Australian Industry methodology

EAS uses generalised regression estimation. This estimation method enabled maximum use of observed linear relationships between data directly collected from businesses in the survey and auxiliary information.

When the auxiliary information is strongly correlated with data items collected in a survey, the generalised regression estimation methodology will improve the accuracy of the estimates. The auxiliary variables used in this survey were turnover and wages sourced from the BAS data of more than 2.6 million businesses (including the direct collect sample). 

Producing estimates

For the purpose of compiling the estimates in this publication, data for businesses as recorded on the ABSBR contributed via one of three categories (or 'streams') in accordance with significance and collection-related characteristics.

The following table illustrates the ways in which Australian businesses contributed to the estimates in this release.

Completely enumerated (CE) stream

The CE stream consisted of directly collected survey data for those units recorded on the ABSBR as being economically significant units and units significant to small state estimates.

Generalised regression estimation stream

The generalised regression estimation stream comprised directly collected data for those sampled units which were not in the CE stream and had turnover, in aggregate, above the bottom 2.5 percentile of BAS sales for that subdivision, or were identified as employing businesses (based on ATO information).

Business Activity Statement (BAS) stream

The BAS stream, also known as micro non-employing units, comprised data for those non-employing businesses whose turnover, in aggregate, was below the bottom 2.5 percentile of BAS sales for that ANZSIC subdivision.

Data for the BAS stream was produced using a technique that used BAS turnover to model income from sales of goods and services, BAS non-capitalised purchases to model purchases and BAS non-purchase related expenses to model other expenses. The modelling parameters were based on the relationship between BAS data and reported data for small businesses in the direct collect sample over 3 years and were defined at the industry level. Wages and salaries were modelled as 0 since these businesses were non-employers. Employment was based on the business type of (legal) structure.

Estimates for each of the selected industries were produced by aggregating the contributing data streams.

State and territory estimates are produced for Employment, Wages and salaries and Sales and service income. Estimates are produced using a combination of methods for different EAS business units and micro non-employing units.

• Stream 1: Completely enumerated businesses with 20 or more employees.
• Stream 2: Sampled sector units.
• Stream 3: Micro non-employing units.

Stream 1

This stream consists of units recorded on the ABSBR as being economically significant units, operating in more than one state or territory with 20 or more employees.

Stream 1 units contribute to the state and territory estimates via state data reported in the EAS.

Stream 2

This stream comprises of units selected in EAS which are not in Stream 1 and have turnover, in aggregate, above the bottom 2.5 percentile of BAS turnover for that industry, or are identified as employing businesses (based on ATO information).

Stream 2 units contribute to the state and territory estimates via proration of their data across the states and territories.

State/territory stratification is not used for selecting the EAS sample. As a result, state and territory estimates can be inaccurate due to under or over representation of some states in the selected sample. To minimise this risk, ABS uses a synthetic estimation method. The data reported by Stream 2 units is prorated across the states and territories using state/territory proration factors produced based on ABSBR survey frame information. For Sales and service income, BAS turnover is used; for Wages and salaries and Employment, BAS wages is used. The proration factors are calculated at the stratum level.

Stream 3

This stream comprises micro non-employing units whose BAS turnover, in aggregate, is below the bottom 2.5 percentile of BAS turnover for that ANZSIC subdivision. Stream 3 units contribute to state and territory estimates for the main state of operation.

Data for Stream 3 are produced using BAS turnover to model Sales and service income. The modelling parameters are based on the relationship between BAS data and reported data for small businesses in the direct collect sample over 3 years and have been defined at the industry level. Wages and salaries have been modelled as 0 since these businesses are non-employers. Employment is based on the business type of (legal) structure.

For Stream 3 units, it is assumed that the business only operates in one state or territory. This is a reasonable assumption, given these units have no staff and very low turnover. As such, all of their reported data for the above variables contributes to the estimates of their main state of operation.

Finer level estimates (including ANZSIC class) were produced for the Manufacturing industry. The estimation method used to create these estimates made use of observed linear relationships between data collected from businesses in the EAS and auxiliary information available from BAS data. Where the auxiliary information was strongly correlated with data items collected in the EAS, this information was used to create predicted values for non-profiled businesses and small profiled businesses that were not selected in the survey. The auxiliary variables used to create predicted values were:

• BAS total sales (to model sales and service income).
• BAS wages and salaries (to model wages and salaries, industry value added (IVA) and employment).

