INPUT OUTPUT TABLES 2006–07

INTRODUCTION

This is the first release of Input Output tables based on the new System of National Accounts 2008 (SNA08), Balance of Payments and International Investment Position Manual 6th edition (BPM6) and under the new industry classification Australian and New Zealand Standard Industrial Classification, 2006 (ANZSIC06). A change from the System of National Accounts, 1993 (SNA93) to capitalise orchard growth has also been implemented for the first time in this set of tables. These changes were first introduced into the Australian National Accounts for the reference year 2008–09. Users of the 2006–07 IO data should be aware that the main aggregates in the IO tables such as:

• Gross Domestic Product;
• Industry Value Added;
• Final Consumption Expenditure;
• Gross Fixed Capital Formation;
• Gross Operating Surplus;
• Changes in inventories; and
• Exports and imports

are consistent with those published in the December 2009 release of the Australian System of National Accounts, 2008–09 (cat. no. 5204.0) which also included significant historical revisions to all National Accounts series. As a result of these changes there are significant differences between the levels of the main economic aggregates published in the 2006–07 IO tables when compared to previous releases. Users should take care when trying to compare these data items between reference years as input output tables are not compiled as a time series.

The 2006–07 release of the Input Output tables contains an additional table for the Electricity Margin on Supply.


IMPLEMENTATION OF SNA RECOMMENDATIONS

The implementation of SNA08 recommendations in this release changes the measurement of a number of components in the Australian System of National Accounts (ASNA) without changing the structure of the accounts. The changes that impact on the Input Output Tables are listed below:

• The capitalisation of expenditure on Research and development (R&D), Defence weapons platforms (DWPs), Mineral exploration expenditure, Databases, and the Cost of ownership transfers. Capitalisation moves these expenditures from Intermediate usage to Gross fixed capital formation (GFCF);
• The treatment of Software originals and copies (licenses to use will be treated as capital formation) and Employee stock options (to be included as part of Compensation of employees);
• Implementation of the SNA93 recommendation to capitalise Orchard growth.

For more detail on the impact of SNA and BPM6 implementation on the National Accounts see the Information paper Implementation of new international statistical standards in ABS National and International Accounts, September 2009 (cat no. 5310.0.55.002) at

https://www.abs.gov.au/AUSSTATS/abs@.nsf/productsbyCatalogue/FBD636304CF0ACF7CA25765C0019CE40?OpenDocument.


IMPLEMENTATION OF BPM6 RECOMMENDATIONS

The impact of implementing BPM6 recommendations in this release are listed below:

• Under the revised standards of BPM6 Merchanting activities (describing trade of goods offshore by residents) will no longer be recorded as a service but as three transactions in the goods account. The flow of goods acquired under merchanting will be recorded as negative exports, and the flow of goods sold under merchanting as exports. The net position will be calculated as the difference between the two, and be equivalent to sales (exports) less purchases (negative exports).
• Goods for processing will no longer be recorded as exports and imports of goods, processing activities are recorded as manufacturing services on physical inputs owned by others;
• Repairs on goods will no longer be recorded as goods but are included as maintenance and repair services. They now appear in Division S of ANZSIC06.

INTRODUCTION OF ANZSIC06

The ANZSIC classification was revised in response to the changing structure and composition of the economy, changing information demands and to align with the fourth revision of the International Standard Industrial Classification. For a detailed discussion of the ANZSIC06 changes see the Australian and New Zealand Standard Industrial Classification 2006 (cat. no. 1292.0) at

https://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyCatalogue/A77D93484DC49D63CA25712300056842?OpenDocument and

Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 – Class Change Tables, 2006 (cat. no. 1292.0.55.003) at

https://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyCatalogue/06691BBB1C51AE71CA257122001ACB05?OpenDocument.

These changes have had a significant impact on the building blocks of the IO tables i.e. Input Output Industry Group (IOIG) and Input Output Product Classification (IOPC). For example, the dimensions of the industry by industry and industry by product tables will be 112 rows by 112 columns for 2006–07 compared to 109 by 109 for 2005–06.


CHANGES TO IOIGS

The introduction of ANZSIC06 saw many changes to industries at all levels of the classification. As the IOIG aligns to the ANZSIC at a combination of the sub–division and group level it was necessary for the ABS to review the IOIG classification. The outcome of the review was a new IOIG classification which contained many differences to the previous IOIG. In some cases industries remain the same but many industries were either split or merged with other smaller industries and in some cases new industries were formed. The most basic change was the actual number of IOIGs which increased from 109 to 112 under the new classification. Users should note that the tables only report for 111 IOIGs as two industry groups were combined for confidentiality reasons. Table 1 provides a summary of the extent of the changes to the IOIG showing that just over one in five IO industries remained unchanged as a result of ANZSIC06 implementation. Full concordances illustrating the changes between the IOIG(2005) and IOIG(2009) are provided in Table 40 of this release.


