Own-account capital formation (ETF 76)

A1A.210.

Own-account capital formation (ETF 76) consists of the value of the production of non-financial assets for own use. This category is further classified into:

• own-account superannuation payments (ETF 761);
• own-account employee payments other than superannuation (ETF 762); and
• own-account non-employee payments (ETF 763).

A1A.211.

Own-account superannuation payments (ETF 761) consists of accrued and imputed costs under both defined contribution and defined benefit superannuation schemes in return for work related to own-account capital formation. A defined contribution superannuation scheme is one where the benefits payable to the employee on retirement are determined by the funds that have accumulated from employer and employee contributions over the working life of the employee, together with income and capital gains / losses arising from the investment of the accumulated funds. The funds are accumulated in a separate superannuation fund managed by a board of trustees or guardians of the scheme (autonomous fund). The government employer has a responsibility to make the regular agreed contributions to the fund, but then has no further superannuation liability towards their employees. A defined benefit superannuation scheme is one where the benefits payable to the employee on retirement are defined by some formula normally related to participants’ length of service and salary. This category is further classified into:

• own-account actual employers' contributions – defined contribution scheme (ETF 7611, TALC, COFOG-A);
• own-account actual employers' contributions – defined benefit scheme (ETF 7612, TALC, COFOG-A); and
• own-account imputed employers’ contributions – defined benefit scheme (ETF 7613, TALC, COFOG-A).

A1A.212.

Own-account actual employers' contributions – defined contribution scheme (ETF 7611, TALC, COFOG-A) consists of the amounts payable by employers to defined contribution superannuation schemes for the benefit of their employees, in return for work related to own-account capital formation.

A1A.213.

Own-account actual employers' contributions – defined benefit scheme (ETF 7612, TALC, COFOG-A).This category consists of the amounts payable by employers to defined benefit superannuation schemes for the benefit of their employees, in return for work related to own-account capital formation.

A1A.214.

Own-account imputed employers’ contributions – defined benefit scheme (ETF 7613, TALC, COFOG-A) consists of the amount of employer contributions to defined benefit superannuation schemes that would be needed to secure the de-facto entitlements to the benefits accumulated by their employees, in return for work related to own-account capital formation. Some employers provide benefits directly to their employees, former employees or their dependants from their own resources without involving an autonomous superannuation fund and without creating a special fund or segregated reserve for the purpose.

A1A.215.

Own-account employee payments other than superannuation (ETF 762) consists of all employee payments other than superannuation contributions, in cash or in kind, payable to an individual in an employer-employee relationship in return for work performed by the latter related to own-account capital formation. This category is further classified into:

• own-account wages, salaries and supplements in cash (ETF 7621, TALC, COFOG-A);
• own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A);
• own-account salary sacrifice payments - superannuation (ETF 7623, TALC, COFOG-A);
• own-account salary sacrifice payments - other than superannuation (ETF 7624, TALC, COFOG-A);
• own-account Fringe Benefits tax (FBT) payments (ETF 7625, TALC, COFOG-A);
• own-account workers’ compensation payments (ETF 7626, TALC, COFOG-A); and
• own-account employee payments not elsewhere classified (ETF 7629, TALC, COFOG-A).

A1A.216.

Own-account wages, salaries and supplements in cash (ETF 7621, TALC, COFOG-A) consists of compensation of employees payable in cash, or any other financial instruments used as means of payments, in return for work related to own-account capital formation.

Includes:    Basic wages or salaries payable at regular weekly, monthly or other intervals, including payments by results and piecework payments; enhanced payments or special allowances for working overtime, at nights, on weekends or other irregular hours; allowances for working away from home or in disagreeable or hazardous circumstances; expatriation allowances for working abroad; supplementary allowances payable regularly such as housing allowances or allowances to cover the costs of travel to and from work; wages or salaries payable to employees away from work for short periods such as on vacation or as a result of a temporary halt to production; annual supplementary pay such as bonuses; ad hoc bonuses or other exceptional payments linked to the overall performance of the enterprise made under incentive schemes; commission, gratuities and tips received by employees; amounts withheld from wages and salaries by the employer for administrative convenience or for other reasons such as income taxes or other deductibles, payable by the employee; employee benefits, such as a car or extra pension contributions, that is acquired from the employer by foregoing some salary.

A1A.217.

Own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A) consists of compensation of employees payable in the form of goods, services, interest foregone and shares issued to employees in return for work related to own-account capital formation. Almost any kind of goods or services may be provided as wages and salaries in kind. It includes goods and services provided without charge or at reduced prices. The goods and services provided in kind to employees are not necessary to enable the employees to perform their work.

Includes:    Meals and drinks provided on a regular basis including any subsidy element of an office canteen; clothing or footwear that employees may choose to wear frequently outside of the workplace and while at work; housing services or accommodation of a type that can be used by all members of the household to which the employee belongs; services of vehicles or other durables provided for the personal use of employees; goods and services produced by the employer such as free travel on government airplanes or trains; sports, recreation or holiday facilities for employees and their families; transportation to and from work; free or subsidised parking when it would otherwise have to be paid for; childcare for the children of employees; the value of the interest foregone by employers when they provide loans to employees at reduced or even zero rates of interest for purposes of buying houses, vehicles, furniture or other goods or services; bonus shares or stock options distributed to employees.

