Latest release

Water Account, Australia methodology

Reference period
2018-19 financial year

The Water Account, Australia (WAA) is an environmental-economic account produced by the Australian Bureau of Statistics (ABS), which is compiled, as far as possible, in accordance with the System of Environmental-Economic Accounting (SEEA) and the SEEA Water frameworks. It consists of supply and use tables for both physical volumes and monetary values.

The following section outlines the broad concepts, sources, and methods for the Water Account. 

Concepts

The WAA was developed using the SEEA and the SEEA-Water framework. SEEA was first published by the United Nations in 1993 and was elevated to an international statistical standard in 2012. The SEEA framework extends the boundaries of the System of National Accounts (SNA) framework to include environmental resources, which occur outside the economic production boundaries that are measured by the SNA.

Water supply and use tables describe water flows from the environment to the economy, within the economy, and from the economy to the environment (SEEA Water, 2012, S. 3.1). This includes:

  • Extraction of water from the environment by economic units (e.g., surface water and ground water extraction, as well as desalination plants);
  • Flows of water within the economy (e.g., supply and use of distributed and recycled water) and;
  • Final discharges of water from economic units back into the environment (return flows).

The monetary supply and use section presents aggregates of monetary data (dollars) in terms of the supply and use of water within the Australian economy. Supply and use tables illustrate the economic transactions associated with the use of distributed and reuse water and the provision of sewerage, drainage and wastewater services.

Key concepts are listed below:

Extraction of Water (Self-extracted water)

Refers to the movement of water from the environment into the economy, either permanently or temporarily. SEEA identifies the environment as the supplier and the industry/household as the user (SEEA Water, S 3.6). Extracted water can be further classified into three main sources:

  • Surface Water: water on the surface of continents such as in a river, lake, or wetland.
  • Groundwater: water found underground in the cracks and spaces in soil, sand and rock. It is stored in and moves slowly through geologic formations of soil, sand and rocks called aquifers.
  • Seawater for Desalination: saline water that is extracted from the ocean or marine estuaries with the express purpose of creating usable water.
     

Distributed Water

Refers to water flows from one user (or supplier) to another user after extraction. This includes the supply and use of potable and non-potable water from one economic unit to another (SEEA Water, 2012 S 3.31). In the WAA, distribution losses are recorded as use by the industry supplying the water.

Bulk Water

Water supplied to another water supplier. This distinction is required to ensure the same volume of water is not counted twice as the water moves through the economy; however, these exchanges are valued in the monetary tables.

Wastewater

Represents water that has been used by an economic unit or household, and then transferred between economic units. The industry collecting wastewater is a “user” in the physical supply and use tables, while in the monetary tables that industry is a “supplier” of sewerage and wastewater services (SEEA Water S 3.9). The most commonly understood form of wastewater is sewage; however, non-sewage wastewater products are also included (SEEA Water, 2012, S 3.12). Stormwater and drainage water are not currently included in the Supply and Use tables, as much of this is simply redirected into nearby water systems.

Reuse Water

Represents the transformation of wastewater into another economic product that is distributed throughout the economy (SEEA Water, 2012, S 3.12).

Return Flows

Represents the flows of water from industries and households to the environment. This excludes flows of water to wastewater treatment facilities but includes flows of water from treatment facilities directly to the environment. The SEEA records return flows as use by the environment (SEEA Water, 2012, S 3.15).

Consumption

The concept of water consumption provides an indication of the amount of water that is lost by the economy during use, in the sense that the water has entered the economy but has not returned to the environment. Water is instead incorporated into products, evaporated, transpired by plants or simply consumed by households or livestock. The difference between water use and water supply is referred to as water consumption. The concept of water consumption used in SEEA-Water is consistent with the hydrological concept. It differs, however, from the concept of consumption that is used in the national accounts, which instead refers to water use (SEEA water, 2012, S 3.44).

Industry Classification

The WAA uses The Australian and New Zealand Standard Industrial Classification (ANZSIC) for its industry classification. The ANZSIC is implemented for all ABS industry-classified statistics and is a fundamentally important reference for organisations wishing to interpret these statistics or to compile their own statistics on a comparable basis.

Households’ expenditure

In the monetary account, this refers to final consumption expenditure by households, or expenditure incurred by resident households on the consumption of water and related services (including sewerage services). 

Social Benefits Paid in Kind

Social Benefits Paid in Kind consist of goods and services provided to households by government and private, non-market producers (NPISHs), either free or at prices that are not economically significant (SNA, 2008, S 8.141). 

Taxes

Compulsory, unrequited payments, in cash or in kind, made by institutional units to government units (SNA, 2008, S 7.71). 

Subsidies

Current unrequited payments that government units, including non-resident government units, make to enterprises on the basis of the levels of their production activities or quantities or values of the goods or services that they produce (SNA, 2008, S 7.98). 

Exports

Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from residents to non-residents (SNA 1993, S 14.88).

Imports

Imports of goods and services consist of sales, barter, or gifts or grants, of goods and services from non-residents to residents (SNA 1993, S 14.88).