BAS and EAS data from Manufacturing businesses contributed to Manufacturing estimates via one of three categories (or ‘streams) as shown in the following table.

Survey stream

The survey stream consisted of businesses with directly collected EAS data.

Modelled stream

The modelled stream included all businesses not selected in the EAS (the survey stream) whose turnover, in aggregate, was above the bottom 2.5 percentile of BAS sales for that industry, or were identified as employing businesses (based on ATO information).

Modelled data were created through the use of robust, trimmed regression estimators, which used survey data regressed against BAS data. The BAS data were found to have a high correlation with corresponding data from the EAS. The regression factors were obtained by utilising units from the survey stream and comparing their reported survey data with their matching BAS data. These regression factors were created at the ANZSIC subdivision level.

Sales and service income was modelled using BAS total sales as the auxiliary variable; wages and salaries, employment and IVA were modelled using BAS wages and salaries. Modelling of employment also took into account the business type (i.e. type of legal organisation) using a factor created at the ANZSIC division level. Modelled data for units in the modelled stream were created by multiplying their BAS data by the calculated regression factors.

Business Activity Statement (BAS) stream

The BAS stream comprised data for those micro non-employing businesses whose turnover, in aggregate, was below the bottom 2.5 percentile of BAS sales for that ANZSIC subdivision.

Data for the BAS steam was produced using a technique that used BAS turnover to model income from sales of goods and services and BAS non-capitalised purchases to model purchases. The modelling parameters were based on the relationship between BAS data and reported data for small businesses in the direct collect sample over 3 years and were defined at the industry level. Wages and salaries were modelled as 0 since these businesses were non-employers. Employment was based on the business type of (legal) structure.

Initial national ANZSIC class and state/territory ANZSIC subdivision estimates for the Manufacturing industry were produced by aggregating the contributing data streams.

State and territory ANZSIC subdivision estimates

Additional rules were applied to produce state/territory ANZSIC subdivision estimates:

• For businesses (from any stream) operating in only a single state or territory, their initial estimates contributed to the relevant state or territory and ANZSIC subdivision estimates.
• For businesses (from the survey stream) operating in more than one state or territory, their initial estimates (i.e. directly collected EAS data) contributed to the states and territories in alignment with the EAS methodology.
• For businesses (from the modelled stream) operating in more than one state or territory, their initial estimates were prorated across the states and territories in which they operated, based on a factor calculated at the ANZSIC division level from surveyed multi-state units of similar Employment range. These modelled multi-state businesses accounted for only a small proportion of the estimates.

Comparability with other EAS estimates

Consistency of division and subdivision estimates between class table and other EAS tables

The ANZSIC class Manufacturing estimates were created subject to the constraint of being additive to national ANZSIC subdivision estimates produced from the EAS. 

Consistency of division estimates between subdivision by state table and other EAS tables

The Manufacturing state by ANZSIC subdivision estimates were created subject to the constraint of being additive to the state by ANZSIC division level estimates produced from the EAS. 

Assumptions in the model

The quality of estimates depends on the validity of the following assumptions underpinning the modelling:

• The national ANZSIC subdivision estimates and state/territory division estimates produced from the EAS were of sufficient quality to warrant disaggregation, respectively, at ANZSIC class level and state/territory level.
• It was valid to distribute the difference between EAS national subdivision estimates and the initial subdivision estimates, based on the size of the modelled stream.
• The relationship between the EAS data items and the BAS data items was meaningful and consistent. Analysis supports this assumption, with the correlation being of consistent quality to produce reliable estimates.
• The auxiliary (BAS) data was of high quality.
• The industry coding was accurate on the ABS maintained Business Register.

Users should consider the suitability of these assumptions when interpreting the estimates.

Financial estimates presented in this release relate to the 12 months ending 30 June of the relevant year. In general, the supporting information collected in EAS also relates to this accounting period, however businesses can supply information using another accounting period. As a result, some estimates reflect trading conditions that prevailed in periods outside the twelve months ended June in the relevant year.

Selected data items have been published after adjustment to align with the June year reporting period:

• Wages and salaries
• Total income
• Total expenses
• Industry value added

Refer to the table below for the impact of Off-June reporters on IVA estimates.

