Welcome to the help page for the Economic Activity Survey - Health Care and Social Assistance Services, 2018-19.
This help page includes the following sections:
- General Information
- Income Items
- Expense Items
- Capital Expenditure and Disposal of Assets
- Multi-state Operations
How was my business selected and which part of my business should I report for?
Details of businesses are obtained from the Australian Business Register (ABR). This contains the names and addresses of all businesses that have registered an Australian Business Number (ABN) with the Australian Taxation Office (ATO). As the Economic Activity Survey is a sample survey, this means that a proportion of businesses are selected to receive the survey questionnaire. Together, the sampled businesses represent the total industry/population group being studied. Businesses in the sample are randomly selected to represent other businesses with similar characteristics, such as income or number of employees. Some businesses must be included in the sample because they contribute substantially to their particular industry, region or group. In order to ensure accurate estimates are produced, please only report information for the business or legal entity named at the start of the survey.
What should I report if my business does not engage in health care and social assistance services?
If your business does not engage in health care and social assistance services, you will still be required to complete the survey. Some of the tailored questions will not be relevant to your business and these can be left blank. For most sections of the survey, there is a response option for 'Other' and you will be able to report your information here. You will still have to specify the nature of these 'Other' items. There is also a comments section at the end of the survey which you may wish to use to provide further details about your business.
What should I do if I cannot report at the necessary level of detail for some survey items?
The ABS requires information that is as accurate as possible. The information supplied by your business is used to produce estimates for all businesses within the same industry operating in Australia. The more accurate the figures you supply, the more accurate the estimates will be. However, if accurate data is not readily available, careful estimates will be accepted.
What is the AASB 16 accounting standard for leases?
The Australian Accounting Standards Board (AASB) has changed the accounting standard applicable to leases through ‘AASB 16 Leases’. Full details on these changes can be found in the AASB Leases Accounting Standard. Based on this change, the ABS have made amendments to the Economic Activity Survey to better capture leasing information, regardless of whether or not the business you are reporting for has adopted the new standard for lease accounting. For more information on how the new standard may impact your responses to the Economic Activity Survey, please see the help page AASB 16 Leases.
How should I report employment?
Employment is a headcount of all persons who worked for the business as proprietors, partners, salaried directors or other employees in the last pay period ending in June 2019. You should report for the last pay period ending in June 2019 even if this is not the last pay period in your financial reporting year.
- Working proprietors and partners: if you are the owner-operator or partner of an unincorporated business, include yourself (and other partners) under Working proprietors and partners.
- Salaried directors of Pty Ltd companies (e.g. incorporated businesses) should not be counted as working proprietors, but should be included as Salaried directors. Non-salaried directors are excluded and should not be counted in Employment.
- Other employees: this is a headcount of all persons who worked for the business and were paid through the payroll in the last pay period ending in June 2019 excluding salaried directors for incorporated businesses or working proprietors and partners for unincorporated businesses.
What about persons working for the business under contract?
- Contractors and subcontractors who are other businesses, (i.e. have their own ABN and are paid on a fee for service or commission only basis), should not be counted in Employment.
- If the business paid another business for contract staff, and those persons were on the payroll of the other business, they should not be counted in Employment.
- Persons employed on a fixed-term contract, e.g. temporary staff, should be included in Other employees, ONLY if they were paid through the payroll in the last pay period of June 2019 and Pay As You Go (PAYG) tax was deducted for them.
How do I report employment by occupation category?
The survey form asks you to report the number of persons working for this business/organisation broken down across occupation categories. The total number of persons reported by occupation category should equal the total number of persons working for this business/organisation during the last pay period ending in June 2019, as reported in the previous survey question. Therefore, please report for each person once only, based on the activity on which they spent the majority of their time, not across multiple occupation categories. The more accurate the figures you supply, the more accurate the estimates will be. However, if accurate data is not readily available, careful estimates will be accepted.
What should be reported as income from services?
Generally, payment received for the provision of any services, regardless of whether they are a primary or secondary activity of the business, should be reported as Income from services.
In addition to this, any sales of goods that are 'bundled' together and invoiced in conjunction with a service that was carried out (e.g. the purchase of a pair of spectacles after an eye examination, the sale of dentures that were fitted during a dental appointment) should also be reported as Income from services. Where sales of goods are invoiced separately to the accompanying service provided (i.e. 'unbundled' from the cost of the service provided), the income received from these sales should be reported in Sales of goods.
