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Adjustments made to intermediate use

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

Overstatement of expenses

9.69    Each ANZSIC division calculation of intermediate use has a correction for the level of overstatement of expenses. The calculated value for each ANZSIC subdivision overstatement of expenses is removed from the division's final intermediate use estimate.

9.70    The percentage adjustment for each ANZSIC subdivision's estimated overstatement of expenses is different. The estimated overstatement of expenses is based on industry analysis conducted by the Australian Taxation Office from their audits of business income and business expenses.

9.71    It is considered that no overstatement of expenses adjustments is required for the following industries:

  • Electricity supply
  • Gas supply
  • Water supply, sewerage and drainage services
  • Rail transport
  • Water, pipeline and other transport
  • Air and space transport
  • Motion picture and sound recording
  • Broadcasting (except Internet)
  • Finance
  • Insurance and superannuation funds
  • Ownership of dwellings
  • Government administration and regulatory services
  • Defence
  • Education and training
  • Health care and social assistance
  • Heritage and creative and performing arts
  • Gambling, sports and recreation.

Off-June year reporting

9.72    Business units may report for a non-June financial year, so an adjustment is required to ensure all intermediate consumption data are on a June-year basis before they are used in S-U compilation. This adjustment is applied by matching responses from the annual Economic Activity Survey (EAS) with those from Business Indicators: Australia for businesses reporting on an off-June financial year.

9.73    Further information can be found in the ABS publication, Experimental Estimates for Australian Industry Adjusted for Off-June Year Reporting.

FISIM

9.74    FISIM is recorded as part of intermediate consumption by financial intermediaries' customers; that is, for all businesses, government and households. The FISIM output is estimated so that it can be allocated by final use (to household final consumption expenditure) and intermediate use directly. FISIM is produced for the following intermediate use categories initially:

  • non-financial corporations (private, national, state and local);
  • financial corporations (finance, insurance and financial auxiliaries);
  • general government (national, state and local);
  • unincorporated enterprises; and
  • ownership of dwellings.

9.75    Estimates for FISIM produced by non-resident units and consumed by resident units (i.e. an import of goods and services) and FISIM produced by resident units and consumed by non-resident units (i.e. an export of goods and services) are obtained from Balance of Payments (BoP) data. Imports are allocated to intermediate use of private non-financial and financial corporations.

9.76    Intermediate use is allocated to sectors and industries as follows:

  • non-financial corporations (private, national, state and local) – FISIM is allocated to industries in proportion to the sum of interest income and interest expenses from the Economic Activity Survey;
  • general government – industry allocation is undertaken in proportion to non-market output of general government;
  • financial corporations – allocated entirely to the Financial and Insurance Services industry;
  • unincorporated enterprises – FISIM is allocated to industries in proportion to the sum of interest income and interest expenses from the Economic Activity Survey; and
  • ownership of dwellings industry – allocated entirely to ownership of dwellings.

Insurance service charge (ISC)

9.77    ISC is recorded as part of consumption by non-life insurance corporations' customers; that is, for all businesses, governments and households. The ISC output is estimated so that it can be allocated by final use (to household final consumption expenditure) and intermediate use directly. The ISC is estimated for the following intermediate use categories:

  • non-financial corporations (private and public);
  • financial corporations (finance, insurance and auxiliaries);
  • general government;
  • unincorporated enterprises; and
  • ownership of dwellings.

9.78    Estimates for ISC produced by non-resident units and consumed by resident units (i.e. an import of goods and services) and ISC produced by resident units and consumed by non-resident units (i.e. an export of goods and services) are obtained from BoP data. Imports are allocated to intermediate use of private non-financial and financial corporations.

9.79    Intermediate use is allocated to sectors and industries as follows:

  • general government – industry allocation is undertaken in proportion to non-market output of general government;
  • financial corporations – allocated entirely to the Financial and insurance services industry;
  • unincorporated enterprises and public / private non-financial corporations – the ISC is allocated in proportion to insurance premiums obtained from the Economic Activity Survey; and
  • ownership of dwellings industry – allocated entirely to ownership of dwellings.

Taxes and subsidies on products

9.80    Taxes on products are taxes that are payable per unit of a good or service. They are payable when they are produced, delivered, sold, transferred or otherwise disposed of by their producers (e.g. GST, sales tax and excise tax).

9.81    Subsidies on products are subsidies that are payable per unit of a good or service. A subsidy usually becomes payable when the good or service is produced, sold or imported, but may also be payable in other circumstances such as when a good is transferred, leased, delivered or used for own consumption or own capital formation.