Latest release

Sources and methods - Annual

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

Benchmark years

9.82    The current price estimates of gross value added by industry are produced from 1994-95 up to the year previous to the latest year using S-U tables and are in balance with the expenditure estimates.

9.83    The main data source for non-financial corporations and NPISH in the annual benchmarks is the Economic Activity Survey (EAS), published in Australian Industry. The EAS consists of a core component and a rolling component. The core component produces broad financial data and broad demographic data. The rolling component produces detailed financial data and some combination of product data, detailed demographic and activity data.

9.84    The outputs of the core and rolling components can be directly or indirectly constructed via the following streams of work:

  • the survey program – consists of questionnaires to directly collect data via the Economic Activity Survey, and includes irregular annual industry surveys such as the Wholesale Industry Survey (WIS);
  • the complementary program – uses data substitution and data modelling/synthetic estimation to fulfil some of the national accounts compilation needs not specifically met by the survey program;
  • the case study program – centres around the use of case studies to satisfy I-O data requirements of product level detail; and
  • the feasibility and research program – addresses known quality, conceptual and methodological issues. In most cases, it does not directly deliver new products or services, instead helps in the clarification and resolution of issues impacting on the quality of existing outputs or on the design and delivery of new outputs.

9.85    The tables below outline the data sources and methods used in the estimation of annual gross value added at current price estimates and volume measures by industry. They also include an outline of the data sources used to estimate the product level detail required to populate the S-U tables. References to the Economic Activity Survey as a data source encompasses the Annual Industry Statistics program as described above.

9.86    Market output is derived for all non-financial and financial corporations and household units covering all industries. Non-market output is derived for general government and NPISH units. General government activity is not allocated to all industries. NPISH units are concentrated in a small number of industries (i.e. Information media and telecommunications; Professional, scientific and technical services; Administrative and support services; Education and training; Health care and social assistance; Arts and recreation services; and Other services). Little, if any, NPISH activity is present in the other industries; if there is any NPISH activity (as reported in the Economic Activity Survey) in these industries then this small amount of non-market output would be included in gross value added estimates.

Table 9.1 Annual gross value added by industry - Agricultural (ANZSIC Subdivision 01)
ItemComment
Current prices
 Output
  

The Economic Activity Survey is the main data source used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

The following adjustments are also included to obtain output:

  • understatement of income;
  • off-June year reporting;
  • Output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • output for own final use in the form of gross fixed capital formation for cultivated biological resources (including livestock used for breeding, vineyards and fruit orchard growth).
 Output – product level
  

Industry product estimates for primary and secondary production are modelled using the estimates calculated from the ABS publication, Value of Agricultural Commodities Produced, Australia.

Product movements are then confronted with the available product information found in the ABARES publication, Agricultural Commodities, and the ABS publication, Value of Agricultural Commodities Produced, Australia. S-U estimates at product level are published in the ABS publication, Australian National Accounts: Supply Use Tables. They also form the basis for the product dimension that is used in the Input-Output tables.

 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product, as well as information obtained from the media and industry associations.

For this industry, volume data are also obtained from Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) statistics, and the ABS publication, Value of Agricultural Commodities Produced, Australia.

Table 9.2 Annual gross value added by industry - Aquaculture (ANZSIC Subdivision 02), Forestry and logging (ANZSIC Subdivision 03), Fishing, hunting, and trapping (ANZSIC Subdivision 04) and Agriculture, forestry and fishing support services (ANZSIC Subdivision 05)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics (GFS) are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting;
 Output – product level
  

Industry ANZSIC subdivision product estimates for primary and secondary production are modelled using weights from the Input-Output tables.

Secondary production estimates are derived directly from Economic Activity Survey data corresponding to the related input and output product.

Product movements are confronted according to available product information in the ABARES publication, Agriculture and Resource Quarterly.  

