Latest release

Taxes less subsidies on production and imports

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

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

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

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

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

Commonwealth taxes and subsidies on production and imports

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

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

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

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

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

State and local taxes and subsidies on production and imports

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

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

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