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Australian National Accounts: Non-Profit Institutions Satellite Accounts

Estimates of the direct contribution that NPIs make to the Australian economy, including to gross value added and gross domestic product

Reference period
2012-13 financial year

Analysis of results

Key results

Non-profit institutions (NPIs) have the following characteristics: they are organisations, they are not-for-profit and non-profit-distributing, they are institutionally separate from government, they are self-governing, and are non-compulsory. For further information about identification of NPIs, refer to Appendix 5. There were 56,894 NPI organisations in Australia registered with the ATO at June 2013 and in scope of the NPI Satellite Account.

The direct value that NPIs add to the economy is measured in NPI gross value added (GVA). NPI output that is sold in the market is valued by sales, whilst the non-market output is valued at cost. In 2012-13, NPIs accounted for $54,796m or 3.8% of total GVA. This is an increase on the revised 2006-07 NPI contribution to GVA (3.2%).

Gross domestic product (GDP) measures the value of production inclusive of product taxes. NPI GDP in 2012-13 is $57,710m. The revised NPI GDP for 2006-07 is $34,662m.

NPIs received income of $107,480m in 2012-13, and held $176b worth of assets.

NPIs contribute significantly to employment, accounting for 1,081,900 employed persons and almost 3.9 million volunteers. Volunteers contributed 521 million hours to NPIs, equating to an equivalent of 265,600 full time employed persons. The economic value of these hours was estimated at $17.3b.

Key results

 2012-13
Number of NPI organisations(a)56 894
NPI value added - national accounts basis$54.8 billion
NPI value added - NPI satellite account basis$79.2 billion
NPI income$107.5 billion
NPI assets$176.0 billion
NPI employment1,081,900 persons
NPI volunteers3,882,300 persons
NPI volunteering hours520.5 million hours
a. Registered with ATO and in scope of the NPI Satellite Account

 

NPI gross value added

NPI gross value added measures the value of goods and services produced by NPIs (or output), less the cost of goods and services used up in their processes of production. While it is not separately identified in the core national accounts, this value added is already included in the national accounts and is termed NPI gross value added on a national accounts basis. In 2012-13, NPI gross value added on a national accounts basis was $54,796m, an increase of $22,240m (68%) in original terms on 2006-07. In real terms, that is, adjusted for inflation, NPI gross value added increased 42%.

When additions are made to NPI value added on a national accounts basis to include the non market-output of market producers and the imputed value of volunteer services, this is termed NPI value added on NPI satellite account basis. NPI value added was $79,193m in 2012-13 on this basis.

On a national accounts basis, education and research NPIs were the largest contributors to gross value added (30.9%), followed by social service NPIs (19.5%). These NPIs were also the largest contributors to gross value added in 2006-07.

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  1. See Appendix 1 for the International Classiffication of Non-Profit Organisations (ICNPO)

     

NPI income

NPIs received $107,480m worth of income in 2012-13. Market NPIs generated most of their income from service provision ($57,870m), while the main type of income for non-market NPIs was transfers and donations ($15,093m). Most of the income received by market and non-market NPIs was from government, $27,571m and $13,359m respectively, in 2012-13. In 2006-07, most market and non-market NPI income was received from households. For further information about the market/non-market distinction, refer to the glossary.

Education and research NPIs generated the largest share of income in both 2012-13 ($26,561m) and 2006-07 ($16,016m). Social service NPIs were the second largest contributor to total NPI income in 2012-13, generating $19,194m.

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  1. See Appendix 1 for the International Classification of Non-Profit Organisations (ICNPO)

     

NPI use of income

The main way in which market NPIs used their income was to pay for labour costs ($37,388m). This was also the main expense for non-market NPIs ($14,301m). The second largest expense for both market and non-market NPIs was purchases of goods and services, $23,974m and $12,842m respectively.

NPI employment

NPIs employed 1,081,900 persons in 2012-13. The majority of these employees were full time employees (413,100 persons). Market NPIs employed 742,500 persons, whilst non-market NPIs employed 339,400 persons. Social services NPIs employed the most people (296,900), followed by education and research NPIs (276,300).

