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Chapter 21 State accounts

Australian System of National Accounts: Concepts, Sources and Methods
Reference period
2020-21 financial year

Introduction

21.1    The state accounts are a geographic disaggregation into states and territories of the national accounts data presented in the ABS publications, Australian System of National Accounts, and Australian National Accounts: National Income, Expenditure and Product. Experimental accounts¹⁰⁷ were published in 1984, followed by the first official estimates three years later.¹⁰⁸ Those estimates are now published annually in Australian National Accounts: State Accounts.

21.2    The state accounts provide a picture of state and territory economies comparable to the three measures of Gross Domestic Product (GDP), and other key national accounts concepts, such as household income and household consumption.

21.3    The key output of the state accounts is annual Gross State Product (GSP) which is directly comparable in concept to the national measure of Gross Domestic Product. The ABS does not produce quarterly GSP, but quarterly state final demand (SFD) is calculated. SFD is directly comparable to domestic final demand at the national level. It is a partial measure of GSP measured by the expenditure approach, in that this measure excludes both international and interstate trade, as well as changes in inventories. As such, the two measures should not be directly compared.

21.4    Throughout this chapter, the term 'state' refers to all states and territories of Australia.

Endnotes

  1. Burrell S., Daniel, J., Johnson, A. and R. Walters (1984) State Accounts, Australia:  Issues and Experimental Estimates, Occasional Paper (1984/4). Canberra:  Australian Bureau of Statistics (ABS).
  2. ABS (1987) Australian National Accounts: State Accounts, 1985-86. Canberra:  Australian Bureau of Statistics (ABS).

History and purpose of gross state product 

Introduction

21.5    Gross state product (or regional product) is the equivalent of gross domestic product for a region of a national economy. This measure can be produced for a region of any size whether a state, territory, or district. In the Australian context, it is compiled for the six states and two territories and is termed Gross State Product.

21.6    The history of state or regional product is much shorter than that for the national accounts: official sub-national estimates have been produced for the last thirty years.

21.7    No country currently compiles a complete set of SNA accounts for regions of a national economy, with most countries focussing on allocating productive activities to regions. This is largely due to conceptual difficulties with the allocation of economic activity of multi-region institutional units.  

21.8    Some productive activities which operate across regions, such as finance, transport and communications, can be problematic to allocate to states and territories. Work is continuing internationally on improving the scope, quality and relevance of the state/regional accounts; Australian efforts are described throughout this chapter.

21.9    State accounts are used for the twin purposes of policy formulation and government planning. The main use is to assist in the formation of policies for industrial development and infrastructure provision, and to plan public finances. GSP is also used to explain GDP results in a regional context, as well as comparing growth across regions.

History in Australia

21.10    In 1987, the ABS released experimental state estimates in the publication, Australian National Accounts: State Accounts. Since that time, there has been ongoing work to improve estimates of Gross State Product, and to expand the amount of information contained within the state accounts. Key milestones include:

1984Publication of occasional paper, State Accounts Australia: Issues and Experimental Estimates.
1987First release of annual publication, Australian National Accounts: State Accounts, 1985-86 (cat. no. 5220.0).
1993First release of quarterly publication, Australian National Accounts: State Accounts, December quarter 1992 (cat. no. 5242.0) – ceased.
1993-94Constant price estimates introduced using average 1989-90 prices for cat. nos. 5220.0 and 5242.0.
1997-98Implementation of 1993 SNA and introduction of chain volume estimates, to replace constant price estimates.
2006-07Introduction of GSP(P) estimates, with estimates no longer being treated as experimental.
2008-09Implementation of ANZSIC 2006 and the 2008 SNA.
2016-17Introduction of state capital stock and productivity estimates.

Overview of the state accounts methodology

21.11    The state accounts are a geographic disaggregation into states and territories of national accounts data. State estimates are compiled by allocating the national economic flows and other transactions to the state in which they occur. These estimates are then aggregated to produce the state accounts. The state accounts are consistent with the 2008 SNA, given the relationship to national accounts. It is worth noting that there are currently no international standards regarding the compilation of regional accounts.

21.12    The state accounts are compiled for the production accounts, as well as the household income account.

Top-down approach – indicator allocation to states

21.13    The state accounts generally use a top-down approach, which allocates national estimates to the state level using state indicators. This approach ensures the state estimates are consistent and additive to national aggregates. It is represented below using the formula:

    \(\text{State estimate} = \frac{\Large\text{State indicator}}{\Large\text{Australian indicator}} \times \text{Australian benchmark} \)

21.14    State indicators are derived from a range of ABS and other data sources. State indicators are designed to allocate economic activity in line with the predominant economic interest of the institutional XE   units involved. For productive activity, state allocation is matched to the state location of the factors of production (i.e. labour and capital). Transactions XE "Transactions"  involving the household sector, such as household consumption and income flows, are allocated based upon state of residence of household units involved.

21.15    Some indicators match exactly or closely to national benchmarks for which they are used to allocate to states. This occurs for a small number of data sources such as Government Finance Statistics (GFS), which are built up from state components.

21.16    There are some cases where a national total is disaggregated into two variables of interest, such as 'state' and 'industry'. In such cases, the national total and the state disaggregation are fixed, but an independent derivation of industry (split using the top-down approach) may yield a different set of state totals. In these cases, a residual allocation algorithm is applied to ensure the industry disaggregation is consistent with the state dissection; the state by industry disaggregation; and the national total for that aggregate.

21.17    By contrast, the bottom-up approach is used where national estimates in the national accounts are created as the sum of states or more detailed location information. In those cases, state allocation is built into national estimates, which eliminates the need for indicator allocation of national estimates. Ideally, all state-based estimates in both the national and state accounts would be produced using the bottom-up approach; however, difficulties around allocating productive activity and institutions limit the bottom-up approach to a small number of cases.

Overview of Gross State Product

Introduction

21.18    Gross State Product is the aggregate which details the total economic production of a state economy and is the state equivalent to GDP. In the ASNA XE  , GSP for the eight state and territories add to GDP in current prices, in line with the top-down approach.

21.19     As with GDP, there are three approaches to measuring GSP.  The major difference between compilation of GDP and GSP is that the income and expenditure approaches are combined to overcome measurement issues for Gross State Product:

  • Income approach (GSP(I));
  • expenditure approach (GSP(E));
  • combined income/expenditure measure (GSP(I/E)); and
  • production approach (GSP(P)).

GSP(I)

21.20    GSP(I) is derived by summing the income flows accruing to factors of production, plus taxes less subsidies on production and imports:

GSP(I)              =              Compensation of employees
 +              Gross operating surplus
 +              Gross mixed income
 +              Taxes on production and imports
 –              Subsidies on production and imports

21.21    In the state accounts, GSP(I) is published in current price terms only as its components cannot be divided into price and quantity elements. GSP(I) is the basis for measurement of GSP as it is the only complete measure of current price GSP in the state accounts. As such it is a starting point for producing volume estimates of GSP(I/E) and GSP(P).

GSP(E)

21.22    GSP(E) is derived as the sum of all final expenditures on goods and services:

GSP(E)                 =              Final consumption expenditure
 +              Gross fixed capital formation
 +              Changes in inventories
 +              Exports
 –              Imports

21.23    At the state level the expenditure measure must include both international trade and trade between states, as well as changes in inventories. Currently there is no data source available to produce interstate trade or change in inventories on a state basis.

21.24    The inability to measure interstate trade and state level changes in inventories is overcome by assuming that GSP(E) is equal to GSP(I), forming what is known as the GSP(I/E) measure. This is discussed in more detail below. Items of GSP(E) which can be measured are defined as the known components of GSP(E).

Combined GSP(I/E) measure

21.25    GSP(I/E) is a single measure of GSP produced by assuming GSP(E) is equal to the GSP(I) measure. It is used to overcome the inability to derive all components of the GSP(E) measure. The process is to first produce a current price GSP(I/E) using the GSP(I) measure to allocate to states the average of the GSP(I) and GSP(E) measures.

21.26    A chain volume GSP(I/E) is then produced by deflating current price GSP(I/E) with a deflator produced with known components of GSP(E), which are state final demand and international trade.

21.27    Known components of GSP(I/E) are published. The difference between the known components of expenditure and the total GSP(I/E) is published as the balancing item. The balancing item, in theory, consists of interstate trade and changes in inventories.

GSP(P)

21.28    GSP(P) is the sum of value added for all industries. Conceptually, GSP(P) is as follows:

GSP(P)=         Gross value added  +  Taxes on products  –  Subsidies on products
 =         Output – Intermediate consumption + Taxes on products – Subsidies on products

21.29    Gross value added (GVA) is the difference between output and intermediate consumption at basic prices for each institutional unit and thereby measures the value created by production. Value added represents the contribution of labour and capital to the production process. In the state accounts, estimates for intermediate consumption are not available, meaning calculation of current price and volume GVA requires alternative estimation methods.

21.30    Current price GVA is calculated using income components, using the assumption that GSP(I) = GSP(P).

21.31    The output indicator method is used to produce chain volume (CVM) estimates of GVA. This involves extrapolating reference year estimates of current price GVA using movements of indicators of output volumes.

Published GSP

21.32    In the state accounts, the published GSP is the average of the GSP(I/E) and GSP(P) measures. This is represented algebraically as:

    \(\text {GSP}=\frac{\large\text(GSP(P)+GSP(I⁄E))}{\large2}\)

21.33    This measure maximises the use of information about state economic activity and is more stable over time than either the GSP(P) or the GSP(I/E) measure. Individual measures of GSP(P) and GSP(I/E) are not separately published in the state accounts.

Statistical discrepancy

21.34    To reconcile the sum of the components of the various measures of GSP with the published GSP a statistical discrepancy is derived. This ensures additivity for current price estimates as well as chain volume estimates in the reference year and beyond.

21.35    The statistical discrepancy is calculated as:

    \(Statistical \space discrepancy(P)=GSP-\sum components \space of \space GSP(P) \)

    \(Statistical \space discrepancy(I/E)=GSP-\sum components \space of \space GSP(I/E) \)

    \(Statistical \space discrepancy(I)=GSP-\sum components \space of \space GSP(I) \)

21.36    Ideally the statistical discrepancy should equal zero as all measures of GSP should be equal in concept. This is not the case in the state accounts due the lower quality of data sources at state level as well as other measurement issues. 

21.37    It should be noted that the statistical discrepancy is conceptually different to the balancing item. The balancing item is representative of economic transactions such as interstate trade and inventories. As such changes in the value of the balancing items are representative of economic events and are not a reflection on the quality of the state accounts.

GSP compilation

21.38    The process of compiling GSP in the state accounts is sequential with GSP measures for current prices and volumes interrelated. The process for compiling GSP includes the following steps:

  1. Create current price GSP(I);
  2. Create known components of GSP(E);
  3. Combine GSP(I) and known components of GSP(E) to produce current price and volume measures of GSP(I/E);
  4. Create current price GSP(P) using components of GSP(I);
  5. Create volume GSP(P) using the output indicator approach;
  6. Create volume GSP as an average of GSP(P) and GSP(I/E).

21.39    Current price income GSP(I) is the starting point for volume GSP(P) and GSP(I/E) measures as it is the only measure which is independently produced for current price estimates. Compilation of GSP(P) and GSP(I/E) therefore use the assumption that:

  •  GSP(I) = GSP(E) for current price GSP(I/E); and
  •  GSP(I) = GSP(P) for current price GSP(P).

21.40    Volume estimates of GSP(I/E) and GSP(P) can then be calculated, as it is not possible to produce volume estimates without a current price base.  More detail on the individual steps of GSP compilation are included in following sections.

Income from Gross State Product – GSP(I)

21.41    GSP(I) is derived by summing the income flows from the factors of production (labour and capital). That is the sum of the factor incomes and taxes less subsidies on production and imports:

GSP(I)                 =      compensation of employees
 +      gross operating surplus
 +      gross mixed income
 +      taxes on production and imports
 -       subsidies on production and imports

Compensation of employees 

21.43    Compensation of employees (COE) is allocated to the location where employment occurs. COE is estimated at an industry division and sector level. State estimates of COE are compiled from a range of ABS survey data.

Gross operating surplus and gross mixed income 

21.44    Gross operating surplus and gross mixed income (GOS/GMI) are allocated to the location where production activity occurs (rather than based upon any ownership or head office structure).

21.45    National estimates of GOS by sector are apportioned across states and territories by industry, predominantly using ABS survey data.

21.46    Estimates of GMI are apportioned across states and territories by industry using ABS survey data.

Taxes less subsidies on production and imports

21.47    Taxes less subsidies on production and imports relating to the state and local government sector are allocated directly to the state in which they are collected or paid. It is assumed that all production taxes collected by a particular state government are paid by entities resident in that state. Similarly, it is assumed that any subsidies paid by a state government are paid to resident entities of that state.

21.48    Commonwealth taxes and subsidies are allocated to state using a range of activity indicators such as household final consumption expenditure.

Compensation of employees 

21.49    State by sector estimates of COE are produced annually for the state accounts, and quarterly for Australian National Accounts: National Income, Expenditure and Product. State by industry splits of COE are produced annually for the state accounts.

Annual sector compensation of employees

21.50    Annual state totals for COE are compiled by aggregating sector-based subcomponents which include private and public sector estimates of cash wages and salaries, payments in kind, and employer social contributions (ESC). All components are estimated using a top-down approach; that is, national benchmarks are apportioned across states and territories using source data indicators based on the location of the employer.

21.51    The following table outlines the data sources used to estimate annual compensation of employees.

Table 21.1 Annual compensation of employees data sources – By component
ItemComment
Method
   

National estimates of sectoral COE are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state sectoral COE} = \text{national sectoral COE} \times \left(\frac{\text{state employee expenses indicator}}{\text{national employee expenses indicator}}\right)} \)

Wages and salaries indicators
 Private sector
  Non-farm

            

  

For the current year, wages and salaries data from the Quarterly Business Indicators Survey (QBIS) is used to extrapolate forward wages and salaries data from EAS. Those extrapolated values are used to apportion national private non-farm wages and salaries across states and territories.

From 2006-07 to the reference year, wages and salaries data from the Economic Activity Survey (EAS) (excluding the Agriculture subdivision) is used to apportion national private non-farm wages and salaries across states and territories.

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data from 2006-07. The backcasted values are used to apportion national private non-farm wages and salaries across states and territories.

  Farm

         

  

For the current year, total hours worked estimates from the Labour Force Survey are used to extrapolate EAS wages and salaries data forward. Those extrapolated values are used to apportion national private farm wages and salaries across states and territories.

From 2006-07 to the reference year, Agriculture subdivision wages and salaries data from the Economic Activity Survey (EAS) is used to apportion national private farm wages and salaries across states and territories.

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data from 2006-07. Those backcasted values are used to apportion national private farm wages and salaries across states and territories.

 Public sector
  Defence

           

  

Wages and salaries for defence employees are collected at a national level in Government Finance Statistics (GFS). The national estimates are apportioned across states and territories using the proportion of permanent military personnel in each state and territory.