These estimates can be found in the 'Off-June year adjusted estimates by industry subdivision' data cube.

For more information about the methodology used to create these estimates refer to the ABS publication: Information Paper: Experimental Estimates for Australian Industry adjusted for Off-June Year Reporting, 2011-12.

Represents the amount of bad and doubtful debts written-off, net of bad and doubtful debts previously written-off but recovered.

A business is generally considered to be a person, partnership, or corporation engaged in business or commerce.

In this publication, the term represents the Australian Business Number (ABN) unit or type of activity unit (TAU), which are the two standard statistical units for the 2024-25 Economic Activity Survey (EAS). For details, see the Explanatory Notes above.

Total (gross) expenditure on acquiring fixed tangible and intangible assets, before deduction of trade-in allowances, and including expenses (except capitalised interest) incurred during the year in acquiring such assets. Fixed tangible assets include land, dwellings, other buildings and structures, plant, machinery and equipment (including motor vehicles). Intangible assets include capitalised exploration expenditure, patents, licences and goodwill.

Capital expenditure incurred acquiring dwellings, other buildings and structures, including roads, factories, warehouses, offices, bridges, mine development, and oil and gas platforms. Represents expenditure before deduction of trade-in allowances, and includes expenses (except capitalised interest) incurred during the year in acquiring such assets.

Capital expenditure incurred acquiring assets other than dwellings, other buildings and structures and plant, machinery and equipment. Includes land and intangible assets such as exploration and evaluation expenditure both capitalised and expensed, patents, licences and goodwill. Also included is computer software capitalised, including capitalised computer software licence fees, installation costs, the purchase or development of large databases, software developed in-house (but excluded is software maintenance expenditure), and capitalised payments to contractors and consultants for software development. Note that if the cost of software and hardware cannot be separated, the total cost is included in acquisition of plant, machinery and equipment.

Capital expenditure incurred acquiring plant, machinery and other equipment, including motor vehicles. Includes expenses (except capitalised interest) incurred during the year in acquiring such assets.

Capitalised work done by the employees or proprietors of a business in manufacturing, constructing, installing or repairing assets, in mineral and petroleum exploration activities, and the in-house development of computer software, for use by the business or for rental or lease. This work is valued as the capitalised costs of the materials and the wages and salaries and 'on-costs' involved, as well as any amounts paid to contractors and subcontractors for their involvement in the project. Prior to the 2014-15 EAS, this item excluded any 'on-costs' paid to the employee in addition to their wages and salaries and the amounts paid to contractors and subcontractors. For more information see the entries for capitalised purchases and capitalised wages and salaries below.

All capitalised costs incurred in developing an asset developed in-house by the employees of the business/organisation for use by the business or for rental or lease, excluding any amounts included in capitalised wages and salaries paid to own employees. This includes the costs of goods and materials used to develop and build the asset and services such as invoiced amounts paid to contractors and subcontractors for their involvement in the project. Prior to the 2014-15 EAS, this item excluded amounts paid to contractors and subcontractors for their involvement in the project.

Capitalised payment of wages and salaries and 'on-costs' paid to employees for work done by own employees in manufacturing, constructing, installing or repairing assets, mineral and petroleum exploration activities or in developing computer software in-house for use by the business or for rental or lease, including wages paid to own employees to project manage the development of the asset. 'On-costs' include employee entitlements such as superannuation, fringe benefits tax and workers' compensation. Prior to the 2014-15 EAS, this item excluded any 'on-costs' paid to the employee in addition to their wages and salaries.

The value of total closing inventories less total opening inventories.

The value of all inventories of finished goods (including mineral ores and inventories for resale), work-in-progress (less progress payments billed), raw materials, fuels and containers at the end of the reporting period.

Contract payments for Mining services included in the industry performance table (table 4) in the Mining data cube. Includes amounts paid/payable to Mining contractors and associated freight charges for materials brought in by the contractor.

Depreciation/amortisation allowed on tangible and intangible assets. Includes, for lessees only, depreciation/amortisation in respect of finance leases. Includes depreciation in respect of some operating leases.

Proceeds from the sale of tangible assets (plant, machinery, equipment, land, dwellings, other buildings and structures), and intangible assets (such as patents, licences and goodwill).

