1308.8 - In fACT - Statistical Information on the ACT and Region, Dec 2010  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 06/12/2010   
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Contents >> Economy >> National accounts



Gross State Product

State Final Demand

Gross Household Disposable Income Per Capita


National accounts are designed to provide a systematic summary of national economic activity and at the broad level, reflect key economic flows: production, the distribution of incomes, consumption, saving and investment.

State Accounts are essentially a dissection of the Australian Gross Domestic Product (GDP) estimate, contained in Australian System of National Accounts (cat. no. 5204.0). The state and territory equivalents of GDP are referred to as Gross State Product (GSP) and they are presented annually in Australian National Accounts: State Accounts (cat. no. 5220.0). State estimates of final demand (i.e. State Final Demand) are the only state data available quarterly, in Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0).

Australia’s national accounts statistics are based on the latest international standard for national accounting - the System of National Accounts, 2008 (SNA08). Australia's application of these standards is described in Australian System of National Accounts: Concepts, Sources and Methods (cat. no. 5216.0).

While national estimates are based on the concepts and conventions embodied in SNA08, no such detailed standard is available for sub-national (regional/state) accounts. In the main, the national concepts are applicable to state accounts, but there remain a number of conceptual and measurement issues that either do not apply or are insignificant at the state/territory level. Most issues arise for the Transport and storage, Communication services, and Finance and insurance industries (because production often takes place across state borders) and in the treatment of central government. In such cases, conventions need to be established which reflect data availability and/or the needs of users.

The following information papers provide information on topical issues and recent developments relating to national and state accounts:

The information paper Gross State Product using the Production approach GSP(P) provides detailed information about the methods and sources for the compilation of Gross Value Added (GVA) by industry (including Ownership of dwellings and Taxes less subsidies on products) for each state/territory which was introduced in 2007. This paper should be used in conjunction with Australian System of National Accounts: Concepts, Sources and Methods (cat. no. 5216.0) to gain an understanding of the concepts, sources and methods used to compile the state accounts.

Additional information can also be found on the National Accounts under Topics @ a Glance, including upcoming releases and changes.

Gross State Product


Australian Capital Territory
Current price
Chain volume measures(a)
% change
% change

18 883
22 557
20 187
23 397
22 418
24 617
24 355
25 411
25 748
25 748
27 773
25 988

(a) Users are cautioned that these estimates are derived indirectly by calculating a deflator from the expenditure component. It is emphasised that, at times, there may be movements that cannot be fully explained in the chain volume estimates of GSP through the use of the proxy deflator (see paragraphs 30 to 34 of the Explanatory Notes of cat. no. 5220.0). Reference year for chain volume measures is 2007-08.
Source: Australian National Accounts: State Accounts (cat. no. 5220.0).

Gross State Product (GSP) is the state/territory equivalent of GDP for Australia. It represents the total market value of goods and services produced within a state or territory within a given period, after deducting the cost of goods and services used up in the process of production, but before deducting allowances for the consumption of fixed capital.

In current prices, the Australian Capital Territory's (ACT) GSP was $27,773m in 2009-10, an increase of 7.9% over 2008-09. GSP increased by 0.9%, from $25,748m to $25,988m in chain volume terms over the same period. In comparison, Australia's GDP increased by 2.3% in current prices and 2.3% in chain volume terms between 2008-09 and 2009-10.

GROSS STATE PRODUCT AND GROSS DOMESTIC PRODUCT, Per capita - Per capita: Chain volume measures

Australian Capital Territory
Current prices
Chain volume measures
Current prices
Chain volume measures
% change
% change
% change
% change

57 543
68 739
45 751
55 124
60 736
70 391
48 752
56 015
66 507
73 031
52 303
57 095
71 147
74 233
55 771
58 197
73 814
73 814
57 770
57 770
78 164
73 140
57 965
57 925

Source: Australian National Accounts: State Accounts (cat. no. 5220.0).

The ACT's GSP per capita was $78,164 in current prices in 2009-10, an increase of 5.9% over 2008-09 and 34.8% higher than GDP per capita for Australia ($57,965).

In chain volume terms, GSP for the ACT was $73,140 per capita in 2009-10, which was 0.9% lower than in 2008-09 ($73,814). GDP per capita for Australia was $57,925 in 2009-10, 0.3% higher than in 2008-09 ($57,770). GSP per capita for the ACT was 26.3% higher than Australia's GDP per capita in 2009-10 in chain volume terms.

