8681.0 - Information Media and Telecommunications Services, Australia, 2013-14 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 29/06/2015  First Issue
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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.

Advertising, marketing and promotions expenses

Includes payments to advertising agencies and to TV, print and online media.

Broadcasting expenses

Includes broadcasting and programming expenses such as license fees, affiliation fees, program rights expenses and program operation costs.


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

In this publication, the term represents the Australian Business Number (ABN) unit or type of activity unit (TAU), which are the two standard statistical units for the 2013-14 Economic Activity Survey collections. Refer to the Explanatory Notes for more detail.

Capital expenditure (total)

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. Includes structures, buildings and dwellings, equipment and machinery and software. For details, see the entries for these items. Includes capital work done for own use which is work done by the employees or proprietors of a business in constructing, installing or repairing assets, and the in-house development of computer software, for use by the business or for rental or lease. This work is valued at the capitalised costs of the materials and the wages and salaries involved.

Capital expenditure on equipment and machinery

Includes capital expenditure on communications equipment such as telecommunications equipment, main exchange and switching equipment and television and radio broadcast studio equipment. Capital expenditure on computer hardware includes computers, file servers, printers and other peripherals. Other equipment and machinery includes transport vehicles and industrial machinery.

Capital expenditure on 'other'

Includes capital expenditure on land and other intangible assets, excluding software. This includes capital expenditure on research and development and licenses.

Capital expenditure on software

Includes capital expenditure on licence fees, installation costs and computer software developed in-house. Also includes software expensed during the reference period. Software and hardware costs that cannot be separated are included in Capital expenditure on equipment and machinery under the item 'Computer hardware'.

Capital expenditure on structures, buildings and dwellings

Capital expenditure incurred acquiring dwellings, other buildings and structures, including offices, transmitter towers, pipelines, cables and communication lines. Includes expenses (except capitalised interest) incurred during the year in acquiring such assets. Excludes capital expenditure on land.

Capitalised wages and salaries

Capitalised payment of wages and salaries 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.

Cloud computing

The practice of using a network of remote servers hosted on the internet to store, manage, and process data, rather than a local server or personal computer.

Communications equipment

Refer to 'Capital expenditure on equipment and machinery'.

Computer hardware

Refer to 'Capital expenditure on equipment and machinery'. Copyrights

See the entries for Royalties income and expenses.

Depreciation and amortisation

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

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.

Refer to the entry for Operating Profit Before Tax (OPBT) for a further definition of profit.

Employer contribution 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 of 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.

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.

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, e.g. 'J' for Information Media and Telecommunications.

Industry group

The structure of ANZSIC comprises four levels, ranging from industry division (broadest level) to industry class (finest level). Industry groups are built up from industry classes and identified by a three-digit code, e.g. Industry Group 551 for Motion Picture and Video Activities.

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 55 for Motion Picture and Sound Recording Activities. 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). 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:
      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 (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.Information Media and Telecommunications (IMT)

Definition of Division J of the Australian and New Zealand Standard Industrial Classification, 2006 edition. Not to be confused with Information and Communication Technologies (ICT) which refers to the technologies that enable information to be accessed, stored, processed , transformed, manipulated and disseminated.

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.

Interest income

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.

Internet Protocol Television (IPTV)

The process of transmitting and broadcasting television programs through the internet. A broadband connection is used as the medium of transmission for IPTV.

Legal services expenses

Includes payments to other businesses/self-employed persons for the provision of legal services.

Multi-channel publisher

Businesses which produce both traditional print media published output and online published output.

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 equipment and machinery

Refer to 'Capital expenditure on equipment and machinery.'

Other expenses

Expenditure items not separately itemised. Examples include bad and doubtful debts, land tax and land rates and other operating expenses.Other income

Income from sources not separately itemised, 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).

Over-the-top (OTT) services

Communications accessed via the internet rather than a carrier's or communication service provider's own dedicated, managed network.

Payments to businesses for staff

Includes payments to other businesses for the provision of staff. Includes payments to recruitment agencies for staff.