A1A.218.

Own account salary sacrifice payments – superannuation (ETF 7623, TALC, COFOG-A) consists of salary sacrifice payments relating to superannuation provided by the employer to employees working on own-account capital formation.

A1A.219.

Own account salary sacrifice payments – items other than superannuation (ETF 7624, TALC, COFOG-A) consists of salary sacrifice payments relating to items other than superannuation provided by the employer to employees working on own-account capital formation.

A1A.220.

Own-account Fringe Benefits Tax (FBT) payments (ETF 7625, TALC, COFOG-A) consists of fringe benefits tax payable on certain benefits employers provide to their employees or their employees’ associates in place of salary or wages, in return for work related to own-account capital formation.

A1A.221.

Own-account workers’ compensation payments (ETF 7626, TALC, COFOG-A) consists of workers’ compensation amounts payable by employers under legislation for work-related injury and illness suffered by employees, in return for work related to own-account capital formation.

A1A.222.

Own-account employee payments not elsewhere classified (ETF 7629, TALC, COFOG-A) consists of employee payments incurred in return for work related to own-account capital formation that cannot be classified to own-account wages, salaries and supplements in cash (ETF 7621, TALC, COFOG-A), own-account wages and salaries in kind (ETF 7622, TALC, COFOG-A), own-account salary sacrifice payments - superannuation (ETF 7623, TALC, COFOG-A), own-account salary sacrifice payments - other than superannuation (ETF 7624, TALC, COFOG-A); own-account Fringe Benefits tax (FBT) payments (ETF 7625, TALC, COFOG-A) or own-account workers’ compensation payments (ETF 7626, TALC, COFOG-A).

Includes: Accrued expenses for the current period relating to accident compensation premium, sick leave, annual leave, long service leave retirement and redundancy.

A1A.223.

Own-account non-employee payments (ETF 763) consists of the value of payments connected to work relating to own-account capital formation that are not related to the compensation of employees. This category is further classified into:

• own-account use of goods and services (ETF 7631, TALC, COFOG-A);
• own-account depreciation of non-financial produced assets (ETF 7632, TALC, COFOG-A);
• own-account other taxes on production less other subsidies on production (ETF 7633, TALC, COFOG-A); and
• own-account non-employee payments not elsewhere classified (ETF 7639, TALC, COFOG-A).

A1A.224.

Own-account use of goods and services (ETF 7631, TALC, COFOG-A) consists of the value of goods and services acquired for use in own-account capital formation.

Includes:    Amounts payable to contractors, self-employed outworkers and other workers who are not employees of general government or public sector units; use of goods and services when such use is mandatory in order to enable employees to carry out their work whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; tools or equipment used exclusively or mainly at work whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; clothing or footwear of a kind that ordinary consumers do not choose to purchase or wear and which are worn exclusively or mainly at work such as protective clothing, overalls or uniforms whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; accommodation services at the place of work of a kind that cannot be used by the households to which the employees belong such as barracks, cabins, dormitories and huts; special meals or drinks necessitated by exceptional working conditions, while travelling for business reasons or meals or drinks provided to employees while on active duty whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; travel, relocation or related expenses when employees take up new jobs or are required by their employers to move their homes to different parts of the country or to another country whether purchased by the employer or purchased by employees who are then subsequently reimbursed by the employer; changing facilities, washrooms, showers and baths necessitated by the nature of the work; first aid facilities, medical examinations or other health checks required because of the nature of the work; costs incurred on inexpensive, durable goods such as small / hand tools (saws, spades, knives, axes, hammers, screwdrivers, spanners, wrenches) when such expenses are incurred regularly and are small compared with the costs incurred for the acquisition of machinery and equipment; goods and services consumed for the ordinary maintenance and repair of fixed produced assets; payments by the lessee for rental of a fixed asset under an operating lease.

A1A.225.

Own-account depreciation of non-financial produced assets (ETF 7632, TALC, COFOG-A) consists of the depreciation of produced assets attributed to use in own-account capital formation.

A1A.226.

Own-account other taxes on production less other subsidies on production (ETF 7633, TALC, COFOG-A) consists of other taxes on production associated with own-account capital formation minus other subsidies on production associated with own-account capital formation.

A1A.227.

Own-account non-employee payments not elsewhere classified (ETF 7639, TALC, COFOG-A) consists of non-employee expenses associated with work related to own–account capital formation that cannot be classified to own-account use of goods and services (ETF 7631, TALC, COFOG-A), own-account depreciation of non-financial produced assets (ETF 7632, TALC, COFOG-A) or own-account other taxes on production less other subsidies on production (ETF 7633, TALC, COFOG-A).