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# Production approach of gross state product – GSP(P)

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

### Overview

21.171    Production of gross state product (GSP(P)) is calculated in both current price values and chain volume measures as the sum of gross value added (GVA) and taxes less subsidies on products:

$$\large GSP(P)= gross \space value \space added+taxes \space on \space products-subsidies \space on \space products$$

21.172    Gross value added is defined as the output of goods and services produced less total intermediate use of the goods and services used in the creation of that output

$$\large Gross \space Value \space Added=Output-Total \space Intermediate \space Use$$

21.173    Estimates of GVA by state are compiled by industry at the ANZSIC division level.

21.174    Taxes and subsidies on products relate to those taxes and subsidies which are payable per unit of a good or service.

21.175    Taxes and subsidies on products relating to state and local governments are allocated directly to the state in which they are collected or paid.

21.176    Commonwealth taxes and subsidies are allocated to states and territories using a range of activity indicators, such as household final consumption expenditure.