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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 into 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 of June
Number of persons working for Mining 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 persons paid by commission only, non-salaried directors, and self-employed persons such as consultants and contractors.
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.
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) apart from amounts reimbursed under fuel tax credits (which is separately published). Includes bounties, subsidies, export grants, apprenticeship and traineeship schemes, and community service obligation payments. 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 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:
plus Other transport equipment
Industrial machinery and equipment
Computer software capitalised
Computers and computer peripherals
Electronic equipment and electrical machinery
Other plant and equipment
Dwellings, other buildings and structures
Computer software expensed
Mining exploration expenditure written off
less Disposal of plant, machinery and equipment (including motor vehicles)
Disposal of dwellings, other buildings and structures
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 0801 Iron ore mining. 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 06 for Coal mining. 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:
Sales and service income
plus Funding from federal, state and/or local government for operational costs
Capital work done for own use
less Opening inventories
Purchases of goods and materials
Other intermediate input expenses
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 follow:
Selected labour costs
plus Depreciation and amortisation
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. For national accounts purposes, gross value added is calculated by adjusting IVA to include General government units and also to account for some other effects.
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 repayments 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.
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.
The value of all inventories of finished goods (including mineral ores), 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.
Expenditure items not separately itemised. Examples include land tax and land rates, computer software expensed, exploration expenditure written off and payments to employment agencies for staff.
Income from sources not separately itemised. Examples include, dividend income, funding from government for specific capital items, net profit or loss on share trading, asset sales, variations in exchange rates or resulting from the revaluation of assets in accordance with the Australian International Financial Reporting Standards (AIFRS).
Other intermediate input expenses
This is a balancing item. It is the difference between the sum of (sales and service income, funding from government for operational costs, capital work done for own use and change in inventories) less purchases of goods and materials and industry value added.
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.
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 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
whether produced or not 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 (e.g. the petroleum production excise duty), sales of assets, royalties income, interest income, and delivery charges separately invoiced to customers. Exports are valued free on board (f.o.b.) (i.e. export freight charges are excluded).
includes 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 and royalties from intellectual property (e.g. patents and copyrights). Excludes interest income, and delivery charges not separately invoiced to customers.
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 are valued net of discounts given and exclusive of goods and services tax (GST). Extraordinary items are also excluded.
See entry for sales and service income.
Selected labour costs
See 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).
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 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.
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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