Examples of Income from services include:
- Bulk billed service income (e.g. Medicare Benefits payments, Department of Veterans' Affairs payments);
- Government subsidised fee for service income (e.g. aged care subsidies and supplements, Child Care Subsidy payments, National Disability Insurance Scheme payments, Home Care Package payments);
- Private health insurance payments;
- Fees paid directly by patients, clients or residents (including excesses, gap or full fee payments);
- Third party payments (e.g. accident and insurance compensation);
- Consulting fees;
- Fundraising and sponsorship income;
- Management fees/charges from related and unrelated businesses;
- Income from 'bundled' prostheses, orthoses and other medical and dental devices which were invoiced in conjunction with a service provided.
What if I cannot split income across the different types of services and products asked?
If you are unable to split the income from your business across the different types of services and products asked, please record a careful estimate.
If you are still having difficulty in assigning income across the different services, please report against the primary nature of the service your business provides. For example, the survey form may ask for splits across allied health services. If a business is engaged primarily in providing chiropractic services, and they also offer other services such as acupuncture or therapeutic massage, but cannot split the income streams, then the business should report against chiropractic services and note the other service activity in the appropriate comments section in the survey form.
Where do I report government funding and subsidies received?
Government subsidised fee for service income includes income paid to your business, either directly from the government, or indirectly from another party, which provides a financial benefit, or subsidy to the patient, client or resident utilising the service. Types of government subsidised fee for service income include:
- Medicare Benefits payments: income received from Medicare for services provided as listed in the Medicare Benefits Schedule (MBS);
- Pharmaceutical Benefits Scheme payments: income received from government for dispensing medicines to patients at a government subsidised price;
- Department of Veterans' Affairs payments: income received from the Department of Veterans' Affairs for services provided to current and former serving members and their families;
- Service Incentive Payments (SIPs) where payment is made directly to the GP: Service Incentive Payments are generally made to GPs to recognise and encourage the provision of specified services to individual patients. The Cervical Screening, Asthma and Diabetes incentives have service incentive payment components, and the Aged Care Access Incentive is a service incentive payment only;
- Child Care Subsidy payments: are generally paid directly to child care providers to be passed on to families in the form of reduced out of pocket fees;
- National Disability Insurance Scheme (NDIS) service income recognised: NDIS providers are individuals or organisations that deliver a support or product to a participant of the NDIS. Income from the provision of services to NDIS participants may be paid directly from the National Disability Insurance Agency (NDIA), via a Plan Manager acting on behalf of the NDIS participant, or from the NDIS participant directly if they are self-managing their plan. Where possible, please report any income your business has received from the provision of services to NDIS registered participants;
- Home Care Package (HCP) service income recognised: The Home Care Package program provides older people who want to stay at home with access to a range of ongoing personal services, support services and clinical care that help them with their day-to-day activities. The program provides a subsidy towards a package of care and services to meet a client’s goals, preferences and needs. Where possible, please report any income your business has received from the provision of services to Home Care Package registered participants;
- Service income recognised: income is recognised when realised and earned, not necessarily when received. Providers may hold funds on behalf of registered NDIS or Home Care Package participants, but should not report those funds as service income until a service has been provided and the transaction completed.
- Activity based funding: is a funding method for public hospital services based on the number of weighted services provided to patients, and the price to be paid for delivering those services;
- Block funding: is provided to support teaching and research undertaken in public hospitals and for some public hospital services where it is more appropriate, particularly for smaller rural and regional hospitals;
- Commonwealth Home Support Programme (CHSP) funding: provides entry-level home support for older people who need assistance to keep living independently at home and in their community. To deliver subsidised services under the CHSP, providers must have a funding agreement with the Department of Health;
- National Disability Insurance Scheme (NDIS) Local Area Coordinator funding: NDIS Local Area Coordinators (LAC) are community based businesses or organisations which have partnered with the NDIS. Their key roles are to link people to the NDIS, link people with a disability, their families and carers to information and support in the community, and to work with their local community to make sure it is welcoming and inclusive;
- Practice Incentive Program (PIP) payments: are made to practices and focus on aspects of general practice to contribute to quality care. Types of PIPs include the Practice Nurse Incentive Program (PNIP) payments which provide payments to practices to support expanded and enhanced roles for nurses working in general practice, and Rural Loading Incentive payments, which are made to practices where the main practice location is outside a capital city or other major metropolitan centre.