  Non-defence

            

  

Wages and salaries for non-defence public sector (across all jurisdictions) employees are collected in GFS.

Wages and salaries of domestic Commonwealth public sector employees are apportioned across states and territories based on the share of earnings of employees in each jurisdiction. Estimates from the Survey of Employment and Earnings (SEE) are used to determine the state shares.

Payments to staff of Australian embassies and consulates overseas, are allocated to the Australian Capital Territory.

 Non-cash wages – payments in kind

     

  

Data for state and territory estimates of the value of fringe benefits payable to public sector employees are collected in the survey of Major Labour Costs (MLC). This survey is run intermittently.

Estimates for the latest years, and for years between surveys, are interpolated in line with underlying wage growth for each jurisdiction by sector.

Employer social contributions
 Private sector

 

  

Data for state and territory estimates of employer social contributions are sourced from the intermittent MLC survey.

Estimates for the latest years, and for years between surveys, are interpolated in line with underlying wage growth for each jurisdiction by sector.

 Public sector

 

  

Superannuation paid to public sector employees is collected in GFS. All other components of employer social contributions are sourced from the intermittent MLC survey.

Estimates for the latest years, and for years between surveys, are interpolated in line with underlying wage growth for each jurisdiction by sector.

State by industry compensation of employees 

21.52    Annual state by industry splits of COE are produced using a top-down approach. National industry estimates of COE are apportioned across states and territories using state by industry indicators of wages and salaries.

21.53    The state by industry division indicators of wages and salaries are created by summing data from the Economic Activity Survey (EAS) (for corporations) with data from the Survey of Employment and Earnings (for the general government sector).

21.54    In the current year, where EAS data is not available, wages and salaries data from the Quarterly Business Indicators Survey and estimates of hours worked from the Labour Force Survey are used as indicators

21.55    The state by industry COE estimates are constrained to two sets of benchmarks:

  1. state by sector estimates of COE
  2. national industry division estimates of COE.

21.56    Any residual imbalance is allocated across the state by industry estimates to ensure additivity to both benchmarks.

21.57    The following tables provide additional detail on the method and data sources used to estimate state COE by industry:

Table 21.2 Compensation of employees – All industry divisions, excluding Agriculture, forestry and fishing, Financial and insurance services, and Public administration and safety
ItemComment
Method  

 

 

For the ANZSIC divisions above, estimates of state industry COE are allocated using relevant wages and salaries indicators:

\(\large{ \text {state COE} = \text{national COE} \times \left(\frac{\text{state wages and salaries indicator}}{\text{national wages and and salaries indicator}}\right)} \)

Wages and salaries indicator
 Current year
  Wages and salaries data from the Quarterly Business Indicators Survey is used to extrapolate forward EAS wages and salaries data. Those extrapolated values are added to SEE estimates and then are used to apportion national COE across states and territories.
 2006-07 to reference year
  Wages and salaries data from the Economic Activity Survey (EAS) and the Survey of Employment and Earnings (SEE) are used to apportion national COE across states and territories.
 Prior to 2006-07
  For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data from 2006-07. Those backcasted values are added to SEE estimates and then used to apportion national COE across states and territories.
Table 21.3 Compensation of employees by industry for Agriculture, forestry and fishing (Division a)
ItemComment
Method

 

 

Estimates of state industry COE are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state COE} = \text{national COE} \times \left(\frac{\text{state wages and salaries indicator}}{\text{national wages and and salaries indicator}}\right)} \)

Wages and salaries indicator
 Current year
  Total hours worked from the Labour Force Survey are used to extrapolate forward EAS wages and salaries. Those extrapolated values are added to SEE estimates to derive a state indicator which is used to apportion national COE across states and territories.
 2006-07 to reference year 
  Wages and salaries data from the Economic Activity Survey (EAS) and the Survey of Employment and Earnings (SEE) are used to apportion national COE across states and territories.
 Prior to 2006-07

 

 

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data from 2006-07. Those values are added to SEE estimates and then used to apportion national COE across states and territories.

Table 21.4 Compensation of employees by industry for Financial and insurance services (Division k)
ItemComment
Method

 

 

Estimates of state industry COE are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state COE} = \text{national COE} \times \left(\frac{\text{state wages and salaries indicator}}{\text{national wages and and salaries indicator}}\right)} \)

Wages and salaries indicator
 2006-07 to current year
  Wages and salaries data from the Quarterly Business Indicators Survey (QBIS) and the Survey of Employment and Earnings (SEE) are used to apportion national COE across states and territories.
 Prior to 2006-07
  For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast QBIS data from 2006-07. Those backcasted values are added to SEE estimates and then used to apportion national COE across states and territories.
Table 21.5 Compensation of employees by industry for Public administration and safety (Division o)
ItemComment
Method

 

 

Estimates of state industry COE for are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state COE} = \text{national COE} \times \left(\frac{\text{state wages and salaries indicator}}{\text{national wages and and salaries indicator}}\right)} \)

Wages and salaries indicator
 Current year
  Total state private sector COE is used to extrapolate forward EAS wages and salaries data. Those extrapolated values are added to SEE estimates to derive a state indicator which used to apportion national COE across states and territories.
 2006-07 to reference year 
  Wages and salaries data from the Economic Activity Survey (EAS) and the Survey of Employment and Earnings (SEE) are used to apportion national COE across states and territories.
 Prior to 2006-07
  For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data backwards from 2006-07. Those backcasted values are added to SEE estimates and then used to apportion national COE across states and territories.

Quarterly compensation of employees

21.58    Quarterly state totals for COE are compiled in a manner similar to the annual state by sector COE estimates. Quarterly state COE estimates are aggregated from values of sector-based subcomponents that are calculated by apportioning national estimates across states and territories. Quarterly estimates are benchmarked to annual state totals to ensure consistency between quarterly and annual estimates.

21.59    The following table outlines the method and data sources used to estimate quarterly state compensation of employees.

Table 21.6 Quarterly compensation of employees data sources by component
ItemComment
Wages and salaries
 Private sector
  Non-farm

 

  Wages and salaries for private sector non-farm employees are based on estimates from the Quarterly Business Indicators Survey (QBIS).

 

  Quarterly farm wages and salaries are apportioned across states and territories using estimates of employment from the Labour Force Survey (LFS).
 Public Sector
  Defence

 

  Wages and salaries for defence employees are collected at a national level in Government Finance Statistics (GFS). The national estimates are apportioned across states and territories using the proportion of permanent military personnel in each state and territory.
  Non-defence

 

  

Wages and salaries for non-defence public sector employees are collected in GFS.

Wages and salaries of domestic Commonwealth public sector employees are apportioned across states and territories based on the earnings of employees in each jurisdiction (collected in the Survey of Employment and Earnings).

Payments to staff of Australian embassies and consulates overseas, are allocated to the Australian Capital Territory.

 Non-cash wages – payments in kind
   Estimates for quarterly payments in kind are moved in line with underlying wage growth for states.
Employer social contributions
   Estimates for quarterly employer social contributions are moved in line with underlying wage growth for states.

Gross operating surplus and gross mixed income

21.60    Gross operating surplus (GOS) is the surplus accruing from the production of enterprises, and from the ownership of dwellings. For the general government sector, GOS is equal to the consumption of fixed capital.

21.61    Gross mixed income (GMI) is the surplus accruing from the production of unincorporated enterprises. State level GOS and GMI estimates are then published by industry in an aggregated form as gross operating surplus and mixed income (GOSMI).

21.62    State by industry estimates of GOS and GMI are only calculated annually. There are no quarterly estimates for GOS or GMI by state

Gross operating surplus

21.63    Annual state by industry splits of GOS are produced using a top-down approach. National industry estimates of GOS by sector are apportioned across states and territories using relevant indicators. The state by industry indicators used to split the national benchmarks differ by industry and are determined by sector.

21.64    State by sector splits of GOS are calculated for each industry division and then aggregated to produce total state GOS by industry.

Annual state by industry private non-financial corporations GOS

21.65    Indicators of private sector GOS are predominantly based on state by industry division sales data from the Economic Activity Survey (EAS). Other data are used as indicators where they are more relevant or where EAS is not available.

21.66    The following tables provide additional detail on the method and data sources used to estimate private sector state GOS by industry:

Table 21.7 Private non-functional corporations gross operating surplus – Manufacturing (Division C), Electricity, gas, water and waste services (Division D), Wholesale trade (Division F), Accommodation and food services (Division H), Transport, postal and warehousing (Division I), Information media and telecommunications (Division J), Rental, hiring and real estate services (Division L), Professional, scientific and technical services (Division M), Administrative and support services (Division N), Arts and recreation services (Division R), and Other services (Division S)
ItemComment
Method

 

 

National private non-financial corporation GOS is apportioned across states and territories by industry using relevant output indicators:

\(\large{ \text {state GOS} = \text{national GOS} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 Current year
  

Sales data from the Quarterly Business Indicators Survey (QBIS) is used to extrapolate forward EAS sales estimates. Those extrapolated values are used to apportion national GOS across states and territories by industry.

 2006-07 to reference year  

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national GOS across states and territories by industry.

 Prior to 2006-07

     

 

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data from 2006-07. Those backcasted values are then used to apportion national GOS across states and territories.

Table 21.8 Private non-financial corporations gross operating surplus by industry for Agriculture, forestry and fishing (Division a)
ItemComment
Method

 

 

National Agriculture, Forestry and Fishing GOS is apportioned across states and territories using relevant output indicators:

 \(\large{ \text {state GOS} = \text{national GOS} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 Current year
  Industry output data (see calculation of Agriculture, Forestry and Fishing gross value added by state) is used to extrapolate forward EAS sales data and derive state output indicators which are used to apportion national GOS across states and territories.
 2006-07 to previous year 

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national GOS across states and territories.

 Prior to 2006-07

 

 

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data from 2006-07. Those backcasted values are used to apportion national GOS across states and territories.

Table 21.9 Private non-financial corporations gross operating surplus by industry for Mining (Division b)
ItemComment
Method

 

 

National Mining GOS is apportioned across states and territories using relevant output indicators:

\(\large{ \text {state GOS} = \text{national GOS} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 All years
  Industry output data (see the calculation of Mining gross value added by state) is used to apportion national GOS across states and territories.
Table 21.10 Private non-financial corporations gross operating surplus by industry for Construction (Division e)
ItemComment
Method

 

 

National Construction GOS is apportioned across states and territories using relevant output indicators:

\(\large{ \text {state GOS} = \text{national GOS} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 2006-07 to current year
  Estimates of the value of work done (see the calculation of construction related gross fixed capital formation) are used to apportion national GOS across states and territories.
 Prior to 2006-07

 

 

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast value of construction work done from 2006-07. Those backcasted values are then used to apportion national GOS across states and territories.

Table 21.11 Private non-financial corporations gross operating surplus by industry for Retail trade (Division g)
ItemComment
Method

 

 

Retail Trade estimates of private non-financial corporations GOS are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state GOS} = \text{national GOS} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 All years
  Turnover data from the Retail Trade Survey is used to apportion national GOS across states and territories
Table 21.12 Private non-financial corporations gross operating surplus by industry – Public administration and safety (Division O), Education and training (Division P), and Health care and social assistance (Division Q)
ItemComment
Method

 

 

National GOS by industry are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state GOS} = \text{national GOS} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 Current year
  Population estimates are used to extrapolate forward EAS sales data. Those extrapolated values are used to apportion national GOS across states and territories.
   2006-07 to previous year 
  Sales data from the Economic Activity Survey (EAS) is used to apportion national GOS across states and territories.
 Prior to 2006-07
  For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data backwards from 2006-07. Those backcasted values are then used to apportion national GOS across states and territories.

Annual state by industry public non-financial corporation GOS

21.67    Public non-financial corporations (PNFC) GOS is estimated based on GOS data collected in Government Finance Statistics.

21.68    The following table provides additional detail on the method and data sources used to estimate public non-financial corporations GOS by state:

Table 21.13 Public non-financial corporations gross operating surplus
ItemComment
Method

 

 

Public non-financial corporations GOS estimates by industry division are apportioned across states and territories using GOS indicators:

\(\large{ \text {state GOS} = \text{national GOS} \times \left(\frac{\text{state GOS indicator}}{\text{national GOS indicator}}\right)} \)

GOS indicator
 State and local PNFC

 

 

State and local public non-financial corporations GOS data is sourced from Government Finance Statistics (GFS).

 Commonwealth PNFC
  Commonwealth public non-financial corporations GOS data is apportioned across states and territories using estimates of resident population.
 Total PNFC
  The PNFC GOS indicators for each level of government are aggregated to produce a total PNFC GOS indicator by industry.

Annual state by industry general government GOS

21.69    General government GOS is equal to consumption of fixed capital (COFC) of general government assets. General government GOS is estimated by industry division and is apportioned across states and territories using COFC estimates derived from the state capital stock model. For the current year, population estimates are used to extrapolate forward estimates of COFC

21.70    The following table provides additional detail on the method and data sources used to estimate general government GOS by state

Table 21.14 General government gross operating surplus
ItemComment
Method

 

 

General government GOS estimates by industry division are apportioned across states and territories using consumption of fixed capital (COFC) indicators:

\(\large{ \text {state GOS} = \text{national GOS} \times \left(\frac{\text{state COFC indicator}}{\text{national COFC indicator}}\right)} \)

COFC indicator
 Current year
  Population estimates are used to extrapolate forward estimates of consumption of fixed capital. The resulting values are then used to apportion national general government GOS across states and territories.
 Prior to the current year
  For values prior to the current year, estimates of consumption of fixed capital from the state capital stock model are used to apportion national GOS across states and territories.

Annual state financial and insurance services GOS

21.71    Financial and Insurance Services GOS is estimated using a top-down approach. National GOS for each subdivision is apportioned across states and territories using estimates of hours worked from the Labour force Survey. GOS by subdivision estimates are then aggregated to produce Financial and Insurance Services GOS by state.

21.72    The following table provides additional detail on the method and data sources used to estimate subdivision GOS by state:

Table 21.15 Gross operating surplus for Financial and insurance services (Division k)
ItemComment
Method

 

 

Financial and Insurance Services GOS for each state and territory is calculated by summing estimates of GOS by industry subdivision. National industry subdivision estimates are apportioned across states and territories according to number of hours worked:

\(\large state \space GOS_{Div. K}= \sum \limits _{n=Subdiv} \Big( national \space GOS_n × (\frac{state \space hours \space worked_n}{national \space hours \space worked_n})\big)\)

Hours worked indicator
 All years

 

 

Estimates of the number of hours worked, collected in the Labour Force Survey, are used to apportion national subdivision GOS across states and territories.

Annual ownership of dwellings GOS by state

21.73    Ownership of dwellings GOS for the household sector is estimated using a bottom-up approach but is derived residually from ownership of dwellings output.    