Data Sources

Water Supply and Sewerage Services (WSSS) collection

Description:  the WSSS collection is an ABS census of all known water suppliers/utilities across Australia. It collects physical and monetary data on water supply, water treatment, and return flows of water to the environment.

Frequency:  annual, financial year.

Series used:  2014-15 to 2018-19 inclusive.

Geography: state/territory and national.

Key data used:

To set Water Supply and Sewerage Services industry estimates for:

  • self-extracted water
  • water supply to industries and households
  • return flows
  • monetary supply

The WSSS is used as a control total for use of distributed and reuse water by industries.

It also sets the unit price for agriculture water use.

Energy, Water and Environment Survey (EWES) and Environmental Indicators Survey (EIS)

Description: the EWES is an ABS survey conducted every three years, with the EIS conducted in the intervening two years. The EWES provides a more comprehensive range of data across industries, as well as providing benchmark estimates for selected data items. The EWES has a larger sample size than the EIS, therefore, some businesses/organisations selected for the EWES may not be selected for the EIS.

Frequency: triennial EWES and EIS with a financial year reference period.

Series used: 2014-15 and 2017-18 for EWES; 2015-16, 2016-17, and 2018-19 for EIS.

Geography: state/territory and national (EWES); national only (EIS).

Key data used:

Self-extracted use, distributed supply, reuse supply, and return flows data for the following industries:

  • Mining
  • Manufacturing
  • Waste Collection, Treatment and Disposal Services
  • Electricity and Gas Supply

Used to disaggregate division level use data from the WSSS collection.

Monetary distributed, reuse and sewerage and wastewater services use for the following industries:

  • Mining
  • Manufacturing
  • Electricity and Gas Supply
  • Waste Collection, Treatment and Disposal Services
  • Other industries

Rural Environment and Agricultural Commodities Survey (REACS)/Agricultural Census

Description:  the REACS is run annually by the ABS in between the five-yearly Agricultural Census. The scope of the REACS and Agricultural Census collection is all businesses operating agricultural land in Australia who have an Estimated Value of Agricultural Operations (EVAO) of $40,000 or greater.

Frequency: REACS is run annually in the years between the five yearly Agricultural Census. The last Agricultural Census reference period was 2015-16.

Series used: 2014-15, 2016-17, 2017-18 , and 2018-19 for REACS, 2015-16 for Agricultural Census.

Geography: state/territory and national

Key data used:

  • Agriculture self-extracted water use;
  • Used to disaggregate division level use data from the WSSS collection;
  • Unit for volume measures to compute GVIAP.

Note:  The agricultural water use data presented in this publication is different to the data presented in Water Use on Australian Farms. This is because of: (a) the multiple data sources used for the WAA compilation, compared to the single source of ABS survey data used to produce Water Use on Australian Farms; and (b) the Water Use on Australian Farms publication presents an ‘activity view’ of agriculture – therefore, its estimates of water use are slightly different to the ‘industry view’ estimates presented in the physical water supply and use tables in WAA.

The Agriculture ‘industry view’ presented in WAA includes only agricultural activity that occurs in businesses where the primary income producing activity (i.e. the activity with value added that exceeds the value added of any other activity carried out by the same business) of the business is agricultural production.

Also note that losses from the distribution system for agriculture (e.g. evaporation and seepage from irrigation channels) are attributed to the Water Supply industry rather than the Agriculture industry in WAA.

Australian National Accounts: Australian National Accounts: State Accounts

Description: contains state and territory estimates of gross domestic product (referred to as gross state product) and its components.

Frequency: annual.

Series used: Industry Gross Value Added: Chain volume measures, Industry Gross Value Added 2014-15 to 2018-19.

Geography: state/territory.

Key data used:

Used to create state/territory indexes to move EWES data forward and backwards; provides Industry Gross Value Added estimates for the summary tables.

National Performance Report – Bureau of Meteorology

Description: the Bureau of Meteorology’s Urban National Performance Reports benchmark the pricing and service quality of Australian urban water utilities. Indicators include water resource supply and usage, financial operations, bills and pricing, assets, water quality compliance and customer performance. The reports are published annually and prepared independently by the Bureau of Meteorology, State and Territory governments, and the Water Services Association of Australia; the reports support commitments under the National Water Initiative.

Frequency: annual

Series used: 2014-15 to 2018-19

Geography: business unit record level

Key data used: estimation of household price of water

Summary Indicators

In addition to the data that feeds into the supply and use data section, the summary tables include data to assist users in contextualising the presented information. The sources for these data items are noted below.

Australian Demographic Statistics

Description: this quarterly release contains the most recent estimates of the resident population (ERP) of Australia and the states and territories based on the results of the 2016 Census of Population and Housing held on 9 August 2016, and the addition of quarterly components of population growth. The ABS has used the 2016 Census to produce final rebased estimates of the resident population. This release contains the latest available statistics on births, deaths (including infant deaths) and overseas and interstate migration.

