A1A.179.

Memorandum items - balance sheet (ETF 71) are recorded in GFS to provide additional information about items related to (but not included on) the GFS balance sheet. Memorandum items in GFS differ to those of commercial accounting in that they are compulsory rather than optional as in commercial accounting. This category is further classified into:

• implicit transfers (ETF 711);
• liabilities in arrears and related charges (ETF 712); and
• non-performing loans (ETF 713).

A1A.180.

Implicit transfers (ETF 711) consists of the implied transfers arising through concessional lending arrangements, and through other circumstances. This category is further classified into:

• implicit transfers receivable from concessional loans (ETF 7111); and
• implicit transfers payable due to concessional loans (ETF 7112).

A1A.181.

Implicit transfers receivable from concessional loans (ETF 7111) consists of the benefits receivable by borrowers of loans with concessional interest rates. The benefit receivable is equal to the difference between the actual interest payable and the amounts that would be payable if market-equivalent interest prevailed.

A1A.182.

Implicit transfers payable due to concessional loans (ETF 7112) consists of the benefits transferred to borrowers of loans with concessional interest rates. The benefit is equal to the difference between the actual interest payable and the amounts that would be payable if market-equivalent interest prevailed.

A1A.183.

Liabilities in arrears and related charges (ETF 712) consists of arrears on financial instruments, which are amounts that are both unpaid and past the due date for payment, and additional charges relating to arrears. This category is further classified into:

• total arrears (ETF 7121); and
• interest on arrears (ETF 7122).

A1A.184.

Total arrears (ETF 7121) consists of amounts due on financial instruments that are both unpaid and past the due date for payment.

A1A.185.

Interest on arrears (ETF 7122) consists of interest accrued on liabilities in arrears, both principal and interest arrears.

Includes:    Additional charges relating to arrears such as penalties.

A1A.186.

Non-performing loans (ETF 713) consists of loan assets for which payments of principal and interest are past due by three months (90 days) or more; interest payments equal to three months (90 days) interest or more have been capitalised (reinvested to the principal amount) or payment has been delayed by agreement; or evidence exists to reclassify a loan as non-performing even in the absence of a 90 day past due payment, such as when the debtor files for bankruptcy.

A1A.187.

Contingent liabilities (ETF 72) consists of the value of obligations that do not arise unless a particular, discrete event(s) occurs in the future. The key difference between contingent liabilities and actual liabilities is that one or more conditions must be fulfilled before a financial transaction is recorded. Contingent liabilities are not recognised as liabilities prior to their associated condition(s) being fulfilled. This category is further classified into:

• explicit contingent liabilities (ETF 721); and
• implicit contingent liabilities (ETF 722).

A1A.188.

Explicit contingent liabilities (ETF 721) consists of legal or contractual financial arrangements that give rise to conditional requirements to make payments of economic value. The requirements become effective if one or more stipulated conditions arise. This category is further classified into:

• loan and other debt instrument guarantees (ETF 7211);
• other one-off guarantees (ETF 7212);
• legal claims (ETF 7213);
• indemnities (ETF 7214);
• uncalled share capital (ETF 7215); and
• explicit contingent liabilities not elsewhere classified (ETF 7219).

A1A.189.

Loan and other debt instrument guarantees (ETF 7211) consists of publicly guaranteed debt that is defined as debt liabilities of public and private sector units, the servicing of which is contractually guaranteed by public sector units. Guarantors guarantee the servicing of existing debts of other public and private sector units. Guarantors are only required to make a payment if the debtor defaults.

A1A.190.

Other one-off guarantees (ETF 7212) consists of commitments by one party to bear the risk of non-payment by another party for instruments other than loan and other debt instruments.