Payments to contractors for services

Includes payments to other businesses and self-employed persons for the provision of selected services, including administrative support services, IT support and cleaning.

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.

Profit Margin

The percentage of sale 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 and utilities, and purchases of finished goods for resale (for example mobile phones and pre-recorded media). Excludes capitalised purchases. Pure play internet publisher

Pure play internet publishers include businesses who only publish content on the internet. These businesses do not publish traditional (non-internet) versions of the content they create.

Rent, leasing and hiring expenses

Includes expenses related to the rental of land, buildings and other structures. Other rent, leasing and hiring expenses includes expenses associated with the rent of equipment such as computers and motor vehicles.

Rent, leasing and hiring income

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

Royalties expenses

Covers payments to other businesses/self-employed persons for the right to use or distribute intellectual property such as film and music. This includes payments under licensing arrangements, payments for the use of patents and copyrights; including film licenses, music originals and publishing rights (literary, photos).

Mechanical royalties are incurred when a song is reproduced, either in hard copy (CD) or downloaded over the internet.

Royalties income

Includes income received in exchange for the right to use or distribute content such as music and film. Sales and service income

Includes income from sales of goods and services provided. Goods and services specific to the IMT industry include:
  • income from print (or hard copy) publishing of newspapers, magazines, books and directories. Included is income from advertising, sales and circulation (including subscription fees) and copyrights.
  • income from broadcasting services provided through mediums such as television and radio. Includes subscription services provided through television. This includes income from advertising and subscriptions.
  • income from internet publishing and broadcasting includes income from internet based publishing and broadcasting activities, including advertising and subscriptions. While income from internet protocol television (IPTV) are included, this data item does not include internet streaming services which are included under 'application hosting, data and information storage services'. Excluded are businesses who use the internet rather than traditional methods but could be more appropriately classified to another industry, for example businesses predominantly engage in online retailing are coded to the Retail industry and therefore out of scope of this survey.
  • income from software publishing and licensing includes copyrights and income from selling ready made software. Businesses primarily engaged in providing tailored software solutions are coded to the Professional, Scientific and Technical Services industry (ANZSIC Division M) and therefore out of scope of this survey.
  • income from motion picture and sound recording activities includes motion picture and video production, post-production, distribution and exhibition services. Also included is royalties income derived from assets including film rights, music and other intellectual properties.
  • income from telecommunications and internet access services includes income from the provision of telephony and internet access services. This data item is split into several components based on whether the service is provided through a fixed or mobile network. Included are telecommunication services provided from own network, telecommunications services provided from another business's network (reselling) and internet service provision. Other telecommunication services includes income from other specialised telecommunications applications including satellite systems and operations.
  • application hosting, data and information storage services includes income from cloud computing and data streaming services. Also included is income from businesses who provide electronic information storage and retrieval services, however library services are excluded.
  • handheld communications equipment includes sales of phones and tablets
  • computer equipment includes sales of computers and peripheral equipment such as modems.
  • other information services includes news collection services and libraries
Other components of sales and service income includes Rent, leasing and hiring income and Other sales and services income. Other sales and service income includes income derived from activities that are considered to be outside the scope of information media and telecommunications services, for example income derived from repair and maintenance or the provision of customised software consultancy services.

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

  • wage and salary expenses
  • employer contributions into superannuation
  • share based payments
  • salary sacrificed earnings
  • workers' compensation premiums/costs.


See the entry for employer contributions into superannuation.

Telecommunication expenses

Includes wholesale network payments, purchase of bandwidth, telephone service costs and web hosting services. Excluded are repair and maintenance expenses and the costs of leasing telecommunications equipment.

Total expenses

The sum of all expense components.

Total income

The sum of all income components.

Voice Over Internet Protocol (VoIP)

A system for converting analogue signals to digital so that telephone calls may be made over the internet.

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.

Wage and salary expenses

Similar to the Wages and Salaries data item except this item excludes capitalised wages and salaries, share based payments and salary sacrificed earnings.

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.