5256.0 - Australian National Accounts: Non-Profit Institutions Satellite Account, 2006-07  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 18/09/2009   
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Advertising, marketing and promotion

Advertising expenses are the costs incurred by an organisation for promotional and publicity campaigns aimed at bringing the activities of the organisation to the attention of consumers for the purpose of increasing sales. Marketing expenses are the costs incurred in the long-range promotion of an organisation and its goods or services. Promotional expenses are those costs associated with generating good relations of an organisation and/or its services to the general public, e.g. promotional brochures. Sponsorship expenses are excluded.


This refers to items with future economic benefits, for example providing future costs savings or generating future revenue. Includes cash and deposits, investments held with fund managers, property, plant and equipment and other items.

Australian resident organisation

This item represents any organisation domiciled in Australia. Australian branches and Australian subsidiaries of foreign organisations are regarded as Australian residents.

Casual employees

This item refers to employees who are not entitled to take paid leave.

Depreciation and amortisation

This item refers to regularly recurring financial charges made in the accounts to reflect that part of the value of the asset which may be regarded as having been used up in producing revenue in a particular accounting period. Depreciation generally refers to physical (tangible) non current assets, and amortisation generally refers to intangible non current assets.


This item refers to transactions for which the donor receives no material benefit other than a tax deduction (if eligible). Donations can be financial or in-kind.

Employed persons

This item represents all permanent, temporary and casual employees on the payroll of the organisation for the last pay period ending in June. Employees absent on paid or prepaid leave are included. Consultants, contractors, people paid by commission only and volunteers are excluded.

Full time equivalent of voluntary employment

This item is calculated by taking the annual hours of voluntary work divided by average annual hours worked in full time jobs for each occupation category.

Funding from government

This item refers to project or program payments made by federal, state/territory or local government in the form of funds for ongoing (current) operations and capital funds to purchase or improve equipment or property. It includes:

  • volume based funding, which refers to funding provided subject to an agreement or contract specifying the volume of services to be delivered, and paid in proportion to the volume of services delivered (e.g. per student funding to schools, per bed funding to residential aged care facilities);
  • non volume based funding, which refers to general purpose grants or to funding which may be provided under a funding agreement for a specific purpose, but which is not dependent on the delivery of a specified volume of services; and
  • funding for specific capital items, which refers to one-off funds to make capital improvements or to purchase equipment or property (e.g. motor vehicles, buildings, etc.).

Gross domestic product

This item represents 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, inclusive of net product taxes but before deducting allowances for the consumption of fixed capital.

Gross fixed capital formation

This item refers to the total expenditure on acquiring fixed tangible and intangible assets, before deduction of trade-in allowances, and including expenses (except capitalised interest) incurred during the year in acquiring such assets. Fixed tangible assets include dwellings, other buildings and structures, plant, machinery and equipment (including motor vehicles). Intangible assets include patents and licences. This item also includes capitalised work done by own employees

Gross value added

This item represents 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.

Income from related or affiliated organisations

A related or affiliated organisation is one which has a legal relationship with the receiving organisation, or which is part of the same group of organisations (e.g. a state equivalent of an Australian organisation, or an Australian chapter of an international organisation). This item includes grants, distributions, allocations and affiliation fees received, but excludes government funding, membership fees, donations and sponsorships income received.

Income from sales of services

This item refers to income received from the sale of services. It includes income from services provided for nominal consideration, contract, subcontract and commission income, management fees/charges from related and unrelated organisations, delivery charges separately invoiced to customers and takings from gambling activities, (net of pay-outs and rebates to players, but inclusive of specific gambling taxes and/or levies). This item excludes government funding and subsidies for service delivery, income from sponsorships and other fundraising activities, and income from investments, royalties, membership fees and rent, leasing and hiring.

Interest expenses

This item refers to outflows of funds related to the cost of borrowing money.

Investment income

This item includes three components:
  • interest income - the income earned through the lending out of funds owned by the organisation or interest earned on bank deposits.;
  • dividend income - the dividends received during the financial period that are recognised as income in that period; and
  • other investment income - includes earnings on discounted bills and distributions from trusts and managed funds.

Labour costs

This item includes the following components:
  • Wages and salaries;
  • Employer contributions to superannuation funds;
  • Salary sacrificed earnings paid on behalf of employees;
  • Workers compensation premiums/ costs;
  • Fringe benefits tax; and
  • Payroll tax


Liabilities are the future sacrifices of service potential or economic benefits that the entity is presently obliged to make to other entities as a result of past transactions or other past events.