Includes:   Credit guarantees such as lines of credit and loan commitments which provide a guarantee that undrawn funds will be available in the future but no financial asset/liability exists until such funds are actually provided or advanced — the undrawn lines of credit and undisbursed loan commitments are contingent liabilities of the issuing institutions; contingent “credit availability” guarantees; contingent credit facilities; letters of credit which are promises to make payment upon the presentation of pre-specified documents; underwritten note issuance facilities which provide a guarantee that a borrower will be able to issue short-term notes and that the underwriting institution(s) will take up any unsold portion of the notes (a liability / asset will be created only when funds are advanced by the underwriting institution(s) and the unutilised portion is a contingent liability); other note guarantee facilities providing contingent credit or back-up purchase facilities such as revolving underwriting facilities, multiple options facilities, and global note facilities (these back-up purchase facilities are provided by banks and non-bank financial institutions and the unutilised amounts of these facilities are contingent liabilities).

A1A.191.

Legal claims (ETF 7213) consists of potential legal claims stemming from pending court cases.

A1A.192.

Indemnities (ETF 7214) consists of commitments to accept the risk of loss or damage another party might suffer.

Includes:    Indemnities against unforeseen tax liabilities arising in government contracts with other units.

A1A.193.

Uncalled share capital (ETF 7215) consists of obligations for units to provide additional capital, on demand, to an entity of which they are a shareholder, such as an international financial institution.

A1A.194.

Explicit contingent liabilities not elsewhere classified (ETF 7219) consists of other explicit contingent liabilities that cannot be classified to loan and other debt instrument guarantees (ETF 7211), other one-off guarantees (ETF 7212), legal claims (ETF 7213), indemnities (ETF 7214) or uncalled share capital (ETF 7215).

A1A.195.

Implicit contingent liabilities (ETF 722) consists of obligations that do not arise from a legal or contractual source but are recognised after a condition or event is realised. This category is further classified into:

• present value of implicit obligations for future social security benefits (ETF 7221); and
• implicit contingent liabilities not elsewhere classified (ETF 7229).

A1A.196.

Present value of implicit obligations for future social security benefits (ETF 7221) consists of the present value of obligations for future social security benefits (other than employment-related retirement benefits) that are under an implicit guarantee by government to assume these liabilities on behalf of another party if certain conditions arise. In Australia, the only type of social security benefits that involve a contractual liability for public sector units relate to employment related retirement benefits. Therefore a zero balance is reported for this category in Australian GFS. The category is maintained as part of the classification to align with the international GFS standards.

A1A.197.

Implicit contingent liabilities not elsewhere classified (ETF 7229) consists of implicit contingent liabilities that cannot be classified to present value of implicit obligations for future social security benefits (ETF 7221).

Includes: Ensuring solvency of the banking sector; covering the obligations of state / territory and local governments or the central bank in the event of a default; assuming unguaranteed debt of public sector units; potential spending for natural disaster relief.

A1A.198.

Provisions for doubtful debts (ETF 73) is further classified into:

• provisions for doubtful debts (ETF 731).

A1A.199.

Provisions for doubtful debts (ETF 731) is further classified into:

• provisions for doubtful debts (ETF 7311, TALC. SDC).

A1A.200.

Provisions for doubtful debts (ETF 7311, TALC, SDC) consists of provisions for anticipated doubtful debts during the reporting period. Provisions for doubtful debts are not recognised as transactions in GFS, but are recorded in the AGFS as part of the supporting information so that the ABS can derive the face value of financial assets and liabilities which is required for international statistical reporting. Provisions or allowances for doubtful debts are not included in GFS output and accounts receivable in the balance sheet is recorded gross of such provisions or allowances.

A1A.201.

Debt maturity (ETF 74) consists of debt classified according to the time until the debt is extinguished as outlined in the contract between the debtor and the creditor. In this context, maturity relates to original maturity, which is the period from the issue date until the final contractually scheduled payment date; or remaining maturity or residual maturity which is the period from the reference date (balance sheet date) until the final contractually scheduled payment date. This category is further classified into:

• debt by maturity valued at market value (ETF 741).

A1A.202.