Profit prior to the deduction of net interest (interest income minus interest expenses), income tax, depreciation and amortisation. Items classifiable to other income are also excluded.

Includes all employer contributions to superannuation funds (including the employer productivity contribution) and provisions for employer contributions to superannuation funds. Also includes expenses relating to employer funded defined benefit schemes. Employee contributions and salary sacrifice contributions are excluded.

Number of persons working for businesses during the last pay period ending in June of the given year. Includes working proprietors and partners, employees absent on paid or prepaid leave, employees on workers' compensation who continue to be paid through the payroll, and contract workers paid through the payroll. Excludes non-salaried directors and volunteers.

Includes handling charges and payments to owner/drivers for delivery of goods. Excludes the cost of delivery by own vehicles and employees and overseas freight and cartage on goods exported. This item is separately published in the industry performance table (table 4) in the Mining data cube, but is included in Other selected expenses in the industry performance table in each of the division, subdivision and Auxiliary finance and insurance services datacubes.

Fringe benefits tax is payable by employers when certain benefits in excess of normal wages or salaries (e.g. free or discounted goods or services) are received by their employees (or associates of employees) in connection with their employment.

This item appears in the industry performance table (table 4) in the Australian industry and Mining data cubes. It comprises funding from government for amounts reimbursed under fuel tax credits, and for other operational costs and for COVID-19 support measures: JobKeeper, Boosting Cash Flow for Employers and other COVID-19 support measures. For details, see the entries for these items below. For further information, see the section on the Treatment of COVID-19 government support measures in the 2019-20 Australian Industry release.

This item appears in the industry value added tables (table 3) in  the Australian industry and Mining data cubes. It comprises funding from government for amounts reimbursed under fuel tax credits, and for other operational costs but excludes any COVID-19 support measures. For details, see the entries for these items below. For further information, see the section on the Treatment of COVID-19 government support measures in the 2019-20 Australian Industry release.

This item appears in both the industry value added table (table 3) and the industry performance table (table 4) in the Mining industry data cube and is included in Funding from government for operational costs measures in other tables. The Energy Grants (Credits) Scheme was replaced by fuel tax credits from 1 July 2006. Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) included in the price of fuel used for business activities in machinery, plant, equipment and heavy vehicles.

This item appears in the industry value added table (table 3) in the Mining industry data cube. Funding from federal, state and/or local government for operational costs (e.g. wages and salaries, rent, food). Includes bounties, subsidies, export grants, apprenticeship and traineeship schemes, and community service obligation payments and for COVID-19 support measures: JobKeeper, Boosting Cash Flow for Employers and other COVID-19 support measures. For details, see the entries for these items below. For further information, see the section on the Treatment of COVID-19 government support measures in the 2019-20 Australian Industry release. Excludes funding from government for specific capital items.

This item appears in the industry performance table (table 4) in the Mining industry data cube. Funding from federal, state and/or local government for operational costs (e.g. wages and salaries, rent, food). Includes bounties, subsidies, export grants, apprenticeship and traineeship schemes, and community service obligation payments. Excludes COVID-19 support measures: JobKeeper, Boosting Cash Flow for Employers and other COVID-19 support measures. For details, see the entries for these items below. For further information, see the section on the Treatment of COVID-19 government support measures in the 2019-20 Australian Industry release. Excludes funding from government for specific capital items.

Includes capital grants, and low interest or interest free loans made by government to businesses to encourage expenditure on specific equipment (e.g. environmental protection equipment).

Gross fixed capital formation is measured by the total value of a producer's acquisitions, less disposals, of fixed assets during the reference period, plus certain additions to the value of non-produced assets realised by the productive activity of businesses.

Fixed assets are tangible or intangible assets such as computer software and produced as outputs from processes of production that are themselves used repeatedly or continuously in other processes of production for more than one year.

The derivation of GFCF is as follows:

Acquisition of

• Road vehicles
• Other transport equipment
• Industrial machinery and equipment
• Computer software capitalised
• Computers and computer peripherals
• Electronic equipment and electrical machinery
• Communications equipment
• Other plant and equipment
• Dwellings, other buildings and structures
• Computer software expensed
• Mining exploration and evaluation expensed as incurred

less disposal of

• Plant, machinery and equipment (including motor vehicles)
• Dwellings, other buildings and structures

equals

• GFCF

See the entry for Sales and service income.