Frequency: quarterly

Series used: June 2015 to June 2019

Geography: state/territory and national

Key data used: estimated residential population as of end of financial year

Household and Family Projections, Australia

Description: the latest household estimates and projections in this publication cover the period 2016 to 2041 for Australia, the states and territories, capital cities and rest of state/territory regions. The projections of households, families and persons by living arrangement are based on Series I, which assumes no change in 2016 living arrangement propensity.

Frequency: every 5 years with annual estimates

Series used: 2016 to 2041 publication for 2015-16 to 2018-19; 2011 to 2036 publication for 2014-15. 

Geography: state/territory and national

Key data used: estimate of household numbers

Bureau of Meteorology, Climate change – trends and extremes

Description: provides climate indicators available for Australia, states and territories as well as other geographies.

Frequency: monthly

Series used: financial years - 2014-15 to 2018-19  

Geography: state/territory and national

Key data used: area-averaged rainfall by state/territory and national

Bureau of Meteorology, Water Storage Dashboard

Description: a dashboard featuring information on 305 major water storages around Australia

Frequency: daily

Series used: 30 June 2015 to 30 June 2019

Geography: state/territory and national

Key data used: estimates of accessible volume in major dam storages as at end of financial year

Value of Agricultural Commodities Produced (VACP), Australia

Description:  the VACP is run annually by the ABS. It applies a unit price to the agricultural commodity volume estimates produced by REACS to produce a valuation of all produced agricultural commodities. 

Frequency: VACP is run annually.

Series used: 2014-15 to 2018-19

Geography: state/territory and national

Key data used:

  • State based unit prices for agricultural commodities. 

Methods

The methods used to compile the data in the water account have been split into four broad groups that align with the data cubes published in this account:

  1. Physical Supply and Use;
  2. Monetary Supply and Use;
  3. Summary Table;
  4. Gross Value of Irrigated Agricultural Production.

All data items in the WSSS Industry Highlights data cube were sourced directly from the WSSS Collection with no notable methodological adjustments.  

Methods - Physical Supply and Use of Water

Physical Supply of Water

The general methods used to compile the physical supply and use tables of the water account are relatively straightforward. Data from the WSSS collection operates as a stabilising component, acting as a spine for the compilation. The basic premise behind this decision is that the WSSS collection is a relatively complete census of all water providers – a population who, by necessity, understand the subject matter. The EWES/ EIS are utilised to inform industry splits, excluding Agriculture, and provide detail that is lacking in the WSSS collection instrument. The Agricultural Census and surveys (REACS) fill a similar niche for Agriculture.

With this in mind the following represents a broad outline of how the data feeds into each supply and use water category.

Self-extracted water: the sum of all self-extracted water use sets the supply figure for the environment to the economy.

Distributed and reuse water: derived from the WSSS collection, the vast majority of water is supplied by the Water Supply, Sewerage and Drainage Services industry. EWES water supply estimates set total supply for water providers outside of the Water Supply, Sewerage and Drainage Services industry, while total use by industry is used to allocate these data to states/territories.

Wastewater: currently the WAA does not include estimates for the supply of wastewater to sewerage systems, split by individual industries and households. This is a known data gap that will be explored in future iterations of the WAA. In the interim, the total wastewater supplied is estimated in the account. The total wastewater supply is aligned to the total wastewater received by subdivision 28, sourced from the WSSS collection.

Return flows: formerly referred to as Regulated Discharges in the WAA, return flows estimates are sourced from the WSSS collection (state/territory and national) and EWES (national) surveys, however no data is currently available for return flows from Agriculture and Households. These are known data gaps that will be explored in future iterations of the WAA. Total use by the Waste Collection, Treatment and Disposal Services is used to allocate EWES national estimates to state/territory estimates for the following industries. Mining and manufacturing utilise total self-extracted water in the same way. For Electricity and Gas return flows was matched with self-extracted surface water. 

Physical Use of Water

Self-extracted water:  WSSS, EWES, EIS, and REACS all report self-extracted water use – these data are utilised directly.

Distributed and reuse water:  WSSS and EWES/EIS supply estimates set the total. WSSS sets control totals for ANZSIC divisions A, B, C, and D and is distributed based on subdivision ratios produced from the EWES/EIS and ANZSIC 3-digit division estimates from the REACS and the Agricultural census. EWES Supply and the residual WSSS supply is allocated to other industries. Use by the Water Supply, Sewerage and Drainage Services industry is sourced from the WSSS and includes water losses in distribution.

Wastewater: all wastewater use is currently assigned to the Water Supply, Sewerage and Drainage Services industry, and collected is via the WSSS collection. While some other industries are likely treating a small amount of wastewater this would not involve wastewater transferring between institutional units and is therefore out of scope.

Return flows: represent flows from the economy to the environment; under SEEA conventions (SEEA Water S 3.16) all return flows are attributed to the environment. Data collected via the WSSS, EWES and EIS.