 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • off-June year reporting;
  • output of electricity produced for own intermediate use;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.3 Annual gross value added by industry - Coal mining (ANZSIC Subdivision 06), Oil and gas extraction (ANZSIC Subdivision 07), Metal ore mining (ANZSIC Subdivision 08) and Non-metallic mineral mining and quarrying (ANZSIC Subdivision 09)
ItemComment
Current prices
 Output
  

The Economic Activity Survey is the main data source used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product-level estimates for mining for the five commodity producing groups (060 Coal mining, 070 Oil and gas extraction, 080 Metal ore, 0801 iron ore and 090 Non-metallic mineral mining and quarrying)  are compiled from detailed commodity-level information contained in the ABS publication, Australian Industry and Energy Account, Australia.
 Intermediate use
  

The Economic Activity Survey and the Energy Account are the main data sources used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product; quantity information is obtained from the ABS publications, Australian Industry and Energy Account, Australia, as well as media and industry associations.

Table 9.4 Annual gross value added by industry - Exploration and other mining support services (ANZSIC Subdivision 10)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.

Industry estimates for primary and secondary production are calculated from Economic Activity Survey data.

 Output – product level
  Product level information is determined from detailed source data contained in the Mineral and Petroleum Exploration Survey and Economic Activity Survey.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
 

 

Derived using the double deflation method for value added.

The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product, as well as information obtained from the media and industry associations.

Table 9.5 Annual gross value added by industry - Manufacturing (Division C) except ANZSIC Subdivisions 16 (Printing), 17 (Petroleum, coal, chemical and rubber products manufacturing) and 18 (Basic chemical and chemical manufacturing)
ItemComment
Current prices
 Output
  

The Economic Activity Survey is the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, the complementary estimates program, extrapolated estimates based on the previous year’s estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.6 Annual gross value added by industry - Printing and recording media (ANZSIC Subdivision 16)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.7 Annual gross value added by industry - Petroleum, coal, chemical and rubber products manufacturing (ANZSIC Subdivision 17)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and the Energy Account are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
 

 

The Economic Activity Survey and the Energy Account are the main data sources used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product, as well as information obtained from the media and industry associations.

For this industry, volume data are also obtained from the Department of Industry, Science, Energy and Resources.

Table 9.8 Annual gross value added by industry - Basic chemical and chemical manufacturing (ANZSIC Subdivision 18)
ItemComment
Output
 

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
Output – product level
 Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
Intermediate use
 

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • off-June year reporting;
  • output of electricity produced for own intermediate use; and
  • FISIM; and
  • insurance service charge.
Gross value added
 Output less intermediate use.
Volume measures
 

Derived using the double deflation method for value added.

The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product, as well as information obtained from the media and industry associations.

For this industry, volume data are also obtained from the Department of Industry and Australian Institute of Petroleum (AIP).

Table 9.9 Annual gross value added by industry - Electricity supply (ANZSIC Subdivision 26)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and the Energy Account are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Estimates are added for brown coal produced and used by electricity generators imputed from the ABS Energy, Water and Environment Management Survey.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey and the Energy Account are the main data sources used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

Estimates are added for brown coal produced and used by electricity generators imputed from the ABS Energy, Water and Environment Management Survey.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product, as well as information obtained from the media and industry associations.

For this industry, volume data are also obtained from the Energy Supply Association of Australia and the Bureau of Resources and Energy Economics.

Table 9.10 Annual gross value added by industry - Gas supply (ANZSIC Subdivision 27)
ItemComment
Current prices
 Output
  

The Economic Activity Survey is the main data source used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
 

 

The Economic Activity Survey is the main data source used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product, as well as information obtained from the media and industry associations.

Table 9.11 Annual gross value added by industry - Water supply, sewerage and drainages services (ANZSIC Subdivision 28)
ItemComment
Output
 

The Water Supply and Sewage Services Survey and the Economic Activity Survey are the main data sources used to derive output for both the private and public sectors.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
Output – product level
 

Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.

