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Total (gross) 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 land, dwellings, other buildings and structures, plant, machinery and equipment (including motor vehicles). Intangible assets include capitalised exploration expenditure, patents, licences and goodwill.
Capital expenditure on dwellings, other buildings and structures
Capital expenditure incurred acquiring dwellings, other buildings and structures, including roads, factories, warehouses, offices, bridges, mine development, and oil and gas platforms. Represents expenditure before deduction of trade-in allowances, and includes expenses (except capitalised interest) incurred during the year in acquiring such assets.
Capital expenditure on other assets (including land and intangible assets)
Capital expenditure incurred acquiring assets other than dwellings, other buildings and structures and plant, machinery and equipment. Includes land and intangible assets such as exploration expenditure capitalised, patents, licences and goodwill. Also included is computer software capitalised, including capitalised computer software licence fees, installation costs, the purchase or development of large databases, software developed in-house (but excluded is software maintenance expenditure), and capitalised payments to contractors and consultants for software development. Note that if the cost of software and hardware cannot be separated, the total cost is included in acquisition of plant, machinery and equipment.
Capital expenditure on plant, machinery and equipment
Capital expenditure incurred acquiring plant, machinery and other equipment, including motor vehicles. Includes expenses (except capitalised interest) incurred during the year in acquiring such assets.
Capital work done for own use
Capitalised work done by the employees or proprietors of a business in manufacturing, constructing, installing or repairing assets, in mineral and petroleum exploration activities, and the in-house development of computer software, for use by the business or for rental or lease. This work is valued as the capitalised costs of the materials and the wages and salaries and 'on-costs' involved, as well as any amounts paid to contractors and subcontractors for their involvement in the project. Prior to the 2014-15 EAS, this item excluded any 'on-costs' paid to the employee in addition to their wages and salaries and the amounts paid to contractors and subcontractors. For more information see the entries for capitalised purchases and capitalised wages and salaries.
All capitalised costs incurred in developing an asset developed in-house by the employees of the business/organisation for use by the business or for rental or lease, excluding any amounts included in capitalised wages and salaries paid to own employees. This includes the costs of goods and materials used to develop and build the asset and services such as invoiced amounts paid to contractors and subcontractors for their involvement in the project. Prior to the 2014-15 EAS, this item excluded amounts paid to contractors and subcontractors for their involvement in the project.
Capitalised wages and salaries
Capitalised payment of wages and salaries and 'on-costs' paid to employees for work done by own employees in manufacturing, constructing, installing or repairing assets, mineral and petroleum exploration activities or in developing computer software in-house for use by the business or for rental or lease, including wages paid to own employees to project manage the development of the asset. 'On-costs' include employee entitlements such as superannuation, fringe benefits tax and workers' compensation. Prior to the 2014-15 EAS, this item excluded any 'on-costs' paid to the employee in addition to their wages and salaries.
Change in inventories
The value of total closing inventories less total opening inventories.
The value of all inventories of finished goods (including mineral ores and inventories for resale), work-in-progress (less progress payments billed), raw materials, fuels and containers at the end of the reporting period.
Contract mining expenses
Contract payments for Mining services. Includes amounts paid/payable to Mining contractors and associated freight charges for materials brought in by the contractor.
Depreciation and amortisation
Depreciation/amortisation allowed on tangible and intangible assets. Includes, for lessees only, depreciation/amortisation in respect of finance leases.
Disposal of assets
Proceeds from the sale of tangible assets (plant, machinery, equipment, land, dwellings, other buildings and structures), and intangible assets (such as patents, licences and goodwill).
Earnings before interest, tax, depreciation and amortisation (EBITDA)
Profit prior to the deduction of net interest (interest income minus interest expenses), income tax, depreciation and amortisation. Items classifiable to other income are also excluded.
Employer contributions to superannuation
Includes all employer contributions to superannuation funds (including the employer productivity contribution) and provisions for employer contributions to superannuation funds. Also includes expenses relating to employer funded defined benefit schemes. Employee contributions and salary sacrifice contributions are excluded.
Employment at end June
Number of persons working for businesses during the last pay period ending in June of the given year. 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 non-salaried directors and volunteers.
Freight and cartage expenses
Includes handling charges and payments to owner/drivers for delivery of minerals. Excludes the cost of delivery by own vehicles and employees and overseas freight and cartage on goods exported.
Fringe benefits tax
Fringe benefits tax is payable by employers when certain benefits in excess of normal wages or salaries (e.g. free or discounted goods or services) are received by their employees (or associates of employees) in connection with their employment.
Funding from government for operational costs
Comprises funding from government for amounts reimbursed under fuel tax credits and for other operational costs. For details, see the entries for these items below.
Funding from government for operational costs: Amount reimbursed under fuel tax credits
The Energy Grants (Credits) Scheme was replaced by fuel tax credits from 1 July 2006. Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) included in the price of fuel used for business activities in machinery, plant, equipment and heavy vehicles.