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  1. See Appendix 1 for the International Classification of Non-Profit Organisations (ICNPO)

     

NPI volunteering

A volunteer is someone who willingly gives unpaid help in the form of time, service or skills, through an organisation or group. Almost 3.9 million Australians aged 18 and over volunteered for NPIs in 2012-13. The most people volunteered for culture and recreation NPIs (2 million), followed by social services NPIs (1.4 million).

In 2012-13, 521 million hours were volunteered to NPIs, equating to 265,600 full time equivalents. The majority of hours were volunteered for culture and recreation NPIs (163 million hours), and social services NPIs (159 million hours). Females volunteered 274.3 million hours or 140,500 full-time equivalent persons compared to 246.1 million hours or 125,000 full-time equivalent persons for males.

The number of hours volunteered in NPIs and average hourly ordinary time earnings in selected occupations have been used to impute the value of volunteer services in NPIs. Further information about the calculation of volunteer services is detailed in Appendix 6. In 2012-13, the imputed value of volunteer services was $17,323m.

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  1. See Appendix 1 for the International Classifications of Non-Profit Organisations (ICNPO)

Preface

Non-profit institutions (NPIs) play an important role in the provision of welfare, social and other services in Australia. In response to demand for information on the size, structure and economic contribution of NPIs, the Australian Bureau of Statistics (ABS) has compiled a third NPI satellite account for Australia. The 2012-13 NPI satellite account is on a comparable basis to the 2006-07 satellite account and as a result the first 3 tables include data for both years. Data from the first NPI satellite account for 1999-2000 is not included in this publication as there were significant differences in the compilation methods and classifications used to compile that account.

An NPI satellite account involves the identification and measurement of non-profit activities within the national accounting framework so that a cohesive set of economic data on NPIs can be compiled.

The concepts and methods used in the Australian NPI satellite account are based on international standards described in the United Nations Handbook on Non-Profit Institutions in the System of National Accounts (the Handbook). The Handbook is intended to facilitate international comparison of information on NPIs. The Handbook is consistent with the System of National Accounts (SNA), whilst extending that framework to enable measurement of further areas of analytical interest.

This publication presents estimates of the direct contribution that NPIs make to the Australian economy, and in particular the contribution of NPIs to key macroeconomic variables such as gross value added and gross domestic product. As this satellite account is an integrated set of statistics on NPIs within the internationally recognised SNA, it provides a valuable policy and research resource with a wide range of applications.

The results of this study are based, in part, on tax data supplied by the Australian Tax Office (ATO) to the ABS under the Taxation Administration Act 1953, which requires that such data is only used for statistical purposes. No individual information collected under the Census and Statistics Act 1905 is provided back to the ATO for administrative or regulatory purposes. Any discussion of data limitations or weaknesses is in the context of using the data for statistical purposes, and is not related to the ability of the data to support the ATO's core requirements.

Legislative requirements to ensure privacy and secrecy of this data have been followed. Only people authorised under the Australian Bureau of Statistics Act 1975 have been allowed to view data about any particular organisation in conducting these analyses. In accordance with the Census and Statistics Act 1905, results have been confidentialised to ensure that they are not likely to enable identification of a particular person or organisation.

The 2012-13 NPI satellite account was jointly funded by the Australian government departments the Department of Social Services and the Department of Health.

Data downloads

Non-profit institutions satellite account, 2012-13

Updates have been made to tables 1-3, and 12 and the addition of tables 15-17 that include volunteering services data for 2012-13.

Non-profit institutions satellite account, 2006-07

Changes in this issue

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This reissued publication incorporates the volunteering services component of the NPI satellite account which completes the account for the 2012-13 reference period. Estimates of volunteering services have been sourced from unpublished results from the ABS General Social Survey 2014. This reissued publication presents updates to tables 1-3, and 12 and the addition of tables 15-17 that include volunteering services data. Minor revisions to some estimates have been made to reflect the most current National Accounts (cat. no. 5204.0) estimates at the time of this publication release.

