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Australian National Accounts: Supply Use Tables methodology, 2018-19 financial year

Reference period
2018-19 financial year

Explanatory notes

Introduction

1 This publication presents an integrated framework of the total supply of goods and services from domestic and foreign producers that are available for use across the Australian economy. Annual estimates, on an original basis, are provided for the supply-use time series from 1994-95 to the current reference period. All data are available to download from the ABS.Stat website.

Concepts, sources and methods

2 The supply-use tables are compiled in accordance with international standards contained in the System of National Accounts. These standards are presented in the System of National Accounts, 2008 (SNA08). Australia's application of these SNA standards is described in chapter 7 of the Australian System of National Accounts: Concepts, Sources and Methods (cat. no. 5216.0). It is available on the ABS website. This publication outlines major concepts and definitions, describes sources of data and methods used to derive the supply-use tables, as well as annual and quarterly estimates for major aggregates at current prices and in chain volume terms, and discusses the accuracy and reliability of the national accounts. In addition, it includes documentation on national accounts aggregates such as Gross Domestic Product (GDP), input-output tables, financial accounts, capital stock, productivity measures, balance sheets, and state accounts.

Supply-use framework

3 The supply-use framework comprises two tables as shown in Figure 1. The supply table shows the total supply of products from domestic and foreign producers that are available for use in the domestic economy. The use table presents the use of this supply by industries as intermediate inputs and by final users. Once both sides are equal (i.e. supply = use) for all products, the supply-use tables are said to be balanced. Balanced supply-use tables provide the benchmarks for the current price and chain volume measures of annual GDP.

Figure 1 - Supply-use tables - framework for the economy

Figure 1 - supply-use tables - framework for the economy

Figure 1 - Supply-use tables - framework for the economy

Within supply is industry, and beneath this is output. Products under output are farmer to grain, baker to bread, and hospital to health services. These all make up total output (A). Also under supply are taxes/subsidies, margins and imports.

Supply equals use. Within use is industry, and beneath this is intermediate input. Products under intermediate input are fertiliser to farmer, flour to baker, and pharmaceuticals to hospital. These all make up total intermediate input (B). Also under use is final demand. Beneath final demand are government, households, capital, exports, and inventories.

Gross value added (production) equals total output minus total intermediate input, or A minus B.

A minus B equals gross value added income. This includes compensation of employees, other net taxes on production, and gross operating surplus.

Supply table

4 The left side of Figure 1 is a supply table. The domestic output matrix forms the main body of the supply table. In this matrix, industries appear across columns and products across rows, and each cell indicates the amount of each product that is produced domestically by each industry at basic prices. Total domestic supply by commodity (valued at basic prices) presents the sum of the domestic output and imports. Imports are valued at domestic port value, that is, free on board, which is equivalent to the importer’s customs frontier price.

5 The valuation adjustments bridge the difference between total domestic supply at basic prices and domestic supply at purchasers’ prices. This adjustment includes the margin component and the tax and subsidy component. The purpose of the margin component is to show the allocation of wholesale and retail trade margins and transportation costs to the products on which these charges are levied.

6 The tax and subsidy component adds taxes on products and subtracts subsidies, thereby completing the transformation from basic prices to purchasers’ prices. Taxes on products include general government sales and excise taxes. Subsidies are monetary grants paid by government agencies to private business and to government enterprises to keep prices of products low/competitive.

Use table

7 The structure of the use table shows the use of products by industries and by final users as well as the value added by industry at purchasers’ prices. Valuation in purchasers’ prices shows inputs to industries and final uses at values that reflect the actual cost to the user of the product. These costs includes the costs of transporting the product to the user in addition to any wholesale and retail mark-ups incurred while bringing the product to market.

8 The right side of Figure 1 is an industry-level use table in the supply-use framework. This table comprises the intermediate inputs, final demand, and value added matrix. The intermediate inputs matrix forms the central part of the use table. Industries appear across columns and products across rows. In the use table, each cell indicates the amount of a product purchased by each industry as an intermediate input into the industry’s production process. These products are valued at purchasers’ prices, meaning that taxes, transportation costs, and wholesale and retail trade margins are embedded in the total along with the underlying value of the product purchased. No distinction is made in the use table between imports and domestically produced output.