Membership fees income

This item refers to payments received by an organisation from an individual or another organisation for the purpose of securing membership, which typically grants some form of benefit or right, (e.g. discounts, use of facilities, voting rights), to the individual or organisation paying the fee.

Membership fees paid

This item refers to payments made to another organisation for the purposes of securing membership, which typically grants some form of benefit or right, (e.g. discounts, use of facilities, voting rights), in return for payment of the fee.

National accounts basis

Refers to estimates which have been produced in accordance with standard national accounting valuation methods as prescribed in the System of National Accounts 1993. Estimates produced on a national accounts basis are directly comparable with estimates in the Australian System of National Accounts, as published in ABS catalogue number 5204.0.

Non market output of market producers

Is an imputation to measure the output of NPIs engaged in market production that is not measured when output is valued through sales. It is calculated as the difference between output for market units when calculated by the prescribed valuation method for non market units of cost summation, and output as calculated by the prescribed method for market units of valuation by sales. Where output on a cost valuation basis exceeds output on a sales valuation basis, the difference is taken to be the non market output of market producers. Where output on a sales basis exceeds output on a cost basis, non market output of market producers is assumed to equal zero.

Non-profit institutions

Non-profit institutions are legal or social entities, formed for the purpose of producing goods or services, and whose status does not permit them to be a source of income, profit or financial gain for the individuals or organisations that establish, control or finance them.

Non resident organisation

Refers to any organisation domiciled overseas. Foreign branches and foreign subsidiaries of Australian organisations are regarded as non-resident organisations.

NPIs engaged in market production

NPIs which receive income from sales sufficient to cover the majority of their costs of production. Sales in this context includes income received from government provided on a volume basis, rent, leasing and hiring income, sponsorship income and membership fees.

NPIs engaged in non market production

NPIs which rely principally on funds other than receipts from sales to cover their costs of production or other activities.

NPI satellite account basis

Refers to estimates which extend the boundary of production as described in the System of National Accounts to include imputations for the value of the non market output of market producers and the value of volunteer services.


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.

Payments to other businesses (e.g. employment agencies) for staff

This item refers to payments made to other businesses or organisations, such as employment agencies, for the supply or recruitment of staff.

Permanent full-time employees

This item refers to employees who work 35 hours or more per week and are entitled to paid leave.

Permanent part-time employees

This item refers to employees who work less than 35 hours per week and are entitled to paid leave.

Philanthropic trusts/foundations

Philanthropic trusts/foundations are non-profit organisations which hold money in trust for the public benefit and which make grants of money for charitable or socially useful purposes.


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 output of goods and services.

Production boundary

As defined in the System of National Accounts, the production boundary includes
  • the production of all individual or collective goods and services that are supplied to units other than the producers, or intended to be supplied, including the production of goods and services used up in the process of producing such goods and 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.

Purchases of goods and services

The cost of goods and services used in the production of the final output of a business. This item is further comprised of materials and goods for use by the reporting organisation and finished goods for resale.

Rent, leasing and hiring income

This item refers to revenue derived from the renting, leasing or hiring of assets such as land, buildings, vehicles, machinery or equipment to other businesses/organisations or individuals.

Sales of goods

This item refers to income earned from the sale of goods, whether or not produced by the organisation. It includes export sales, sales or transfers to related organisations or to overseas branches of the organisation, sales made for nominal consideration and delivery charges not separately invoiced to customers. This item excludes excise and duties received on behalf of the government, sales of assets, delivery charges separately invoiced to customers and income from investment, royalties and rent, leasing and hiring.


This item is derived as total revenue less total current expenses. Revenue includes funding from government of a capital nature. Current expenses do not include expenditure of a capital nature.

Sponsorship income

This item refers to transactions made which result in advertising and/or other benefits to the sponsoring business/organisation. Donations of a financial or in-kind nature are excluded.

System of National Accounts

The System of National Accounts is a framework of a coherent, consistent and integrated set of macroeconomic accounts, balance sheets and tables based on a set of internationally agreed concepts, definitions, classifications and accounting rules.


Volunteers are people who willingly give unpaid help, in the form of time, service or skills, to an organisation or group. Included in this category are the volunteer component of boards of management, fundraising committee members and auxiliary members.

Volunteer services

This item represents the imputed value of volunteer work. This is calculated by assigning a wage rate to each volunteer hour.