INDUSTRY GROSS VALUE ADDED, Chain volume measures(a) - 2009-10

Australian Capital Territory

Agriculture, forestry and fishing
27 389
121 513
111 057
Electricity, gas, water and waste services
25 959
2 346
90 536
Wholesale trade
57 074
Retail trade
54 802
Accommodation and food services
26 025
Transport, postal and warehousing
61 318
Information media and telecommunications
38 977
Financial and insurance services
1 406
131 976
Rental, hiring and real estate services(b)
33 958
Professional, scientific and technical services
1 898
77 915
Administrative and support services
29 398
Public administration and safety
8 680
61 462
Education and training
1 282
52 136
Health care and social assistance
1 519
73 090
Arts and recreation services
9 801
Other services
20 746
Ownership of dwellings
1 608
94 468
Gross value added at basic prices
24 658
1 199 600
Taxes less subsidies on products
1 572
82 889
Statistical discrepancy (P)
1 311
Gross state/domestic product
25 988
1 283 799

(a) Reference year for chain volume measures is 2008-09.
(b) Excludes ownership of dwellings.
Source: Australian National Accounts: State Accounts (cat. no. 5220.0)

INDUSTRY GROSS VALUE ADDED, Contributions to growth - Chain volume measures - 2009-10
Graph: Industry gross value added, Contribution to growth, Chain volume measures

GVA is the value of output at basic prices minus the value of intermediate consumption at purchasers' prices. The term is used to describe gross product by industry. State GVA in current prices is not directly compiled so the Australian GVA by industry is allocated to the states using factor income shares. GVA is compiled in volume terms; for most industries an output indicator approach is used to create the chain volume measures of GVA by industry for each of the states and territories.

In chain volume terms, Construction contributed the most to the growth of the ACT's GSP in 2009-10, with 0.6 percentage points (66.7%) of the 0.9% annual growth. Australia's largest contributor to the 2.3% growth in GDP was Mining, at 0.6 percentage points (26.1%).

State Final Demand

COMPONENTS OF FINAL DEMAND, Current prices - 2009-10

Australian Capital Territory

Final consumption expenditure
General government
24 141
234 336
13 617
697 943
Gross fixed capital formation
1 416
73 073
Ownership transfer costs
17 875
Non-dwelling construction
1 180
77 193
Machinery and equipment
79 195
Cultivated biological resources
3 078
Intellectual property products
31 101
4 362
281 515
3 383
78 826
State/Domestic final demand
45 503
1 292 620

- nil or rounded to zero (including null cells)
Note: Australian National Accounts: State Accounts (cat. no. 5220.0).

State Final Demand (SFD) for the individual states and territories is conceptually equivalent to Domestic Final Demand (DFD) for Australia. It is the aggregate obtained by summing government final consumption expenditure, household final consumption expenditure, private gross fixed capital formation and the gross fixed capital formation of public corporations and general government.

In chain volume terms, SFD for the ACT was $44b in 2009-10, an increase of 1.5% over 2008-09. Nationally, there was a 2.2% increase in DFD.

In current price terms, SFD for the ACT was $46b in 2009-10, an increase of 5.1% over 2008-09. DFD for Australia increased by 3.6% over the same period.

COMPONENTS OF FINAL DEMAND, Percentage share: Current prices - 2009-10
Graph: Components of Final Demand, Percentage share, Current prices

Final consumption expenditure is the net expenditure on goods and services by either public authorities (General government final consumption expenditure or GFCE) or persons and private non-profit institutions serving households (Household final consumption expenditure or HFCE). This is expenditure which does not result in the creation of fixed assets or inventories or in the acquisition of land and existing buildings or second-hand assets.

By contrast, gross fixed capital formation (GFCF) measures expenditure on fixed assets, and includes compensation of employees but not repair or maintenance of fixed assets. GFCF is divided into private and public corporations. By splitting final demand into these components, the structural differences between the ACT and Australia can be highlighted. Each of the components displayed in the table Components of Final Demand total to State Final Demand for ACT and Domestic Final Demand for Australia.

In current prices, GFCE represented 53.1% ($24b) of SFD in the ACT in 2009-10, compared to 18.1% of DFD nationally.

