Sources and methods - Annual
11.45 The table below outlines the data sources and methods used in the estimation of annual taxes and subsidies on production and imports in current prices.
|Taxes less subsidies on production and imports|
Data from Government Finance Statistics from the ABS publication, Government Finance Statistics, Annual is the main source used to compile taxes and subsidies for all levels of government.
Government Finance Statistics – classified by tax type and purpose – are used to compile taxes and subsidies. Each tax type and purpose category are defined as relating to either taxes and subsidies on products or other taxes and subsidies on production.
|Taxes and subsidies on products|
|Taxes and subsidies on products are allocated to specific products using a number of methods. These include household final consumption expenditure proportions in the case of the Goods and Services Tax (GST) and supply proportions for other taxes on products. Subsidies are allocated according to the product which best fits the specific purpose category.|
|Other taxes and subsidies on production and imports|
|Other taxes and subsidies on production are also allocated to specific industries. Land taxes and rates are allocated using proportions from EAS data, while payroll taxes are allocated on the basis of compensation of employees’ proportions. JobKeeper and Boosting cash flow for employers’ policies are allocated using administrative data from the ATO. Other taxes and subsidies on production are allocated to industry based on historical input and output proportions.|
11.46 Annual estimates of the latest financial year for production taxes and subsidies are derived by summing the four quarterly estimates using data from Government Finance Statistics.
11.47 Other taxes and subsidies on production are allocated to specific industries based on proportions calculated from various indicator series. These include:
- Payroll taxes are allocated to specific industries based on payroll tax by industry data from the ABS publication, Labour Costs, Australia.
- Land taxes and municipal and metropolitan improvement rates are allocated to the Ownership of Dwellings industry based on the proportion of the value of residential land to the total value of land. The remaining Land taxes and Municipal and metropolitan improvement rates are allocated equally amongst the other industries.
- Motor vehicle taxes (not including those paid by households) are allocated to specific industries based on the proportion of the capital stock of motor vehicles.
- Carbon tax, Taxes on renewable energy certificates, Carbon subsidies and Subsidies on renewable energy certificates are allocated to specific industries based on their emissions of greenhouse gases and relevant acquisitions of electricity respectively.
- From 1 July 2017, the Major Bank Levy is allocated to Finance (ANZSIC subdivision 62).
- From 1 April 2020, COVID-19 related other subsidies on production, such as the JobKeeper and Boosting cash flow for employers’ policies, are allocated to industries using ATO administrative data.