What is the difference between Sales of goods produced and Sales of goods not produced?
- Sales of goods produced occur when the business that sells a good is the same business which undertook production of the good, or had the good produced for it by a third party on a contract, sub-contract or commission basis.
- Sales of goods not produced are those goods the business purchased ready-made, then resold without making changes to the goods. Both wholesale and retail sales of goods should be reported here. For example, income from the sale in Australia of medical equipment imported from an overseas manufacturer would be included in Sales of goods not produced. The purchase of these items during the year should be reported in Purchases of finished goods for resale.
Although this list is not exhaustive, it does address some of the common reporting problems encountered by businesses:
- Delivery charges separately invoiced or itemised to customers for goods sold by this business/organisation refers to the amount of income that is charged separately on invoice for the delivery of sales of goods to customers. For delivery of sales of goods not separately invoiced include income in Sales of goods.
- Income received from fundraising and sponsorships are transactions made which result in advertising and/or other benefits to the supporting business/organisation. Income received by your business from fundraising or sponsorships should be reported in Income from services, either in the 'Non-patient related services income' question or the 'Fundraising and sponsorship income' question, depending on the survey form your business has received.
- Donations and bequests are transactions for which the donor receives no material benefit other than a tax deduction (if eligible). Donations and bequests should be reported in Other income.
- Rent, leasing and hiring income is conceptually a service income, but income from this source should be reported as Rent, leasing and hiring income.
- Distinction: "Wet" and "dry" hire: Some equipment, e.g. machinery, equipment or vehicles, may be hired either with or without operator/driver. This distinction, sometimes referred to as "wet" and "dry" hire, determines how this type of income should be reported.
- Where the business derives income from hiring out equipment with operator ("wet" hire), the income should be reported as Income from services;
- Where the business derives income from hiring out equipment without operator ("dry" hire), that income should be reported as Rent, leasing and hiring income.
- Discounts/Rebates received: Discounts or rebates received by a business from its suppliers should not be reported as income, but should be deducted from the expense item to which the discount or rebate applied (e.g. Purchases or Other operating expenses).
- Food and beverages:
- Food and beverages sold over the counter in original packaging, for example bottled water or confectionery, are considered Sales of goods not produced;
- If the food and beverages sold by the business are transformed through preparation and/or table or room service, sales should be reported as Income from services. This treatment covers cafeteria food sales, takeaway meals in containers, meals for hospital boarders and home delivered meal services.
- Progress payments billed on long term contracts: Where a business has entered into a long term contract to supply goods or services, and recognises expenses and progress payments in its accounts, the progress payments should be reported as Sales of goods or Income from services, depending on the nature of the contract.
- Asset sales: The proceeds from the sale of assets should be reported as Disposal of assets. The profit or loss from the sale of assets should be reported in Other income as a positive or negative value. Examples include:
- Asset revalued upwards and then sold for more than the new value: Asset purchased for $1,000 then revalued to be worth $1,200. It is then disposed of (sold) for $1,500. Thus we have Disposals = $1,500 and Other income = $300 ($1,500 - $1,200).
- Asset revalued downwards then sold for less than the new value: Asset purchased for $2,000 then revalued to be worth $1,600. It is then disposed of (sold) for $1,400. Thus we have Disposals = $1,400 and Other income = -$200 ($1,400 - $1,600).
- Asset revalued but no change in value: Asset purchased for $1,000 then assessed to be still worth $1,000. It is then disposed of (sold) for $1,500. Thus we have Disposals = $1,500 and Other income = $500 ($1,500 - $1,000).
- Asset revaluation/impairment: should be reported under Other income as either a net gain or loss. Negative revaluations and impairments should not be reported as an expense. This follows the same principles that apply to other examples listed in the survey, such as share trading or sales of assets.
How should I report Labour costs?
