
Social assistance benefits are current transfers payable to households by government units to meet the same needs as social insurance benefits, but which are not made under a social insurance scheme incorporating social contributions and social insurance benefits. They may be payable in cash or in kind. In Australia, they include the age pension and unemployment benefits.
Social assistance benefits in cash to residents
Social assistance benefits in cash to residents include current transfers to persons from general government in return for which no services are rendered or goods supplied. Principal components include: scholarships; maternity, sickness and unemployment benefits; child endowment and family allowances; and widows', age, invalid and repatriation pensions.
Social benefits are current transfers received by households and are intended to provide for needs arising from certain events or circumstances, e.g. sickness, unemployment, retirement, housing, education or family circumstances. There are two kinds of social benefits: social insurance benefits; and social assistance benefits.
Social contributions are actual or imputed payments to social insurance schemes to make provision for social insurance benefits to be paid. They may be made by employers on behalf of their employees; or by employees, self-employed or non-employed persons on their own behalf.
Social insurance benefits
Social insurance benefits are transfers provided under organised social insurance schemes. Organised social insurance schemes provide benefits through general social security schemes, privately funded social insurance schemes, or unfunded schemes managed by employers for the benefit of their existing or former employees without involving third parties in the form of insurance enterprises or pension funds.
Social transfers in kind
Social transfers in kind are individual goods and services provided to individual households by general government units and non-profit institutions either free or at prices that are not economically significant.
Special Drawing Rights (SDRs)
Special Drawing Rights (SDRs) are financial assets. In Australia, the SDR allocation is recorded by the central government and the SDR asset is recorded by the Reserve Bank of Australia (RBA). The RBA has a deposit liability to the central government.
SDRs are international reserve assets created by the International Monetary Fund (IMF) and allocated to its member States to supplement existing reserve assets.
Specialisation ratio (for an industry)
An industry may produce a number of products, some of which may be primary to that industry and some of which may be primary to other industries. The specialisation ratio shows the proportion of an industry’s output that is primary to that industry.
For years in which a balanced S-U table is available to benchmark the national accounts, the same measure of GDP is obtained regardless of whether one sums incomes, expenditures or gross value added for each industry. For other years, however, statistical discrepancies between the measures remain. The differences between those three separate estimates and the single measure of GDP for those years are called statistical discrepancy (I), statistical discrepancy (E) and statistical discrepancy (P), respectively.
The terms securities lending or stock lending are used in securities markets to describe arrangements whereby issuers or asset-holders or both (called stock lenders) provide securities to other market participants (called stock borrowers) in return for a fee.
Subsidies on products
A subsidy on a product is a subsidy payable per unit of a good or service. The subsidy may be a specific amount of money per unit of quantity of a good or service, or it may be calculated ad valorem as a specified percentage of the price per unit. A subsidy may also be calculated as the difference between a specified target price and the market price actually paid by a purchaser. A subsidy on a product usually becomes payable when the product is produced, sold or imported, but it may also become payable in other circumstances, such as when a product is exported, leased, transferred, delivered or used for own consumption or own capital formation.
Supply and use tables
Supply and use tables are in the form of matrices that record how supplies of different kinds of goods and services originate from domestic industries and imports, and how those supplies are allocated between various intermediate or final uses, including exports.
Swaps are contractual arrangements between two parties who agree to exchange, according to predetermined rules, streams of payment on the same amount of indebtedness over time. The two most prevalent varieties are interest rate swaps and currency swaps. For example, an interest rate swap involves an exchange of interest payments of different character, such as fixed rates for floating rate, two different floating rates, fixed rate in one currency and floating rate in another etc.
Taxes on production and imports consist of ‘taxes on products’ and ‘other taxes on production’. These taxes do not include any taxes on the profits or other income received by an enterprise. They are payable irrespective of the profitability of the production process. They may be payable on the land, fixed assets or labour employed in the production process, or on certain activities or transactions.
Tax on products
A tax on a product is a tax that is payable per unit of some good or service. The tax may be a specific amount of money per unit of quantity of a good or service (quantity being measured either in terms of discrete units or continuous physical variables such as volume, weight, strength, distance, time, etc.), or it may be calculated ad valorem as a specified percentage of the price per unit or value of the goods or services transacted. A tax on a product usually becomes payable when it is produced, sold or imported, but it may also become payable in other circumstances, such as when a good is exported, leased, transferred, delivered, or used for own consumption or own capital formation.
Term to maturity
In these statistics, debt securities are classified into short term (equal to or less than one year) or long term (greater than one year) according to their original term to maturity (sometimes called tenor) rather than the time remaining until maturity. The original term to maturity is the time period from the issue of a security until the principal becomes due for repayment.
Terms of trade
Terms of trade represent the relationship between export and import prices. Australia's terms of trade are calculated by dividing the implicit price deflator for exports by the implicit price deflator for imports.
Total factor income
Total factor income is that part of the cost of producing the gross domestic product which consists of gross payments to factors of production (labour and capital). It represents the value added by these factors in the process of production, and is equivalent to gross domestic product less taxes plus subsidies on production and imports.
A total requirement coefficient at the intersection of a row i and column j of a table represents the value of output of industry i required directly and indirectly to produce 100 units of output absorbed by final demand (i.e. final output) of industry j.
Tourism comprises the activities of visitors.