The structure of ANZSIC comprises four levels, ranging from industry division (broadest level) to industry class (finest level). Activities are narrowly defined within the industry class level, which is identified by a four-digit code, e.g. Industry Class 1510 Pulp, paper and paperboard manufacturing. Usually, an activity is primarily defined to one class. However, some activities may be primary to more than one class.

The structure of ANZSIC comprises four levels, ranging from industry division (broadest level) to industry class (finest level). The main purpose of the industry division level is to provide a limited number of categories which give a broad overall picture of the economy. There are 19 divisions within ANZSIC, each identified by an alphabetical letter, that is, 'A' for Agriculture, forestry and fishing, 'B' for Mining, 'C' for Manufacturing, etc. 

This is the broadest level category within each industry division of ANZSIC and is identified by a two-digit code, e.g. Industry Subdivision 14 for Wood product manufacturing. Industry subdivisions are built up from industry groups which, in turn, are built up from industry classes.

IVA is an estimate of the difference between the market value of the output of an industry and the purchases of materials and expenses incurred in the production of that output.

The derivation of IVA for individual businesses depends on whether they are classified as market or non-market producers. Non-market producers are those institutions which provide goods or services either free or at prices that are not economically significant. In other words, their prices are not significantly influenced by the amounts that producers are willing to supply, nor the amounts that users are willing to pay to purchase the goods or services being provided. Conversely, market producers provide goods and services at prices that are economically significant.

For market producers, the derivation of IVA is as follows:

• Sales and service income

plus

• Funding from government for operational costs (excluding COVID-19 support payments)
• Capital work done for own use
• Change in inventories

less

• Purchases of goods and materials
• Other intermediate input expenses

equals

• IVA

However, it should be noted that IVA is a measure of economic activity and is not equivalent to operating profit before tax (OPBT). Wage and salary expenses, and most other labour costs, are not taken into account in the calculation for market producers, neither are interest expenses, depreciation or a number of lesser expenses. On the income side, OPBT includes total income, whereas IVA only includes sales and service income and government funding for operational costs (excluding COVID-19 support payments and subsidies).

As a principle, the output of non-market production is valued at cost, including intermediate input expenses. As shown in the above derivation, purchases and other intermediate input expenses are deducted from output in order to arrive at IVA.

Accordingly, the derivation of IVA for non-market producers can be described as follows:

• Selected labour costs

plus    

• Depreciation and amortisation

equals

• IVA

Estimates of industry value added are obtained by summing the contributions of businesses classified to that industry, both market and (if any) non-market producers. Market producers are predominant in most industries. 

Industry value added is related to, but different from, the national accounting variable gross value added (GVA). For national accounts purposes, GVA is calculated by adjusting IVA to include General government units and also to account for some other effects, such as inventory holding adjustments and adjustments for financial intermediary services, insurance services, and prices, taxes and subsidies.

IVA of businesses which operated in a given industry during the given year, divided by the number of persons employed by businesses in that industry during the last pay period ending in June of that year. Persons employed include working proprietors and partners.

Premiums for fire, general, accident, public liability, optional third-party and comprehensive motor vehicle insurance, professional indemnity insurance and common law liability. Excludes workers' compensation insurance premiums/costs (included in selected labour costs), compulsory third party motor vehicle insurance premiums (included in motor vehicle running expenses), and reinsurance premiums paid.

The number of times that businesses can meet their interest expenses from their earnings before net interest, tax, depreciation and amortisation (EBITDA), i.e. earnings before interest, tax, depreciation and amortisation divided by interest expenses.

Includes interest paid on loans from banks, finance companies, partners, and related or unrelated businesses, in respect of finance leases and some operating leases. Also includes interest equivalents such as hedging costs and expenses associated with discounted bills. Excludes bank charges other than interest, and capital repayments.

Includes interest received from deposits in banks and non-bank financial institutions, loans, advances, finance leases and earnings on discounted bills. Excludes capital payments received.

The proportion of industry value added (IVA) used to acquire capital, i.e. (capital expenditure divided by IVA) multiplied by 100.