- Labour costs do not include payments to contractors or sub-contractors operating under their own ABN. Further information on Payments to contractors, subcontractors and consultants can be found under How should I report payments made to contractors and other businesses/organisations for purchased services?
- Payments made to another (related or unrelated) business for the supply of staff on a fee or contract basis, where the staff entitlements are paid by the business supplying the employees, should be recorded in the Labour Costs question Payments to other businesses/organisations (e.g. employment agencies) for staff.
- Payments to another business for recruitment services (i.e. advertising vacancies, conducting interviews) on behalf of your business should also be included in Payments to other businesses/organisations (e.g. employment agencies) for staff. However, any costs incurred by your business in the conduct of its own recruitment processes (e.g. payments directly to newspapers for running job vacancy advertisements) should be reported in Other operating expenses.
- Where business owners are drawing a wage from the business, any personal superannuation contributions should be reported in Employer contributions paid into superannuation. For business owners not drawing a wage, personal superannuation contributions should not be included.
- Payroll tax is levied by state/territory governments on businesses with large payrolls (usually greater than $0.5 million for the year). It does not refer to income tax withholding for employees.
- Wages and salaries including provisions for employee entitlements - gross (i.e. before tax) wages and salaries should be reported.
- Capitalised wages and salaries (i.e. wages and salaries for work relating to the creation of capital assets) should not be included in Labour costs but instead in Capitalised wages and salaries.
How should I report Purchases?
If a good is purchased simply to be on-sold in the same form (without transformation), its cost should be reported as Purchases of finished goods for resale.
If a good is purchased to be used or consumed in the production of goods or services (including office consumables), or for repairs and maintenance of equipment, its cost should be reported within the other relevant Purchases categories listed on the survey form.
- Where a business buys surgical supplies for its use, the cost of the supplies should be included in Purchases of medical and surgical supplies/consumables; or
- Where a business buys personal care supplies for its use, the cost of the supplies should be included in Purchases of medical and personal care supplies/consumables; but
- Where a business buys surgical supplies or personal care supplies for sale (without processing) to other businesses or to the public, the cost of the supplies should be included in Purchases of finished goods for resale.
Note: In the context of selling finished goods, Purchases (expenses) are not the same as cost of goods sold. Purchases represent the amount actually expended by the business in the reporting period. Cost of goods sold, which is not collected in the survey form, represents the amount expended only on goods actually sold in the reporting period (cost of goods sold is equal to purchases plus opening inventories minus closing inventories).
Any purchases of materials that have been capitalised i.e. purchases made to create capital assets, should not be reported here. Instead, they should be reported in Capitalised expenditure including cost of capital assets developed in-house by employees of this business/organisation.
How should I report expenditure on electricity, fuels and water?
Reporting of expenditure on electricity, fuels and water depends on how the electricity, fuels and water are used by the business, as shown in the following examples.
- Petroleum, diesel fuel and gas purchased for use in powering transport and motor vehicles - include in Transport and motor vehicle running expenses;
- Petroleum, diesel fuel, electricity, gas and water purchased for use in powering and running equipment, generators and buildings (e.g. hospital, medical clinic, offices) - include in Purchases of electricity, fuel and water;
- Water rates paid - include in Purchases of electricity, fuels and water.
How should I report payments made to contractors and other businesses/organisations for purchased services?
Reporting of payments to contractors, subcontractors and consultants depends on the type of service contracted and how the contractors are paid. To identify these workers, consider that contractors, subcontractors and consultants are not employees of your business and therefore do not receive an income statement (payment summary).
The following are examples of how some commonly incurred expenses should be reported:
- Where a business hires staff from an employment agency or labour hire firm, and payments made to this business for the supply of staff are on a fee or contract basis, then these payments should be reported in Labour costs under Payments to other businesses/organisations (e.g. employment agencies) for staff;
- When a contractor or subcontractor who has their own business, and therefore their own ABN, is paid for purchased services (e.g. locums, contracted allied health professionals, building cleaning services), these payments should be reported in the relevant service expense item under Payments made to other businesses/organisations for purchased services. This includes contractors paid on invoice;
- Payment of commission to another business for selling goods owned by your business - report as Payments for other purchased services not provided by employees;
- Payment to another business for training your employees - include in Payments for other purchased services not provided by employees. Payments for other professional development and training expenses such as conference attendance fees, accreditation, textbooks, should be reported in Professional development and training expenses;
- Capitalised contractor payments should be reported in Other capitalised costs.