Tourism characteristic industries
Are those industries that would either cease to exist in their present form, producing their present products, or would be significantly affected if tourism were to cease. Under the international TSA standards, core lists of tourism characteristic industries, based on the significance of their link to tourism in the worldwide context, are recommended for implementation to facilitate international comparison. In the Australian TSA, for an industry to be a country-specific tourism characteristic industry, at least 25 per cent of its output must be consumed by visitors.
Tourism characteristic products
Are those products that would either cease to exist in meaningful quantity, or for which sales would be significantly reduced, in the absence of tourism. Under the international TSA standards, core lists of tourism characteristic products, based on the significance of their link to tourism in the worldwide context, are recommended for implementation to facilitate international comparison. In the Australian TSA, for a product to be a country-specific tourism characteristic product, at least 25 per cent of the output of the product must be consumed by visitors.
Tourism connected industries
Are those, other than tourism characteristic industries, for which a tourism related product is directly identifiable (primary) to, and where the products are consumed by visitors in volumes which are significant for the visitor and/or the producer. All other industries are classified as non-tourism industries, though some of their products may be consumed by visitors and are included in the calculation of direct tourism GVA or direct tourism GDP.
Are those that are consumed by visitors but are not considered as tourism characteristic products. All other products in the supply and use table not consumed by visitors are classified as ‘all other goods and services’ in the ATSA.
Tourism consumption consists of tourism expenditure plus imputed consumption by resident and non-resident visitors on tourism related products, including those sold at prices that are not economically significant.
Tourism expenditure consists of the amount paid by a visitor or on behalf of a visitor for and during his/her trip and stay at the destination.
Tourism industry ratio
This sis the proportion of the total value added of an industry which is related to tourism.
Tourism product ratio
This is the proportion of the total supply of a product which is consumed by visitors.
A tourism trip is defined by the international TSA standards as those trips which are taken by visitors.
Trade credit is credit for the purchase of goods and services extended directly to corporations, to government, to NPIs, to households and to the rest of the world. It also includes advances for work that is in progress (if classified as such under inventories) or is to be undertaken.
Trade margin is defined as the difference between the actual or imputed price realised on a good purchased for resale and the price that would have to be paid by the distributor to replace the good at the time it is sold or otherwise disposed of.
A transaction is an economic flow that is an interaction between institutional units by mutual agreement or an action within an institutional unit that it is analytically useful to treat like a transaction.
Transferable deposits comprise all deposits that are exchangeable for banknotes and coins on demand at par and without penalty or restriction, and directly usable for making payments by cheque, draft, direct debit/credit or other direct payment facility.
Transport margins include any transport charges invoiced separately. The costs arising through the transport of goods from a producer to a purchaser by a third party even without a separate invoice is excluded from the basic price of the good being transported and is recorded as a transport margin. The latter treatment is adopted for the I-O tables only and is a deviation from the treatment outlined in the 2008 SNA and applied in the ABS S-U tables.
Type of activity unit (TAU)
The TAU is a producing unit comprising one or more business entities, sub-entities or branches of a business entity that can report production and employment activities via a minimum set of data items. The activity of the unit should be as homogeneous as possible.
Underground production is defined as activities which may be legal but are deliberately concealed from public authorities to avoid:
An unincorporated enterprise represents the production activity of government units, NPISHs or households that cannot be treated as the production activity of a quasi-corporation.
Unit labour costs
These series represent a link between productivity and the cost of labour in producing output. A nominal Unit Labour Cost (ULC) measures the average cost of labour per unit of output while a real ULC adjusts a nominal ULC for general inflation. A ULC is calculated as the ratio of labour costs per hours worked by employees divided by volume gross value added per total hours worked. Positive growth in a real ULC indicates that labour cost pressures exist.
Unlisted shares are equity securities not listed on an exchange. Unlisted shares can also be called private equity. Venture capital usually takes this form.
The usual environment is made up of one or more areas in which a person undertakes their regular activities such as their residence, place of work, place of study and other places frequently visited. The usual environment criteria has two dimensions. Frequency means places that are visited on a routine basis (at least once a week) are considered part of a person’s usual environment, even if the place visited is located a considerable distance from place of residence. Distance means locations close (up to 40 kilometres from home for overnight trips and up to 50 kilometres from home (round trip) for day trips) to the place of residence of person are also included in their usual environment.
Valuables are held as a store of value and include precious metals and stones not held for use as inputs to production, antiques, works of art and other valuables such as collections of jewellery of significant value. Valuables are not within the boundary of produced assets in the ASNA currently.
Vineyards, orchards and other plantations of trees yielding repeat products
Vineyards, orchards and other plantations of trees yielding repeat products comprise trees (including vines and shrubs) cultivated for products that they yield year after year, including those cultivated for fruits and nuts, for sap and resin, and for bark and leaf products.
A visitor is defined as any person ‘taking a trip to a main destination outside his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited’.
Wages and salaries
Wages and salaries payable in cash include the value of any social contributions, income taxes, etc., payable by the employee even if they are actually withheld by the employer for administrative convenience or other reasons, and paid directly to social insurance schemes, tax authorities, etc., on behalf of the employee. Wages and salaries may be paid as remuneration in kind instead of, or in addition to, remuneration in cash. Separation, termination and redundancy payments are also included in wages and salaries.
Weapons systems consist of delivery systems such as warships, submarines, fighter aircraft, bombers and tanks. They are classified as produced non-financial fixed assets.
Withdrawals from income of quasi-corporations
Withdrawals from income of quasi-corporations occur when the owner of a quasi-corporation chooses to withdraw some or all of the entrepreneurial income of the quasi-corporation.
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