21.74    For the other sectors, ownership of dwellings GOS is estimated using a top-down approach. National estimates of GOS are apportioned across states and territories using estimates of consumption of fixed capital derived from the state capital stock model. For the current year, population estimates are used to extrapolate forward estimates of COFC.

21.75    The following tables provide additional detail on the method and data sources used to estimate ownership of dwellings GOS by state and territory:

Table 21.16 Ownership of dwellings gross operating surplus – Sectors excluding household sector
ItemComment
Method

 

Ownership of dwellings GOS is derived as follows:

     GOS=output
     - intermediate use
     - other taxes on production and imports
     + other subsidies on production and imports

Output

 

Ownership of dwellings output is equivalent to the estimate of household final consumption expenditure on imputed and actual dwelling rent which is compiled for each state and territory.

The data sources and methods used to compile state estimates of
actual and imputed dwelling rent are described in the sections on household final consumption expenditure.

Intermediate use

 

Intermediate use related to ownership of dwellings includes:

  • repairs and maintenance
  • building insurance
  • real estate agent commissions charged for the management of rental properties
  • loan application fees, FISIM and other charges
  • miscellaneous expenses.

Most of these expenses are apportioned across states and territories from national totals using a combination of data sources, including:

  • the Household Expenditure Survey (conducted every six years)
  • household final consumption expenditure estimates
  • consumer price index estimates
Other taxes less subsidies on production and imports

 

Other taxes less subsidies are derived largely from GFS data, relating mainly to rates and land taxes and public housing subsidies. Other taxes less subsidies on production and imports relating to state and local governments are allocated directly to the state in which they are collected or paid.
Table 21.17 Ownership of dwellings gross operating surplus – Sectors excluding household sector
ItemComment
Method

 

 

Ownership of dwellings GOS estimates are apportioned across states and territories using consumption of fixed capital (COFC) indicators by sector:

\(\large{ \text {state GOS} = \text{national GOS} \times \left(\frac{\text{state COFC indicator}}{\text{national COFC indicator}}\right)} \)           

COFC indicator
 Current year
  Population estimates are used to extrapolate forward estimates of consumption of fixed capital to derive a state indicator which is used to national GOS across states and territories.
 Prior to the current year
  For values prior to the current year, estimates of consumption of fixed capital from the state capital stock model are used to apportion national GOS across states and territories.

Gross mixed income

21.76    Annual state by industry splits of GMI are produced using a top-down approach. National industry estimates of GMI are apportioned across states and territories using relevant indicators. 

21.77    The following tables detail the method and data sources used to estimate state by industry division GMI.

Table 21.18 Gross mixed income – Agriculture, forestry and fishing (farm)
ItemComment
Method

 

Estimates of farm GMI are apportioned across states and territories using an output indicator calculated residually from Agriculture, Forestry and Fishing (AFF) gross value added:

\(\large{ \text {state GMI} = \text{national GMI} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator

 

The farm GMI output indicator is derived as follows:

Indicator = AFF gross value added

               - AFF wages and salaries

               - AFF gross operating surplus

               - AFF other taxes less subsidies on production

Table 21.19 Gross mixed income by industry for Agriculture, forestry and fishing (non-farm)
ItemComment
Method

 

 

Estimates of non-farm GMI in the Agriculture, Forestry and Fishing industry division are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state GMI} = \text{national GMI} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 All years

 

 

Forestry and Fishing output data, derived in the calculation of gross value added, is used to apportion national GMI across states and territories.

Table 21.20 Gross mixed income by industry – Mining (Division B), Manufacturing (Division C), Electricity, Gas, Water and Waste Services (Division D), Wholesale Trade (Division F), Transport, Postal and Warehousing (Division I), Information Media and Telecommunications (Division J), Rental, Hiring and Real Estate Services (Division L), Professional, Scientific and Technical Services (Division M), and Administrative and Support Services (Division N)
ItemComment
Method

 

 

For the industry divisions listed above, estimates of GMI are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state GMI} = \text{national GMI} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 Current year

 

 

Sales data from the Quarterly Business Indicators Survey (QBIS) is used to extrapolate forward EAS sales data. Those extrapolated values are used to apportion national GMI across states and territories.

 2006-07 to reference year  

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national GMI across states and territories.

 Prior to 2006-07

 

 

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data from 2006-07. Those backcasted values are then used to apportion national GMI across states and territories.

Table 21.21 Gross mixed income by industry for Construction (Division E)
ItemComment
Method

 

 

Estimates of Construction GMI are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state GMI} = \text{national GMI} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 Current year

 

 

Values of work done from the Building Activity Survey are used to extrapolate forward EAS sales data. Those extrapolated values are used to apportion national GMI across states and territories.

 2006-07 to reference year 

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national GMI across states and territories.

 Prior to 2006-07

 

 

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data from 2006-07. Those backcasted values are then used to apportion national GMI across states and territories.

Table 21.22 Gross mixed income by industry for Retail trade (Division G)
ItemComment
Method

 

 

Estimates of Retail Trade GMI are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state GMI} = \text{national GMI} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 Current year to 2006-07

 

 

Turnover data from the Retail Trade Survey is used to apportion national GMI across states and territories.

 Prior to 2006-07

 

 

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast Retail Trade Survey turnover data from 2006-07. Those backcasted values are then used to apportion national GMI across states and territories.

Table 21.23 Gross mixed income by industry for Accommodation and food services (Division H)
ItemComment
Method

 

 

Estimates of Accommodation and Food Services GMI are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state GMI} = \text{national GMI} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 Current year to 2006-07

 

 

Estimates of household final consumption expenditure (HFCE) on hotels, cafes and restaurants are used to apportion national GMI across states and territories.

 Prior to 2006-07
  For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast HFCE on hotels, cafes and restaurants from 2006-07. Those backcasted values are then used to apportion national GMI across states and territories.
Table 21.24 Gross mixed income by industry – Education and Training (Division P), Health Care and Social Assistance (Division Q), Arts and Recreation Services (Division R), and Other Services (Division S)
ItemComment
Method

 

 

For the industry divisions listed above, estimates of GMI are apportioned across states and territories using relevant output indicators:

\(\large{ \text {state GMI} = \text{national GMI} \times \left(\frac{\text{state output indicator}}{\text{national output indicator}}\right)} \)

Output indicator
 Current year

 

 

Estimates of household final consumption expenditure (HFCE) by relevant spending categories are used to extrapolate forward sales data from the Economic Activity Survey. Those extrapolated values are used to apportion national GMI across states and territories.

 2006-07 to previous year  

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national GMI across states and territories.

 Prior to 2006-07

 

 

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those output indicators are used to backcast EAS data from 2006-07. Those backcasted values are then used to apportion national GMI across states and territories.

Taxes less subsidies on production and imports

21.78    Taxes (and subsidies) on production and imports are disaggregated into two components:

  1. Taxes (and subsidies) on products, which include:
  • taxes that are payable on goods and services when they are produced, delivered, sold, transferred or otherwise disposed of by their producers;
  • taxes and duties on imports payable when goods enter the economic territory or when services are delivered to residents by non-residents; and
  • subsidies are usually payable when the goods or services are produced, sold or imported, transferred, leased, delivered or used for own consumption or own capital formation.
  1. Other taxes (and subsidies) on production, which include:
  • taxes related to the payroll or workforce numbers excluding compulsory social security contributions paid by employers and any taxes paid by the employees themselves out of their wages or salaries; recurrent taxes on land, buildings or other structures; some business and professional licences where no service is provided by the Government in return; taxes on the use of fixed assets or other activities; stamp duties; taxes on pollution; and taxes on international financial transactions; and
  • subsidies other than those on products, including subsidies on the payroll or workforce, and may relate to the total salary bill or the employment of particular types of persons, such as handicapped persons and the long-term unemployed.

21.79    Taxes and subsidies on production and imports are classified as follows:

  • Commonwealth taxes and subsidies; and
  • State and local taxes and subsidies.

Commonwealth taxes and subsidies on production and imports

21.80    Location details for individual Commonwealth taxes and subsidies on production and imports are not recorded; they are therefore allocated to states using available state indicators.

21.81    Individual Commonwealth taxes on products are allocated to state using indicator data. Commonwealth other taxes on production other than renewable energy certificates (RECs) are allocated to the states based on the allocation of total Commonwealth taxes on products.

21.82    Commonwealth subsidies are produced as total subsidies on production and imports. A global split of subsidies on products and other subsidies on production is derived by assuming the ratio of Commonwealth subsidies on products to subsidies on production and imports is the same across states.

21.83    The following tables outline how the Commonwealth taxes and subsidies on production and imports are classified on an annual basis and the indicator that is used to allocate them to the states. This allocation is not performed on quarterly data. While taxes on production and imports are disaggregated into taxes on products and other taxes on production, no attempt is made to derive a similar split for subsidies.

Table 21.25 Annual taxes on production and imports – Commonwealth
TaxTypeIndicator
Sales tax (pre-2000)Tax on productsTotal HFCE
GST (post-2000)Tax on productsHFCE incurring GST
Crude oil & petroleum productsTax on productsHFCE Motor Vehicle Operations
Excises on beer and potable spiritsTax on productsHFCE Alcohol & Tobacco
Excises on tobacco productsTax on productsHFCE Alcohol & Tobacco
Excises n.e.c.Tax on productsTotal state GVA
Export, gambling & insurance taxesTax on productsTotal state GVA
Customs duties on importsTax on productsImports of goods by state
Agriculture taxesTax on productsGVA of the Agriculture, forestry & fishing industry
Renewable energy certificatesOther tax on productionData compiled by the Clean Energy Regulator
Other miscellaneousOther tax on productionResidual allocated to states in the state proportion of Commonwealth taxes on products (sum of above)
Table 21.26 Annual subsidies on production and imports – Commonwealth
SubsidyIndicator
Fuel affairs and services n.e.c.Historic splits of fuel subsidies relating to energy grants scheme from the ABS publication, Mining Operations, Australia– ceased
ManufacturingState total factor income for manufacturing
Non-urban water transport servicesTasmanian Freight Equalisation Scheme (TFES) sourced from Centrelink
Non-urban rail transport freight servicesHFCE rail services consumed
Non-urban rail transport passenger servicesHFCE rail services consumed
Vocational trainingUnemployed Persons - Labour Force Survey
Other labour and employment affairsUnemployed Persons - Labour Force Survey
Other economic affairsWholesale and retail industry total factor income
Renewable energy certificatesData compiled by the Clean Energy Regulator
ResidualAllocated to states based on the state shares of the sum of the subsidies above

State and local taxes and subsidies on production and imports

21.84    State and local taxes and subsidies are assumed to be levied or paid within state of jurisdiction and as such are directly allocated to that state. These are available on a quarterly basis from GFS data, but compilation for the state accounts only occurs annually.

21.85    The following table outlines how the State and local taxes are classified (i.e. a tax on products or other tax on production). No attempt is made to split subsidies into subsidies on products and other subsidies on production.

Table 21.27 Taxes on production and imports – State and local
TaxType
Employers payroll taxesOther tax on production
Motor vehicle taxesOther tax on production
Land taxesOther tax on production
Municipal & metropolitan improvement ratesOther tax on production
Other taxesOther tax on production
Taxes on financial & capital transactionsTax on products
Taxes on gamblingTax on products
Taxes on insuranceTax on products
Franchise taxes - gas productsTax on products
Franchise taxes - petroleum productsTax on products
Franchise taxes - tobacco productsTax on products
Franchise taxes - liquor productsTax on products
Franchise taxes - total franchise taxesTax on products

Known components of expenditure - GSP(E)

Overview

21.86    Known components of GSP(E) are derived as the sum of final consumption expenditure, gross fixed capital formation and international exports of goods and services less international imports of goods and services (net international trade).

21.87    Known components of GSP(E) does not provide a complete measure of GSP as components such as interstate trade and change in inventories are missing.  Despite this the known components of GSP(E) are used extensively to produce and analyse GSP. The process can be summarised as:

  • produce the GSP(I/E) deflator;
  • decompose and analyse the GSP(I/E) measure; and
  • calculate the balancing item. 

21.88    Calculation of GSP(I/E) and the balancing item are described in more detail in following sections.

21.89    Known components of GSP(E) are defined as:  

Household final consumption expenditure (HFCE) 
 +              Government final consumption expenditure (GFCE)
 +              Gross fixed capital formation (GFCF)
 =              State final demand
 +              International exports of goods and services (X)
 –              International imports of goods and services (M)

21.90    The known components of GSP(E) can be summarised as State final demand and net international trade.

State final demand

21.91    State final demand is the aggregate level of final consumption expenditure and gross fixed capital formation within a state over a specified period of time. SFD is defined as the final use of goods and services within a given period by households, government and businesses; that is:

Household final consumption expenditure (HFCE) 
 +              Government final consumption expenditure (GFCE)
 +              Gross fixed capital formation (GFCF)

21.92    In simple terms, SFD is the sum of private and public consumption and investment within a state.

21.93    SFD is a measure of demand in a state economy. Measures of state final demand make no distinction between demand that is met by goods and services produced within the state in question, or by supplies sourced from another state, or from overseas. State final demand is therefore not a measure of the value of production activity occurring within a state, and, as such, should not be used as proxy for Gross State Product.

21.94    Components of state final demand are compiled quarterly, and published in Australian National Accounts: National Income, Expenditure and Product.

21.95    Annual estimates are published in Australian National Accounts: State Accounts and are consistent with the sum of the four quarters, with slight differences due to timing. A brief summary of how each of these components are allocated to state are listed below.

21.96    Components that make up SFD are included below. The conceptual basis for allocation to state as well as data sources used for this purpose varies across components. 

Household final consumption expenditure

21.97    HFCE is allocated by state using the primary residence of the purchaser using indicators from the publications, Retail and Wholesale Industries, Australia: Commodities, 2005-06 and the Household Expenditure Survey, Australia: Summary of Results.

21.98    On a quarterly basis, state components are sourced from the publications, Retail Trade, Australia and Business Indicators, Australia. A range of other administrative data are also used.

Government final consumption expenditure

21.99    GFCE is allocated to the state where the related activity and expenditure occurs. It is split between Commonwealth government and State and local (combined) government.

21.100    Commonwealth government operates across states. Where data is available, consumption items are allocated directly to the location in which consumption takes place, such as university expenditure, or expenditure through the Pharmaceutical Benefits Scheme (PBS). The remainder is allocated based on indicators, including estimated resident population, as well as defence and non-defence Commonwealth government employment.

21.101    It is assumed that state governments only undertake activity in their state. Similarly, local government activity is assumed to be only undertaken within the state to which the local government areas belong.

Gross fixed capital formation

Dwelling and non-dwelling construction

21.102    This includes dwelling and non-dwelling construction, both for the public and private sectors. Fixed physical capital is allocated directly to the state in which it resides.

21.103    Private sector estimates are sourced from the Building Activity Survey (BACS); Engineering Construction Survey (ECS); and the publication. Private New Capital Expenditure and Expected Expenditure, Australia. Public sector capital formation is sourced from Government Finance Statistics.