Debt by maturity valued at market value (ETF 741) consists of debt, valued at market value, classified according to the time until the debt is extinguished as outlined in the contract between the debtor and the creditor This category is further classified into:

• short-term debt by original maturity valued at market value (ETF 7411, TALC);
• long-term debt with payment due within one year or less valued at market value (ETF 7412, TALC); and
• long-term debt with payment due in more than one year valued at market value (ETF 7413, TALC).

A1A.203.

Short-term debt by original maturity valued at market value (ETF 7411, TALC) consists of debt, valued at market value, payable on demand.

A1A.204.

Long-term debt with payment due within one year or less valued at market value (ETF 7412, TALC) consists of debt, valued at market value, with a maturity of one year or less.

A1A.205.

Long-term debt with payment due in more than one year valued at market value (ETF 7413, TALC) consists of debt, valued at market value, with a maturity of more than one year or no stated maturity.

Excludes: Debt valued at market value, that is payable on demand (classified to short-term debt by original maturity valued at market value (ETF 7411, TALC)).

A1A.206

Salary sacrifice expenses (ETF 75) consists of the value of benefits supplied by a public sector employer to employees under a salary sacrifice arrangement. These expenses are collected as part of the Australian GFS for national accounting purposes and contains details not normally used in GFS. This category is further classified into:

• salary sacrifice expenses (ETF 751).

A1A.207.

Salary sacrifice expenses (ETF 751) consists of the employer’s expense when an employee agrees to forego part of their future salary or wages in return for their employer providing benefits of a similar value. This category is further classified into:

• salary sacrifice expenses – superannuation (ETF 7511, SDC); and
• salary sacrifice expenses not elsewhere classified (ETF 7519, SDC).

A1A.208.

Salary sacrifice expenses – superannuation (ETF 7511, SDC) consists of expenses incurred by the employer when an employee agrees to forego part of their future salary or wages in return for their employer providing superannuation benefits of a similar value.

A1A.209.

Salary sacrifice expenses not elsewhere classified (ETF 7519, SDC) consists of expenses incurred by the employer when an employee agrees to forego part of their future salary or wages in return for their employer providing benefits of a similar value other than superannuation.

A1A.210.

Own-account capital formation (ETF 76) consists of the value of the production of non-financial assets for own use. This category is further classified into:

• own-account superannuation payments (ETF 761);
• own-account employee payments other than superannuation (ETF 762); and
• own-account non-employee payments (ETF 763).

A1A.211.

Own-account superannuation payments (ETF 761) consists of accrued and imputed costs under both defined contribution and defined benefit superannuation schemes in return for work related to own-account capital formation. A defined contribution superannuation scheme is one where the benefits payable to the employee on retirement are determined by the funds that have accumulated from employer and employee contributions over the working life of the employee, together with income and capital gains / losses arising from the investment of the accumulated funds. The funds are accumulated in a separate superannuation fund managed by a board of trustees or guardians of the scheme (autonomous fund). The government employer has a responsibility to make the regular agreed contributions to the fund, but then has no further superannuation liability towards their employees. A defined benefit superannuation scheme is one where the benefits payable to the employee on retirement are defined by some formula normally related to participants’ length of service and salary. This category is further classified into:

• own-account actual employers' contributions – defined contribution scheme (ETF 7611, TALC, COFOG-A);
• own-account actual employers' contributions – defined benefit scheme (ETF 7612, TALC, COFOG-A); and
• own-account imputed employers’ contributions – defined benefit scheme (ETF 7613, TALC, COFOG-A).

A1A.212.

Own-account actual employers' contributions – defined contribution scheme (ETF 7611, TALC, COFOG-A) consists of the amounts payable by employers to defined contribution superannuation schemes for the benefit of their employees, in return for work related to own-account capital formation.

A1A.213.

Own-account actual employers' contributions – defined benefit scheme (ETF 7612, TALC, COFOG-A).This category consists of the amounts payable by employers to defined benefit superannuation schemes for the benefit of their employees, in return for work related to own-account capital formation.

A1A.214.