9 The final demand matrix presents expenditure-side components of GDP, including household and government final consumption expenditures, gross final capital formation, change in inventories and exports. Products appear in the rows, and final demand categories (rather than industries) valued at purchasers' prices appear across the columns.

10 Value added by industry at basic prices appears in a row under total intermediate inputs. The values in this row equal total output by industry (row A) in the supply table minus the value of intermediate inputs at purchasers’ prices (row B) in the use table. This equivalency - gross output minus intermediate purchases equal value added generated by production - is an accounting identity that must hold true.

11 The primary income components of value added are also shown. These components are compensation of employees (return to labour), gross operating surplus (return to capital), and other net taxes on production (return to government).

Application of supply-use tables in the national accounts

12 The supply-use tables were introduced in the annual national accounts in 1998, as an integral part of the annual compilation of GDP. They are building blocks for ABS national accounts as they are used to ensure GDP is balanced for all three approaches (production, expenditure and income) and provide the annual benchmarks (levels) from which the quarterly estimates are compiled. These tables have been compiled from 1994-95, up to the year preceding the latest complete financial year.

13 GDP is derived by three approaches: the income approach (I), the expenditure approach (E) and the production approach (P). A description of each approach is provided in the following paragraphs. While each measure should, conceptually, produce the same estimate of GDP, if the three measures are compiled independently using different data sources, then different estimates of GDP result. The ABS aligns the estimates of GDP annually by balancing them in supply-use tables.

14 Income approach (I): GDP using the income approach is derived as the sum of compensation of employees, gross operating surplus, gross mixed income and taxes less subsidies on production and imports. Volume estimates are derived at the total GDP level by deflating current price estimates by the implicit price deflator from the expenditure approach.

15 Expenditure approach (E): GDP using the expenditure approach is derived as the sum of all final expenditures, changes in inventories and exports of goods and services less imports of goods and services. Final expenditures include household final consumption, government final consumption, and gross fixed capital formation for the private sector, public enterprises and general government. Volume estimates are derived for each of the components as well as for their sum.

16 Production approach (P): GDP using the production approach is derived as the sum of gross value added for each industry, at basic prices, plus taxes less subsidies on products. Basic values represent the amounts received by producers, including the value of any subsidies on products, but before any taxes on products. The difference between the sum over all industries of gross value added at basic prices, and GDP at market (or purchasers') prices, is the value of taxes less subsidies on products.

17 Annual estimates using the I, E and P approaches are identical for the years for which supply-use tables are compiled. For years balanced using supply-use tables, quarterly GDP is benchmarked to annual GDP. However, the three estimates of GDP can be different for any given quarter. The annual GDP estimate produced by balancing using supply-use tables forms the benchmark for the production of quarterly GDP going forward. Quarterly GDP is compiled in chain volume terms using all three approaches. The headline measure of GDP is a simple average of the three separate measures. It is labelled GDP(A), with "A" denoting "average".

18 Prior to 1994-95 quarterly and annual estimates using each approach are based on independent sources, and there are usually differences between the I, E and P estimates. For these periods, a single estimate of GDP has been compiled. In chain volume terms, GDP is derived by averaging the chain volume estimates obtained from each of the three independent approaches. The current price estimate of GDP is obtained by reflating the average chain volume estimate by the implicit price deflator derived from the expenditure-based estimates.

19 As a result of the above methods, there is no statistical discrepancy for annual estimates from 1994-95 up to the year prior to the latest complete financial year, in either current price or volume terms, except for estimates released in the June quarter where discrepancies will exist for the latest two complete financial years. For years prior to 1994-95, and for all quarters, statistical discrepancies exist between estimates based on the I, E and P approaches and the single estimate of GDP, in both current prices and volume terms. These discrepancies are shown in the relevant tables.