Machinery and equipment

21.104    Machinery and equipment is allocated to the state in which the equipment is based. This is sourced from the ABS publication, Private New Capital Expenditure and Expected Expenditure, Australia, as well as GFS data.

21.105    Very large items such as weapons systems and commercial aircraft are not allocated to a single state. These are for the protection of all Australian citizens and are allocated to states based on ERP shares. A similar treatment is used for civil aircraft.

Cultivated biological resources

21.106    Cultivated biological resources are allocated to state based on location of livestock and orchards. This is sourced from ABS' agricultural surveys and Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) data.

Intellectual property products

21.107    Intellectual property products include computer software, research and development, and mineral exploration as well as entertainment, literary and artistic originals. These are allocated to the states as follows:

  • mineral exploration – is allocated to the state in which the exploration occurs and is sourced from the ABS publication, Mineral and Petroleum Exploration, Australia;
  • research and development – is allocated to the location of the primary research institution using data from the publication, Research and Experimental Development, Businesses, Australia;
  • computer software – is allocated based on primary location of purchase or production, largely based upon historic weights; and
  • entertainment, literary and artistic originals – are allocated to state using estimated resident population.

International trade

21.108    International trade relates to imports and exports of goods and services of a state with a destination or source outside Australia.  This is divided into merchandise goods trade, and services trade. In the state accounts, merchandise goods trade is produced annually and quarterly, and services trade is produced annually.

Trade in merchandise goods

21.109    Trade in merchandise goods measures goods that cross the Australian customs barrier. These are allocated to state based on the location of where the customs barrier is crossed. If the goods are transported to another state this is treated as an interstate re-export, which is included in the balancing item.  In the national accounts, trade in goods is produced on a Balance of payments (BOP) basis which adjusts for goods which are not captured sufficiently in customs data.

International trade in services

21.110    International trade in services is collected as part of the ABS publication, International Trade in Services by Country, by State and by Detailed Services Category. State allocation is based on the state location of units sampled as part of this survey.

Household final consumption expenditure – sources and methods

21.111    Quarterly household final consumption is largely allocated to states using the top-down approach by using indicators and price deflators. It is compiled according to the COICOP classification. Dwelling rent is the main exception to this and is compiled using the bottom-up approach using data from Census of Population and Housing every five years. Adjustments for interstate and international household consumption are also made.

21.112    Annual estimates for all COICOP categories are produced as the sum of four quarters, with differences in annual and quarterly estimates due mostly to timing differences.

Dwelling rent

21.113    Imputed and actual rent of owner-occupiers are obtained by multiplying the stock of dwellings by the average rent paid by state. Splits between owner-occupied and imputed rent are estimated using data from the Census of Population and Housing. The stocks of dwellings and the rents paid for dwellings by state are obtained from the Population Census. Imputed rent paid for owner-occupied dwellings is calculated by matching average rents reported in the Population Census for detailed level of region and housing type and multiplying this by numbers of owner-occupied dwellings.

21.114    For inter-censal and post-Census periods, the dwelling stock is moved forward using the number of dwelling unit completions by state from Building Activity, Australia. This is then modified by a factor to take account of other changes to the stock of dwellings. Values for average rent paid is updated using data from Housing Occupancy and Costs; industry reports from Australian Property Monitors and the Real Estate Institute of Australia; and the Consumer Price Index (CPI) for privately-owned dwelling rents. This methodology is undertaken quarterly with annual estimates produced by summing quarterly estimates.

Adjustments for interstate and international household consumption

21.115    Household consumption undertaken overseas or interstate by state residents is added to total HFCE.  Consumption by non-state residents (international and interstate) are removed from total state HFCE. This is to ensure that HFCE is representative of state resident household consumption. This is estimated in two parts, using net visitor numbers for interstate as well as international trade in services estimates:

  1. International net expenditure is split to states using data from the ABS publication, International Trade in Goods and Services, Australia; and
  2. Interstate net expenditure is based on net interstate visitor day and night estimates which are produced by Tourism Research Australia (TRA). This is combined with average day and night rates of expenditure to produce a value.

21.116    Both these adjustments are undertaken quarterly with annual estimates produced by summing quarterly estimates.

Quarterly Indicator series, intermittent benchmarks, and volume deflators.

21.117    The table below lists the three elements required to produce state indicators for HFCE.

Table 21.28 HFCE Data sources– By COICOP category
COICOP categoryQuarterly indicator seriesIntermittent benchmarkDeflator
Food and non-alcoholic beverages
  Retail Trade, AustraliaRetail and Wholesale Industries, Australia: Commodities, 2005-06Weighted average of components from the CPI Food and non-alcoholic Beverages group. 
Alcoholic beverages
 Liquor retailers
  Retail Trade, AustraliaRetail and Wholesale Industries, Australia: Commodities, 2005-06Weighted average of components from the CPI Alcoholic beverages sub-group.
 Other liquor
  Business Indicators, AustraliaRetail and Wholesale Industries, Australia: Commodities, 2005-06Weighted average of components from the CPI Alcoholic beverages sub-group.
Cigarettes and Tobacco
  Business Indicators, Australia and imports from International Trade in Goods and Services, AustraliaHousehold Expenditure Survey, Australia: Summary of Results, 2009-10CPI for Tobacco.
Clothing and footwear
  Retail Trade, AustraliaRetail and Wholesale Industries, Australia: Commodities, 2005-06 (cat. no. 8624.0)Weighted average of components from the CPI Clothing and footwear group.
Electricity, gas and other fuels
  Electricity and gas from revenue information from major retail suppliers in each state.Household Expenditure Survey, Australia: Summary of Results, 2009-10Electricity, gas and other fuels revalued using relevant components of the CPI Utilities sub-group.
Furnishings and household equipment
  Retail Trade, AustraliaRetail and Wholesale Industries, Australia: Commodities, 2005-06Weighted CPI for Furniture and household equipment
Health
 Medicines, medical aids and therapeutic appliances
  Retail Trade, Australia - Medical aids and therapeutic appliances GFS for Pharmaceutical Benefits SchemeHousehold Expenditure Survey, Australia: Summary of Results, 2009-10CPI for Pharmaceutical products.
 Hospital, ambulance services and nursing home care  
  Department of Health (DoH) and Private Health Insurance Administration Council (PHIAC)n.a.CPI Health group
Housing, water, electricity, gas and other fuels
 Imputed and actual rentals for housing
  See paragraph 21.93See details aboveQuantity revaluation
 Other services related to the dwelling
  Estimated resident populationHousehold Expenditure Survey, Australia: Summary of Results, 2009-10CPI for Water and sewerage
Purchase of vehicles
  Federal Chamber of Automotive Industries' VFACTSn.a.CPI for Motor vehicles.
Operation of Vehicles
 Fuel
  Australian Petroleum Statistics, published by the Bureau of Resource and Energy Economics (BREE)Household Expenditure Survey, Australia: Summary of Results, 2009-10CPI on Automotive fuel.
 All other motoring goods
  Australian Petroleum Statistics, published by the Bureau of Resource and Energy Economics (BREE)Household Expenditure Survey, Australia: Summary of Results, 2009-10CPI Private motoring sub-group.
Transport
 Public road and rail and water transport
  GFS data from public transport authoritiesn.a.Weighted CPI for Rail, water and road transport
 Air transport
  Revenue data provided by the major airlines.Household Expenditure Survey, Australia: Summary of Results, 2009-10CPI for Air transport
Communication
 Postal Services
  Data from Australia PostHousehold Expenditure Survey, Australia: Summary of Results, 2009-10Quantity revalued using Australia Post data
 Telecommunication services
  Revenue data obtained from the major service providersHousehold Expenditure Survey, Australia: Summary of Results, 2009-10CPI for Telecommunication equipment and services.
Recreation and Culture
 Audio visual, photographic and data processing equipment and accessories
  Retail Trade, AustraliaRetail and Wholesale Industries, Australia: Commodities, 2005-06CPI Audio, visual and computing equipment and services sub-group
 Recreational items and equipment
  Retail Trade, AustraliaRetail and Wholesale Industries, Australia: Commodities, 2005-06Weighted components for CPI
 Sporting and recreational services
  Estimated resident populationHousehold Expenditure Survey, Australia: Summary of Results, 2009-10CPI for Sports participation
 Cultural and entertainment services
  Retail Trade, AustraliaHousehold Expenditure Survey, Australia: Summary of Results, 2009-10CPI Recreation and culture group
Gambling
  GFS taxes on gamblingHousehold Expenditure Survey, Australia: Summary of Results, 2009-10All groups CPI (excluding medical and hospital services)
Education
 Tertiary education
  Receipts from the Higher Education Contribution Scheme (HECS)Household Expenditure Survey, Australia: Summary of Results, 2009-10CPI for Education
 Post-secondary education
  Estimated resident populationHousehold Expenditure Survey, Australia: Summary of Results, 2009-10CPI for Education<
 Primary, secondary education and preschool
  Estimated resident populationHousehold Expenditure Survey, Australia: Summary of Results, 2009-10CPI for Education
Hotels, catering and restaurants
 Catering
  Retail Trade, Australia and Business Indicators, AustraliaRetail and Wholesale Industries, Australia: Commodities, 2005-06Components from the CPI
 Accommodation
  Tourist Accommodation, Australian.a.CPI for Domestic holiday travel and accommodation.
Miscellaneous goods and services
 Personal care
  Retail Trade, Australia and Business Indicators, AustraliaHousehold Expenditure Survey, Australia: Summary of Results, 2009-10CPI Furnishings, household equipment and services group
 Personal effects
  Retail Trade, AustraliaRetail and Wholesale Industries, Australia: Commodities, 2005-06Relevant components from the CPI
Finance and Insurance
 Insurance
  Estimated resident populationHousehold Expenditure Survey, Australia: Summary of Results, 2009-10Motor vehicle insurance CPI, Wage Price Index (LPI) for workers compensation and CPI all groups for all other.
 Finance
  Estimated resident populationHousehold Expenditure Survey, Australia: Summary of Results, 2009-10All groups CPI
Other Services
 Personal outlays on miscellaneous services
  Estimated resident populationHousehold Expenditure Survey, Australia: Summary of Results, 2009-10Relevant components of the CPI and Wage Price Index (LPI)
 NPISH
  Estimated resident populationHousehold Expenditure Survey, Australia: Summary of Results, 2009-10Relevant components of the CPI and Wage Price Index (LPI)

Government final consumption expenditure– sources and methods

21.118    Estimates of GFCE are disaggregated into Commonwealth government and State and local government.

21.119    National government final consumption includes government agencies and jointly administrated universities. National GFCE is disaggregated into defence and non-defence.

21.120    Jurisdictional reporting matches regional boundaries for State and local governments. Therefore, State and local GFCE estimates are compiled using the bottom-up approach. Estimates in the quarterly and annual state accounts are consistent with data published in the GFS, with the exception of timing and some conceptual differences.

21.121    The table below outlines the data sources and methods used in the estimation of quarterly GFCE by level of government. They include both the current price estimates and volume estimates.

21.122    Annual estimates are produced as the sum of quarters with differences due to timing. For GFS estimates this can be significant due to inclusion of audited GFS data from Government Finance Statistics, Australia. This occurs for the state accounts, and also for Australian National Accounts: National Income, Expenditure and Product.

Table 21.29 Government final consumption expenditure – By level of government (quarterly)
ItemComment
National defence
 Current price estimates

 

  

Government Finance Statistics is the primary data source, which in turn is based on data from the Department of Finance.

The data obtained are for the expenditures on defence employees (i.e. wages and salaries and employer social contributions) and on other defence inputs (i.e. operating expenses such as rent, electricity, stationery, etc.) plus details of the value of sales of goods and services. The estimate for government expenditure on Financial Intermediation Services Indirectly Measured (FISIM) is included as part of the costs (i.e. intermediate consumption) of general government.

Consumption of fixed capital is used in place of the depreciation recorded in government accounts. Consumption of fixed capital is the preferred conceptual measure as it is compiled on a current replacement cost basis rather than the historical cost basis used to compute depreciation allowances. It is obtained from the Perpetual Inventory Method (PIM).

There are no state splits of data from GFS, with data split to states using posting location of defence employees. This is sourced from the Department of Defence. 

 Volume estimates

 

  

Defence employee costs are deflated using the Wage Price Index and defence materials are deflated using the Producer Price Indexes.

National non-defence
 Universities
  Current price estimates

 

  

Data for universities are collected from a sample of approximately 22 public universities or just over 50 per cent of the population. This provides enough detail to allow state estimates to be produced.

  Volume estimates

 

  

Estimates for universities are derived by quantity revaluation using the estimated growth in the number of students in each state. For quarterly estimates this is based on trend as there is no quarterly data.

 Pharmaceuticals
  Current price estimates

 

  

Pharmaceutical benefit scheme expenditure by state is produced by the Commonwealth Department of Health.  This is based upon pharmacy location of subsidised medicines.

  Volume estimates

 

  

Volume estimates for pharmaceuticals are price deflated using the CPI data for expenditure on pharmaceuticals.

 Medicare
  Current price estimates

 

  

Medicare data is allocated to state using Commonwealth employment detail from Employment and Earnings, Public Sector.

  Volume estimates

 

  

Medicare estimates are quantity revalued at state level using the estimated growth in medical services (from Medicare and hospital services data).

 Other
  Current price estimates

 

  

Government Finance Statistics is the primary data source, which in turn is based on data from the Department of Finance.

The data obtained are for the expenditures by Commonwealth agencies other than those in the Defence portfolio and by public universities on employees (i.e. wages and salaries and employer social contributions) and on other inputs (i.e. operating expenses such as rent, electricity, stationery, etc.) plus details of the value of sales of goods and services. The estimate for government expenditure on Financial Intermediation Services Indirectly Measured (FISIM) is included as part of the costs (i.e. intermediate consumption) of general government.

Consumption of fixed capital is used in place of the depreciation recorded in government accounts. Consumption of fixed capital is the preferred conceptual measure as it is compiled on a current replacement cost basis rather than the historical cost basis used to compute depreciation allowances. It is obtained from the Perpetual Inventory Method (PIM).

  Volume estimates

 

  

All other national non-defence estimates are price deflated using an index compiled using components of the Consumer Price Index, Wage Price Index and Producer Price Indexes.

State and local
 Current price estimates

 

  

Current price estimates are sourced from GFS data.

Data are provided according to the following components:

  • health;
  • education;
  • redundancies; and
  • superannuation.
 Volume estimates
  Health

         

  

Health estimates are quantity revalued using the estimated growth in medical services. Quarterly estimates are trended as data is only available annually.

  Education

         

  

Education estimates are quantity revalued using the estimated growth in the number of students by state.

  Redundancies

         

  

Redundancy payments for health are quantity revalued using the estimated growth in medical services. Quarterly estimates are trended as data is only available annually.