Note: environmental flows are out of scope in this edition of the WAA. Environmental flows relate to (a) statutory requirements to maintain specific water regimes or (b) specific entitlements, which accrue annual allocations of water that can be extracted (or left in-stream) for environmental purposes.

Methods - Monetary Supply and Use of Water

The monetary water supply and use tables are displayed in purchasers’ and current prices. They generally follow the same format as the physical supply and use tables, however there are a number of key differences, as outlined below:

  • Self-extracted water and return flows are not currently valued as, generally, no volumetric charge is applied and there is a lack of available data. The majority of water that is extracted by the user and has a volumetric charge is included in distributed water in both the physical and monetary supply and use tables.
  • Bulk water, or the supply of water between water suppliers, is valued in the monetary tables. As this is an intra-industry transfer the water flows/transactions are not included in the physical supply and use tables as this would lead to a double-counting of the supply of the water.
  • The monetary supply and use tables also include relevant statistics from the Australian National Accounts, Input-Output Tables. These include import/export values, relevant taxes and subsidies, and social benefits paid in kind.
  • Supply and use balancing is required as discrepancies exist between supply and use totals due to differing compilation techniques and data sources.
     

Monetary Supply of Water

Self-extracted water:  self-extracted water supply is currently not valued in the account.

Distributed water: revenue estimates for the Water Supply, Sewerage and Drainage Services industry are the sum of retail revenue received for distributed (potable and non-potable) water. Estimates for industries other than Water Supply and Sewerage Services industry utilise household and industry derived unit values (prices) and the physical volume of distributed water supplied by these industries from the physical supply and use tables.

Reuse water: revenue estimates for the Water Supply, Sewerage and Drainage Services industry are the sum of retail revenue received for reuse water. Estimates for industries other than the Water Supply, Sewerage and Drainage Services industry utilise industry and household derived unit values (prices) and the physical volume of reuse water supplied by these industries from the physical and supply and use tables.

Bulk water, distributed: supply is the sum of the associated revenue from the WSSS collection. All revenue is allocated to the Water Supply, Sewerage and Drainage Services industry. 

Bulk water, reuse: supply is the sum of the associated revenue from the WSSS collection. All revenue is allocated to the Water Supply, Sewerage and Drainage Services industry. 

Sewerage wastewater: sewerage wastewater supply is set by total revenue received from sewerage charges and trade waste charges, as reported in the WSSS collection.

Return flows: currently not valued in the account.

Monetary Use of Water

Self-extracted water: currently not valued in the account.

Distributed water: expenditure on distributed water by the Mining, Manufacturing, Electricity, Gas and Waste Services industries is set by EWES and EIS.

Agricultural distributed water expenditure was calculated using data from the WSSS collection. An agricultural unit price was derived by dividing total revenue received for distributed water by the total volume of distributed water, at a state/territory level, for irrigation units. These unit prices were multiplied by the agricultural use of distributed water estimates from the physical supply and use tables

Household estimates are derived by multiplying a unit price by physical use. The unit price is calculated using the Bureau of Meteorology’s National Performance Reports (NPR) data via the following methodology:

  • The ‘Typical residential bill: water supply’ (data item P3, which includes fixed charges, usage charges and special levies) was multiplied by ‘Number of connected residential properties: water supply’ (data item C2) to derive total residential expenditure at a utility level;
  • Total residential expenditure was then divided by ‘Total volume of water supplied to residential customers’ (data item W8) to derive a unit price ($ per kL) per utility;
  • For all utilities without a unit price available using the above processes, the NPR weighted average unit price by state/territory was used;
    These unit prices were then multiplied by the total distributed water supply to residential customers for each utility;
  • This was then aggregated to produce state/territory and national level household distributed water expenditure estimates.

Reuse water: reuse water follows the same methodology as distributed water use.

Bulk water, distributed: expenditure on distributed bulk water mirrors the supply revenue values.

Bulk water, reuse: expenditure on reuse bulk water mirrors the supply revenue values.

Sewerage and drainage services: EWES and EIS provide estimates for Mining, Manufacturing, Electricity, Gas and Waste Services. For Agriculture and Other Industries (E-S) Estimates were available in the 2014-15 EWES and modelled forward using a Gross Value Added index by industry by state/territory. The gap between total supply and total industry use is allocated as household use.

Balancing Monetary Supply and Use of Water

Distributed water: total supply is used as the control total, with differences between supply and use allocated to use by Other industries (ANZSIC divisions E-S).

Reuse water: total supply is used as the control total. A weighted balancing approach was used to address discrepancies between the supply control total and use total, with the difference allocated between industries/households in the same proportions as reuse water use before balancing.

Bulk water, distributed: no balancing required.

Bulk water, reuse: no balancing required.

Sewerage and Drainage Services:  total supply less total industry use is allocated to Households use.