20 The supply-use tables in current prices provide benchmarks to the Australian System of National Accounts (ASNA) (cat. no. 5204.0) at the levels outlined below.

  • Gross operating surplus and mixed income, compensation of employees, and other taxes less subsidies on production are benchmarked at Australian and New Zealand standard industry classification (ANZSIC) division.
  • Household final consumption expenditure is benchmarked at the Classification of Individual Consumption by Purpose (COICOP).
  • Gross fixed capital formation is benchmarked by institutional sector and type of capital asset.
  • Change in inventories for selected industries is benchmarked at the Australian total non-farm level.
  • Imports, exports, taxes less subsidies on products and government final consumption expenditure are benchmarked at the Australian total.


21 The supply-use tables products are compiled at a lower level than the published Supply-Use Product Group (SUPG). As a result, for several expenditure categories, there are many SUPGs that concord to several expenditure categories. For example SUPG 2301 Motor Vehicles and Parts; Other Transport Equipment manufacturing concords to several COICOPs including Purchase of Vehicles (cars and trucks), Operation of Vehicles (car parts and accessories), Goods for Recreation & Culture (recreational caravans, boats and aircraft), and Other Goods & Services (recreational boat and aircraft repair and maintenance). A concordance between supply-use classifications and the classifications used in the ASNA can be found in Table 4 of this publication.

Output tables

22 The supply-use tables have been divided into four sections.

Table 1. Supply by product group by industry

23 This table shows total supply of product groups (SUPG) for the reference year, by Supply-Use Industry Classification (SUIC) at basic prices, imports and the reconciliation of basic prices to purchasers' prices. Margins and taxes less subsidies on products are added to output at basic prices to derive total supply at purchasers' prices. A row in this table represents a product group and a column represents either an industry group, a margin type, taxes less subsidies on products or a total supply category.

Table 2. Use by product group by industry

24 This table shows total use of product group (SUPG) for the reference year by intermediate use of using industries (SUIC) and final use by final demand categories, at purchasers' prices. A row in this table represents a product group and a column represents either an industry group, a final demand or total use category.

Table 3. Primary inputs by industry

25 This table shows primary inputs by industry (SUIC). A row in this table represents a primary input and a column represents either an industry group or a total primary inputs category.

26 The full time series of the above tables are available via the ABS.Stat website.

Table 4. Industry and product concordances

SUIC(2018)

27 The SUIC(2018) table shows the 2018 SUIC code in column A with the 2018 SUIC descriptor shown in column B.

IOIG(2015) to SUIC(2018)

28 In the IOIG(2015) to SUIC(2018) table, the 2015 IOIG codes are shown in column A with the 2015 IOIG descriptors in column B. The 2018 SUIC codes are in column C with the 2018 SUIC descriptors shown in column D.

SUPG(2018)

29 The SUPG(2018) table shows the 2018 SUPG code in column A with the 2018 SUPG descriptor shown in column B.

SUPG(2018) to COICOP

30 In the SUPG(2018) to COICOP table, the 2018 SUPG codes are show in column A with the SUPG(2018) descriptors in column B. The COICOP codes are in column C with the COICOP descriptors shown in column E. Column F indicates whether a 2018 SUPG is mapped partially to a COICOP and is indicated by a 'p' in the column.

SUPG(2018) to Capital asset types

31 In the SUPG(2018) to Capital assets types table, the 2018 SUPG codes are show in column A with the SUPG(2018) descriptors in column B. The Capital asset types are in column C. Column D indicates whether a 2018 SUPG is mapped partially to a Capital Asset Type and is indicated by a 'p' in the column.

Products combined for confidentiality purposes

32 The information contained in these product details has been confidentialised. This confidentiality has been applied through the suppression of some values (shown as 'n.p.').

Reliability and revisions

33 The supply-use tables progressively incorporate a large number of data sources such as business activity surveys, household expenditure surveys, investment surveys, international trade statistics, government finance statistics and taxation data. A balancing process is undertaken to achieve consistency between the supply and use of products in the economy, in both current price and volume terms. Data inconsistencies are reviewed and resolved by altering some of the underlying data. The supply-use tables for each year are essentially compiled three times because more comprehensive data only become available with a considerable time lag.

