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Compensation of employees

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, fringe benefits tax).

Consumption of fixed capital

Is the value at current market prices, 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.

Donations

Donations are unconditional voluntary transfers of money, goods or services to non-related community organisations or individuals. Any such arrangements would not form part of the commercial operations of the donor. The underlying motivation behind the donations is to show support, not receive a benefit.

Economically significant prices

Prices which have a significant influence on both the amounts the producers are willing to supply and the amounts purchasers wish to buy.

Employed persons

Persons aged 15 and over who, during the reference period, worked for one hour or more for pay, profit, commission or payment in kind.

Full-time equivalent of voluntary employment

Calculated by taking the annual hours of voluntary work divided by average annual hours worked in full-time jobs.

Full-time worker

An employed person 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 domestic product

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 operating surplus

The operating surplus, before deduction of consumption of fixed capital, dividends, interest, royalties and land rent, and direct taxes payable, but after deducting the inventory valuation adjustment, of all enterprises from operations in Australia. It is the excess of gross output over the sum of intermediate consumption, compensation of employees, and taxes less subsidies on production and imports. Gross operating surplus is also calculated for general government, and it equals general government's consumption of fixed capital.

Gross value added

It is a measure of the contribution to GDP made by an individual producer, industry or sector. For market NPIs it is defined as the value of output minus the value of goods and services used up in the production process. For non-market NPIs it is defined as wages and salaries, employer contributions to superannuation funds, workers compensation costs and depreciation.

Interest

The amount that the debtor becomes liable to pay to the creditor over a given period of time without reducing the amount of principal outstanding, under the terms of the financial instrument agreed between them.

Market output

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.

Non-market output

Goods and services produced by non-profit institutions that are supplied free, or at prices that are not economically significant, to other institutional units or the community as a whole.

Non-profit institutions (NPIs)

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.

NPIs engaged in market production

NPIs which charge fees determined by their costs of production and which are sufficiently high to have a significant influence on the demand for their services. Any surpluses such institutions make must be retained within those institutions as their status as 'non-profit institutions' prevents them from distributing them to others.

NPIs engaged in non-market production

NPIs that are incapable of providing financial gain to the units which control or manage them, and which must rely principally on funds other than receipts from sales to cover their costs of production or other activities.

Non-profit institutions serving households (NPISHs)

NPIs that are not predominantly financed and controlled by government and which provide goods or services to households free or prices that are not economically significant.

Other expenses

Includes other taxes on production, interest expenses, and transfers paid.

Other taxes on production

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.

Output

The 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.

Production

An activity carried out under the responsibility, control and management of an institutional unit, that uses inputs of labour, capital and goods and services to produce outputs of goods and services.

Production boundary

Includes

• the production of all individual or collective goods or services that are supplied to units other than their producers, or intended to be supplied, including the production of goods or services used up in the process of producing such goods or services;
• the own-account production of all goods that are retained by their producers for their own final consumption or gross capital formation; and
• the own-account production of housing services by owner-occupiers.