Redundancy payments for education are quantity revalued using the estimated growth in the number of students by state.

The remainder is price deflated as below using components of the Consumer Price Index, Wage Price Index and Producer Price Indexes.

  Superannuation

         

  

Superannuation estimates are price deflated using indexes compiled from the Wage Price Index.

  All other

         

  

All other State and local government estimates are price deflated using an index compiled using components of the Consumer Price Index, Wage Price Index and Producer Price Indexes.

 

Gross fixed capital formation – Sources and methods

Dwellings

21.123    Gross fixed capital formation (GFCF) for dwellings consists of the value of acquisitions of new and existing (used) dwellings less the value of disposals of existing dwellings. State estimates are derived using the top-down approach.

21.124    The following table outlines the quarterly data sources used to estimate gross fixed capital formation for dwelling construction. Annual estimates are compiled as the sum of quarterly estimates, with differences between quarterly and annual estimates due to timing.

Table 21.30 Gross fixed capital formation – Dwellings
Item  Comment
New and used dwellings
 Current price estimates
  Private

 

  

State splits for new and used dwellings are constructed using new residential building data from the Building Activity Survey.

  Public

         

  

State level estimates are constructed by allocating GFS data for each state to the relevant state. Estimates for the Commonwealth jurisdiction are allocated using a proportion based on public employment from the Survey of Employment and Earnings (SEE).

 Volume estimates

    

  

Total public and private sector new and used dwellings are deflated using Residential Property Price Indexes, Eight Capital Cities. State indexes are derived as a weighted average of a price index for contract-built houses and non-contract-built houses.

Alterations and Additions
 Current price estimates

    

  

Alterations and additions to existing dwellings are estimated using data from the regular Building Activity Survey and from the periodic Household Expenditure Survey (HES).

State estimates are constructed using Alterations and additions to residential buildings from BACS, this excludes estimates under $10,000. These are modelled based on data from the HES. Between HES years the under $10,000 component is assumed to move in the same proportion as items from the BACS survey.

 Volume estimates

    

  

Current price estimates are deflated by applying a two quarter ending moving average of the project home price index from Residential Property Price Indexes, Eight Capital Cities.

Private non-dwelling construction

21.125    Non-dwelling construction at the state level comprises of three components: new building, new engineering construction and net purchases of second-hand assets. State estimates are derived using the top-down approach using data from BACS, ECS and GFS for second-hand assets.

21.126    The following table outlines the quarterly data sources used to estimate gross fixed capital formation for private non-dwelling construction. Annual estimates are compiled as the sum of quarterly estimates, with differences between quarterly and annual estimates due to timing.

Table 21.31 Gross fixed capital formation – Non-dwelling construction
ItemComment
New non-dwelling buildings
 Current price estimates

 

 

The main source is the quarterly Building Activity Survey. This survey covers work done on private sector owned non-residential building valued at $50,000 or more.

The following adjustments are made at the state level:

  • for work done on non-residential building with an approval value of less than $50,000;
  • where approvals are not obtained such as for farm buildings; and
  • for services involved in the construction of the building such as architectural fees.
 Volume estimates

 

 

State-specific price indexes are derived as a three-quarter ending moving average of new building price indexes.

New engineering construction
 Current price estimates

    

 

The main source is the Engineering Construction Survey.

As farm non-dwelling construction is not included in the ECS, adjustments are made to capital formation to estimate expenditure of farm non-dwelling construction.

 Volume estimates

    

 

Current price estimates are deflated using a composite of price indexes for roads, dams, sewerage, electricity infrastructure and telecommunications infrastructure. For all but road construction, these price indexes are derived for Australia only.

The price indexes used are from the Producer Price Indexes, Australia, Wage Price Index, Australia and the Consumer Price Index, Australia.

Net purchases of second-hand assets
 Current price estimates

    

 

The estimates from both the BACS and the ECS are adjusted to reflect net purchases of second-hand assets from the public sector by using Government Finance Statistics data.

 Volume estimates

    

 

Current price estimates are deflated for each state using the state-specific implicit price deflator for the aggregate of private new non-dwelling building and new engineering construction.

Machinery and equipment

21.127    Gross fixed capital formation (GFCF) in machinery and equipment is recorded as the value of the acquisitions of new and existing machinery and equipment, less the value of the disposals of existing machinery and equipment.

21.128    At state level private gross fixed capital formation of machinery and equipment is published with two sub-components: new machinery and equipment and net purchases of second-hand assets.

21.129    The following table outlines the quarterly data sources used to estimate gross fixed capital formation for machinery and equipment. Annual estimates are produced as the sum of four quarters, with differences in annual and quarterly estimates due mostly to timing differences.

Table 21.32 Gross fixed capital formation – Machinery and equipment
ItemComment
New machinery and equipment
 Current price estimates

    

 

State splits are sourced from Survey of New Capital Expenditure (Private New Capital Expenditure and Expected Expenditure, Australia). This survey excludes a number of industries for which adjustment are made including:

  • Agriculture, forestry and fishing industry - import statistics from International Merchandise Imports, Australia.
  • Public administration and safety, Education and training and Health care and social assistance industries are produced annually from GFS data, with estimates modelled quarterly.
 Volume estimates

    

 

Current price estimates of GFCF for new machinery and equipment are deflated using state-specific chain price indexes derived from the Consumer Price Index, Australia; Producer Price Indexes, Australia; International Trade Price Indexes, Australia; and several price indexes from overseas, including the US Bureau of Economic Analysis (BEA) hedonic computer price index.

Net purchases of second-hand equipment
 Current price estimates

    

 

Net purchase of second-hand assets includes:

  • net purchases of second hand assets from the public sector from GFS data;
  • used motor vehicle sales from businesses to households is allocated to states from national ABS Survey of Motor Vehicle Use and motor vehicle sales data available through the VFACTS service; and
  • used equipment sold overseas (which is deducted from private GFCF). Estimates of merchandised goods are used to value used equipment sold overseas.
 Volume estimates

    

 

Current price estimates of GFCF for net purchases of second-hand machinery and equipment are deflated using state-specific chain price indexes derived from the Consumer Price Index, Australia; Producer Price Indexes, Australia; International Trade Price Indexes, Australia; and several price indexes from overseas, including the BEA hedonic computer price index.

Intellectual property products

21.130    Gross fixed capital formation (GFCF) of research and development (R&D) is allocated to the state in which the research work occurs.

21.131    Mineral and petroleum exploration is the value of expenditure on exploration for mineral and petroleum undertaken in each state. Exploration expenditure covers all exploration activity undertaken on land and in state territorial waters, with offshore exploration in Commonwealth waters allocated to closest state of proximity.

21.132    The following table outlines the quarterly data sources used to estimate gross fixed capital formation for intellectual property products. All items with the exception of mineral and petroleum exploration are compiled annually with interpolation used to create quarterly estimates.

Table 21.33 Gross fixed capital formation – Intellectual property products (quarterly)
ItemComment
Research and development
 Current price estimates

    

 

Interpolation of annual estimates.

 Volume estimates

    

 

The volume of capital expenditure on R&D is calculated by deflating the cost-based expenditure values. These current price estimates are deflated using price indexes for labour inputs and other current expenditure used as inputs into the R&D products. This is undertaken at state level. Quarterly estimates for state, like national, are calculated using trend.

Mineral and petroleum exploration
 Current price estimates

    

 

Quarterly estimates are obtained from Mineral and Petroleum Exploration, Australia.

 Volume estimates

    

 

Current price estimates are deflated using a composite index of the Wage Price Index for ANZSIC Division B Mining Division and a producer price index for equipment and material categories associated with exploration—steel pipes and tubes, non-ferrous pipe fittings, iron and steel casting and forging, and other industrial machinery.

Computer software
 Current price estimates

    

 

Interpolation of annual estimates.

 Volume estimates

    

 

Volume estimates are produced by deflating current prices estimates with the Manufacturing Industry (APMI) price index.

Entertainment, literary and artistic originals
 Current price estimates

    

 

Interpolation of annual estimates.

 Volume estimates

    

 

Volume estimates are produced by deflating current prices estimates using a combination of data from Producer Price Indexes, Australia; Consumer Price Index, Australia and the historic publication, Price Indexes of Articles Produced by Manufacturing Industry, Australia (this publication has been ceased but data from it still underpins estimates).

21.133    The following table outlines the annual data sources used to estimate gross fixed capital formation for intellectual property products.

Table 21.34 Gross fixed capital formation – Intellectual property products (annual)
ItemComment
Research and Development
 Current price estimates

 

 

State estimates for both own account R&D expenditure and R&D undertaken on contract by other institutions are derived from the Survey of Research and Experimental Development published in Research and Experimental Development, Businesses, Australia; Research and Experimental Development, Government and Private Non-Profit Organisations, Australia; and Research and Experimental Development, Higher Education Organisations, Australia.

 Volume estimates

 

 

The volume of capital expenditure on R&D is calculated by deflating the cost based expenditure values. These current price estimates are deflated using price indexes for labour inputs and other current expenditure used as inputs into the R&D products. This is undertaken at state level. Quarterly estimates for state, like national, are calculated using trend.

Mineral and petroleum exploration
 Current price estimates

 

 

The sum of quarterly estimates are obtained from Mineral and Petroleum Exploration, Australia.

 Volume estimates

 

 

Current price estimates are deflated using a composite index of the Wage Price Index for ANZSIC Division B Mining and a producer price index for equipment and material categories associated with exploration—steel pipes and tubes, non-ferrous pipe fittings, iron and steel casting and forging, and other industrial machinery.

Computer software
 Current price estimates

 

 

State estimates are derived by allocating national estimates using fixed weight splits produced largely from historic surveys for in house software, as well as packaged software imports for the off-the-shelf component.

 Volume estimates

    

 

Volume estimates are produced by deflating current prices estimates with the Manufacturing Industry (APMI) price index.

Entertainment, literary and artistic originals
 Current price estimates

    

 

State estimates of GFCF of entertainment, library and artistic originals are allocated from the national estimates using Estimated Resident Population.

 Volume estimates

    

 

Volume estimates are produced by deflating current prices estimates using a combination of data from the publications, Producer Price Indexes, Australia; Consumer Price Index, Australia; and the historic publication, Price Indexes of Articles Produced by Manufacturing Industry, Australia (this publication has been ceased but data from it still underpins estimates).

Ownership transfer costs

21.134    Ownership transfer costs at state level consist of the following components:

  • fees paid to lawyers associated with the transfer of ownership;
  • fees and commissions paid to real estate agents, auctioneers, architects, surveyors, engineers and valuers;
  • stamp duty;
  • titles Office charges; and
  • local government charges.

21.135    The following table outlines the quarterly data sources used to estimate gross fixed capital formation for ownership transfer costs. Annual estimates are produced as the sum of four quarters, with differences in annual and quarterly estimates due mostly to timing differences.

Table 21.35 Gross fixed capital formation – Ownership transfer costs
ItemComment
Ownership transfer costs
 Current price estimates

 

 

Stamp duty estimates are based on quarterly data from each State Titles Offices. These estimates are based on the number of Land Title Transfer transactions occurring in each state for the quarter, and local government charges are estimated from the number of transactions occurring in each quarter.

Real estate agents' commissions and lawyers' fees are derived from movements in a composite indicator based on state data for the number and value of real estate transactions.

Data on the number of transactions and average sale prices are obtained from State Titles Offices (land title transfers) and Valuers-General departments (average sale prices).

 Volume estimates

 

 

Volume estimates for ownership transfer costs are derived by quantity revaluation at the state level, by multiplying the number of transactions by the average price in the previous year.

Cultivated biological resources

21.136    Cultivated biological resources data are compiled by state for animal resources (livestock), as well as crop and plant resources yielding repeat products (orchard growth).

21.137    The following table outlines the quarterly data sources used to estimate gross fixed capital formation for cultivated biological resources. Annual estimates are produced as the sum of four quarters, with differences in annual and quarterly estimates due mostly to timing differences.

Table 21.36 Gross fixed capital formation – Cultivated biological resources (quarterly)
ItemComment
Livestock
 Current price estimates

 

 

Livestock uses sheep and cattle numbers adjusted slaughtering and exports from Livestock Products, Australia at state level.

Data on acquisition and disposal prices of other animals are calculated using the ABARES publication, Agriculture Commodities. Values for sheep and cattle are estimated by multiplying the number of animals by an average price per head.

 Volume estimates

 

 

Quantity revalued using ABARES data on herd size.

Orchard growth
 Current price estimates

 

 

Orchard growth is estimated using number of trees and hectares of vines. These data are available annually from the ABS publication, Agricultural Commodities, Australia.

The current price value is derived by applying average costs incurred in the planting and growing of orchards to this data.

 Volume estimates

 

 

Quantity revalued using number of trees and hectares of vines data outlined above.

Public corporations

21.138    Public corporations capital formation is split into Commonwealth, and State and local.

21.139    The following table outlines the quarterly data sources used to estimate gross fixed capital formation for public corporations. Annual estimates are produced as the sum of quarters with differences due to timing. For GFS estimates these timing differences can be significant due to inclusion of audited GFS data from Government Finance Statistics, Australia. These timing differences arise in the state accounts, and also in Australian National Accounts: National Income, Expenditure and Product.

Table 21.37 Gross fixed capital formation – Public corporations
ItemComment
Commonwealth
 Current price estimates

 

 

Government Finance Statistics is the main source for Commonwealth Public Corporations GFCF.

Intellectual property products estimates are constructed using external and internal data sources including Research and Experimental Development, Businesses, Australia.

Commonwealth Public Corporations GFCF is allocated to states using estimated resident population data. Allowances are made to allocate significant identifiable projects to the states where they occur.

 Volume estimates

 

 

Volume estimates are compiled from current price estimates using price deflation. Deflation is performed using composite deflators of various price indexes constructed using annual current price asset composition as weights.

State and local
 Current price estimates

 

 

Government Finance Statistics is the main source for State and local Public Corporations GFCF.

Intellectual property products estimates are constructed using external and internal data sources including Research and Experimental Development, Businesses, Australia.

 Volume estimates

 

 

The volume estimates are compiled from current price estimates using price deflation. Deflation is performed using composite deflators of various price indexes constructed using annual current price asset composition as weights

General government

21.140    General government capital formation is allocated to Commonwealth and State and local government using data from GFS. Commonwealth is further separated into defence and non-defence.

21.141    The following table outlines the quarterly data sources used to estimate gross fixed capital formation for general government. Annual estimates are produced as the sum of quarters with differences due to timing. For GFS estimates these timing differences can be significant due to inclusion of audited GFS data from Government Finance Statistics, Australia. These timing differences arise in the state accounts, and also in Australian National Accounts: National Income, Expenditure and Product.

Table 21.38 Gross fixed capital formation – General government
ItemComment
National defence
 Current price estimates

 

 

Government Finance Statistics is the main source for Commonwealth Defence GFCF.

Intellectual property products estimates are constructed using external and internal data sources including Research and Experimental Development, Government and Private Non-Profit Organisations.

