8159.0 - Experimental Estimates for the Manufacturing Industry, 2009-10  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 12/12/2011  Final
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Data presented in this publication have been compiled from the standard financial accounts of businesses, therefore, the definition of each reported item aligns closely with that adopted in standard business accounting practice.

Australian Business Number (ABN) unit

The statistical unit used by the ABS to represent businesses, and for which statistics are reported, in most cases. The ABN unit is the business unit which has registered for an ABN, and thus appears on the ATO administered Australian Business Register. In most cases, the ABN unit represents the legal entity. This unit is suitable for ABS statistical needs when the business is simple in structure. For more significant and diverse businesses where the ABN unit is not suitable for ABS statistical needs, the statistical unit used is the Type of Activity Unit.


One thousand million.


A business is generally considered to be a person, partnership or corporation engaged in business or commerce. For details of statistical units used in this publication to represent businesses, refer to Chapter 2.

Business Activity Statement (BAS) total sales

Represented by the form item G1 Total sales on businesses' BAS, supplied by them to the ATO. This item comprises all payments and other considerations (including goods and services tax) received during the nominated tax period for supplies made in the course of business.

Business Activity Statement (BAS) wages and salaries

Represented by the form item W1 Total salary, wages and other payments on businesses' BAS, supplied by them to the ATO. This item comprises all total gross payments from which a business is required to withhold amounts during the nominated tax period.

Employment at end June

Refers to the number of persons working for businesses during the last pay period ending in June 2010. Includes working proprietors and partners, employees absent on paid or prepaid leave, employees on workers' compensation who continue to be paid through the payroll, and contract workers paid through the payroll. Excludes persons paid by commission only, non-salaried directors, volunteers and self-employed persons such as consultants and contractors.

Industry class

The structure of the ANZSIC classification comprises a hierarchy of four levels, ranging from industry division (broadest level) to industry class (finest level). Activities are narrowly defined within the industry class level, which is identified by a four-digit code, e.g. Class 1351 Clothing manufacturing. Usually, an activity is primarily defined to one class. However, some activities may be primary to more than one class.

Industry division

The structure comprises four levels, ranging from industry division (broadest level) to the industry class (finest level). The main purpose of the industry division level is to provide a limited number of categories which give a broad overall picture of the economy. There are 19 divisions within ANZSIC, each identified by an alphabetical letter, that is, 'A' for Agriculture, forestry and fishing, 'B' for Mining, 'C' for Manufacturing, etc.

Industry group

This is the intermediate level within each industry division of ANZSIC and is identified by a three-digit code, e.g. Group 135 Clothing and footwear manufacturing. It gives more detail than the industry subdivision, and is created in a way that groups like industry classes together.

Industry subdivision

This is the broadest level category within each industry division of ANZSIC and is identified by a two-digit code, e.g. Subdivision 13 Textile, leather, clothing and footwear manufacturing. Industry subdivisions are built up from industry groups which, in turn, are built up from industry classes.

Industry value added (IVA)

IVA represents the value added by an industry to the intermediate inputs used by the industry. IVA is the measure of the contribution by businesses in the selected industry, to gross domestic product.

The derivation of IVA for market producers is as follows:

Diagram: Market IVA

However, it should be noted that IVA is a measure of economic activity and is not equivalent to operating profit before tax (OPBT). Wages and salary expenses and most other labour costs are not taken into account in its calculation for market producers, and nor are most insurance premiums, interest expenses or depreciation and a number of lesser expenses. On the income side, OPBT includes total income, whereas IVA only includes sales and service income.

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

More details on IVA and its components are presented in the glossary of Australian Industry (cat. no. 8155.0).

Sales and service income

This item includes:

Sales of goods:
  • whether or not produced by the business (including goods produced for the business on a commission basis). Includes export sales, sales or transfers to related businesses or to overseas branches of the business, progress payments relating to long term contracts if they are billed in the period, delivery charges not separately invoiced to customers, sales of goods produced by the business from crude materials purchased, and income from 'specific' rates (e.g. water, sewerage, irrigation and drainage rates). Excludes excise and duties received on behalf of the government, sales of assets, natural resource royalties income, interest income and delivery charges separately invoiced to customers. Exports are valued free on board, i.e. export freight charges are excluded.

Income from services
  • including income from consulting services, repair, maintenance and service income and fees, contract, subcontract and commission income, management fees/charges from related and unrelated businesses, installation charges, delivery charges separately invoiced to customers, royalties from intellectual property (e.g. patents and copyrights) and natural resource royalties income. Excludes interest income, and delivery charges not separately invoiced to customers.

Rent, leasing and hiring income
  • derived from the ownership of land, dwellings, buildings and other structures, motor vehicles, plant, machinery and other equipment. Excludes royalties from mineral leases, income from finance leases and payments received under hire purchase arrangements.

These component items are valued net of discounts given and exclude goods and services tax. Extraordinary items are also excluded.

Standard Institutional Sector Classification of Australia (SISCA)

The SISCA is the central classification among ABS Standard Economic Sector Classifications. It is based on the System of National Accounts 2008 institutional sector classification, and comprises the sectors: Non-financial corporations, Financial corporations, General government, Households, Not-for-profit institutions serving households, and Rest of the world (which includes only non-resident units, these being excluded from all other sectors). For more information, please refer to the Standard Economic Sector Classifications of Australia (SESCA) (cat. no. 1218.0).

Type of Legal Organisation

Type of Legal Organisation is a classification applied to all legal entities on the ABS Business Register. It indicates the type of legal entity of the business/organisation, e.g. sole proprietor, partnership, trust, incorporated company, incorporated association, government body, etc. For a full description of the classification and its categories, refer to Standard Economic Sector Classifications of Australia (SESCA) (cat. no. 1218.0).

Wages and salaries

The gross wages and salaries (including capitalised wages and salaries) of all employees of the business. The item includes severance, termination and redundancy payments, salaries and fees of directors and executives, retainers and commissions of persons who received a retainer, bonuses, and annual and other types of leave. Provision expenses for employee entitlements (e.g. provisions for annual leave and leave bonus, long service leave, sick leave, and severance, termination and redundancy payments) are also included, as are salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options.

Payments related to self-employed persons such as consultants, contractors and persons paid solely by commission without a retainer are excluded. The drawings of working proprietors and partners are also excluded.