5204.0 - Australian System of National Accounts, 2005-06  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 01/11/2006   
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The Income from GDP page has been reissued: This reissue corrects a sentence in the Analysis of Results. In the sentence starting " In 2005-06, Non-farm compensation of employees increased by 7.7% ..." the 7.7% has been corrected to a 7.5%. No other parts of the 5204.0 product are affected.


The wages share of total factor income has remained relatively stable during the 1990s, at levels similar to those during the 1960s. The highest recorded value of the wages share of total factor income was 62.4% in 1974-75. In more recent times, the wages share has been trending down since 1996-97 to 53.6% in 2005-06.

Wages Share of Total Factor Income
Graph: Wages Share of Total Factor Income

In 2005-06, Non-farm compensation of employees increased by 7.5% driven by a 2.8% increase in the number of employees and a 4.6% increase in average earnings.

The profits share (based on Gross operating surplus for Financial and Non-financial corporations) of total factor income reached 26.9% in 2005-06 and this represents the highest share recorded since 1959-60. The profits share recorded since the early 1990s are at a distinctly higher level than those at any time since 1959-60. The profit share measure should not be interpreted as a direct measure of 'profitability' for which it is necessary to relate profits to the level of capital assets employed.

Profits Share of Total Factor Income
Graph: Profits Share of Total Factor Income

Overall, national net saving was positive in 2005-06 at $57.9 billion or 6.0% of GDP. Household net saving as a ratio to GDP generally increased from 1959-60 to a peak in 1974-75 of 10.9%. The series then gradually decreased to its current ratio of -0.4% (a net saving level of $3.8b billion in 2005-06). In 2005-06, Financial corporations net saving was 2.9% of GDP ($27.7 billion). General government net saving represented 2.5% of GDP ($23.9 billion) and net saving for Non-financial corporations represented 1.0% of GDP ($10.0 billion).

When analysing household saving it is also useful to consider Household net worth, currently at $4.4 billion at 30 June 2006, estimates of which are presented in table 51. For more information please refer to Balance Sheets.

Net Saving, By Sector - relative to GDP
Graph: Net Saving, By Sector—relative to GDP