Funding from government for operational costs: Other operational costs
Funding from federal, state and/or local government for operational costs (e.g. wages and salaries, rent, food). Includes bounties, subsidies, export grants, apprenticeship and traineeship schemes, and community service obligation payments and amounts reimbursed under fuel tax credits (when not published separately). Excludes funding from government for specific capital items.
Funding from government for specific capital items
Includes capital grants, and low interest or interest free loans made by government to businesses to encourage expenditure on specific equipment (e.g. environmental protection equipment).
Gross fixed capital formation (GFCF)
Gross fixed capital formation is measured by the total value of a producer's acquisitions, less disposals, of fixed assets during the reference period, plus certain additions to the value of non-produced assets realised by the productive activity of businesses.
Fixed assets are tangible or intangible assets produced as outputs from processes of production that are themselves used repeatedly or continuously in other processes of production for more than one year.
The derivation of GFCF is as follows:
Income from services
See the entry for sales and service income.
The structure of ANZSIC comprises 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. Industry Class 1510 Pulp, paper and paperboard manufacturing. Usually, an activity is primarily defined to one class. However, some activities may be primary to more than one class.
The structure of ANZSIC comprises four levels, ranging from industry division (broadest level) to 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.
This is the broadest level category within each industry division of ANZSIC and is identified by a two-digit code, e.g. Industry Subdivision 14 for Wood product manufacturing. Industry subdivisions are built up from industry groups which, in turn, are built up from industry classes.
Industry value added (IVA)
IVA is an estimate of the difference between the market value of the output of an industry and the purchases of materials and expenses incurred in the production of that output.
The derivation of IVA for individual businesses depends on whether they are classified as market or non-market producers. Non-market producers are those institutions which provide goods or services either free or at prices that are not economically significant. In other words, their prices are not significantly influenced by the amounts that producers are willing to supply, nor the amounts that users are willing to pay to purchase the goods or services being provided. Conversely, market producers provide goods and services at prices that are economically significant.
For market producers, the derivation of IVA is as follows:
However, it should be noted that IVA is a measure of economic activity and is not equivalent to operating profit before tax (OPBT). Wage and salary expenses, and most other labour costs, are not taken into account in the calculation for market producers, neither are interest expenses, depreciation or a number of lesser expenses. On the income side, OPBT includes total income, whereas IVA only includes sales and service income and government funding for operational costs.
As a principle, the output of non-market production is valued at cost, including intermediate input expenses. As shown in the above derivation, purchases and other intermediate input expenses are deducted from output in order to arrive at IVA.
Accordingly, the derivation of IVA for non-market producers can be described as follows:
Estimates of industry value added are obtained by summing the contributions of businesses classified to that industry, both market and (if any) non-market producers. Market producers predominate in most industries.
Industry value added is related to, but different from, the national accounting variable gross value added (GVA). For national accounts purposes, GVA is calculated by adjusting IVA to include General government units and also to account for some other effects, such as inventory holding adjustments and adjustments for financial intermediary services, insurance services, and prices, taxes and subsidies.
Industry value added per person employed
IVA of businesses which operated in a given industry during the given year, divided by the number of persons employed by businesses in that industry during the last pay period ending in June of that year. Persons employed include working proprietors and partners.
Premiums for fire, general, accident, public liability, optional third-party and comprehensive motor vehicle insurance, professional indemnity insurance and common law liability. Excludes workers' compensation insurance premiums/costs (included in selected labour costs), compulsory third party motor vehicle insurance premiums (included in motor vehicle running expenses), and reinsurance premiums paid.
The number of times that businesses can meet their interest expenses from their earnings before net interest, tax, depreciation and amortisation (EBITDA), i.e. earnings before interest, tax, depreciation and amortisation divided by interest expenses.
Includes interest paid on loans from banks, finance companies, partners, and related or unrelated businesses, and in respect of finance leases. Also includes interest equivalents such as hedging costs and expenses associated with discounted bills. Excludes bank charges other than interest, and capital repayments.
Includes interest received from deposits in banks and non-bank financial institutions, loans, advances, finance leases and earnings on discounted bills. Excludes capital payments received.
Investment rate (value added)
The proportion of industry value added (IVA) used to acquire capital, i.e. (capital expenditure divided by IVA) multiplied by 100.
Comprises wages and salaries (including salary sacrificed earnings paid on behalf of employees and employee share based payments and stock options), employer contributions into superannuation, workers' compensation premiums/costs, fringe benefits tax and payroll tax. Also includes capitalised wages and salaries.
See the entry for business size.
See the entry for business size.
Motor vehicle running expenses
Includes expenditure on registration fees, compulsory third-party insurance premiums, fuel, and repair and maintenance expenses for on-road motor vehicles. Excludes expenses for off-road motor vehicles (e.g. mobile plant, quarry dump trucks) and lease payments, optional third party and comprehensive motor vehicle insurance premiums, and depreciation.
Natural resource royalties expenses
Includes payments under mineral lease arrangements, payments under timber and quarrying lease arrangements, and resource rent taxes and royalties. Excludes payments for royalties from intellectual property (e.g. patents and copyrights) and computer software licence fees. Gold tax payments are also excluded.