34 The sequence of supply-use tables compilation is according to the following timetable:

  • 1st preliminary - end of year t + 12 months;
  • 2nd preliminary - end of year t + 24 months; and
  • Final - end of year t + 36 months.


35 Annual and quarterly national accounts estimates are benchmarked to successive vintages of the supply-use tables to maintain consistency within the national accounts system. Periodically, the ABS will open up the supply-use tables beyond the normal three years to take on revisions that impact the whole time series, for example, from conceptual changes, methodological changes and new or updated data sources.

Related publications

36 Current publications and other products released by the ABS are listed on the ABS website. The ABS also publishes a release calendar which details products to be released within the next six months.

37 Users may also wish to refer to the following publications and other data products that are available free of charge from the ABS website:


38 The United Nations provides information on supply-use tables with its Handbook on Supply, Use and Input-Output Tables.

Glossary

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Australian production

Australian production refers to the value at basic prices of goods and services produced in Australia.

Basic price

The basic price is the amount receivable by the producer from the purchaser for a unit of a good or service produced as output minus any tax payable, and plus any subsidy receivable, on that unit as a consequence of its production or sale. It excludes any trade margins or transport charges invoiced separately by the producer. Output sold at prices that are not economically significant (see also Economically significant prices) is not valued at these prices. Rather, such output is valued at its cost of production.

Chain volume measures

Annually-reweighted chain Laspeyres volume indexes referenced to the current price values in a chosen reference year (i.e. the year when the quarterly chain volume measures sum to the current price annual values). Chain Laspeyres volume measures are compiled by linking together (compounding) movements in volumes, calculated using the average prices of the previous financial year, and applying the compounded movements to the current price estimates of the reference year. Quarterly chain volume estimates are benchmarked to annual chain volume estimates, so that the quarterly estimates for a financial year sum to the corresponding annual estimate.

Generally, chain volume measures are not additive. In other words, component chain volume measures do not sum to a total in the way original current price components do. In order to minimize the impact of this property, the ABS uses the latest base year as the reference year. By adopting this approach, additivity exists for the quarters following the reference year and non-additivity is relatively small for the quarters in the reference year and the quarters immediately preceding it. The latest base year and the reference year will be advanced one year with the release of the June quarter issue of this publication. A change in reference year changes levels but not growth rates, although some revision to recent growth rates can be expected because of the introduction of a more recent base year (and revisions to the current price estimates underlying the chain volume measures).

Changes in inventories

Changes in inventories represent the difference in value between inventories held at the beginning and end of the reference period by enterprises and general government. For national accounting purposes, physical changes in inventories should be valued at the prices current at the times when the changes occur. For these purposes, changes in inventories are obtained after adjusting the increase in book value of inventories by the inventory valuation adjustment. The need for the latter arises because the changes in the value of inventories as calculated from existing business accounting records do not meet national accounting requirements. The inventory valuation adjustment is the difference between the change in (book) value of inventories and the physical changes valued at current prices. The physical changes at average current quarter prices are calculated by applying average quarterly price indexes to the changes in various categories of inventories in volume terms.

Classification of individual consumption by purpose (COICOP)

The classification used to breakdown Household Final Consumption Expenditure by purpose or function.

​​​​​​​Compensation of employees (CoE)

Compensation of employees is the total remuneration, in cash or in kind, payable by an enterprise to an employee in return for work done by the employee during the accounting period. It is further classified into two sub-components: wages and salaries; and employers’ social contributions. Compensation of employees is not payable in respect of unpaid work undertaken voluntarily, including the work done by members of a household within an unincorporated enterprise owned by the same household. Compensation of employees excludes any taxes payable by the employer on the wage and salary bill (e.g. payroll tax).

Cost insurance and freight (c.i.f) value

The value of goods being imported/exported at the border of the importing country. This is equal to the f.o.b. value plus the cost of freight and shipping between the border of the exporting country and the border of the importing country. In the Supply-use tables imports are valued on a c.i.f basis.