- Postage costs - include in Payments made to contractors and other businesses for freight, cartage, delivery and transport services;
- Payments made to contracted and owner-drivers to transport goods sold by your business to customers - include in Outward freight, cartage, delivery and transport expenses;
- Payments made for the movements of goods between different locations of this business/organisation by a third party - include in Internal freight, cartage, delivery and transport expenses;
- Payment made to a courier for pick-up of goods and delivery to your place of business - include in Other freight, cartage, delivery and transport expenses;
- Payment of separately invoiced delivery charges to a supplier of goods - include in Other freight, cartage, delivery and transport expenses;
When do I need to report payments for practice management or office administrative services?
If your business engages another business to provide office administrative services, such as clerical, billing, record-keeping and payroll services on a contract or fee basis, please report these expenses in Payments for practice management services.
If you are a sole proprietor operating under your own ABN and you contract your services to a medical or other health care practice under a service arrangement, whereby you pay a service fee to operate from the premises of the practice and utilise their booking, billing and administrative services, then you may need to report payments for practice management services.
- If the service fee is deducted by the practice from the patient billings they collect on your behalf before the income from the billings is paid to you, then you do not need to report an expense of Payments for practice management services as this has already been netted off the amount paid to you by the practice. Accordingly, any income you reported in Patient related services income, should also be net of any service fee deducted by the practice prior to it being paid to you.
- If the practice pays you the total patient billings they have collected on your behalf, and you then pay the practice a service fee out of these total billings, you will need to report this service fee paid as an expense in Payments for practice management services. The value you reported in Patient related services income should be equal to your total patient billings received (i.e. do not deduct the service fee paid from the services income you are reporting, if you are reporting the service fee as an expense).
Where do I report my specific expense item?
Although this list is not exhaustive, it does address some of the common reporting problems encountered by businesses:
- Discounts/Rebates given: Discounts or rebates given by your business to its customers should not be reported as an expense item, but should be netted off the income item to which the discount/rebate applied, e.g. Sales of goods.
- Equipment hire: Reporting of this type of expense depends on whether the hire is "wet" or "dry" (i.e. with or without an operator). A simple illustration of the distinction is:
- If the business has paid another business for contracted equipment hire services, i.e. equipment with operator ("wet hire"), the expense should be included in Payments for other purchased services not provided by employees, but
- If the business has paid for the hire of equipment to be operated by its own employees ("dry hire"), the expense should be included in Rent, leasing and hiring expenses.
- Finance lease payments: When an asset, e.g. company car, is acquired under a finance lease arrangement, the value of the acquisition should be included in Capital expenditure. If any work is undertaken by own employees of this business to install any asset acquired under a financial lease to make it operational, include the cost of this work within Capital expenditure and Cost of capital assets developed in-house by employees of this business/organisation (if applicable). Repayments under a finance lease agreement consist of two components: interest and capital repayments. Capital repayments should not be reported in this survey. The interest component only should be included in Total interest expenses.
- Motor vehicle insurance premiums:
- Optional third party insurance premiums, payable at the discretion of the business, should be included in Other insurance premiums.
- Compulsory third party insurance premiums, payable as part of the vehicle registration process should be included in Other transport and motor vehicle running expenses.
- The reporting of payment for rent for your business premises will depend on if the new accounting standard for leases (AASB 16) has been adopted and applied to that lease:
- If the AASB 16 Standard was not adopted or applied during the reporting period, then please report the rent payments for your business premises in Rent, leasing and hiring expenses.
- If the AASB 16 Standard was adopted or applied to that lease, report the rent payment for your business premises in Interest expenses and Depreciation.
- For more information on the new accounting standard, please see AASB 16 Leases.
- Sponsorship payments are not considered the same as a donation, as it involves a transaction, usually advertising or promotional benefits for the individual or business making the payment. It should therefore be reported as Other operating expenses, whereas donations are excluded altogether.
- Travel and accommodation expenses, including those incurred as part of your employees undertaking professional development and training, should be reported in Other operating expenses.
Inventories are divided into three sections: Raw materials, Work in progress and Finished goods.