In contrast, HFCE represented 29.9% of the total final demand in the ACT, compared to 54.0% of Australia's DFD.

There was also a significant difference in expenditure on private GFCF. It was proportionately lower in the ACT than for Australia as a whole in 2009-10, accounting for 9.6% of SFD in the ACT versus 21.8% of DFD nationally.

FINAL CONSUMPTION EXPENDITURE, Australian Capital Territory: Chain volume measures
Graph: Final consumption expenditure, ACT, Chain volume measures

In chain volume terms, HFCE accounted for 36.9% of total final consumption expenditure in the ACT in 2009-10, with GFCE accounting for 63.1%. These proportions have remained relatively constant over time.

HOUSEHOLD FINAL CONSUMPTION EXPENDITURE, Percentage share: Current prices - 2009-10
Graph: Household final consumption expenditure, percentage share, Current prices

In 2009-10, those components of HFCE which took up the largest proportions of total expenditure in current prices were consistent, with only a few minor differences, between ACT households and households across Australia as a whole. Miscellaneous goods and services was the single largest expenditure item in the ACT (18.4%), followed by Rent and other dwelling services (17.9%) and Recreation and culture (11.0%), while Rent and other dwelling services was the single largest expenditure item in Australia (19.3%), followed by Miscellaneous goods and services (16.6%) and Food (11.0%).

Expenditure on Communications took up the lowest proportion of HFCE for the ACT in 2009-2010 (2.4%). For Australia it was Electricity, gas and other fuel for Australia (2.3%).

GROSS FIXED CAPITAL FORMATION, Australian Capital Territory - Chain volume measures
Graph: Gross fixed capital formation, ACT, Chain volume measures

The ACT's expenditure on private fixed capital formation, in chain volume terms, was $4.3b in 2009-10, up 8.1% on the $4.0b spent in 2008-09.

Expenditure on public fixed capital formation, in chain volume terms, was $3.5b in 2009-10, up $504m (+17.0%) on 2008-09.

TOTAL FACTOR INCOME: Current prices - 2009-10

% change from previous year

Australian Capital Territory

Compensation of employees
17 529
Gross operating surplus
6 348
Gross mixed income
1 318
Total factor income
25 195


Compensation of employees
617 382
Gross operating surplus
440 549
Gross mixed income
102 528
Total factor income
1 160 459

Source: Australian National Accounts: State Accounts (cat. no. 5220.0).

Total Factor Income (TFI) is that part of the cost of producing the GDP which consists of gross payments to factors of production, these payments being compensation of employees and gross operating surplus. TFI represents the value added by these factors in the process of production and is equivalent to gross state/domestic product less taxes plus subsidies on production, and imports.

TFI for the ACT grew by 6.8% (+$1.6b) in the 2009-10 financial year, to $25.2b. This was higher than the national average growth of 2.2%.

Of the components of TFI, Gross operating surplus had the strongest growth over the previous financial year, at 8.1% (+$0.5b). In comparison, at the national level Gross mixed income had the strongest growth with 4.0%.

Gross Household Disposable Income Per Capita

GROSS HOUSEHOLD DISPOSABLE INCOME PER CAPITA, By states and territories: Current prices


Australian Capital Territory
63 783
New South Wales
37 847
36 975
34 949
South Australia
35 480
Western Australia
42 014
36 102
Northern Territory
41 777
37 714

Source: Australian National Accounts: State Accounts (cat. no. 5220.0).

Gross state product per capita does not measure income received by residents of a particular state or territory because a proportion of income generated in the production process may be transferred to other states/territories or overseas (and conversely income may be received from other states/territories or from overseas). A measure that takes these interstate or overseas flows into account is gross household disposable income per capita.

Households in the ACT recorded the highest level of gross household disposable income per capita of all states and territories in 2009-10, in current price terms. At $63,783 per capita, this was $21,769 more than the next highest jurisdiction, Western Australia ($42,014) and $26,069 higher than for Australia as a whole. Queensland recorded the lowest gross household disposable income per capita in 2009-10 ($34,949).

Differences between states and territories are driven by a number of factors: average wage levels; proportion of the population in employment; the age distribution of the population and differences in the level of dwelling rent, including that imputed to owner occupiers. For example, one reason for the high level recorded for the ACT is the territory's high labour force participation rate; in October 2010 the trend participation rate for the ACT was 72.8%, versus 65.7% for Australia.

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