5518.0.55.001 - Government Finance Statistics, Education, Australia - Electronic Delivery, 2004-05  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 29/03/2006   
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Capital grant expenses

Unrequited payments by government to finance the acquisition of non-financial capital assets by the recipient, or compensate the recipient for damage or destruction of capital assets, or increase the financial capital of the recipient.

Capital transfer expenses

Unrequited payments of a capital nature that are usually non-recurrent and irregular for donor or recipient. Includes capital grant expenses.

Change in inventories

The change in the value of inventories arising from transactions over the accounting period. Users should note that as 'Change in inventories' is not allocated across Government Purpose Classifications (GPCs) in Government Finance Statistics (GFS), this component of Net acquisition of non-financial assets is not available in GFS data at the GPC level presented in this publication.


Transactions and debtor/creditor relationships between units within the chosen grouping (sector or subsector) have to be matched and eliminated to avoid double counting in compiling statistics about the financial activities of a particular level of government, or any other grouping of public sector units. The process of matching and eliminating these items within the chosen group is known as 'consolidation'. Consolidation is particularly important at the state government level, where a significant proportion of total expenses/payments is financed by Commonwealth government grants. Similarly an appreciable part of the expenditure undertaken by state public non-financial corporations is financed by grants from state governments.

Current grant expenses

Voluntary transfers intended to finance the current activities of the recipient. Includes grants for current purposes to private non-profit organisations serving households, grants made to foreign governments and organisations including grants made for aid projects, and current grants from one level of government to another (eg. Commonwealth to State) and between units within the same level of government.

Current monetary transfers to households

Monetary transfers by government to individuals or households which are not required to provide any significant amount of goods and services in return, e.g. old age pensions, unemployment benefits and youth allowances.

Current transfer expenses

Regular payments that are current in nature for which no economic benefits are received in return for payment. Includes current grant expenses, subsidies and current monetary transfers to households.


The accounting process of systematically allocating the cost less estimated residual value of an asset over its expected life.

Employee expenses

Employee expenses relate to compensation of employees and reflect those expenses accrued as a result of services provided by employees in the current period. They include wages and salaries, annual leave, long service leave and superannuation.

Gross domestic product (GDP)

Total market value of goods and services produced in Australia within a given period after deducting the cost of the goods and services used up in the process of production, but before allowance for the consumption of fixed capital (depreciation).

Gross fixed capital formation

The value of acquisitions of new and existing produced assets, other than inventories, less the value of disposals of new or existing produced assets, other than inventories.

Higher Education Contribution Scheme (HECS)

The legislation establishing HECS requires students to pay a contribution towards the cost of their higher education. Payments may be made direct to the institution attended at the time the education course is undertaken, or students may enter a loan agreement with the Commonwealth Government to discharge their obligation on their behalf. Students then repay the loan at a later date through the taxation system. These loans are paid out of a trust fund to institutions and are not paid to students directly.

In GFS, the HECS loans are recorded as advances from the Commonwealth Government to the students, and the payment of contributions out of the trust fund is treated as payments for a service by students to higher education institutions. These payments are offset against government final consumption expenditure.

Household final consumption expenditure

Net expenditure on goods and services by persons and expenditure of a current nature by private non-profit institutions serving households on the consumption of educational services. These include expenditure on salaries paid to non-government school teachers and HECS payments (both up front and deferred) by students.

Intra-sector transfers

Transactions or transfers between levels of government that are eliminated during the GFS consolidation process. Includes grants from one level of government to another.

Non-employee expenses

Those operating expenses other than compensation of employees (employee expenses), depreciation, or current or capital transfer expenses.

Sales of goods and services

Revenue from the direct provision of goods and services.


Current transfers that government units make to enterprises either on the basis of the levels of their production activities or on the basis of the quantities or values of the goods or services that they produce, sell, or import.

Unrequited payments

Payments made for which nothing is received directly in return.