Methods - Summary Table

The summary tables aim to highlight key indicators of the WAA in a time series, and provide other relevant information linked with data from the supply and use tables. These indicators aim to enhance the ability of users to rapidly synthesise key stories. The data items presented in these tables, and not represented in the supply and use methodology described above, are described below:

  • Total water use by industry: sum of self-extracted water, distributed water and reuse water use by industries.
  • Total water use by industry (less Electricity, Gas, Water and Waste Services): sum of total self-extracted water, distributed water and reuse water use by industries, less the sum of total self-extracted water, distributed water and reuse water by the Electricity, Gas, Water and Waste Services industries. Note that a majority of the water used by these industries is either supplied to other users or returned to the environment (e.g. hydroelectricity water use). 
  • Total water use by households: sum of total distributed water and reuse water for households (note that self-extracted water use by households, including rainwater tanks and bores, is excluded from this edition of the WAA).
  • Total water use: sum of self-extracted water, distributed water and reuse water use.
  • Total water use less electricity and gas:  sum of total self-extracted water, distributed water and reuse water use, less the sum of total self-extracted water, distributed water and reuse water by the Electricity, Gas, Water and Waste Services industries.
  • Gross Value Added (GVA): Chain volume measures; sourced from Australian National Accounts: State Accounts.
  • Estimated population as of 30 June: sourced from Australian Demographic Statistics.
  • Estimated number of households at 30 June: sourced from Household and Family Projections, Australia, 2016 to 2041.
  • Total water use (less Electricity, Gas, Water and Waste Services) per capita: sum of total self-extracted water, distributed water and reuse water use, less the sum of total self-extracted water, distributed water and reuse water by the Electricity, Gas, Water and Waste Services industries divided by the estimated residential population.
  • Total household water use per household: total water use by households (excluding self-extracted water) divided by the number of households.
  • Total water consumption: total self-extracted water use less return flows.
  • Water intensity: total water consumption (ML) divided by Industry Gross Value Added ($ million).
  • Water productivity: Industry Gross Value Added ($ million) divided by total water consumption (ML).
  • Expenditure per kL of water used by industry, distributed: expenditure on distributed water by industry, divided by total kL of distributed water used by industry.
  • Expenditure per kL of water used by households, distributed: expenditure on distributed water by households, divided by total kL of distributed water used by households.
  • Total expenditure by industry and households per capita, distributed: total expenditure on distributed water by industry and households, divided by the estimated residential population.
  • Total household expenditure per household: total expenditure on distributed water by households, divided by households. 
  • Area-averaged rainfall: data sourced from Bureau of Meteorology, Climate change – trends and extremes
  • Accessible volume in major dam storages as of June 30: data sourced from Bureau of Meteorology, Water Storage Dashboard
     

Methods - Gross Value of Irrigated Agricultural Production

The Gross Value of Irrigated Agricultural Production (GVIAP) is presented for Australia, States and Territories, and the Murray-Darling Basin region for key agricultural commodity groups.

GVIAP refers to the gross value of agricultural commodities that are produced with the assistance of irrigation. The gross value of commodities produced is the value placed on recorded production at the wholesale prices realised in the marketplace. This definition of GVIAP does not refer to the value that irrigation adds to production i.e. the 'net effect' that irrigation has on production. GVIAP is not a measure of productivity, so extreme care must be taken if attempting to use GVIAP to compare different commodities. Rather, it is a more effective tool for measuring changes over time or comparing regional differences in agricultural production.

Scope

The scope of GVIAP is all agricultural businesses with an Estimated Value of Agricultural Operations (EVAO) of $40,000 or greater, identified through the Rural Environment and Agricultural Commodities Survey (REACS) noted in the sources section. In 2014-15 businesses with an EVAO of $5,000 or greater were included. For more information about EVAO, refer to the Explanatory Notes contained in the publication Agricultural Commodities, Australia. 

Pricing data is obtained from the Value of Agricultural Commodities Produced (VACP) survey noted in the sources section of this document. 

Agricultural commodity groups

GVIAP is calculated for each irrigated 'commodity group' produced by agricultural businesses. That is, GVIAP is generally not calculated for individual commodities, but for groups of 'like' commodities according to irrigated commodity groupings on the agricultural censuses and survey forms. The irrigated commodity groups vary slightly on the survey form from year-to-year, so changes can occur in the published items.

The agricultural censuses and surveys collect area and production data for a wide range of individual commodities.

Broad Calculation Methods

The statistics presented here calculate GVIAP at the unit (farm) level, using three simple rules:

  1. If the area of the commodity group irrigated = the total area of the commodity group grown/sown, then GVIAP = Gross Value (GV) for that commodity group;
  2. If the area of the commodity group irrigated is greater than zero but less than the total area of the commodity group grown/sown, then a 'yield formula' is applied, with a 'yield difference factor', to calculate GVIAP for the irrigated area of the commodity group;
  3. If the area of the commodity group irrigated = 0, then GVIAP = 0 for that commodity group.
     

Approximately 90% of cases follow rules 1 or 3; that is, the commodity group on a particular farm is either 100% irrigated or not irrigated at all.

Yield Formula

In this publication 'yield' is defined as the production of the commodity per area grown.