Net capital expenditure
The value of total capital expenditure less proceeds received from the disposal of assets. See the entries for these items.
The value of all inventories of finished goods (including mineral ores and inventories for resale), work-in-progress (less progress payments billed), raw materials, fuels and containers at the beginning of the reporting period.
Operating profit before tax (OPBT)
Profit before extraordinary items are brought to account and prior to the deduction of income tax and appropriations to owners (e.g. dividends paid), i.e. total income less total expenses plus change in inventories.
Other contract, subcontract and commission expenses
Payments to other businesses and self-employed persons for work done or sales made on a contract or commission basis. Payments to persons paid by commission without a retainer are also included. Includes payments to owner drivers for removal of material, but not for delivery of the final mineral product. Excludes contract mining expenses, published separately.
Other selected expenses
Expenditure items not separately itemised in the industry performance table. Examples include bad and doubtful debts, natural resource royalty expenses, land tax and land rates, computer software expenses, freight, other royalties expenses, exploration expenditure written off, payments to employment agencies for staff and other operating expenses.
Income from sources not separately itemised, including:
Also includes funding from government for specific capital items in the Industry performance tables only (for division, subdivision and Mining).
Other intermediate input expenses
Expenditure items not separately itemised in the industry value added table. Examples include payments to other businesses for staff, freight expenses, royalties expenses and other contract, subcontract and commission expenses.
A tax levied by state and territory governments on the amount of wages and salaries paid by a business. Excludes pay-as-you-go withholding tax.
The percentage of sales and service income available as operating profit before tax (OPBT), i.e. (OPBT divided by sales and service income) multiplied by 100.
Comprises purchases of materials, components, containers and packaging materials for manufacture or construction, and purchases of finished goods for resale. Excludes delivery charges separately invoiced or itemised by suppliers and capitalised purchases.
Purchases and other selected expenses
Purchases of goods and materials, rent, leasing and hiring expenses, freight and cartage expenses, motor vehicle running expenses, repair and maintenance expenses, contract mining and other contract, subcontract and commission expenses.
Purchases of goods and materials
Purchases of materials, components, explosives, containers, packaging materials, fuels, electricity and water, and purchases of minerals and other goods for resale. Also includes capitalised purchases. Excludes purchases of parts and fuels for on-road motor vehicles, but includes fuels for off-road vehicles, such as mobile plant and quarry dump trucks.
Rent, leasing and hiring expenses
Payments for the rent, leasing and hiring of land, dwellings, other buildings and structures, motor vehicles, plant, machinery and other equipment (including telecommunication equipment). Includes operating lease payments; excludes finance lease payments.
Rent, leasing and hiring income
See the entry for sales and service income.
Repair and maintenance expenses
Includes computer and communication software and hardware maintenance, and repair and maintenance of off-road motor vehicles. Excludes repair and maintenance costs of on-road motor vehicles and the wages and salaries of own employees undertaking repair and maintenance.
Sales and service income
These are valued net of discounts given and exclusive of goods and services tax (GST). Extraordinary items are also excluded.
Sales and service income per person employed
Sales and service income of businesses which operated in a given industry during the given year ended 30 June, divided by the number of persons employed by businesses in that industry during the last pay period ending in June of that year. Persons employed include working proprietors and partners.
Sales of goods
See the entry for sales and service income.
Selected labour costs
Comprises wages and salaries (including provisions for employee entitlements, salary sacrificed earnings, share based payments and stock options); employer contributions into superannuation; and workers' compensation premiums/costs.
See the entry for business size.
See the entry for employer contributions into superannuation.
The sum of all expense components.
Comprises sales and service income, interest income, funding from government for operational costs and other income (for details, see the entries for these items).
Comprises all classes in ANZSIC Division B Mining (i.e. Subdivisions 06-10).
Total selected industries
This comprises data for all ANZSIC divisions, excluding ANZSIC Division K Financial and insurance services. For a detailed discussion of the scope and coverage of the estimates, see the Explanatory Notes. Units classified to the General government institutional sector are excluded from the scope of estimates for most industries that comprise Total selected industries. This limits coverage to private sector entities which particularly affects Public administration and safety, Education and training, and Health care and social assistance divisions.
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. (Note that in issues of this publication prior to 2006-07, salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options were reported under related expense items. For example, salary sacrificed for superannuation was included in employer contributions into superannuation).
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.
Wages and salaries per employee
The wages and salaries paid by businesses which operated in a given industry during the given year ended 30 June, divided by the number of employees in that industry during the last pay period ending in June of that year. Working proprietors and partners are not included in employee estimates. The drawings of working proprietors and partners are not included in estimates of wages and salaries.
Wages and salaries to sales and service income ratio
The wages and salaries paid by businesses which operated during the year ended 30 June as a proportion of the sales and service income of businesses which operated during the same year.
Workers' compensation premiums/costs
Workers' compensation is a compulsory insurance cover to be taken out by all employers, except for self-insured workers, according to legislative schemes to cover employees suffering injury or disease in the course of or arising out of employment.
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