Government Finance Statistics data is also used to allocate a share of the output to the general government consumption of fixed capital.

Intermediate use
 

The Economic Activity Survey is the main data source used to derive intermediate use. In this industry, General government units are in scope of the Economic activity survey and therefore Government finance statistics data is not required. However, due to the secondary activities of these general government units, data on expenses from the Water Supply and Sewage Services Survey is examined to assess Supply-Use balancing process.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, general government, households and NPISH units.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
Gross value added
 Output less intermediate use.
Volume measures
 

Derived using the double deflation method for value added.

The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product, as well as information obtained from media and industry associations.

Volume data for this industry are also Water Supply and Sewage Services Survey, and from the National Water Commission for confrontation and analysis purposes. Noting the concept of crown water, this industry is treated as a Service-producing industry, a deviation from SNA 2008 recommendations as a result of Australia’s water laws, so industry volumes will not always align with physical consumption rates.

Table 9.12 Annual gross value added by industry - Waste collection, treatment and disposal services (ANZSIC Subdivision 29)
ItemComment
Output
 

The Economic Activity Survey and Government Finance Statistics and the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
Output – product level
 Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
Intermediate use
 

The Economic Activity Survey is the main data source used to derive intermediate use. In this industry, General government intermediate use is derived residually with the components coming from Government Finance Statistics, the Survey of Employment and Earnings and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, general government, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
Gross value added
 Output less intermediate use.
Volume measures

 

Derived using the double deflation method for value added.

The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product, as well as information obtained from media and industry associations.

Table 9.13 Annual gross value by industry - Construction (ANZSIC Division E)

Item

Comment

Current prices
 Output
  

The Economic Activity Survey is the main data source used to derive output for the Construction industry.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

In addition to this, output for construction activity that is out of scope of the Economic Activity Survey is included. This additional output relates to owner builders of new houses, alterations and additions and general government construction activity.

The output for owner-builders of new houses is calculated by using the proportion of owner-builder activity to construction activity derived from the ABS publication, Private Sector Construction Industry, Australia, and applying this to the construction of new houses from the ABS publication, Building Activity, Australia.

In order to calculate the output for owner builder alterations and additions, two components of alterations and additions are derived:

  • Alterations and additions undertaken by enterprises within the construction industry – the estimate from the publication, Private Sector Construction Industry, Australia is rolled forward using indicators from another ABS publication, Building Activity, Australia.
  • Alterations and additions undertaken by owner builders – an estimate derived using an independent non-ABS estimate of the value of alterations and additions, as well as ratios from the publication, Private Sector Construction Industry, Australia, are is rolled forward using indicators from the ABS publication, Building Activity, Australia. This is confronted with the ABS publication, Household Expenditure Survey, Australia: Summary of Results.

An adjustment to the output of residential construction is made to remove the value of land from sales of house and land packages. This adjustment is the percentage of land value to sales of residential construction derived from the ABS publication, Private Sector Construction Industry, Australia and is applied to residential construction.

The construction output for the general government sector is estimated using the ABS publication, Engineering Construction Activity, Australia. Total engineering construction by the public sector for the public sector (less engineering construction for the telecommunications and electricity industries) is added to total construction output.

General government consumption of fixed capital is also included in output sourced from the Perpetual Inventory Method.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Industry ANZSIC subdivision product estimates for primary and secondary product production are modelled by using the following ABS publications:  Building Activity, Australia; Engineering Construction Activity, Australia; and Private Sector Construction Industry, Australia.
 Intermediate use
 

 

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
 

 

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.14 Annual gross value added by industry - Wholesale trade (ANZSIC Division F)
ItemComment
Current prices
 Output
  

The Economic Activity Survey is the main data source used to derive output.