Coverage ratio (for a product)

A product may be produced by more than one industry. The coverage ratio shows what proportion of the total domestic supply of a product is produced by the industry to which the product is primary.

Current prices

Estimates are valued at the prices of the period to which the observation relates. For example, estimates for 2018-19 are valued using 2018-19 prices. This contrasts to chain volume measures where the prices used in valuation refer to the prices of a previous period and to previous years' prices measures where the prices used in valuation refer to the prices of the previous period.

​​​​​​​Economically significant prices

Prices which have a significant influence on both the amounts producers are willing to supply and the amount purchasers wish to buy.

Exports of goods and services

The value of goods exported and amounts receivable from non-residents for the provision of services by residents.

Final demand

Final demand is the total of all expenditure on goods and services that are not intermediate use. It is derived by aggregating Household Final Consumption Expenditure, Government Final Consumption Expenditure, Private Gross Fixed Capital Formation, Public Gross Fixed Capital Formation, General Government Gross Fixed Capital Formation, Change in inventories, Exports and Re-exports.

Free-on-board (f.o.b.) value

The value of goods being imported/exported at the border of the exporting country. This includes the value of the goods, the value of outside packaging for the goods and the costs involved in transporting goods up to the border of the exporting country. It does not involve the cost involved in shipping between the border of the exporting country and the border of the importing country. In the Supply-use tables exports are valued on a f.o.b. basis.

Government final consumption expenditure (GFCE)

Net expenditure on goods and services by public authorities, other than those classified as public corporations, which does not result in the creation of fixed assets or inventories or in the acquisition of land and existing buildings or second-hand assets. It comprises expenditure on compensation of employees (other than those charged to capital works, etc.), goods and services (other than fixed assets and inventories) and consumption of fixed capital. Expenditure on repair and maintenance of roads is included. Fees, etc., charged by general government bodies for goods sold and services rendered are offset against purchases. Net expenditure overseas by general government bodies and purchases from public corporations are included. Expenditure on defence assets is classified as gross fixed capital formation.

Gross domestic product (GDP)

Gross domestic product is the total market value of goods and services produced in Australia within a given period after deducting the cost of goods and services used up in the process of production, but before deducting allowances for the consumption of fixed capital. Thus gross domestic product, as here defined, is 'at market prices'. It is equivalent to gross national expenditure plus exports of goods and services less imports of goods and services.

General government gross fixed capital formation (GG GFCF)

Expenditure on new fixed assets plus net expenditure on second-hand fixed assets by the general government sector. This includes both additions and replacements.

Gross operating surplus (GOS)

Gross operating surplus is a measure of the surplus accruing to owners from processes of production before deducting any explicit or implicit interest charges, rents or other property incomes payable on the financial assets, non-produced non-financial natural resource assets (such as land) required to carry on the production and before deducting consumption of fixed capital. However, GOS is measured after the deduction of financial intermediation services indirectly measured and the insurance service charge. It excludes gross mixed income which is the surplus accruing to owners of unincorporated enterprises. Gross operating surplus is also calculated for general government, where it equals general government's consumption of fixed capital.

Gross value added (GVA)

Gross value added is defined as the value of output at basic prices minus the value of intermediate consumption at purchasers' prices. The term is used to describe gross product by industry and by sector. Basic prices valuation of output removes the distortion caused by variations in the incidence of commodity taxes and subsidies across the output of individual industries.

Household final consumption expenditure (HFCE)

Net expenditure on goods and services by persons and expenditure of a current nature by private non-profit institutions serving households. This item excludes expenditures by unincorporated businesses and expenditures on assets by non-profit institutions (included in gross fixed capital formation). Also excluded are maintenance of dwellings (treated as intermediate expenses of private enterprises), but personal expenditure on motor vehicles and other durable goods and the imputed rent of owner-occupied dwellings are included. The value of 'backyard' production (including food produced and consumed on farms) is included in household final consumption expenditure and the payment of wages and salaries in kind (e.g. food and lodging supplied free to employees) is counted in both household income and household final consumption expenditure.