Commonwealth Defence GFCF for fixed assets and computer software are allocated to states using Commonwealth employment from the ABS publication, Employment and Earnings, Public Sector, Australia. Allowances are made to allocate significant identifiable projects to the states where they occur.

Defence weapons systems, and Research and development are allocated using estimated resident population data.

 Volume estimates

 

 

The volume estimates are compiled from current price estimates using price deflation. Deflation is performed using composite deflators of various price indexes constructed using annual current price asset composition as weights.

National non-defence
 Current price estimates

 

 

Government Finance Statistics is the main source for National Non-defence GFCF.

Intellectual property products estimates are constructed using external and internal data sources including Research and Experimental Development, Government and Private Non-Profit Organisations.

National non-defence GFCF is allocated to states using Commonwealth employment from the ABS publication, Employment and Earnings, Public Sector, Australia. Allowances are made to allocate significant identifiable projects to the states where they occur.

 Volume estimates

 

 

The volume estimates are compiled from current price estimates using price deflation. Deflation is performed using composite deflators of various price indexes constructed using annual current price asset composition as the weights.

State and local
 Current price estimates

 

 

Government Finance Statistics is the main source for State and local GFCF.

Intellectual property products estimates are constructed using external and internal data sources including Research and Experimental Development, Government and Private Non-Profit Organisations.

 Volume estimates

 

 

The volume estimates are compiled from current price estimates using price deflation. Deflation is performed using composite deflators of various price indexes constructed using annual current price asset composition as weights.

International trade in goods and services – sources and methods

21.142    International trade in merchandise goods are allocated to state based on the location at which the customs barrier is crossed.

21.143    Published state level merchandise goods trade is not consistent with trade estimates for the national accounts which is produced on a balance of payments (BOP) basis. The difference for each state is reconciled on a BOP basis, with the difference between state merchandise trade and state allocations on a BOP basis included as part of the balancing item.

Merchandise goods basis splits

21.144    The following tables outline the data sources and methods used to estimate international trade in goods and services:

Table 21.39 International trade – Goods
ItemComment
Annual current price estimates
 Merchandise goods is consistent with ABS publication, International Trade, with BOP basis reconciliation values consistent with ABS publication Balance of Payments and International Investment Position, Australia.
Annual volume estimates
 Annual state merchandise goods exports and imports for volume are consistent with ABS publication, International Trade, with related BOP basis reconciliation values consistent with ABS publication Balance of Payments and International Investment Position, Australia.
Table 21.40 International trade – Services
ItemComment
Current price estimates
 Current price international trade in services data is allocated to state using data from International Trade in Services by Country, by State and by Detailed Services Category. These estimates are benchmarked to national estimates of international trade in services.
Volume estimates

 

Volume measures are obtained by deflation of the current price values, using relevant ABS price indexes underlying those published in:

GSP(I/E) Measure

21.145    The GSP(I/E) is a derived income and expenditure measure used to overcome the inability to derive all components of the GSP(E) measure. This approach relies on the assumption that GSP(E) is equal to GSP(I). 

21.146    The compilation of the GSP(I/E) measure involves a number of steps:

  1. Derive current price GSP(I);
  2. Assume GSP(I) equals GSP(E), and obtain current price GSP(I/E);
  3. Aggregate known components of GSP(E) (i.e. state final demand and international trade), for current price and volume estimates;
  4. Calculate adjustments to known components of GSP(I/E) for current price and volume estimates. These are largely modelled estimates which are added to ensure price deflators more accurately reflect state economies;
  5. Calculate volume and current price aggregates for adjusted known components of GSP(E). This involves adding adjustment calculated as part of step 4  to aggregate known components of GSP(E) in Step 3;
  6. Produce an implicit price deflator (IPD) using adjusted known components of GSP(E) created as part of Step 5;
  7. Apply the IPD (from Step 6) to the current price GSP(I/E) to derive GSP(I/E) in volume terms; and
  8. Create balancing item as a residual of GSP(I/E) and known components of GSP(E) for current price and volume components.

GSP(I/E) Current price

21.147    Current price GSP(I/E) is produced by assuming GSP(I) is equal to GSP(E) (which cannot currently be measured entirely using available data sources).  This relies on the national accounts where for balanced supply-use years GDP(I) is equal to GDP(E). GSP(I) is then used to allocate GDP to states to produce current price GSP(I/E).

21.148    GSP(I/E) is benchmarked to the average of current price GDP(I) and GDP(E) for the current year and pre-supply-use years, wherein GDP(I) is not equal to GDP(E); that is:

  1. create Australia-level GDP(I/E):

    \(\large GDP(I⁄E)= \frac{GDP(E)+GDP(I)}{2}\)

  1. benchmark the state income measure to the above GDP(I/E) measure:

    \(\large GSP(I⁄E)= \frac{GSP(I)}{GDP(I)} ×GDP(I⁄E)\)

Known components of GSP(E)

21.149    Current price and volume known components of GSP(E) are aggregated as the sum of state final demand, net international merchandise trade in goods and net trade in services.

 = state final demand
 + net international trade in merchandise goods (exports – imports)
 + net international trade in services (exports – imports)

21.150    Four adjustments are made to known components of GSP(E) to produce adjusted known components of GSP(E):

  • Net HFCE interstate;
  • net BOP basis reconciliation to international merchandise goods trade (exports – imports);
  • modelled net interstate trade in goods; and
  • modelled interstate re-exports/imports.

21.151    Adjusted known components of GSP(E) is calculated as:

known components of GSP(E)
 –  net HFCE interstate
 + net BOP basis reconciliation to international merchandise goods  trade
 + modelled net interstate trade in goods
 + modelled interstate re-exports/imports        

21.152    Sources and methods for calculating these components are described below. None of these items are published directly due to quality and confidentiality concerns with the data. Despite these concerns, removing these adjustments would adversely affect the quality of the GSP(I/E) price deflator. Calculation of the GSP(I/E) deflator is the main reason why these adjustments to known components of GSP(E) are applied.

Net interstate expenditure adjustment

21.153    A net interstate expenditure adjustment is made to HFCE to ensure that HFCE is representative of state resident household consumption. This adjustment is offset as part adjustments to known GSP(E) item as net interstate expenditure is representative of interstate trade, and hence should be reflected in the GSP(I/E) price deflator.

21.154    This treatment is similar to that in the national accounts, where consumption by international visitors is not included as part of HFCE. The value of this is then added to GSP as part of exports of services.

Balance of payments adjustments to international merchandise goods trade

21.155    Known components of GSP(E) include trade in goods on a merchandise trade basis rather than the more conceptually correct balance of payments basis. However, reconciliation to a BOP  basis is made for each state.   This reconciliation is made to known components of GSP(E) to ensure the balance of payments reconciliation is represented in the GSP(I/E) deflator.

Modelled net interstate trade in goods

21.156    Interstate trade in goods relate to interstate imports and exports of domestically produced goods. The value of interstate imports and exports of goods are sourced for Queensland from the ABS publication, Interstate Trade, Queensland (cat. no. 8502.3). For the remaining states, indicators of interstate exports and imports are derived using activity indicators to extrapolate historic estimates produced by the Monash University Centre of Policy Studies in 1987. This assumes that state relativities have not changed in this time.

Modelled interstate re-exports/imports

21.157    Interstate re-exports/imports occur when the state of final destination of international trade is different to the state in which goods cross the customs barrier. Similarly to interstate trade in goods, this estimate is produced by extrapolating historic estimates produced by the Monash University Centre of Policy Studies in 1987 using volume indicators of international trade.

Volume GSP(I/E)

21.158    A volume measure of GSP(I/E) is created by deflating current price GSP(I/E) with the GSP(I/E) deflator.

    \(\large Volume \space GSP(I⁄E)= \frac{current \space price \space GSP(I/E)}{GSP(I/E)Deflator}\)

GSP(I/E) Deflator

21.159    A price deflator for GSP(I/E) is created using current price and volume estimates of adjusted known components GSP(E).

21.160    The GSP(I/E) implicit price deflator is calculated as:

    \(\large GSP(I⁄E) IPD= \frac{current \space price \space Adjusted \space known \space components \space GSP(E)}{chain \space volume \space Adjusted \space known \space components \space GSP(E)}\)

The balancing item

21.161    The balancing item in state accounts has a slightly different meaning than the corresponding items in the national accounts. Balancing items in the ASNA are key macroeconomic indicators (see paragraph 3.32), whereas the same item is the difference between known components of GSP(E) and GSP(I/E) in the state accounts. It implicitly comprises total net interstate trade in goods and services; changes in inventories; and other miscellaneous components.

21.162    Other miscellaneous components of the balancing item are generally items that are not covered in GSP(E) known components, due to measurement or other issues. An example is BOP basis reconciliation values to merchandise trade which are included as part of the balancing item. There are other measurement issues at state level which cannot be identified.

21.163    The balancing item is calculated as follows for both current price and volume components:

    \(\large Balancing\space item = GSP(I/E) – known \space components \space of \space GSP(E)\)

21.164    The balancing item is broken up further into identified and unidentified components. The identified components are estimated but are not published due to confidentiality or quality concerns.

Identified component

21.165    The identified component of the balancing item includes some items for which estimates are produced but are not of sufficient reliability to publish. The following are calculated as part of the adjustment to known components of GSP(E):

  • net HFCE interstate;
  • net BOP basis reconciliation to international merchandise goods trade;
  • modelled net interstate goods trade; and
  • modelled interstate re-exports/imports.

21.166    Additionally estimated are:

  • changes in inventories; and
  • balancing item discrepancy.

Changes in inventories

21.167     Changes in inventories are split using the top-down approach at an industry level to states based on state GVA for these industries. State splits of changes in inventories are only produced for analytical purposes and are not published.

Balancing item discrepancy

21.168    The balancing item discrepancy is the allocation of the national statistical discrepancy across the states. This ensures consistency between the sum of the states and Australia. It is allocated to states based upon state shares of GSP(I) for both current price and volume estimates.

Unidentified component

21.169    The unidentified component of the balancing item is calculated residually as follows:

Unidentified component = Total balancing item
 –  Identified components

21.170    The unidentified component conceptually represents interstate trade in services, but it also embodies any remaining discrepancies that occur across state measures of expenditure and income due to underlying measurement issues.

Production approach of gross state product – GSP(P)

Overview

21.171    Production of gross state product (GSP(P)) is calculated in both current price values and chain volume measures as the sum of gross value added (GVA) and taxes less subsidies on products:

    \(\large GSP(P)= gross \space value \space added+taxes \space on \space products-subsidies \space on \space products\)

21.172    Gross value added is defined as the output of goods and services produced less total intermediate use of the goods and services used in the creation of that output

    \(\large Gross \space Value \space Added=Output-Total \space Intermediate \space Use\)

21.173    Estimates of GVA by state are compiled by industry at the ANZSIC division level.

21.174    Taxes and subsidies on products relate to those taxes and subsidies which are payable per unit of a good or service.

21.175    Taxes and subsidies on products relating to state and local governments are allocated directly to the state in which they are collected or paid.

21.176    Commonwealth taxes and subsidies are allocated to states and territories using a range of activity indicators, such as household final consumption expenditure.

Gross value added

21.177    Annual state by industry splits of GVA are produced using a top-down output indicator approach. National industry estimates of GVA are apportioned across states and territories using indicators of output. For each industry division, except Agriculture, Forestry and Fishing, the national ratio of output to intermediate use is assumed to be equal across states and territories.

Annual state by industry gross value added

21.178    Indicators of output are predominantly based on state by industry subdivision sales data from the Economic Activity Survey (EAS). Other data are used as indicators where they are more relevant or where EAS is not available.

21.179    The following tables provide additional detail on the method and data sources used to estimate GVA, in current price values and volumes.

Table 21.41 Gross value added by industry - Manufacturing (ANZSIC Division C), Wholesale Trade (Division F), Accommodation and Food Services (Division H), Information Media and Telecommunications (Division J), Rental, Hiring and Real Estate Services (Division L), Professional, Scientific and Technical Services (Division M), Administrative and Support Services (Division N), and Other Services (Division S)
ItemComment
Method

 

 

State estimates of GVA by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU. Industry division estimates are calculated as the sum of relevant SUIC industry estimates.

\(\Large state \space output_{SUIC}= national \space output_{SUIC} \times \Big ( \frac{state \space output \space indicator_{SUIC}}{national \space output \space indicator_{SUIC} }\Big)\)

\(\Large state \space TIU_{SUIC}=state \space output_{SUIC} ×\Big(\frac{ national \space TIU_{SUIC}}{national \space output_{SUIC} } \Big)\)

\(\Large state\space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{industry \space division}=\sum \limits_{SUIC}(state \space GVA_{SUIC} ) \)

Estimates in current prices are deflated using national level price indices, and chained, to produce chain volume measures of output, TIU and GVA.

Output indicator
 Current year

 

 

Sales data from the Quarterly Business Indicators Survey (QBIS) is used to extrapolate forward EAS sales data. Those extrapolated values are then used to apportion national output across states and territories.

 2006-07 to reference year 

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national output across states and territories.

 Prior to 2006-07

 

 

QBIS sales data is used to backcast EAS sales data from 2006-07. Those backcasted values are then used to apportion national output across states and territories.

Deflation
 2001-02 to current year

 

 

National price indices by SUIC industry are used to deflate estimates of output by industry and state.

The price indices used are the same as those used to derive volume estimates in QBIS.

Prior to 2001-02
 Current price values and volume estimates

 

 

For values prior to 2001-02, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those estimates are used to backcast the output indicators from 2001-02 (for both current price values and chain volume measures). Those backcasted values are then used to apportion national output across states and territories.

Table 21.42 Gross value added by industry for Agriculture (ANZSIC subdivision 01)
ItemComment
Method

 

 

State estimates of output and intermediate use by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using product level indicators. GVA is derived as the difference between output and TIU. Industry division estimates are calculated as the sum of relevant SUIC industry estimates.

\(\Large state \space output_{SUIC}= national \space output_{SUIC} × \sum \limits _{Product} \frac{\space state \space output \space indicator_{product}}{national \space output \space indicator_{product} }\)

\(\Large state \space TIU_{SUIC}= national \space TIU_{SUIC} × \sum \limits _{Product} \frac{\space state \space output \space indicator_{product}}{national \space output \space indicator_{product} }\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{subdivision01}=\sum \limits_{SUIC}(state \space GVA_{SUIC} ) \)

Agricultural output at state level is compiled for the following products:

  • livestock
  • milk, eggs, and honey
  • wool
  • cereal grains
  • barley, oats, rice, sorghum & cereal grains n.e.c.
  • other grains n.e.c.
  • fodder & grass
  • plants & flowers
  • sugar cane
  • other agriculture (includes cotton, wine grapes and hops).

Volume estimates of output are calculated by quantity revaluing CPV estimates using the quantity of output. Selected products of intermediate use are calculated by quantity revaluing CPV estimates. Other selected products are price deflated using mainly producer price indexes.