Comprises wages and salaries (including salary sacrificed earnings paid on behalf of employees and employee share based payments and stock options), employer contributions into superannuation, workers' compensation premiums/costs, fringe benefits tax and payroll tax. Also includes capitalised wages and salaries.

Includes expenditure on registration fees, compulsory third-party insurance premiums, fuel, and repair and maintenance expenses for on-road motor vehicles. Excludes expenses for off-road motor vehicles (e.g. mobile plant, quarry dump trucks) and lease payments, optional third party and comprehensive motor vehicle insurance premiums, and depreciation. Included in the industry performance table (table 4) of the Mining data cube.

Includes payments under mineral lease arrangements, payments under timber and quarrying lease arrangements, and resource rent taxes and royalties. Excludes payments for royalties from intellectual property (e.g. patents and copyrights) and computer software licence fees. Gold tax payments are also excluded. Included in the industry performance table (table 4) of the Mining data cube.

The value of total capital expenditure less proceeds received from the disposal of assets. See the entries for these items.

The financial data collected in the EAS generally represent the 12 month period ended 30 June. Where businesses are unable to provide data on this basis, an alternate, or Off-June year accounting period is used. This issue particularly affects the Mining industry. As a result, in some instances estimates may reflect trading conditions occurring outside of the published reference year.

For current June estimates, see the Off-June Year adjusted estimates by subdivision data cube in this issue.

For further information about Off-June year adjusted estimates, see the Estimation methodology section.

The value of all inventories of finished goods (including mineral ores and inventories for resale), work-in-progress (less progress payments billed), raw materials, fuels and containers at the beginning of the reporting period.

Profit before extraordinary items are brought to account and prior to the deduction of income tax and appropriations to owners (e.g. dividends paid), i.e. total income less total expenses plus change in inventories.

Payments to other businesses and self-employed persons for work done or sales made on a contract or commission basis. Payments to persons paid by commission without a retainer are also included. Includes payments to owner drivers for removal of material, but not for delivery of the final mineral product. Excludes contract mining expenses, published separately. Included in the industry performance table (table 4) of the Mining data cube.

Expenditure items not separately itemised in the industry performance table (table 4) in the Australian Industry data cube. Examples include bad and doubtful debts, natural resource royalty expenses, land tax and land rates, computer software expenses, freight, other royalties expenses, exploration and evaluation expenditure expensed as incurred, payments to employment agencies for staff and other operating expenses.

Income from sources not separately itemised in the industry performance table (table 4) in the division, subdivision, Mining and Auxiliary finance and insurance services data cubes, including:

• dividend income
• donations
• net profit or loss on share trading, asset sales, variations in exchange rates or resulting from the revaluation of assets in accordance with the Australian International Financial Reporting Standards (AIFRS).

Also includes funding from government for specific capital items.

Expenditure items not separately itemised in the industry value added table (table 3) in the Australian industry data cube. Examples include payments to other businesses for staff, freight expenses, royalties expenses and other contract, subcontract and commission expenses.

A tax levied by state and territory governments on the amount of wages and salaries paid by a business. Excludes pay-as-you-go withholding tax.

The ratio of operating profit before tax (OPBT) to total sales and service income, expressed as a percentage, i.e. (OPBT divided by sales and service income) multiplied by 100.

Purchases of materials, components, explosives, containers, packaging materials, fuels, electricity and water, and purchases of minerals and other goods for resale. Also includes capitalised purchases. For the Mining division purchases of parts and fuels for on-road motor vehicles are excluded, but fuels for off-road vehicles, such as mobile plant and quarry dump trucks are included.

Payments for the rent, leasing and hiring of land, dwellings, other buildings and structures, motor vehicles, plant, machinery and other equipment (including telecommunication equipment). Includes operating lease payments not captured under interest expenses or depreciation; excludes finance lease payments.

See the entry for Sales and service income.

Includes computer and communication software and hardware maintenance, and repair and maintenance of off-road motor vehicles. Excludes repair and maintenance costs of on-road motor vehicles and the wages and salaries of own employees undertaking repair and maintenance. Included in the industry performance table (table 4) in the Mining data cube.