Imports of goods and services

The value of goods imported and amounts payable to non-residents for the provision of services to residents.

Input-output industry group (IOIG)

IOIGs are based on the Australian and New Zealand Standard Industrial Classification (ANZSIC) and the Input-output tables are published at this level of industry.

Input-output product classification (IOPC)

The IOPC is the detailed level product classification, organised according to the industry to which each product is primary. Input-output tables are compiled at this level of product classification.

Input-output product group (IOPG)

IOPGs are groups of IOPCs aggregated to the IOIGs to which they are primary. Input-output tables are published at this level of product classification.

Intermediate use (or intermediate consumption)

Intermediate use consists of the value of the goods and services consumed as inputs by a process of production, excluding the consumption of fixed capital.

Intra-industry flows

Intra-industry flows refer to the production by units in an industry and use of that production by other units within the same industry. Australian input-output tables include the values of these flows.

​​​​​​​Inventories

Inventories consist of stocks of outputs that are held at the end of a period by the units that produced them prior to their being further processed, sold, delivered to other units or used in other ways, and stocks of products acquired from other units that are intended to be used for intermediate consumption or for resale without further processing.

Margins

When a good or service is purchased by a business and sold again at a higher price, without the product being substantially transformed, it is considered to be a margin transaction. The value of the margin is derived as the difference between the purchase price and the sale price of the product. This margin can be split into multiple categories (e.g. retail margin and transport margin). If the transactions are valued at basic prices, the margins are recorded as intermediate consumption (e.g. transport, wholesale trade) of the intermediate users or final buyers. If transactions are valued at purchasers’ prices the value of margins in included, along with taxes less subsidies on products with the purchasers’ price of the good to which the margin relates.

Other subsidies on production

Other subsidies on production consist of all subsidies, except subsidies on products, which resident enterprises may receive as a consequence of engaging in production. Other subsidies on production include: subsidies related to the payroll or workforce numbers (including subsidies payable on the total wage or salary bill), on numbers employed, or on the employment of particular types of persons, e.g. persons with disabilities or persons who have been unemployed for a long period.

Other taxes on production

Other taxes on production consist of all taxes that enterprises incur as a result of engaging in production, except taxes on products. Other taxes on production 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 transactions.

Previous years' prices

Estimates are valued at the prices of the period prior to the period to which the observation relates. For example, estimates for 2018-19 are valued using 2017-18 prices. This contrasts to current price measures where the prices used in valuation refer to the prices of the current period. Previous Years' Price measures are used in the compilation of chain volume measures.

​​​​​​​Primary inputs

Primary inputs include compensation of employees, gross operating surplus and gross mixed income, taxes less subsidies on products, other taxes less subsidies on production and imports.

​​​​​​​Private gross fixed capital formation (Private GFCF)

Expenditure on new fixed assets plus net expenditure on second-hand fixed assets by private corporations. This includes both additions and replacements.

Public gross fixed capital formation (Public GFCF)

Expenditure on new fixed assets plus net expenditure on second-hand fixed assets by public corporations. This includes both additions and replacements.

Purchasers' price

The purchasers' price is the amount paid by the purchaser, excluding any deductible tax, in order to take delivery of a unit of a good or service at the time and place required by the purchaser. The purchaser’s price of a good includes any transport charges paid separately by the purchaser to take delivery at the required time and place.

Re-exports

Re-exports are goods imported into Australia and then exported without having been used or transformed in any way.

Retail margin

The difference between the final sale price of a good or service by a retailer and the costs involved in stocking the good or service (including purchasing the good or service and transporting the good or service to the point of sale). Retail margins are differentiated from wholesale margins as retailers sell products for final use.

​​​​​​​Specialisation ratio (for an industry)

An industry may produce a number of products, some of which may be primary to that industry and some of which may be primary to other industries. The specialisation ratio shows the proportion of an industry’s output that is primary to that industry.

