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Sources and methods

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

Data sources

22.92    The starting point for compiling the I-O tables is the balanced S-U table underlying the benchmarks of GDP for the national accounts. The detail on how the GDP annual benchmarks are compiled is outlined in Chapter 9 Gross domestic product – production approach (GDP(P)); Chapter 10 Gross domestic product – expenditure approach (GDP(E)); and Chapter 11 Gross domestic product – income approach (GDP(I)).

22.93    The Economic Activity Survey (EAS) data is the primary data source to compiling gross value added in the S-U tables; however, it does not support the level of product detail required to compile the I-O tables. Therefore, the EAS data is supplemented by a program of targeted industry case studies, whereby companies are interviewed for detailed information that is used to improve product-level data on supply and intermediate use.

22.94    This section details how the S-U tables are initially disaggregated, from the SUPC and SUIC levels, to IOPC and IOIG levels, by component of the I-O tables. It is useful to summarise some of the issues faced by compilers, and sources used in compiling the S-U tables; see the table below:

Table 22.6 Supply and use tables data sources — By component
ItemComment
Output

 

Output is the production of goods and services for use as inputs into the production process of an industry, or as final demand. Own production and use of some energy products and transportation not separately invoiced are not shown separately and are included as part of an industry’s output.

The main data sources used to compile output in the Supply and Use tables are the Economic Activity Survey, Government Finance Statistics (GFS) and the Australian Prudential Regulatory Authority (APRA).

Industry-specific data sources may also be used. Chapter 9 outlines, in detail, the data sources and methods used to compile output by industry.

A number of adjustments are made to the source EAS data in the S-U tables, namely:

  • off-June year reporting;
  • understatement of income for certain industries;
  • own account computer software and R&D; and
  • own-account generation of electricity and mining of brown coal.
Intermediate consumption

 

Intermediate consumption consists of the value of goods and services consumed as inputs to the production process.

The main data sources used to compile intermediate consumption in the Supply and Use tables are the Economic Activity Survey and Government Finance Statistics.

A number of adjustments are made to the source EAS data in the S-U tables, namely:

  • off-June year reporting;
  • overstatement of expenses for certain industries;
  • financial intermediation services indirectly measured (FISIM);
  • insurance service charge; and
  • consumption of electricity and brown coal produced for own use.
Household final consumption expenditure

 

Household final consumption expenditure (HFCE) consists of the expenditure incurred by households on individual consumption goods and services.

The HFCE benchmark data is sourced from the periodic Retail and Wholesale Industry Surveys (RIS/WIS) and the Household Expenditure Survey (HES). The annual estimate is the sum of the four quarters for years when the RISWIS and HES data are not available. Between survey years, the Retail Trade survey is used as an indicator for merchandise items, and a range of relevant indicators are used for services (see Chapter 10 on GDP(E) for more detail).

Government final consumption expenditure

 

Government final consumption expenditure (GFCE) consists of the expenditure incurred by general government on both individual consumption goods and services and collective consumption services.

The main data source used to compile GFCE in the Supply and Use tables is the Government Finance Statistics.

GFS data are classified according to the General Purpose Classification (GPC) and the Local Government Purpose Classification (LGPC).

Gross fixed capital formation

 

Gross fixed capital formation (GFCF) is equal to the total value of a producer’s acquisitions, less disposals, of fixed assets plus capital work done on own account plus certain additions to the value of non-produced assets realised by the productive activity of institutional units (i.e. land improvements). Estimates of GFCF are primarily disaggregated between the private and public sectors.

There are a range of data sources used to compile private GFCF in the Supply and Use tables, including:

  • Economic Activity Survey;
  • Construction Industry Survey;
  • Building Activity Survey;
  • Engineering Construction Survey;
  • Survey of New Capital Expenditure;
  • Value of Agricultural Commodities Produced;
  • Survey of Research and Experimental Development;
  • Surveys on Mineral and Petroleum Exploration; and
  • Household Expenditure Survey.

The main data source used to compile public GFCF in the Supply and Use tables is the Government Finance Statistics.

GFCF is classified by type of asset.

Changes in inventories

 

Changes in inventories are defined to include changes in holdings of goods for sale (whether of own production or purchased for resale), work-in-progress and raw materials to be used as intermediate inputs into production.

The main data sources used to compile total changes in inventories in the Supply and Use tables are the Economic Activity Survey and Government Finance Statistics.

Exports of goods and services

 

Exports of goods and services are defined as being domestically produced output acquired by non-residents.

The primary source used to compile exports of goods is the ABS International Merchandise Trade Statistics. Balance of Payments adjustments to coverage, timing and valuation are applied, using data from the Survey of International Transport Enterprises, the Reserve bank of Australia and the Survey of International Trade in Services.

The principal sources used to compile exports of services are the ABS International Merchandise Trade Statistics, the cost, insurance and freight/free on board (c.i.f./f.o.b.) model and the Survey of International Trade in Services (SITS.

Imports of goods and services

 

Imports of goods and services are defined as being the outputs produced by non-residents but acquired by residents.

The principal source used to compile imports of goods is the ABS International Trade Statistics. Balance of Payments adjustments to coverage, timing and valuation are applied, using data from the Survey of International Transport Enterprises; Reserve Bank of Australia (RBA); and the Survey of International Trade in Services.

The principal sources used to compile imports of services are the ABS International Merchandise Trade Statistics, the cost, insurance and freight/free-on-board (c.i.f./f.o.b.) model and the Survey of International trade in services.

Compensation of employees

 

Compensation of employees is defined as being the total remuneration, in cash or in kind, payable to an employee in return for work done. It comprises wages and salaries and employers' social contributions.

The main data sources used to compile compensation of employees in the Supply and Use tables are the Economic Activity Survey; Survey of Employment and Earnings (SEE); Survey of Major Labour Costs; and the Australian Prudential Regulatory Authority.

Gross operating surplus/gross mixed income

 

Gross operating surplus (GOS) is defined as being the income from production of corporate enterprises, while gross mixed income (GMI) is the income from production of unincorporated enterprises.

GOS is calculated as gross value added less compensation of employees less net taxes on production and imports for all industries/institutional sectors except:

  • finance – derived using various data sources including APRA and RBA data;
  • insurance and pension funds – derived using various sources including APRA data;
  • health care and social assistance – derived using the Quarterly Business Indicator Survey and Government Finance Statistics;
  • general government – equivalent to consumption of fixed capital on general government assets; and
  • public non-financial corporations – derived using Government Finance Statistics.

GMI is derived as the residual once all of the other institutional sectors GOS is estimated (i.e. private non-financial corporations, public non-financial corporations, general government and financial corporations GOS).

Taxes less subsidies on production and imports

 

Taxes on production and imports consist of taxes on products (i.e. taxes on goods and services when they are produced, delivered or sold and duties on imports) and other taxes on production (i.e. taxes related to the payroll, land taxes, taxes on pollution, stamp duties (not including those on real estate or road vehicles), etc.).

Subsidies on production consist of subsides on products (i.e. subsidies on goods and services when they are produced, delivered or sold) and other subsidies on production (i.e. subsidies related to the payroll or workforce).

The main data source used to compile taxes less subsidies on production and imports in the Supply and Use tables is the Government Finance Statistics.