The yield formula is explained in full in: Information Paper: Methods of estimating the Gross Value of Irrigated Agricultural Production (cat. no. 4610.0.55.006).

Outlined here is the formula utilised:

\(GVIAP=A_iY_iP\)

Where

\(Y_i= \frac{Q}{\frac{A_d}{Y_{diff}+A_i}}\)

Hence

\(GVIAP=A_i\times \frac{Q}{\frac{A_d}{Y_{diff}+A_i}}\times P\)

Where

\(A_i= \) area of the commodity under irrigation (ha)

\(Y_i=\) estimated irrigated yield for the commodity (t/ha or kg/ha)

\(P=\) unit price of production for the commodity ($/t or $/kg)

\(Q=\) total quantity of the commodity produced (t or kg)

\(A_d= \)area of the commodity that is not irrigated (ha)

\(Y_{diff}=\) yield difference factor

 

Yield difference factors

Yield difference factors are the estimated ratio of irrigated to non-irrigated yield for a given commodity group. They are calculated for a particular commodity group by taking the yield (production per hectare) of all farms that fully irrigated the commodity group and dividing this 'irrigated' yield by the yield of all farms that did not irrigate the commodity group. Further information on yield difference factor methodology can be found here: Information Paper: Methods of estimating the Gross Value of Irrigated Agricultural Production (cat. no. 4610.0.55.006).

 

The GVIAP for the following commodities has been calculated using the yield formula, with varying yield differences:

  • Hay - yield formula with yield difference of 2;
  • Cereals for grain and seed - yield formula with yield difference of 2;
  • Sugar cane - yield formula with yield difference of 1.3;
  • Other broadacre crops - yield formula with yield difference of 2;
  • Fruit and nuts - yield formula with yield difference of 2;
  • Grapes - yield formula with yield difference of 1.2;
  • Vegetables - yield formula with yield difference of 1;
  • Nursery production - yield formula with yield difference of 1. 

Note: a yield difference of 1 implies no difference in yield between irrigated and non-irrigated production.

Not all agricultural commodity groups can be satisfactorily calculated using the yield formula, in particular dairy production - It is assumed that if there is any irrigation of grazing land on a farm that is involved in any dairy production, then all dairy production on that farm is classified as irrigated.

For Meat cattle, sheep and other livestock the model was as follows:

  1. If meat cattle are grazing on a farm with irrigated pastures/crops for grazing, and there are no other grazing livestock present on the farm, assume that all meat cattle will graze on the irrigated land; therefore GVIAP for meat cattle = GV for meat cattle on that farm;
  2. If sheep/other livestock are grazing on a farm with irrigated pastures/crops for grazing, and there are no other grazing livestock present on the farm, assume that all sheep/other livestock will graze on the irrigated land; therefore GVIAP for sheep/other livestock = GV for sheep/other livestock on that farm;
  3. If dairy cattle, meat cattle and sheep/other livestock are all grazing on a farm with irrigated pastures/crops for grazing, assume that all dairy cattle will graze on the irrigated land and estimate the GVIAP of the meat cattle and sheep/other livestock grazing on the irrigated pastures using the yield formula. Note: the yield formula provides a relatively small estimate of GVIAP, which is appropriate because it is assumed that it is more likely that the dairy cattle will be the only livestock grazing on the irrigated land;
  4. If dairy cattle and meat cattle are both grazing on a farm with irrigated pastures/crops for grazing, assume that all dairy cattle will graze on the irrigated land and estimate the GVIAP of the meat cattle grazing on the irrigated pastures using the yield formula. Note: the yield formula provides a relatively small estimate of GVIAP, which is appropriate because it is assumed that it is more likely that the dairy cattle will be the only livestock grazing on the irrigated land;
  5. If dairy cattle and sheep/other livestock are both grazing on a farm with irrigated pastures/crops for grazing, assume that all dairy cattle will graze on the irrigated land and estimate the GVIAP of the sheep/other livestock grazing eston the irrigated pastures using the yield formula. Note: the yield formula provides a relatively small estimate of GVIAP, which is appropriate because it is assumed that it is more likely that the dairy cattle will be the only livestock grazing on the irrigated land;
  6. If there are no dairy cattle present but meat cattle and sheep/other livestock are both grazing on a farm with irrigated pastures/crops for grazing, estimate the GVIAP of the meat cattle and sheep/other livestock grazing on the irrigated pastures using a combination (average) of the area method and 'total' methods (the 'total' method is simply the assumption that GVIAP = GV). Note: the area method provides a relatively small estimate of GVIAP, which is not appropriate in this case because it is likely that at least one of the two categories of livestock will be grazing on the irrigated land. The 'total' method assumes that all livestock are grazing on the irrigated land, which overestimates GVIAP. An average of the estimate derived from the two methods should provide a more accurate estimate;
  7. Pigs, poultry, eggs and goats are included in the 'Sheep and Other livestock' category.