Own-account imputed employers’ contributions – defined benefit scheme (ETF 7613, TALC, COFOG-A) consists of the amount of employer contributions to defined benefit superannuation schemes that would be needed to secure the de-facto entitlements to the benefits accumulated by their employees, in return for work related to own-account capital formation. Some employers provide benefits directly to their employees, former employees or their dependants from their own resources without involving an autonomous superannuation fund and without creating a special fund or segregated reserve for the purpose.

A1A.215.

Own-account employee payments other than superannuation (ETF 762) consists of all employee payments other than superannuation contributions, in cash or in kind, payable to an individual in an employer-employee relationship in return for work performed by the latter related to own-account capital formation. This category is further classified into:

• own-account wages, salaries and supplements in cash (ETF 7621, TALC, COFOG-A);
• own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A);
• own-account salary sacrifice payments - superannuation (ETF 7623, TALC, COFOG-A);
• own-account salary sacrifice payments - other than superannuation (ETF 7624, TALC, COFOG-A);
• own-account Fringe Benefits tax (FBT) payments (ETF 7625, TALC, COFOG-A);
• own-account workers’ compensation payments (ETF 7626, TALC, COFOG-A); and
• own-account employee payments not elsewhere classified (ETF 7629, TALC, COFOG-A).

A1A.216.

Own-account wages, salaries and supplements in cash (ETF 7621, TALC, COFOG-A) consists of compensation of employees payable in cash, or any other financial instruments used as means of payments, in return for work related to own-account capital formation.

Includes:    Basic wages or salaries payable at regular weekly, monthly or other intervals, including payments by results and piecework payments; enhanced payments or special allowances for working overtime, at nights, on weekends or other irregular hours; allowances for working away from home or in disagreeable or hazardous circumstances; expatriation allowances for working abroad; supplementary allowances payable regularly such as housing allowances or allowances to cover the costs of travel to and from work; wages or salaries payable to employees away from work for short periods such as on vacation or as a result of a temporary halt to production; annual supplementary pay such as bonuses; ad hoc bonuses or other exceptional payments linked to the overall performance of the enterprise made under incentive schemes; commission, gratuities and tips received by employees; amounts withheld from wages and salaries by the employer for administrative convenience or for other reasons such as income taxes or other deductibles, payable by the employee; employee benefits, such as a car or extra pension contributions, that is acquired from the employer by foregoing some salary.

A1A.217.

Own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A) consists of compensation of employees payable in the form of goods, services, interest foregone and shares issued to employees in return for work related to own-account capital formation. Almost any kind of goods or services may be provided as wages and salaries in kind. It includes goods and services provided without charge or at reduced prices. The goods and services provided in kind to employees are not necessary to enable the employees to perform their work.

Includes:    Meals and drinks provided on a regular basis including any subsidy element of an office canteen; clothing or footwear that employees may choose to wear frequently outside of the workplace and while at work; housing services or accommodation of a type that can be used by all members of the household to which the employee belongs; services of vehicles or other durables provided for the personal use of employees; goods and services produced by the employer such as free travel on government airplanes or trains; sports, recreation or holiday facilities for employees and their families; transportation to and from work; free or subsidised parking when it would otherwise have to be paid for; childcare for the children of employees; the value of the interest foregone by employers when they provide loans to employees at reduced or even zero rates of interest for purposes of buying houses, vehicles, furniture or other goods or services; bonus shares or stock options distributed to employees.

A1A.218.

Own account salary sacrifice payments – superannuation (ETF 7623, TALC, COFOG-A) consists of salary sacrifice payments relating to superannuation provided by the employer to employees working on own-account capital formation.

A1A.219.

Own account salary sacrifice payments – items other than superannuation (ETF 7624, TALC, COFOG-A) consists of salary sacrifice payments relating to items other than superannuation provided by the employer to employees working on own-account capital formation.

A1A.220.