State estimates of quantity by product are calculated using the same top-down approach as for the CPV estimates. The resulting volume series are chained, to produce chain volume measures of output, TIU and GVA.

Output indicator - Current price value and volume estimates 
 Current year

 

 

Latest year estimates are produced using output indicators derived from the Agricultural Commodities report published by Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

 2001-02 to reference year

 

 

Detailed commodity data is available from Value of Agricultural Commodities Produced, Australia

Intermediate use indicator – Current price value and volume estimates
 Current year

 

 

Latest year estimates are produced using output indicators derived from the Agricultural Commodities report published by Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

 Prior to current year

 

 

Marketing costs are derived from Value of Agricultural Commodities Produced, Australia. Costs are compiled at a product level. To derive volume estimates, marketing costs are quantity revalued using output quantity indicators.

Seed costs indicator is derived from ABARES data on agricultural commodity sowing areas as the indicator. Fodder costs are derived using livestock output as the indicator. To derive volume indicators, manufactured fodder is deflated using relevant national prices indexes from the Producer price Indexes. Hay is quantity revalued using data from Value of Agricultural Commodities Produced.

Other input costs such as chemicals, electricity, fuel and maintenance are apportioned across states using ABARES data. Volume estimates for fertiliser is derived using a national deflator which is derived by revaluing national fertiliser costs. For other input costs, current price value estimates are deflated using the relevant national level component price indices published in the Agricultural Commodities report by ABARES.

Table 21.43 Gross value added by industry for Forestry, fishing and agricultural support services (ANZSIC subdivisions 02-05)
ItemComment
Method

 

 

State estimates of output and intermediate use by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using product level indicators. GVA is derived as the difference between output and TIU. Industry division estimates are calculated as the sum of relevant SUIC industry estimates.

 \(\Large state \space output_{SUIC}= national \space output_{SUIC} × \sum \limits_{Product} \frac{\space state \space output \space indicator_{product}}{national \space output \space indicator_{product} }\)

\(\Large state \space TIU_{SUIC}= national \space TIU_{SUIC} × \sum \limits _{Product} \frac{\space state \space output \space indicator_{product}}{national \space output \space indicator_{product} }\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{subdivision02-05}=\sum \limits _{SUIC}(state \space GVA_{SUIC} ) \)

Volume estimates of output are calculated by quantity revaluing CPV estimates using the quantity of output. Volume estimates of intermediate use is apportioned across states using proportions of intermediate use volumes derived by deflating current price values using output prices.

State estimates of quantity by product are calculated using the same top-down approach as for the CPV estimates. The resulting volume series are chained, to produce chain volume measures of output, TIU and GVA.

Output indicator - Current price value and volume estimates
Series span
 Forestry and logging
  Current price values of output are estimated based on the production values of softwood and hardwood sourced from ABARES. Volume estimates are derived by quantity revaluing the current price value of output, using production quantities of softwood and hardwood sourced from ABARES
 Fishing and aquaculture
  The value of commodities including prawns, lobster, abalone, scallops, oyster, tuna, other fish by state are sourced from ABARES data. Volume estimates are derived by quantity revaluing the current price value of output, using quantity date from ABARES, including aquaculture output.
Intermediate use indicator – Current price value and volume estimates
Series span Agricultural, Forestry and Fishing Support Services output is the indicator for intermediate use in current price and volume estimates.
Table 21.44 Gross value added by industry for Mining (Division B)
ItemComment
Method

 

 

Subdivisions 06, 07, 08 and 09: State estimates of GVA by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using commodity level indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU. ANZSIC division estimates are calculated as the sum of relevant SUIC industry estimates.

\(\Large state \space output_{SUIC}= national \space output_{SUIC} × \sum \limits _{commodity} \frac{ state \space output \space indicator_{Commodity}}{national \space output \space indicator_{Commodity}}\)

\(\Large state \space TIU_{SUIC}=state \space output_{SUIC} × \Big( \frac{national \space TIU_{SUIC}}{national \space output_{SUIC} } \Big)\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{DivB}=\sum \limits _{SUIC}(state \space GVA_{SUIC} ) \)

Volume estimates of output are calculated by quantity revaluing CPV estimates using the quantity of output by commodity. State estimates of quantity by commodity are calculated using the same top-down approach as for the CPV estimates. The resulting volume series are chained, to produce chain volume measures of output, TIU and GVA.

Subdivision 10: Compiled using the same method as the majority of industry divisions (as listed in an earlier table).

Output indicator
Subdivisions 06-09
 2001-02 to current year

 

 

Mining commodities data collected from state and territory government is used to apportion national value and quantity estimates across states and territories.

Subdivision 10
 Current year

 

 

 

Sales data from the Quarterly Business Indicators Survey (QBIS) is used to extrapolate forward EAS sales data. Those extrapolated values are then used to apportion national output across states and territories.

 2006-07 to reference year 

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national output across states and territories.

 Prior to 2006-07

 

 

QBIS sales data is used to backcast EAS data from 2006-07. Those backcasted values are then used to apportion national output across states and territories.

Deflation (subdivision 10)
 2001-02 to current year

 

 

National price indices for subdivision 10 are used to deflate CPV estimates of state output.

Prior to 2001-02
 Current price value and volume estimates

 

 

For values prior to 2001-02, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those estimates are used to backcast the output indicators from 2001-02 (for both current price values and chain volume measures). The backcasted values are then used to apportion national output across states and territories.

Table 21.45 Gross value added by industry for Electricity, gas, water and waste services (Division D)
ItemComment
Method

 

 

State estimates of GVA by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU. ANZSIC division estimates are calculated as the sum of relevant SUIC industry estimates.

 \(\Large state \space output_{SUIC}= national \space output_{SUIC} × \Big( \frac{ state \space output \space indicator_{SUIC}}{national \space output \space indicator_{SUIC}} \Big)\)

\(\Large state \space TIU_{SUIC}=state \space output_{SUIC} × \Big( \frac{national \space TIU_{SUIC}}{national \space output_{SUIC} } \Big)\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{DivD}=\sum \limits _{SUIC}(state \space GVA_{SUIC} ) \)

CPV estimates are deflated using national level price indices, and chained, to produce chain volume measures of output, TIU and GVA.

Output indicator
 Current year

 

 

Sales data from the Quarterly Business Indicators Survey (QBIS), in conjunction with sales data for the public non-financial corporation sector sourced from Government Finance Statistics (GFS), is used to extrapolate forward EAS sales data. Those extrapolated values are then used to apportion national output across states and territories.

 2006-07 to reference year 

 

 

Sales data from the Economic Activity Survey (EAS) in conjunction with sales data for the general government sector sourced from GFS (for subdivisions 28 and 29), is used to apportion national output across states and territories.

 Prior to 2006-07

 

 

QBIS and GFS sales data is used to backcast EAS data from 2006-07. Those backcasted values are then used to apportion national output across states and territories.

Deflation
 2001-02 to current year

 

 

National price indices by SUIC industry are used to deflate CPV estimates of state output. The price indices used are the same as those used to derive volume estimates in QBIS.

Prior to 2001-02
 Current price values and volume estimates

 

 

For values prior to 2001-02, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those estimates are used to backcast the output indicators from 2001-02 (for both current price values and chain volume measures). Those backcasted values are then used to apportion national output across states and territories.

Table 21.46 Gross value added by industry for Construction (Division E)
ItemComment
Method  

 

 

State estimates of GVA by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU. ANZSIC division estimates are calculated as the sum of relevant SUIC industry estimates.

\(\Large state \space output_{SUIC}= national \space output_{SUIC} × \Big( \frac{ state \space output \space indicator_{SUIC}}{national \space output \space indicator_{SUIC}} \Big)\)

\(\Large state \space TIU_{SUIC}=state \space output_{SUIC} × \Big( \frac{national \space TIU_{SUIC}}{national \space output_{SUIC} } \Big)\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{DivE}=\sum \limits_{SUIC}(state \space GVA_{SUIC} ) \)

CPV estimates are deflated using state and national level price indices, and chained, to produce chain volume measures of output, TIU and GVA.

Output indicator
Subdivisions 30 and 31
 Series span

 

 

Quarterly estimates of gross fixed capital formation, that are conceptually aligned to the subdivisions, are annualised, and aggregated, then used to apportion national output across states and territories.

Subdivision 32
 Current year

 

 

Sales data from the Quarterly Business Indicators Survey (QBIS) is used to extrapolate forward EAS sales data. Those extrapolated values are then used to apportion national output across states and territories.

 2006-07 to reference year

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national output across states and territories.

 2001-02 to 2005-06

 

 

QBIS sales data is used to backcast EAS data from 2006-07. Those backcasted values are then used to apportion national output across states and territories.

 Prior to 2001-02

 

 

For values prior to 2001-02, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those estimates are used to backcast the output indicators from 2001-02 (for both current price values and chain volume measures). Those backcasted values are then used to apportion national output across states and territories.

Deflation
Subdivisions 30 and 31

 

 

State and territory construction price information is used to deflate CPV estimates of state output through the entire time series.

Subdivision 32

 

 

National price indices by SUIC industry are used to deflate CPV estimates of state output from 2001-02 to current year. In the back series, historical volume estimates are used to backcast CPV estimates of state and territory output.

Table 21.47 Gross value added by industry for Retail trade (Division G)
ItemComment
Method

 

 

State estimates of GVA for the industry division are calculated by apportioning national current price value (CPV) estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU.

 \(\Large state \space output_{DivG}= national \space output_{DivG} × \Big( \frac{ state \space output \space indicator_{DivG}}{national \space output \space indicator_{DivG}} \Big)\)

\(\Large state \space TIU_{DivG}=state \space output_{DivG} × \Big( \frac{national \space TIU_{DivG}}{national \space output_{DivG} } \Big)\)

\(\Large state \space GVA_{DivG}=state \space output_{DivG}-state \space TIU_{DivG}\)

CPV estimates are deflated using state level price indices, and chained, to produce chain volume measures of output, TIU and GVA.

Output indicator
 Current year

 

 

Sales data from the Retail Trade Survey is combined with HFCE data on motor vehicle purchases and motor vehicle operations expenses, and is used to extrapolate forward EAS sales data. Those extrapolated values are then used to apportion national output across states and territories.

 2006-07 to reference year  

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national output across states and territories.

 Prior to 2006-07

 

 

The combined Retail Trade and HFCE data is used to backcast EAS data from 2006-07. Those backcasted values are then used to apportion national output across states and territories.

Deflation
Series span

 

 

State price indices for the division are used to deflate CPV estimates of state output. The price indices used are the same as those used to derive volume estimates for the Retail Trade survey.

Table 21.48 Gross value added by industry for Transport, postal and warehousing (Division I)
ItemComment
Method

 

 

State estimates of GVA by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU. Industry division estimates are calculated as the sum of relevant SUIC industry estimates.

\(\Large state \space output_{SUIC}= national \space output_{SUIC} × \Big( \frac{ state \space output \space indicator_{SUIC}}{national \space output \space indicator_{SUIC}} \Big)\)

\(\Large state \space TIU_{SUIC}=state \space output_{SUIC} × \Big( \frac{national \space TIU_{SUIC}}{national \space output_{SUIC} } \Big)\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{DivI}=\sum \limits_{SUIC}(state \space GVA_{SUIC} ) \)

CPV estimates are deflated or quantity revalued using national level price indices or quantity data, and chained, to produce chain volume measures of output, TIU and GVA.

Output indicator
 Current year

 

 

Sales data from the Quarterly Business Indicators Survey (QBIS) is used to extrapolate forward EAS sales data. Those extrapolated values are then used to apportion national output across states and territories.

 2006-07 to reference year  

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national output across states and territories.

 Prior to 2006-07

 

 

QBIS sales data is used to backcast EAS data from 2006-07. Those backcasted values are then used to apportion national output across states and territories.

Deflation and quantity revaluation
 Subdivisions 48 and 49

 

 

State quantity information, for water and air transport, published by the Bureau of Infrastructure and Transport Research Economics (BITRE) is used to quantity revalue CPV estimates of state output.

 Other subdivisions

 

 

National price indices by SUIC industry are used to deflate CPV estimates of state output.

Prior to 2001-02
 Current price values and volume estimates

 

 

For values prior to 2001-02, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those estimates are used to backcast the output indicators from 2001-02. This applies to all subdivisions for current price values, and for chain volume measures except in the case of subdivisions 48 and 49 where the availability of BITRE quantity information removes the need to backcast volume data.

Those backcasted values are then used to apportion national output across states and territories.

Table 21.49 Gross value added by industry for Financial and insurance services (Division K)
ItemComment
Method

 

State estimates of GVA by SUIC industry are calculated by apportioning national current price value (CPV) and volume estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU. Industry division estimates are calculated as the sum of relevant SUIC industry estimates.

 \(\Large state \space output_{SUIC}= national \space output_{SUIC} × \Big( \frac{ state \space output \space indicator_{SUIC}}{national \space output \space indicator_{SUIC}} \Big)\)

\(\Large state \space TIU_{SUIC}=state \space output_{SUIC} × \Big( \frac{national \space TIU_{SUIC}}{national \space output_{SUIC} } \Big)\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{DivK}=\sum \limits _{SUIC}(state \space GVA_{SUIC} ) \)

The volume estimates are chained to produce chain volume measures of output, TIU and GVA.

Output indicator
Series span

 

Estimates of hours worked from the Labour Force Survey are used to apportion national output across states and territories.

Table 21.50 Gross value added by industry for Public administration and safety (Division O)
ItemComment
Method

 

 

State estimates of GVA by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU. Industry division estimates are calculated as the sum of relevant SUIC industry estimates.

\(\Large state \space output_{SUIC}= national \space output_{SUIC} × \Big( \frac{ state \space output \space indicator_{SUIC}}{national \space output \space indicator_{SUIC}} \Big)\)

\(\Large state \space TIU_{SUIC}=state \space output_{SUIC} × \Big( \frac{national \space TIU_{SUIC}}{national \space output_{SUIC} } \Big)\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{DivO}=\sum \limits_{SUIC}(state \space GVA_{SUIC} ) \)

CPV estimates are deflated using national level price indices, and chained, to produce chain volume measures of output, TIU and GVA.

Output indicator
 1997-98 to Current year

 

 

General government production by state is estimated on a cost basis. Industry estimates of government final consumption expenditure (GFCE) from Government Finance Statistics (GFS) are used to apportion national output across states and territories.

 Prior to 1997-98  (secondary data source)

 

 

For values prior to 1997-98, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those estimates are used to backcast the output indicators from 1997-98. Those backcasted values are then used to apportion national output across states and territories.

Deflation
 Series span

    

 

National price indices by division or SUIC industry are used to deflate CPV estimates of state output.

Table 21.51 Gross value added by industry for Education and training (Division P)
ItemComment
Method

 

 

State estimates of GVA by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU. Industry division estimates are calculated as the sum of relevant SUIC industry estimates.