A Cautionary Note on Livestock GVIAP

Most of the irrigated commodity groups included in these tables are irrigated by the application of water directly on to the commodity itself, or the soil in which it is grown. The exception relates to livestock, which includes dairy. For example, the GVIAP of 'dairy' simply refers to all dairy production (i.e. milk) from dairy cattle that grazed on irrigated pastures or crops. Estimates of GVIAP for dairy production must be used with caution, because in this case the irrigation is not applied directly to the commodity, rather it is applied to a pasture or crop which is then eaten by the animal from which the commodity is derived (milk). Therefore, for dairy production, the true net contribution of irrigation (i.e. the value added by irrigation, or the difference between irrigated and non-irrigated production) will be much lower than the total irrigation-assisted production (the GVIAP estimate).

The difference between (a) the net contribution of irrigation to production and (b) the GVIAP estimate is probably greater for livestock grazing on irrigated crops/pastures than for commodity groups where irrigation is applied directly to the crops or pastures.

Similarly, estimates of GVIAP for all other livestock (meat cattle, sheep and other livestock) must be treated with caution, because as for dairy production, the issues around irrigation not being directly applied to the commodity also apply to these commodity groups.

Glossary

ANZSIC

The Australian and New Zealand Standard Industrial Classification (ANZSIC) is the standard of classification used in Australia and New Zealand for the collection, compilation, and publication of statistics by industry.

Aquifer

A geologic formation which is capable of holding water and through which water can percolate. Aquifers are capable of yielding quantities of groundwater for economic activities.

Bulk water

Water supplied by a water provider/supplier/utility to another water provider/supplier/utility.

Catchment

The area of land determined by topographic features, within which rainfall will contribute to run-off at a particular point. The catchment for a major river and its tributaries is usually referred to as a river basin.

Current Prices

Estimates are valued at the prices of the period to which the observation relates. For example, estimates for 2017-18 are valued using 2017-18 prices. This contrasts to chain volume measures where the prices used in valuation refer to the prices of the previous year.

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.

Distributed water

Water supplied to a user including through a natural (e.g. river) or non-natural network (e.g. piped or open channel), and where an economic transaction has occurred for the exchange of this water. The majority of distributed water is supplied by the Water Supply, Sewerage and Drainage Services industry (ANZSIC Division 28). The water supply component consists of units mainly engaged in storage, purification or distribution of water by pipeline or carrier. It may also include the operation of irrigation systems that supply water to a farm and the supply of steam and hot water. Distributed water can include potable, mains and raw water but does not include reuse or bulk water.

Exports

Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from residents to non-residents.

Gigalitre (GL)

One thousand million litres.

Gross Value

The gross value of commodities produced. It is the value placed on recorded production at the wholesale prices realised in the market place.

Gross water supply

Water supplied to other water providers and customers, plus losses, own use by water providers and environmental flows.

Groundwater

Water found underground in the cracks and spaces in soil, sand and rock. It is stored in and moves slowly through geologic formations of soil, sand and rocks called aquifers.

Industry Gross Value Added (IGVA)

The value of an industry's output at basic prices, minus the value of goods and services consumed as inputs during the process of production. Basic prices valuation of output removes the distortion caused by variations in commodity taxes and subsidies across the output of individual industries.

Imports

Imports of goods and services consist of sales, barter, or gifts or grants, of goods and services from non-residents to residents.

Irrigation water

Water artificially applied to soils (i.e. does not include precipitation/rainfall).

Kilolitre (kL)

One thousand litres.

Megalitre (ML)

One million litres.

Other industries

In the physical water supply and use tables, Other Industries refers to the following list of industries, according to the Australian and New Zealand Standard Industrial Classification (ANZSIC):

  • Construction 
  • Wholesale Trade 
  • Retail Trade 
  • Accommodation and Food Services 
  • Transport, Postal and Warehousing 
  • Information Media and Telecommunications 
  • Financial and Insurance Services 
  • Rental, Hiring and Real Estate Services 
  • Professional, Scientific and Technical Services 
  • Administrative and Support Services 
  • Public Administration and Safety 
  • Education and Training 
  • Health care and Social Assistance 
  • Arts and Recreation Services 
  • Other Services.

Other water provider

An organisation that supplies water but whose main activity is in an industry other than the Water Supply, Sewerage and Drainage Services Industry (e.g. Mining or Manufacturing).

Potable water

Water that is suitable for human consumption (e.g. drinking water).

Purchasers’ price

The amount paid by the purchaser, excluding any tax deductible by the purchaser, 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.

Raw water

Water extracted from the environment that has not been treated.

Retail water

Potable or non-potable water supplied by a water supplier to customers not classified as water suppliers.

Return Flows

Return flows represent the flows of water from industries and households to the environment. This excludes flows of water from industries and households to wastewater treatment facilities but includes flows of water from treatment facilities directly to the environment. The SEEA records this as use by the environment.

Reuse water

Reuse water represents the transformation of wastewater, storm water or drainage water into another economic product that is distributed throughout the economy. Typically, but not always, reuse water is non-potable.