The output of wholesale trade services is equal to the trade margin realised on the goods sold. The margin is the value of sales less the value of the goods purchased for resale.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Industry ANZSIC subdivision product estimates for primary and secondary product production are modelled based on product level data from the Economic Activity Survey, and periodic industry surveys, such as the Retail and Wholesale Industries Surveys.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived from the Economic Activity Survey for non-financial corporations, households and NPISH units.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.15 Annual gross value added by industry - Retail trade (ANZSIC Division G)
ItemComment
Current prices
 Output
  

The Economic Activity Survey is the main data source used to derive output.

The output of retail trade services is equal to the trade margin realised on the goods sold. The margin is the value of sales less the value of the goods purchased for resale.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Industry ANZSIC subdivision product estimates for primary and secondary product production are modelled based on product level data from the Economic Activity Survey, and periodic industry surveys, such as the Retail and Wholesale Industries Surveys.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.16 Annual gross value added by industry - Accommodation and food services (ANZSIC Division H)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics (for Accommodation services) are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units classified to Accommodation services (ANZSIC Subdivision 44).

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Industry ANZSIC subdivision product estimates for primary and secondary product production are modelled based on product level data from Economic Activity Survey, and periodic industry surveys, published as Clubs, Pubs, Taverns and Bars, Australia; Cafes, Restaurants and Catering Services, Australia; and Accommodation Services, Australia.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.17 Annual gross value added by industry - Road transport (ANZSIC Subdivision 46)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.18 Annual gross value added by industry in current prices - Air and space transport (ANZSIC Subdivision 49)
ItemComment
Current prices
 Output
  

The Economic Activity Survey is the main data source used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.19 Annual gross value added by industry - Rail transport (ANZSIC Subdivision 47), Water transport (ANZSIC Subdivision 48), and Other transport (ANZSIC Subdivision 50)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics (for Other transport services) are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product and primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.20 Annual gross value added by industry - Postal and courier pick-up and delivery services (ANZSIC Subdivision 51), Transport support services (ANZSIC Subdivision 52), and Warehousing and storage services (ANZSIC Subdivision 53)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics (for Transport support services) are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.21 Annual gross value added by industry - Information media and telecommunications (ANZSIC Division J)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output for motion picture and video production including postproduction, free to air broadcasting services, wired and mobile telecommunications networks, library and archive services.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units.

GFS data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.22 Annual gross value added by industry - Finance (ANZSIC Subdivision 62)
ItemComment
Current prices
 Output
  

Balance sheet, income and expenditure and interest rate information are used to compile the output for the following financial intermediaries – the Reserve Bank of Australia (RBA); banks; other depository corporations (credit unions, building societies, cash management trusts, registered financial corporations); central borrowing authorities; securitisers and financial intermediaries not elsewhere classified (e.g. public unit trusts excluding property trusts; public development authorities; investment companies; common funds; co-operative housing societies; public housing schemes; and other financial corporations).

The following outlines the data sources used to estimate the various components of output:

Balance sheets:

  • ABS publications: Australian National Accounts:  Finance and Wealth; Assets and Liabilities of Australian Securitisers; Managed Funds, Australia; and the Australian System of National Accounts for capital stock estimates;
  • RBA: Statistical Bulletin; and
  • Australian Prudential Regulatory Authority (APRA) Monthly Bank Statement of Financial Position for detailed breakdown for bank loans and deposits;

Income and expenditure:

  • ABS publications: Balance of Payments and International Investment Position; Annual Statistics on Financial Institutions has ceased but the data in this publication still underpins estimates);
  • ABS collections: Economic Activity Survey; Quarterly Survey of Financial Information; and Government Finance Statistics;
  • RBA: Annual Report; Financial Stability Report (6 monthly); and Statement of Monetary Policy (quarterly);
  • Suite of Australian Prudential Regulatory Authority (APRA) forms - Quarterly Bank Statement of Financial Performance and Quarterly Registered Financial Corporations Statement of Financial Performance;
  • APRA publications: Quarterly Bank Performance Statistics; Quarterly Credit Unions; and Building Societies Performance Statistics; and
  • ad hoc reports: annual reports for small subsectors such as listed investment companies, bank annual reports and private consultant banking reports.