Sales of goods

• Includes goods whether produced or not by the business (including goods produced for the business on a commission basis).
• Includes export sales, sales or transfers to related businesses or to overseas branches of the business, progress payments relating to long term contracts if they are billed in the period, delivery charges not separately invoiced or itemised to customers, sales of goods produced by the business from crude materials purchased, and income from 'specific' rates (e.g. water, sewerage, irrigation and drainage rates).
• Excludes excise and duties received on behalf of the government (e.g. the petroleum production excise duty), sales of assets, natural resource royalties income, interest income, and delivery charges separately invoiced or itemised to customers.
• Exports are valued free on board, i.e. export freight charges are excluded.
• This item is included in sales and service income, and is not separately published except for Mining.

Income from services (including royalties)

• Includes income from services provided to businesses, households and governments.
• Includes income from consulting services, income received from transporting goods not owned or sold by this business/organisation, repair, maintenance and service income and fees, contract, subcontract and commission income, management fees/charges from related and unrelated businesses, installation charges, delivery charges separately invoiced or itemised to customers and royalties from intellectual property (e.g. patents and copyrights) and natural resource royalties income.
• Also includes income from the provision of transport services and fee for service income.
• Includes government funding to reduce the expenses of the final consumer (i.e. households) where paid directly from government to the business providing the service. This type of funding is classified as sales and service income. Examples include the Child Care Subsidy, Medicare Benefits payments, a number of aged care subsidies and supplements and National Disability Insurance Scheme (NDIS) payments.
• Excludes interest income, and delivery charges not separately invoiced to customers.
• This item is included in sales and service income, and is not separately published except for Mining.

Rent, leasing and hiring income

• Derived from the ownership of land, dwellings, buildings and other structures, motor vehicles, plant, machinery and other equipment.
• Excludes royalties from mineral leases, income from finance leases and payments received under hire purchase arrangements.
• This item is included in sales and service income, and is not separately published except for Mining.

These are valued net of discounts given and exclusive of goods and services tax (GST). Extraordinary items are also excluded.

Sales and service income of businesses which operated in a given industry during the given year ended 30 June, divided by the number of persons employed by businesses in that industry during the last pay period ending in June of that year. Persons employed include working proprietors and partners.

See the entry for Sales and service income.

Comprises wages and salaries (including provisions for employee entitlements, salary sacrificed earnings, share based payments and stock options); employer contributions into superannuation; and workers' compensation premiums/costs.

See the entry for employer contributions into superannuation.

The sum of all expense components.

Comprises sales and service income, interest income, funding from government for operational costs and other income (for details, see the entries for these items).

Comprises all classes in ANZSIC Division B Mining (i.e. Subdivisions 06-10).

This comprises data for all ANZSIC divisions, excluding ANZSIC Subdivisions 62 and 63. For a detailed discussion of the scope and coverage of the estimates, see the Scope section. Units classified to the General government institutional sector are excluded from the scope of estimates for most industries that comprise Total selected industries. This limits coverage to private sector entities which particularly affects Public administration and safety, Education and training, and Health care and social assistance divisions.

The gross wages and salaries (including capitalised wages and salaries) of all employees of the business. The item includes severance, termination and redundancy payments, salaries and fees of directors and executives, retainers and commissions of persons who received a retainer, bonuses, and annual and other types of leave. Provision expenses for employee entitlements (e.g. provisions for annual leave and leave bonus, long service leave, sick leave, and severance, termination and redundancy payments) are also included, as are salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options. (Note that in issues of this publication prior to 2006-07, salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options were reported under related expense items. For example, salary sacrificed for superannuation was included in employer contributions into superannuation).

Payments related to self-employed persons such as consultants, contractors and persons paid solely by commission without a retainer are excluded. The drawings of working proprietors and partners are also excluded.

In 2019-20 and 2020-21 Wages and salaries included any JobKeeper payments made through the payroll. These payments were also included in Funding from government for operational costs (including COVID-19 support payments).

The wages and salaries paid by businesses which operated in a given industry during the given year ended 30 June, divided by the number of employees in that industry during the last pay period ending in June of that year. Working proprietors and partners are not included in employee estimates. The drawings of working proprietors and partners are not included in estimates of wages and salaries.

The wages and salaries paid by businesses which operated during the year ended 30 June as a proportion of the sales and service income of businesses which operated during the same year.

Workers' compensation is a compulsory insurance cover to be taken out by all employers, except for self-insured workers, according to legislative schemes to cover employees suffering injury or disease in the course of or arising out of employment.