Subsidies on products

A subsidy on a product is a subsidy payable per unit of a good or service. The subsidy may be a specific amount of money per unit of quantity of a good or service, or it may be calculated ad valorem as a specified percentage of the price per unit. A subsidy may also be calculated as the difference between a specified target price and the market price actually paid by a purchaser. A subsidy on a product usually becomes payable when the product is produced, sold or imported, but it may also become payable in other circumstances, such as when a product is exported, leased, transferred, delivered or used for own consumption or own capital formation.

​​​​​​​Supply-use industry classification (SUIC)

SUICs are based on the Australian and New Zealand Standard Industrial Classification (ANZSIC) and the supply-use tables are published at this level of industry.

​​​​​​​​​​​​​Supply-use product classification (SUPC)

The SUPC is the detailed level product classification, organised according to the industry to which each product is primary. Supply-use tables are compiled at this level of product classification.

Supply-use product group (SUPG)

SUPGs are groups of SUPCs aggregated to the SUICs to which they are primary. Supply-use tables are published at this level of product classification.

Taxes on products

A tax on a product is a tax that is payable per unit of some good or service. The tax may be a specific amount of money per unit of quantity of a good or service (quantity being measured either in terms of discrete units or continuous physical variables such as volume, weight, strength, distance, time, etc.), or it may be calculated ad valorem as a specified percentage of the price per unit or value of the goods or services transacted. A tax on a product usually becomes payable when it is produced, sold or imported, but it may also become payable in other circumstances, such as when a good is exported, leased, transferred, delivered, or used for own consumption or own capital formation.

Trade margin

Trade margin is defined as the difference between the actual or imputed price realised on a good purchased for resale and the price that would have to be paid by the distributor to replace the good at the time it is sold or otherwise disposed of.

Transport margin

Transport margins include any transport charges invoiced separately. In the supply-use tables, if the producer agrees to deliver the product to the purchaser without explicit charge the cost of delivery is included in the basic price, and only if the purchaser is explicitly invoiced for the delivery is there a specific transportation margin that is part of the purchaser’s price. This differs from the treatment in the input-output tables, where the costs arising through the transport of goods from a producer to a purchaser by a third party even without a separate invoice is recorded as a transport margin and excluded from the basic price of the good being transported.

​​​​​​​Wholesale margin

The difference between the final sale price of a good or service by a wholesaler and the costs involved in stocking the good or service (including purchasing the good or service and transporting the good or service to the point of sale). Wholesale margins are differentiated from retail margins as wholesalers sell products for intermediate use by other businesses.

Quality declaration - summary

Institutional environment

For information on the institutional environment of the Australian Bureau of Statistics (ABS), including the legislative obligations of the ABS, financing and governance arrangements, and mechanisms for scrutiny of ABS operations, please see ABS Institutional Environment.

Relevance

Supply-use tables are a part of the Australian national accounts. The standards governing national accounts are agreed internationally and detailed in the "System of National Accounts 2008" (SNA08). SNA08 is endorsed by the five major international economic organisations: the United Nations, the International Monetary Fund, the OECD, the World Bank and the European Commission. The complete version of SNA08 is available online, System of National Accounts, 2008.

The Australian national accounts differ from the recommendations in the SNA08 in some instances where the data is not available to meet these requirements, or it is not considered practical to adhere to the standards. For more information on the differences between the Australian national accounts and the SNA08, see Australian National Accounts: Concepts, Sources and Methods (cat. no. 5216.0).

Timeliness

The annual supply-use tables are published sixteen months after the reference period because of the need to acquire an extensive range of data sources, which are of varying quality and frequency. These range from, for example, data on merchandise trade, to data on product supply or intermediate usage which may, depending on the product and industry, are based on annual or occasional ABS surveys or non-ABS sources.

Accuracy

Accuracy remains the main focus of ABS quality control. However, in the case of the supply-use tables, it is recognised internationally that an objective accuracy measure in the sense of proximity to the ‘true value’ is impossible to produce. The supply-use tables are a highly complex set of economic statistics. They combine a substantial number of internal and external data sources, differing quality and frequency, covering various aspects of the economy to compile the supply-use tables.