Interest rates:

  • RBA Statistical Bulletin.

Output is calculated as:

    FISIM imputation
    plus imputed output of financial intermediaries not elsewhere classified
    plus imputed output of RBA
    plus explicit charges
    plus gross non-land rent and other service income (excludes property income).

The following adjustment is also included to obtain output:

  • own-account computer software and R&D.
 FISIM imputation
 

 

To compile the FISIM imputed estimate for all financial intermediaries (except the RBA and financial intermediaries n.e.c.), total interest receivable and payable estimates by financial instruments (i.e. deposits, bills of exchange, one-name paper, bonds and loans) and counterparty sector and subsector flows for the following six sectors and subsectors are compiled:

  • Rest of the world;
  • Reserve Bank Of Australia;
  • Banks;
  • Other depository corporations;
  • Central borrowing authorities; and
  • Securitisers.

Three datasets are required to compile the interest flows; namely:

  1. total interest payable and receivable;
  2. interest rates for relevant financial instruments of various sectors and subsectors; and
  3. balance sheets for the six sectors and subsectors.

The next step is to calculate FISIM for loans and deposits (banks and other depository corporations) and for loans (securitisers and central borrowing authorities); that is:

  • for banks and other depository corporations, FISIM is derived as follows:
[(counterparty loan rate – reference rate) * counterparty stock of loans] + [(reference rate – counterparty deposit rate) * counterparty stock of deposits]

where the reference rate is mid-point between the average interest rate on loans and the average interest rate on deposits.

  • for securitisers and central borrowing authorities, FISIM is derived as follows:
[(counterparty loan rate – reference rate) * counterparty stock of loans]

where the reference rate is weighted average bond yield.

The above calculations are undertaken in separate loan and deposit FISIM tables for each of the four groups of FISIM generating institutions (banks, other depository corporations, central borrowing authorities and securitisers). Each table captures the counterparty sector and subsector loan and deposit balances, their respective interest flows and interest margins (i.e. reference rate – deposit rate, or loan rate – reference rate) and the subsequent FISIM estimates.

 Imputed output of financial intermediaries not elsewhere classified
  Described in Table 11.6
 Imputed output of the RBA
  Described in Table 11.6
 Explicit charges
  Described in Table 11.6
 Gross non-land rent and other service income (excludes property income)
  Described in Table 11.6
 Output – product level
  Product level estimates for finance services are obtained directly or modelled using the source data outlined above.
 Intermediate use
  Is derived residually from output at basic prices minus industry value added.
 Gross value added
  Sum of gross operating surplus, compensation of employees and other taxes less subsidies on production for the Finance Industry.
 Volume measures
  

The detailed information from the current price FISIM loan and deposit tables for the four groups of financial intermediaries (i.e. banks, other depository corporations, central borrowing authorities and securitisers) are used to construct chain volume measures.

Chain volume FISIM measures are produced for the total, household final consumption expenditure, intermediate use (e.g. ownership of dwellings; general government, etc.), as follows:

  • Constant price estimates of balances (loans and deposits) by counterparty sectors and subsectors are calculated by deflating the current price estimates using the All groups CPI.
  • The deflated loans and deposits are multiplied by the associated interest margin (i.e. reference rate – deposit rate, or loan rate – reference rate) for the previous year to produce estimates of FISIM in prices of the previous year. The estimates in the previous step are summed across the four financial intermediaries to produce Laspeyres chain volume estimates

Volume estimates for exports are derived using the total HFCE implicit price deflator.

