8622.0 - Retail and Wholesale Industries, Australia, 2012-13 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 31/07/2014   
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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. Included in the glossary are published data items and components used to calculate derived items.


A business is generally considered to be a person, partnership, or corporation engaged in business or commerce.

In this publication, the term represents the ABN unit or type of activity unit (TAU), which are the two standard statistical units for the 2012–13 Economic Activity Survey (EAS) collections. For details, see Explanatory Notes paragraphs 16–17.

Business size

Businesses are categorised as:

  • large businesses, with employment of 200 or more persons
  • medium businesses, with employment of 20 to less than 200 persons
  • small businesses, with employment of less than 20 persons (including non-employing businesses).
Change in inventories

The value of total closing inventories less total opening inventories.

Closing inventories

See Inventories.

Commission income on goods sold

Income received by a business for selling goods on behalf of another business on a fee or commission basis. Excludes sales of goods bought in and resold by the business.

Depreciation and amortisation

Depreciation/amortisation allowed on tangible and intangible assets. Includes, for lessees only, depreciation/amortisation in respect of finance leases.

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 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 persons paid by commission only, non-salaried directors, volunteers and self-employed persons such as consultants and contractors.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

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, community service obligations, and amounts reimbursed under fuel tax credits. 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).

Income from services

See the entry for Sales and service income.

Industry class

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 3322 Metal and mineral wholesaling. Usually, an activity is primarily defined to one class. However, some activities may be primary to more than one class.

Industry division

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,'F' for Wholesale trade, and 'G' for Retail trade.

Industry group

This is the intermediate level within each Industry division of ANZSIC and is identified by a three digit code, e.g. Group 332 Mineral, metal and chemical wholesaling. It provides 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. Industry Subdivision 33 Basic material wholesaling. 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
      Funding from federal, state and/or local government for operational costs
      Capital work done for own use
      Closing inventories
      Opening inventories
      Purchases of goods and materials
      Other intermediate input expenses
equals 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 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:
      Selected labour costs
      Depreciation and amortisation
equals IVA

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.


This item is the value of all inventories of finished goods (including inventories for resale), work in progress (less progress payments billed), raw materials, fuels and containers at the beginning (i.e. opening inventories) and at the end (i.e. closing inventories) of the reference period.Labour costs

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.

Online retail sales

See Retail sales.

Opening inventories

See Inventories.

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.

Operating profit margin

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.

Other expenses

Expenditure items not separately itemised. Examples include bad and doubtful debts, natural resource royalty expenses, land tax and land rates, computer software expenses, freight, other royalties expenses, payments to employment agencies for staff and other operating expenses.

Other income

Income from sources not separately itemised in this publication, including:
  • dividend income
  • donations
  • 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 labour costs

Includes employer contributions into superannuation, workers' compensation premiums/costs, fringe benefits tax and payroll tax. Excludes wages and salaries.

Other services income

  • Commission income (other than commission income on goods sold) received for services rendered by a business acting as an agent for another business. This includes concession income, i.e. revenue generated as payment from another business for the right to conduct business under an agreement. An example of this is the operation of a food retail outlet at a sporting venue.
  • Delivery charges not elsewhere included and other services income such as consultancy fees, installation fees, management and administration service fees, subscriptions and membership fees, advertising income and other specified and unspecified service fees. It also includes food sold as takeaway food for immediate consumption, meals prepared for consumption on the premises and the provision of catering.

Other purchases

Purchases of materials, components, containers, packaging materials, fuels, electricity, water and the provision of repair and maintenance services. Also includes capitalised purchases. Excludes purchases of finished goods for resale.

Payments to contractors and other businesses for freight, cartage, delivery and transport services

Refers to amounts paid to other businesses for the outward, inward or internal movement of goods. Includes payments made to contracted and owner drivers, delivery charges by third parties invoiced to customers and postal and courier expenses. Excludes costs associated with delivery by own vehicles and employees, overseas freight and cartage on goods exported and payments for addressing and mailing services.

Payroll tax

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.


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 of goods for resale

Comprises purchases of finished goods for resale including fuel for resale. Excludes delivery charges separately invoiced or itemised by suppliers.

Rent, leasing and hiring expenses

Payments made to other businesses or individuals for the rent, leasing and hiring of:
  • land, dwellings, other buildings and structures, e.g. shops or warehouses; and/or
  • other equipment, including motor vehicles, plant, machinery, etc (including telecommunication equipment) without operator.
Includes operating lease payments; excludes finance lease payments.
Rent, leasing and hiring income

See the entry for Sales and service income.

Retail sales of goods

Income generated from sales of new or used goods to final consumers for personal or household consumption, including
  • Online sales, i.e. where retail sales of goods are transacted via a website on the Internet; and
  • Other sales, including sales of goods at retail stores or via catalogue sales to households.

Repair and maintenance services income

Income from repairs, servicing or maintenance of plant, machinery and other equipment, including motor vehicles, agricultural and construction machinery, business machines and household appliances.

Royalties income

See the entry for Sales and service income.

Sales and service income


Sales of goods
  • 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 or itemised to customers, sales of goods produced by the business from crude materials purchased. Excludes excise and duties received on behalf of the government (e.g. the petroleum production excise duty), sales of assets, natural resource royalties income, interest income, and delivery charges separately invoiced or itemised to customers. Exports are valued free on board, i.e. export freight charges are excluded.

Income from services
  • 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 or itemised to customers and royalties from intellectual property (e.g. patents and copyrights) and natural resource royalties income. Also includes income from the provision of transport services and fee for service 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. This item is included in service income, and is not separately published.

These are valued net of discounts given and exclusive of goods and services tax (GST). Extraordinary items are also excluded.

Sales of goods

See the entry for Sales and service income.Sales of goods bought in and resold

Refers to finished goods bought in and resold including fuel for resale. Does not include goods produced by the business (or goods produced for the business on a commission basis).

Service income

See the entry for Sales and service income.


See the entry for Employer contributions into superannuation.

Total expenses

The sum of all expense components.

Total income

Comprises sales and service income, interest income, funding from government for operational costs and specific capital items, and other income (for details, see the entries for these items).

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 previous issues of this publication, salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options were included with other expenses.

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.

Wholesale sales

Income generated from sales of new or used goods to other businesses and organisations.

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.

Working proprietors and partners

A working proprietor of an unincorporated business operates his or her own business (a sole proprietorship), while a partner, along with one or more other partners, operates a partnership. Working proprietors and partners are:
  • the owners of their business
  • legally inseparable from the business entity
  • liable for any business debts that are incurred.

As such, working proprietors and working partners are not considered to be employees of their business.