Given the variety of data used, and the transformations and aggregations used in the national accounts process, an assessment of accuracy is necessarily subjective and indirect. It involves an evaluation of the national accounts process, the input data and the transformations used to produce the national accounts. The ABS aims to achieve best practice in each of these facets of national accounts compilation. An analysis of revisions can objectively measure the concept of reliability, but a reliable series is not necessarily accurate if it is based on poor quality data.

The limitations surrounding the data sources, the age of data, the availability of detailed product level supply and use data mean that to a greater or lesser extent a significant part of the detailed supply-use data is extrapolated from previous information. These estimates are then confronted, reallocated and balanced against other cells within the supply-use table framework, with more credence being given to some data sources over others.

These processes result in individual components being modelled and adjusted, and this is particularly true for those with relatively small values. Users should, therefore, be cautious when considering isolated fragments of the tables, especially details at the product level and or when looking at the supply or use of products that may be related to an activity or industry but are being analysed outside the economic structure of the supply-use tables.

For a more in-depth discussion of the accuracy of the national accounts including an analysis of revisions, please see the Information Paper: Quality Dimensions of the Australian National Accounts (cat. no. 5216.0.55.002).

Coherence

A major unifying feature within the Australian System of National Accounts is the application of the supply and use framework to confront the data and balance the components of GDP in annual terms. The supply-use tables show inter-industry flows of goods and services, and at the time of release, the Gross Domestic Product (GDP) measure reported in the supply-use tables matched that which was published in the most recent Annual National Accounts publication, Australian System of National Accounts (cat. no. 5204.0) available at the time of compilation.

The ABS publishes a large amount of data on many aspects of the economy, both periodically and in the form of occasional surveys of particular industries or activities. Many of these, especially annual publications and occasional product surveys, are used in the supply-use tables. However, the data as presented in the supply-use tables may differ in detail from the source data due to the supply-use data confrontation and balancing processes, scope and coverage differences between individual publications and the national accounts and adjustments and additions due to economic activity not generally collected in industry surveys such as gross fixed capital formation and use of financial services.

Interpretability

Supply-use tables disaggregate and describe the gross domestic product account regarding the flows through the economy of the supply of goods and services from producers (domestic and non-resident) to their users and uses. They present a detailed analysis of the process of production, the use of goods and services of that production at basic, as well as producer prices, along with details on taxes, subsides and various types of margins.

Accessibility

For links to all national accounts related data and publications, recent national accounts changes and forthcoming events, relevant websites and a range of other information about the Australian National Accounts, please see the National Accounts Statistics homepage.

For more detailed information about the quality dimensions of the Australian National Accounts please see the Information Paper: Quality Dimensions of the Australian National Accounts (cat. no. 5216.0.55.002).

The supply-use tables time series are available from the ABS.Stat website. The supply-use tables in Excel spreadsheets can be downloaded from the Data downloads section.

Abbreviations

ABSAustralian Bureau of Statistics
ANZSIC06Australian and New Zealand Standard Industrial Classification 2006
ASNAAustralian System of National Accounts
BOPBalance of Payments
c.i.f.Cost insurance and freight
COICOPClassification of Individual Consumption by Purpose
CoECompensation of Employees
EASEconomic Activity Survey
f.o.b.Free-on-board
GDPGross Domestic Product
GFCEGovernment Final Consumption Expenditure
GFCFGross Fixed Capital Formation
GOSMIGross Operating Surplus and Gross Mixed Income
GOSGross Operating Surplus
GVAGross Value Added
HFCEHousehold Final Consumption Expenditure
I-OInput-Output
IOIGInput-Output Industry Group
IOPCInput-output product classification
IOPGInput-Output Product Group
NIPINDNational Income and Production Industry Classification
OECDOrganisation for Economic Co-operation and Development
SNASystem of National Accounts
SNA68System of National Accounts 1968
SNA08System of National Accounts 2008
S-USupply-Use
SUICSupply-Use Industry Classification
SUPCSupply-Use Product Classification
SUPGSupply-Use Product Group
UNUnited Nations