Table 1. Summary of changes to the IOIG under ANZSIC06

Type of Concordance	Number of IOIGs
One to one	23
One to many	27
Many to many	59
Total	109

Some specific examples of the changes to IOIG include:

• merging of IOIG(2005) industries 0101 Sheep, 0102 Grains, 0103 Beef cattle and 0104 Dairy cattle into IOIG 0101 for Sheep, Grains, Beef and Dairy Cattle;
• merging of IOIG(2005) industries 7301 Banking and 7302 Non–bank finance into IOIG 6201 Finance under IOIG(2009); and
• splitting of IOIG(2005) 3601 Electricity Supply into two IOIGs, 2601 Electricity generation and 2605 Electricity Transmission, Distribution, On Selling and Electricity Market Operation.

CHANGES TO IOPG AND IOPC

As the IOPC is an Industry of origin classification, where a product is classified to the industry based on where the primary producer of that product is classified, the changes to the ANZSIC also necessitated a review of the IOPC. One of the most obvious changes to the IOPC for 2006–07 is the number of IOPCs, which reduced to 1284 compared to 1416 in 2005–06. In contrast, there was a small increase in the number of IOPGs in the classification from 109 to 112. These changes will affect all tables showing product level information and a number of detailed commodity tables that are expected to be released in February of 2011.

The types of changes to the product classification are similar to that experienced by the industry classification with some products remaining unchanged, some being split into two or more products and other categories being merged. Table 2 illustrates that the IOPG changes were the same as the IOIG. However, the number of IOPCs that experienced no change between reviews was approximately 45%.

Table 2. Summary of changes to the IOPG and IOPC under ANZSIC06

Type of Concordance	Number of IOPGs	Number of IOPCs
One to one	23	634
One to many	27	598
Many to many	59	184
Total	109	1416

Some specific examples of the changes to the IOPC include:

• Merging of IOPG(2005) product groups 2505 Soap and other detergents , 2506 Cosmetics and toiletry preparations and part of 2507 Other chemical products into 1804 Cleaning compounds and toiletry preparation manufacturing;
• Creation of new IOPGs such as Own account research and development services to record R&D expenditure;
• Splitting IOPC(2005) product Electricity into five IOPCs for Electricity generation from fossil fuels, Hydroelectric generation, Other electricity generation, Service income, and margins from transmission, distribution and on–selling of electricity.

Details of concordances between ANZSIC06 and the IOIG classification, and concordances comparing IOPG(2005) to IOPG(2009) and IOIG(2005) to IOIG(2009) are provided in Table 40.


CHANGES TO TABLES IN THIS RELEASE

This release includes an additional table from last year, Table 34 details Electricity Margin on Supply by Product Group by Using Industry and Final Use category. Users should note that as a result of the addition of the Electricity Margin table the numbering of the Margins and Taxes tables has also changed from previous versions. The list of table numbers and titles in this release are provided below:

5209.0.55.001 Australian National Accounts: Input–Output Tables – Electronic Publication, Preliminary release 2006–07 tables

Table	Title
1.	Australian supply table – Supply by product group, by Industry
2.	Use table – Input by industry and final use category and supply by product group
3.	Imports – Supply by product group and inputs by industry and final use category
4.	Reconciliation of flows at basic prices and at purchaser's prices by product group
23.	Wholesale margin on supply by product group by using industry and final use category
24.	Retail margin on supply by product group, by using industry and final use category
25.	Restaurants, Hotels and clubs margin on supply by product group by using industry and final use category
26.	Road transport margin on supply by product group by using industry and final use category
27.	Rail transport margin on supply by product group by using industry and final use category
28.	Pipeline transport margin on supply by product group by using industry and final use category
29.	Water transport margin on supply by product group by using industry and final use category
30.	Air transport margin on supply by product group by using industry and final use category
31.	Port handling margin on supply by product group by using industry and final use category
32	Marine Insurance transport margin on supply by product group by using industry and final use category
33	Gas margin on supply by product group by using industry and final use category
34.	Electricity margin on supply by product group by using industry and final use category
35.	Net taxes on products by product group by using industry and final use category
36.	Goods and services tax on products by product group by using industry and final use category
37.	Duty on products by product group by using industry and final use category
38.	Taxes on products nei by product group by using industry and final use category
39.	Subsidies on products by product group by using industry and final use category
40.	Industry and Product Concordance Tables – ANZSIC06 to IOIG – IOPG(2005) to IOPG(2009) – IOPC(2005) to IOPC(2009)