Volume estimates for the rest of the Finance and insurance services industry are derived using the double deflation method. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.23 Annual gross value added by industry - Insurance and superannuation funds (ANZSIC Subdivision 63)

Item

Comment

Current prices
 Output
  

Balance sheet, income and expenditure and interest rate information are used to compile the output for pension funds (superannuation), life insurance corporations (including friendly societies) and non-life (general) insurance corporations.

The following outlines the data sources used to estimate the various components of output:

Balance sheets:

  • ABS publications:  Australian National Accounts:  Finance and Wealth; Managed Funds; and Australian System of National Accounts for capital stock estimates;

Income and expenditure:

  • ABS collections:  Quarterly Survey of Financial Information;
  • ABS publications: Balance of Payments and International Investment Position;
  • Australian Prudential Regulatory Authority (APRA) form - Quarterly Superannuation Statement of Financial Performance;
  • APRA publications: Quarterly Superannuation Performance Statistics; Quarterly Life Insurance Performance Statistics; Quarterly General Insurance Performance Statistics; Annual Superannuation Bulletin; Annual Friendly Society Bulletin; Half-Yearly General Insurance Bulletin; and Selected Statistics on General Insurance; General Insurance Supplementary Statistical Tables;
  • Australian Taxation Office (ATO): Self-managed superannuation funds taxation data and website releases; and
  • ad hoc private consultant reports: superannuation actuarial reports and real estate statistics.

Output is calculated as:

Insurance service charge (ISC)
plus explicit charges
plus gross non-land rent
plus non-life insurance business income
plus subsidies.

The following adjustment is also included to obtain output:

  • own-account computer software and R&D.
 Insurance service charge
  

Non-life insurance corporations – estimated as premiums earned plus investment income on the technical reserves less expected claims:

  • premiums earned include direct premiums earned plus inward reinsurance premiums less outward insurance premiums and statutory charges paid;
  • premium supplements represent income earned on the technical reserves of non-life insurance corporations, which consist of unearned premiums (most premiums are paid for a full year in advance) and claims incurred but not yet paid (which arise because of delays in claims being lodged and assessed, and in finalising the payment of claims);
  • premium supplements do not include any income from the investment of insurance corporations' own funds. The proportion of policyholder funds to total assets of non-life insurance corporations is applied to total investment income to derive premium supplements. The interest share of investment income is net of FISIM.

Life insurance corporations – the sum of administrative costs incurred (including investment and labour costs) plus a profit margin; the profit margins is calculated by estimating a proxy return on equity.

Pension funds ­– the sum of administrative costs incurred (including investment and labour costs).

 Explicit charges
  Described in Table 11.7
 Gross non-land rent
  Described in Table 11.7. It is assumed to be applicable only to commercial buildings and infrastructure.
 Output – product level
  Product level estimates for insurance services are obtained directly or modelled using the source data outlined above.
 Intermediate use
  Is derived residually from output at basic prices minus industry value added.
 Gross value added
  Sum of gross operating surplus, compensation of employees and other taxes less subsidies on production for the Insurance Industry.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

9.24 Annual gross value added by industry - Auxiliary finance and insurance services (ANZSIC Subdivision 64)
ItemComment
Current prices
 Output
  

The Economic Activity Survey is the main data source used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
 Output – product level
  Industry ANZSIC subdivision product estimates for primary and secondary product production are modelled by using directly measured product levels from Economic Activity Survey, and periodic industry surveys.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.25 Annual gross value added by industry - Rental, hiring and real estate services (ANZSIC Division L)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.26 Annual gross value added by industry - Professional, scientific and technical services (ANZSIC Division M)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.27 Annual gross value added by industry - Administration and support services (ANZSIC Division N)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income, only for Building cleaning, pest control and other support services (ANZSIC Subdivision 73);
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.28 Annual gross value added by industry - Public administration and safety (ANZSIC Division O)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output.