This publication presents the results of the 2012-13 survey of non-profit institutions (NPIs) in the context of the national accounts framework. Because of the conceptual and methodological improvements which are explained below this publication includes revised data for 2006-07 so that both years are directly comparable.

NPI survey data

The main data source for the NPI satellite accounts is the annual Economic Activity Survey (EAS). Over 4,000 NPIs were surveyed in the 2012-13 EAS, almost double the number of NPIs that were included in the 2006-07 survey.

The identification of NPIs on the ABS Business Register of organisations was reviewed and improved. This review led to the removal of some organisations, which are not NPIs for the purpose of the NPI Satellite Account, from the EAS and NPI organisation counts for 2012-13.

The 2012-13 EAS also included new questions about inventories, assets and liabilities. Where possible these additional data are made available in this publication or in the accompanying electronic tables.

Alignment with the national accounts

The 2006-07 NPI satellite account excluded certain data items from the NPI national accounts basis calculations of output, intermediate use and gross value added because of concerns about the nature of expenditure items reported. During the preparation of the 2012-13 satellite account these concerns were investigated and found to be largely unjustified, this has resulted in revisions to 2006-07 data. In this NPI satellite account the NPI national accounts basis calculations are fully aligned with the Australian System of National Accounts (ASNA) for both 2006-07 and 2012-13.

The largest data item (in value terms) that was excluded from the national accounts basis calculations for the 2006-07 NPI satellite account was other operating expenses. The impact of including other operating expenses is to:

  • increase the level of intermediate use for both market and non-market NPIs
  • increase the level of output for non-market NPIs
  • decrease the level of gross value added for market NPIs
  • increase the level of non-market output of market producers.
     

The data items excluded from the 2006-07 calculations on a national accounts basis were included in the more detailed tables. That is, other operating expenses was included in the Use of income tables under the category 'Other expenses'. In this satellite account other operating expenses are included in the category 'Purchases of goods and services - Other purchases of services'.

Implementation of the System of National Accounts 2008

The 2006-07 NPI satellite account was compiled according to the System of National Accounts, 1993 (SNA93). The ABS implemented the revised System of National Accounts, 2008 (2008 SNA) in the ASNA in November 2009. A major change in 2008 SNA, which affects NPIs, is the recognition of their expenditure on research and development (R&D) as own-account capital formation. The impact of this change is to increase the level of output and gross value added for NPIs. For further information about the treatment of R&D see paragraphs 9.35-9.40 in the Australian System of National Accounts: Concepts, Sources and Methods, 2013 (cat. no. 5216.0).

Non-market output of market producers

The method for compiling the value of non-market output of market producers has been refined. The new method has been used to compile both the 2006-07 and the 2012-13 estimates in this publication. In the 2006-07 NPI satellite account the method involved an aggregate calculation of non-market output at the International Classification of Non-Profit Organizations (ICNPO) Group level. The new method is calculated at the unit level. The impact is an increase in non-market output of market producers for 2006-07.

Membership fees

Membership fees for non-market NPIs were treated as income from service provision in the 2006-07 issue of this publication. The System of National Accounts recommends membership fees for non-market NPIs to be treated as transfers. This change in treatment has been applied to the 2012-13 estimates. To ensure consistency, the 2006-07 estimates in this publication have also been revised to reflect this change in treatment.

Membership fees for market NPIs are shown as income from service provision in both this publication and the 2006-07 publication.

Volunteering services

The value of volunteering services was sourced from the ABS General Social Survey 2014 (cat. no. 4159.0) that included an expanded section on voluntary work, including the number of volunteers to non-profit institutions and the hours volunteered. The hours volunteered were assigned a wage rate taken from the ABS Employee Earnings and Hours survey to estimate the value of volunteering services. Appendix 6 provides more information on the data sources and compilation methods used to estimate the value of volunteering services.

History of changes

Show all

28/08/2015 - This reissued release incorporates volunteering services estimates which complete the non-profit institutions satellite account for the 2012-13 reference period. Updates have been made to tables 1-3, and 12 and the addition of tables 15-17 that include volunteering services data for 2012-13.

Previous catalogue number

This release previously used catalogue number 5256.0.