\(\Large state \space output_{SUIC}= national \space output_{SUIC} × \Big( \frac{ state \space output \space indicator_{SUIC}}{national \space output \space indicator_{SUIC}} \Big)\)

\(\Large state \space TIU_{SUIC}=state \space output_{SUIC} × \Big( \frac{national \space TIU_{SUIC}}{national \space output_{SUIC} } \Big)\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{DivP}=\sum \limits _{SUIC}(state \space GVA_{SUIC} ) \)

CPV estimates for subdivision 80 and 81 are quantity revalued using state-based quantity information, and for subdivision 82 are deflated using national level price indices. The resulting volume estimates are chained to produce chain volume measures of output, TIU and GVA.

Output indicator
Subdivisions 80 and 81
 Series span

 

 

General government production by state is estimated on a cost basis. Industry estimates of government final consumption expenditure (GFCE) from the Government Finance Statistics (GFS) collection are used to apportion national output across states and territories.

Subdivision 82
 Current year

 

 

Expenditure data from GFS is used to extrapolate forward EAS sales data. Those extrapolated values are then used to apportion national output across states and territories.

 2006-07 to reference year

 

 

Sales data from the Economic Activity Survey (EAS) is used to apportion national output across states and territories

 Prior to 2006-07

 

 

For values prior to 2006-07, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those estimates are used to backcast the output indicators from 2006-07. Those backcasted values are then used to apportion national output across states and territories.

Deflation and quantity revaluation
 Subdivisions 80 and 81

 

 

State quantity information, for primary, secondary and tertiary student enrolments, is used to quantity revalue CPV estimates of state output. The student numbers are sourced from the ABS Schools publication, the National Centre for Vocational Education Research (NCVER), and the Commonwealth Department of Education, Skills and Employment.

 Subdivision 82

    

 

A national price index for subdivision 82 is used to deflate CPV estimates of state output.

Table 21.52 Gross value added by industry for Health care and social assistance (Division Q)
ItemComment
Method

 

 

State estimates of GVA by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU. Industry division estimates are calculated as the sum of relevant SUIC industry estimates.

\(\Large state \space output_{SUIC}= national \space output_{SUIC} × \Big( \frac{ state \space output \space indicator_{SUIC}}{national \space output \space indicator_{SUIC}} \Big)\)

\(\Large state \space TIU_{SUIC}=state \space output_{SUIC} × \Big( \frac{national \space TIU_{SUIC}}{national \space output_{SUIC} } \Big)\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{DivQ}=\sum \limits _{SUIC}(state \space GVA_{SUIC} ) \)

CPV estimates are deflated using state level price indices, and chained, to produce chain volume measures of output, TIU and GVA.

Output indicator
Subdivision 84
 Current year

 

 

Medicare data from the Commonwealth Department of Health is used to extrapolate forward the output indicators. Those extrapolated values are then used to apportion national output across states and territories.

 Prior to current year

 

 

 

Industry estimates of government final consumption expenditure (GFCE) from the Government Finance Statistics (GFS) collection are used to apportion national public sector output across states and territories.

Data from the Australian Prudential Regulation Authority (APRA) is used to apportion national private sector output across states and territories.

The sector data is combined to form aggregate output indicators.

Subdivision 85
 Series span

 

 

Medicare data from the Commonwealth Department of Health is used to apportion national output across states and territories.

Subdivisions 86 and 87
 Current year

 

 

Population data from the ABS National, State and Territory Population publication is used to extrapolate forward GFS expenditure data. Those extrapolated values are then used to apportion national output across states and territories.

 Prior to current year

 

 

Industry estimates of government final consumption expenditure (GFCE) from the Government Finance Statistics (GFS) collection are used to apportion national output across states and territories.

Deflation
 Series span

 

 

State price indices by SUIC industry are used to deflate CPV estimates of state output.

Table 21.53 Gross value added by industry for Arts and recreation services (division R)
ItemComment
Method

 

 

State estimates of GVA by SUIC industry are calculated by apportioning national current price value (CPV) estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU. Industry division estimates are calculated as the sum of relevant SUIC industry estimates.

\(\Large state \space output_{SUIC}= national \space output_{SUIC} × \Big( \frac{ state \space output \space indicator_{SUIC}}{national \space output \space indicator_{SUIC}} \Big)\)

\(\Large state \space TIU_{SUIC}=state \space output_{SUIC} × \Big( \frac{national \space TIU_{SUIC}}{national \space output_{SUIC} } \Big)\)

\(\Large state \space GVA_{SUIC}=state \space output_{SUIC}-state \space TIU_{SUIC}\)

\(\Large state \space GVA_{DivR}=\sum \limits _{SUIC}(state \space GVA_{SUIC} ) \)

CPV estimates are deflated using state level price indices, and chained, to produce chain volume measures of output, TIU and GVA.

Output indicator
 Current year

 

 

Sales data from the Quarterly Business Indicators Survey is used to extrapolate forward EAS sales data. Expenditure data for the general government sector, sourced from Government Finance Statistics (GFS), is added to derive output indicators which are used to apportion national output across states and territories.

 2006-07 to reference year 

 

 

Sales data from the Economic Activity Survey (EAS), in conjunction with expenditure data for the general government sector, sourced from GFS, is used to apportion national output across states and territories.

 Prior to 2005-06

 

 

QBIS sales data is used to backcast EAS data from 2006-07. Expenditure data for the general government sector, sourced from GFS, is added to derive output indicators which are used to apportion national output across states and territories.

Deflation
 2001-02 to current year

 

 

National price indices by SUIC industry are used to deflate CPV estimates of state output. The price indices used are the same as those used to derive volume estimates in QBIS.

Prior to 2001-02
 Current price values and volume estimates

 

 

For values prior to 2001-02, output indicators were estimated consistent with the source data and methods outlined in the 2015 version of this Concepts, Source and Methods publication. Those estimates are used to backcast the output indicators from 2001-02 (for both current price values and chain volume measures). Those backcasted values are used to apportion national output across states and territories.

Table 21.54 Gross value added by industry for ownership of dwellings
ItemComment
Method

 

 

State estimates of GVA for ownership of dwellings are calculated by apportioning national current price value (CPV) and volume estimates of output across states and territories using relevant indicators. Total intermediate use (TIU) is calculated by holding the national ratio of output to TIU fixed across states and territories. GVA is derived as the difference between output and TIU.

\(\Large state \space output= national \space output × \frac{state \space output \space indicator}{national \space output \space indicator}\)

\(\Large state \space TIU=state \space output × \frac{national \space TIU}{national \space output}\)

\(\Large state \space GVA=state \space output - state \space TIU\)

The volume estimates are chained, to produce chain volume measures of output, TIU and GVA.

Output indicator
 Series span

 

 

Volumes and current price values of imputed and actual rent are sourced from household final consumption expenditure (HFCE) estimates. These estimates are used to apportion national output across states and territories.

Taxes less subsidies on products

21.180    Taxes and subsidies on products by state and territory are calculated as described in the taxes less subsidies on production and imports section of the Income from Gross State Product: GSP(I) subchapter.

Household income account

21.181    State household income accounts are estimated using the top-down approach. A range of indicators are used to allocate national totals to state.

21.182    In concept, the household sector of a state consists of household units which have permanent residence within the state. This is independent of where household units work or undertake business activities. It follows that workers who work in a state other than their state of residence should be reallocated to their place of residence rather than their place of work. Data sources do not permit this reallocation. Therefore, an assumption is made that all workers work in their state of residence.

21.183    Household net saving is not produced at the state level because of the unavailability of state consumption of fixed capital for households. Consequently, gross household saving is calculated, rather than net saving as in the national accounts.

21.184    The following table outlines the components of the household income and data sources used to allocate the national total across the states:

Table 21.55 Household income account – By components
ItemComment
Primary income receivable
 Compensation of employees

 

 

State household COE estimates are split using the top-down approach using state estimates of COE from the gross state product account. The Australia-level household COE is COE adjusted for labour income to and from overseas. There is no adjustment for interstate workers with assumption being that employees work in their state of residence.

 Gross mixed income

 

 

Estimates of GMI by state are compiled from agriculture and non-agriculture components.

State estimates of agricultural unincorporated enterprises are split using the top-down approach using agricultural production by state. The assumption is made that the high concentration of unincorporated enterprises in agriculture observed at the national level is consistent across all states.

GMI of non-agricultural unincorporated enterprises is split to state using the proportions of business income of unincorporated enterprises (i.e. individuals, partnerships and trusts) from Taxation Statistics, as well as business income data from Household Income and Wealth, Australia.

 Dwelling owned by household - Gross operating surplus

 

 

State estimates are split using the top-down approach using GOS dwellings by state produced for the production account. The Australia-level dwelling owned by household GOS is total dwellings GOS adjusted for dwellings owned by other sectors of the economy. The assumption is made that ownership of dwellings for sectors other than households occurs in the same proportion in all states.

 Property income

 

 

Property income is sourced from state interest and dividends data from the ATO taxation statistics publications.

Secondary income receivable
 Social assistance benefits

 

 

Social assistance benefits include benefits received from government, and is sourced from Government Finance Statistics. Commonwealth data is allocated to states using estimates from the ABS publication, Household Income and Wealth, Australia for total government pensions and allowances.

 Workers' compensation claims

 

 

State estimates are split using the top-down approach using state workers' compensation premiums data used to compile state COE estimates. This assumes that claims are paid in the same proportion as premiums across states.

 Non-life insurance claims

 

 

State estimates are split using the top-down approach using estimated resident population. Some adjustment is undertaken for large natural events such as cyclones and floods.

 Current transfers to non-profit institutions (NPIs)

 

 

Consistent with the national accounts, the NPISH sector is included as part of the household sector. Data for current transfers is sourced from Government Finance Statistics, and allocated to states using estimated resident population.

 Other transfers receivable

 

 

This is split between transfers made by immigrants to Australia and remaining miscellaneous transfers.

Immigrant transfers are split using the top-down approach to states using state overseas arrivals data from the ABS publication, National, state and territory population. Remaining transfers receivable are split using the top-down approach using ERP data.

Total gross income

 

 

Total gross income = primary income receivable

   + secondary income receivable.

Primary income payable
 Dwellings interest payable

 

 

Dwellings interest is split using the top-down approach to states using a cumulative aggregation of new loan commitments over a fifteen-year period from Housing Finance, Australia. A cumulative aggregation is compiled due to the long life span of dwelling loans.

 Consumer debt interest payable

 

 

State consumer debt interest is split using the top-down approach using fixed loans and revolving credit data directly from the ABS publication, Lending Finance, Australia.

 Unincorporated enterprises payable

 

 

State unincorporated interest payable is split using the top-down approach using business interest paid components from ATO taxation statistics.

Secondary income payable
 Income tax payable

 

 

Income tax payable is split to states based on the top-down approach, using income tax by state data. This is received with a two-year lag. A combination of state COE and state GMI estimates are used to estimate state splits for the latest two years.

 Other current taxes on income, wealth, etc.

 

 

Other current taxes on income, wealth, etc. are split to states using the top-down approach using income tax by state data from ATO taxation statistics and GFS data.

 Workers' compensation premiums

 

 

State estimates are split using the top-down approach using state premiums data used to compile state COE estimates.

 Net non-life insurance premium payments

 

 

State estimates are split using the top-down approach using ERP estimates. Some adjustment is undertaken for large natural events such as cyclones and floods.

 Other current transfers payable

 

 

This comprises transfers to migrants leaving Australia as well as current transfers to other sectors i.e. miscellaneous current transfers such as fines and pensions paid to non-residents. Migrant transfers are split using departures data from National, state and territory population.

Miscellaneous current transfers are allocated to states using ERP estimates.

Total income payable

 

 

Total income payable = primary income payable

      + secondary income payable

Gross disposable income

 

 

Gross disposable income = total income receivable

            – total income payable

Household gross saving

 

 

Household gross saving = gross disposable income

          – household final consumption expenditure

This is equivalent to net saving plus consumption of fixed capital as published in the national accounts, since consumption of fixed capital is not separately allocated by state.

Agricultural income account

21.185    The agricultural income account details the primary income flows for the agriculture industry, corresponding to ANZSIC Subdivision 01 Agriculture. It combines estimates for agricultural GVA, GOS/GMI and COE with other expenses to produce agricultural income.

21.186    The key aggregates of agricultural income are:

  • agriculture GVA at basic prices;
  • agriculture GVA at producer prices; and
  • agricultural income.

21.187    Agricultural income is calculated as follows:

= agricultural GOS/GMI 
 –  property income payable
 –  consumption of fixed capital

where agricultural GOS/GMI is calculated as:

= agricultural gross value added 
 –  agricultural compensation of employees
 –  agricultural other taxes on production
  + agricultural other subsidies on production

21.188    The following calculation shows how gross value added for both basic prices and producer prices is derived from agricultural income:

Gross value of agricultural production 
lessIntermediate input costs
equalsGross agricultural value added at basic prices
  
plusTaxes less subsidies on products
equalsGross agricultural value added at producers' prices

21.189    The following table outlines the components of the agricultural income account and data sources used to allocate the national total across the states:

Table 21.56 agricultural income account – by components
ItemComment
Agricultural output
 Agricultural output data is collected from the Australian Bureau of Agricultural and Resource Economics (ABARE) and Value of Agricultural Commodities Produced, Australia. See Table 21.26 for more details.
Agricultural input costs
 Agricultural input costs are calculated as the sum of marketing costs, fodder costs, seed costs and other costs. See Table 21.26 for more details.
Agricultural gross value added at basic prices

 

Agricultural gross value added at basic prices

= Agricultural output

– Agricultural input costs.

Agricultural compensation of employees (COE)

 

The national ratio of the ANZSIC Subdivision 01 Agriculture COE to the ANZSIC Division A Agriculture, forestry and fishing COE is applied to all states. The assumption is made that the same proportions apply across all states.

Consumption of fixed capital (COFC)
 National benchmarks are allocated to states using fixed weights based on the ABS Agricultural Finance Survey (AFS), which ceased in 2001.
Net property income payable
 National benchmarks are allocated to states using fixed weights based on the ABS Agricultural Finance Survey (AFS) which ceased in 2001.
Agricultural expenses

 

Agricultural expenses = Agricultural COE

       + COFC

       + Net property income payable

Other taxes less subsidies on production

 

The national ratio of the ANZSIC Subdivision 01 Agriculture Other taxes less subsidies on production to ANZSIC Division A Agriculture, forestry and fishing Other taxes less subsidies on production is applied to all states. This assumes the same proportion exists for all states.
Agricultural income

 

Agricultural income = Agricultural gross value added

                                – Other taxes less subsidies on production

                                – Agricultural expenses

Taxes less subsidies on products
 The national benchmark is allocated to states using the proportions of state agricultural output.
Agricultural gross value added (GVA) at producers' prices

 

Agricultural GVA at producers' prices

= GVA at basic prices

+ Taxes less subsidies on products