Gross expenditure data taken from Government Finance Statistics, from which industry based data, are derived using a set of proportions derived from historical input and output data and with no secondary production assumed. Government Finance Statistics data are also adjusted to include national accounts data for FISIM, artistic originals and consumption of fixed capital. A consolidation adjustment for payroll tax is also included.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for output of Investigation and security services (ANZSIC Class 7712).

The following adjustments are also included to obtain output:

  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

Output minus total primary inputs (i.e. compensation of employees, gross operating surplus and other taxes less subsidies on production).

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for units classified to Investigation and security services (ANZSIC Class 7712).

 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.29 Annual gross value added by industry - Education and training (ANZSIC Division P)
ItemComment
Current prices
 Output
  

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output.

General government output is the most significant component of output for this industry. Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units.

The following adjustments are also included to obtain output:

  • understatement of income, only for Building cleaning, pest control and other support services (ANZSIC Subdivision 73);
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the output volume method for non-market producers.

The output volume method is based on total numbers of students at both private and government schools, student load of universities, course hours for TAFE and other vocational education providers stratified at various levels of education and weighted together by their respective current price value of output.

Student numbers are sourced from the ABS publication, Schools, Australia; annual reports from the departments of Education and Employment for school and university students; and data from the National Centre for Vocational Education Research (NCVER) for vocational students.

Table 9.30 Annual gross value added by industry - Health care and social assistance (ANZSIC Division Q)
ItemComment
Current prices
 Output
  

The industry output consists of significant amounts of both private and public output. The industry output is measured by the demand side approach which sums the intermediate consumption of health and social assistance related products and final demand (i.e. final consumption expenditure, and exports less imports). These are sourced from the Economic Activity Survey; Government Finance Statistics; Household Expenditure Survey; and Pharmaceutical Benefits Scheme (PBS) data from the Commonwealth Department of Health.

The private sector output estimates are based on household final consumption expenditure, intermediate consumption and exports and imports of health care and social assistance related products.

The public sector output estimates are based on the costs of production recorded for government final consumption expenditure on health care and social assistance related products, but before any receipts from sales are netted off.

The following adjustment is also included to obtain output:

  • output for own final use in the form of own-account computer software and R&D; and
  • output of electricity produced for own intermediate use.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  Output minus total primary inputs (i.e. compensation of employees, gross operating surplus and other taxes less subsidies on production).
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the output volume method for non-market producers.

The output volume method is based on private and public hospital separations and number of non-hospital services provided, stratified at various levels of procedure type, and weighted together by their respective current price value of expenditures.

Public and Private Hospital separations by procedure type and average separation costs are sourced from the Australian Institute of Health and Welfare (AIHW) hospital publication. The number of non-hospital services provided and costs are sourced from Medicare, the Private Health Insurance Administration Council and the Productivity Commission (PC) Report on Government Services.

Table 9.31 Annual gross value added by industry - Arts and recreation services (ANZSIC Division R)
ItemComment
Current prices
 Output
  

The Economic Activity Survey, Government Finance Statistics and components of total use are the main data sources used to derive output.

Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units.

Gambling activity output is calculated by adding household final consumption expenditure, government final consumption expenditure and exports and subtracting imports and taxes on products.

Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

Intermediate use for gambling services, however, is derived as output minus total primary inputs (i.e. compensation of employees, gross operating surplus and other taxes less subsidies on production).

General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.32 Annual gross value added by industry - Other services (Division S)
ItemComment
Current prices
 Output
  

The Economic Activity Survey, Government Finance Statistics and components of total use are the main data sources used to derive output.

Output for personal and other services is derived using the demand side compilation method as opposed to supply side. Output is estimated as the sum of intermediate use and final use (i.e. household and government final consumption expenditures, exports less imports) less taxes on those products primary to the industry.

Market output for repairs and maintenance services is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units.

The following adjustments are also included to obtain output:

  • understatement of income;
  • output for own final use in the form of own-account computer software and R&D;
  • output of electricity produced for own intermediate use; and
  • off-June year reporting.
 Output – product level
  Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
 Intermediate use
  

The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive intermediate use.

Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units.

General government intermediate use is included for funeral and parking services and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital.

The following adjustments are also included to obtain intermediate use:

  • overstatement of expenses;
  • output of electricity produced for own intermediate use;
  • off-June year reporting;
  • FISIM; and
  • insurance service charge.
 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Table 9.33 Annual gross value added by industry - Ownership of dwellings
ItemComment
Current prices
 Output
  

The components of final use are the main data sources used to derive output.

Estimates of the output are derived using a demand side method. The household final consumption expenditure as derived from the actual rents model is combined with government final consumption expenditure, minus imports, plus exports, minus taxes less subsidies on products to form total industry output.

 Output – product level
  Product estimates for primary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, the distribution from the latest Input-Output tables and the ABS publication, Tourist Accommodation, Australia (for long-term caravan parks); and the assumption that the products produced are primary to activities of the ownership of dwellings industry.
 Intermediate use
  

Intermediate use for the ownership of dwellings industry includes the following components:

  • repairs and maintenance;
  • building insurance service charge;
  • FISIM; and
  • real estate agent commissions charged for the management of rental properties;
  • loan application fees; and
  • miscellaneous expenses

Repairs and maintenance are benchmarked using data from the ABS Household Expenditure Survey. The benchmarks are extrapolated using a combined indicator based on the estimated number of dwellings (the same estimate as used to estimate total dwelling rent) and movements in appropriate component price indexes from the Consumer Price Index (CPI) and the series on Metropolitan and municipal improvement rates from the Government Finance Statistics.

In this context repairs and maintenance cover the actual repairs to the dwelling and preventative maintenance such as painting internal and external surfaces. However, purchases of goods and services associated with cleaning a dwelling are not included (they are recorded as part of household final consumption expenditure).

Estimates for building insurance service charges (premiums plus premium supplements less expected claims) are derived from annual data published by the Australian Prudential Regulatory Authority (APRA).

FISIM is the imputed financial service charge component of interest payable on loans used to finance the purchase of dwellings owned by persons. Estimates are derived from data published by APRA. The derivation of FISIM estimates is described in Table 9.21 ANNUAL GROSS VALUE ADDED BY INDUSTRY— Finance (ANZSIC Subdivision 62).

Estimates for real estate agents' management fees are derived using data from the 2016  Census of population and housing to estimate the proportion of actual rent controlled by real estate agents, extrapolated by number of dwellings for non-census years. This proportion is applied to actual rent and multiplied by the average commission rate for each state.

Estimates for loan application fees for loans from financial corporations to purchase dwellings are derived from sum of direct charges associated with dwellings which are obtained from Australian Prudential Regulatory Authority.

 Gross value added
  Output less intermediate use.
 Volume measures
  

Derived using the double deflation method for value added.

The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts:  National Income, Expenditure and Product.

Latest year

9.87    For all industries, except agriculture, finance services and insurance services, annual GDP(P) for the latest year (i.e. the year beyond the S-U period) is derived by aggregating the quarterly data previously derived, using largely the same set of sources and methods as those used to derive quarterly gross value added estimates.

9.88    For the latest year, volume estimates for the Agriculture industry (ANZSIC Subdivision 01) are obtained by double deflation.

9.89    For the latest year, chain volume estimates of FISIM for Finance (ANZSIC Subdivision 62) are produced using data sources and methodology as described for the annual benchmarks and used as an annual indicator series to move forward the benchmark volume estimate for gross value added for Finance.

9.90    For the latest year, current price estimates of total output for Insurance (ANZSIC Subdivision 63) are produced using data sources and methodology as described for the annual benchmarks. The current price annual insurance output is deflated by the all groups consumer price index (CPI) to produce an annual chain volume indicator series for insurance which is then used to move forward the benchmark for gross value added for Insurance.