Own-account Fringe Benefits Tax (FBT) payments (ETF 7625, TALC, COFOG-A) consists of fringe benefits tax payable on certain benefits employers provide to their employees or their employees’ associates in place of salary or wages, in return for work related to own-account capital formation.

A1A.221.

Own-account workers’ compensation payments (ETF 7626, TALC, COFOG-A) consists of workers’ compensation amounts payable by employers under legislation for work-related injury and illness suffered by employees, in return for work related to own-account capital formation.

A1A.222.

Own-account employee payments not elsewhere classified (ETF 7629, TALC, COFOG-A) consists of employee payments incurred in return for work related to own-account capital formation that cannot be classified to own-account wages, salaries and supplements in cash (ETF 7621, TALC, COFOG-A), own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A), own-account salary sacrifice payments - superannuation (ETF 7623, TALC, COFOG-A), own-account salary sacrifice payments - other than superannuation (ETF 7624, TALC, COFOG-A); own-account Fringe Benefits tax (FBT) payments (ETF 7625, TALC, COFOG-A) or own-account workers’ compensation payments (ETF 7626, TALC, COFOG-A).

Includes: Accrued expenses for the current period relating to accident compensation premium, sick leave, annual leave, long service leave retirement and redundancy.

A1A.223.

Own-account non-employee payments (ETF 763) consists of the value of payments connected to work relating to own-account capital formation that are not related to the compensation of employees. This category is further classified into:

• own-account use of goods and services (ETF 7631, TALC, COFOG-A);
• own-account depreciation of non-financial produced assets (ETF 7632, TALC, COFOG-A);
• own-account other taxes on production less other subsidies on production (ETF 7633, TALC, COFOG-A); and
• own-account non-employee payments not elsewhere classified (ETF 7639, TALC, COFOG-A).

A1A.224.

Own-account use of goods and services (ETF 7631, TALC, COFOG-A) consists of the value of goods and services acquired for use in own-account capital formation.

Includes:    Amounts payable to contractors, self-employed outworkers and other workers who are not employees of general government or public sector units; use of goods and services when such use is mandatory in order to enable employees to carry out their work whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; tools or equipment used exclusively or mainly at work whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; clothing or footwear of a kind that ordinary consumers do not choose to purchase or wear and which are worn exclusively or mainly at work such as protective clothing, overalls or uniforms whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; accommodation services at the place of work of a kind that cannot be used by the households to which the employees belong such as barracks, cabins, dormitories and huts; special meals or drinks necessitated by exceptional working conditions, while travelling for business reasons or meals or drinks provided to employees while on active duty whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; travel, relocation or related expenses when employees take up new jobs or are required by their employers to move their homes to different parts of the country or to another country whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; changing facilities, washrooms, showers and baths necessitated by the nature of the work; first aid facilities, medical examinations or other health checks required because of the nature of the work; costs incurred on inexpensive, durable goods such as small / hand tools (saws, spades, knives, axes, hammers, screwdrivers, spanners, wrenches) when such expenses are incurred regularly and are small compared with the costs incurred for the acquisition of machinery and equipment; goods and services consumed for the ordinary maintenance and repair of fixed produced assets; payments by the lessee for rental of a fixed asset under an operating lease.

A1A.225.

Own-account depreciation of non-financial produced assets (ETF 7632, TALC, COFOG-A) consists of the depreciation of produced assets attributed to use in own-account capital formation.

A1A.226.

Own-account other taxes on production less other subsidies on production (ETF 7633, TALC, COFOG-A) consists of other taxes on production associated with own-account capital formation minus other subsidies on production associated with own-account capital formation.

A1A.227.

Own-account non-employee payments not elsewhere classified (ETF 7639, TALC, COFOG-A) consists of non-employee expenses associated with work related to own–account capital formation that cannot be classified to own-account use of goods and services (ETF 7631, TALC, COFOG-A), own-account depreciation of non-financial produced assets (ETF 7632, TALC, COFOG-A) or own-account other taxes on production less other subsidies on production (ETF 7633, TALC, COFOG-A).