Revenue - Sewerage and Wastewater services

Revenue from 'pay for use' and base rate charges (i.e. volumetric and fixed rates) for the provision of waste water. It also includes revenue generated from trade waste charges.

Revenue - Water supply

Revenue from for the provision of water supply services to residential and non-residential properties. Also includes revenue generated from bulk supply or bulk sale of potable and non-potable/raw water, treated waste water or recycled (reuse) water and desalinated water.

Seawater for Desalination

A process where salt is removed from water with a high salt content (usually seawater but sometimes other brackish water) to make it suitable for domestic or industrial use.

Self-extracted water

Water extracted directly from the environment for use (including surface water, groundwater and other bodies) for the purpose of supplying to others (including other water suppliers) and/or for own use. It also includes water produced from salt water desalination.

Sewerage

Infrastructure (e.g. pipe and drains) used to remove sewage (waste water).

Social benefits paid in kind

Social transfers in kind consist of good and services provided to households by government and private, non-market producers free or at prices that are not economically significant.

Subsidies

Current unrequited payments that government units, including non-resident government units, make to enterprises based on the levels of their production activities or quantities or values of the goods or services that they produce.

Supply Use Framework

Physical water supply and use tables which provide information on the volumes of water extracted, supplied within the economy and discharged back into the environment by economic activity and households.

Surface water

Water on the surface of continents such as in a river, lake, wetland, ice or snow. This excludes sea water.

System of Environmental-Economic Accounting (SEEA)

A framework used to develop environmental accounts by integrating environmental information into an accounting framework. The primary manual is the SEEA Central Framework (SEEA-CF) which provides the conceptual basis for describing the interrelationship between the natural environment and the economy.

System for Environmental-Economic Accounting - Water (SEEA-Water)

An elaboration of the SEEA framework which provides a conceptual framework for organising hydrological and economic information in a coherent and consistent framework. It is consistent with SEEA-CF.

System of National Accounts (SNA)

An international framework which can be used to develop a comprehensive, consistent and flexible set of macro-economic accounts. The latest edition is the 2008 SNA.

Taxes

Compulsory, unrequited payments, in cash or in kind, made by institutional units to government units.

Wastewater

Any water that has been used and cannot be used again without treatment, for example untreated effluent, sewage water and trade waste.

Water consumption

The concept of water consumption gives an indication of the amount of water that is lost by the economy during use, in the sense that the water has entered the economy but has not returned to the environment directly. Water is instead incorporated into products, evaporated, transpired by plants or simply consumed by households or livestock. The difference between the water use and the water supply is referred to as water consumption. The concept of water consumption that is used in SEEA-Water is consistent with the hydrological concept. It differs, however, from the concept of consumption that is used in the national accounts, which instead refer to water use.

Water intensity and productivity

Water intensity is referred to as the ratio of physical flow to an economic aggregate while water productivity represents the ratio of economic aggregate to physical flow. Water intensity is the inverse of water productivity.

Water losses

Water that enters the water distribution system of a water provider but does not reach the end users/customers. Water losses can be attributed to seepage, leakage, evaporation (excluding evaporation from water storages), meter inaccuracies and theft.

Water provider

A business or organisation that provides a reticulated water supply, irrigation water, reuse/recycle water and/or bulk water supply service. Water providers may be government or private and often operate water storage, purification and supply services. They may also provide sewerage or drainage services.

Water supply services

The provision of reticulated water supply (including desalinated water), irrigation water, recycled (reuse) water, bulk and/or retail water supply service.

Water use

Distributed water use plus self-extracted water use plus reuse water use. Note that this definition differs to the Water consumption definition in that it is a gross measure, rather than netting out the volumes of water in return flows, wastewater supply or water supplied to other users.

Abbreviations

$dollar
$mmillion dollars
%percent
ABSAustralian Bureau of Statistics 
ACTAustralian Capital Territory 
ANZSICAustralian and New Zealand Standard Industrial Classification (2006 edition)
ASGSAustralian Statistical Geography Standard
Aust.Australia
BoMBureau of Meteorology (Commonwealth)
cat.catalogue
EISEnvironmental Indicators Survey
EVAOEstimated Value of Agricultural Operations
EWESEnergy, Water and Environment Survey 
GLgigalitre
GVGross Value
GVAGross Value added
GVIAPGross Value of Irrigated Agricultural Production
IGVAIndustry Gross Value Added
kLkilolitre 
MLmegalitre
mmmillimetre
nanot available
no.number
npnot available for publication
NSW New South Wales
NTNorthern Territory
QldQueensland
REACS Rural Environment and Agricultural Commodities Survey 
SASouth Australia
SEEASystem of Environmental Economic Accounting 
SEEA Water System of Environmental Economic Accounting for Water
SNASystem of National Accounts 
Tas.Tasmania
UNUnited Nations
VACPValue of Agricultural Commodities Produced
Vic.Victoria
WAWestern Australia
WAAWater Account, Australia
WSSSWater Supply and Sewerage Services Survey