- Raw materials consist of goods that a business holds with the intention of using to produce other goods or in rendering services. For example, paper supplies for use in printing newspapers (good produced) or raw food to make a meal (provide a service).
- Work in progress consists of goods that still require work to reach the condition they are to be sold in, such as partially assembled machinery. The value of work in progress inventories should be reported net of progress payments billed.
- Finished goods consist of goods that are to be sold in their current condition, including goods for resale.
Inventories do not include depreciable assets of the business. These should be reported in Capital expenditure and disposal of assets.
CAPITAL EXPENDITURE AND DISPOSAL OF ASSETS
Only include figures for assets acquired or disposed of in the reporting year. Do not include all balance sheet items unless all the assets are acquired or disposed of during the reporting year.
Capital expenditure refers to the amount spent by a business in the current reporting period on the acquisition of non-current assets. It can be considered the amount spent to purchase or upgrade productive assets like buildings or machinery to increase the business’ capacity or efficiency. If the business hires contractors to carry out capital work, then these contractor payments should be included in the cost of the capital works. It does not include additions to inventories.
- Additions: represents the expenditure on assets on an accruals basis, further to this you are required to report any Capital Work in Progress (CWIP) values against the relevant asset, as best as you possibly can. This survey aims to capture the activity and production in the economy as it is happening rather than when the asset is capitalised.
- Disposals: Refers to the sale of the asset to another individual or business. It can also include the discarding of an asset. For survey purposes we only require businesses to report the proceeds from sales of the assets.
The examples against each asset below are intended to give an indication of the nature of assets a business may have to report in each category however it is not an exhaustive list.
- Land: purchases or acquisition of land.
- Dwellings, other buildings and structures:
- Dwellings: used entirely as residences including structures such as garages, and all permanent fixtures customarily installed in residences.
- Other buildings and structures: comprise of non-residential buildings, other structures and land improvements. These may include things such as roads, pipelines, communication and power lines, constructions for manufacturing, warehouses and industrial or commercial buildings. Leasehold improvements that alter and improve the structure and value of the building should be included here (this does not include things such as painting and carpet additions but refers more to structural changes).
- Road vehicles: this category is for vehicles that are primarily to be used on the road such as cars, trucks, motorcycles and utes.
- Other transport vehicles and equipment: this category consists of equipment and vehicles for moving people and objects. This may include items such as trailers, semi-trailers, ships, railway and tramway locomotives, rolling stock and aircraft.
- Medical equipment: this category includes medical equipment that is large enough to be capitalised by the business. It may include items such as CT scanners, MRI equipment, x-ray machines, ultrasound and imaging machines.
- Industrial machinery and equipment: whilst some items within this category may be mobile and capable of transporting people or goods, their primary business function is for use in the production of goods and/or services which is why they fall under this category. Additional items that could be included are:
- Engines and turbines
- Pumps, compressors, hydraulic power engines
- Lifting and handling equipment
- Machine tools and accessories (Hand tools, tools customarily in a workshop)
- Equipment for food, beverage preparation
- Point of sale terminals, booking systems
- Industrial cooking appliances
- Climate control systems and other equipment used in core production.
- Electrical machinery and electronic equipment: this may include things such as electrical generators and motors, electrical transformers, static converters and inductors, electricity distribution or control apparatus, lighting equipment, electrical ignition or starting equipment, and electrical signalling equipment.
- Communications equipment: this may include things such as radio broadcast and television receivers, video and digital cameras, microphones, loudspeakers, amplifiers.
- Other plant and equipment: consists of machinery and equipment not elsewhere classified, this may include items such as office furniture and fencing materials.
- Computer hardware: this may include things such as hard drives, monitor screens, mouses, keyboards, printers, scanners, automatic data processing machines, and sound/video and/or network cards.
- Computer software: any software that may be installed in the businesses systems that enable it to operate more efficiently such as Microsoft suite, financial systems, software that operates large machinery, etc.
- Purchased from another business/organisation: any software that has been purchased from another business to be installed on computers used by your staff to enable them to operate and perform their work.
- Developed in-house by employees of this business/organisation: any software that may have been developed for use by employees of your business.
Machinery and equipment
Intangibles: This may include items such as trademarks, mastheads, spectrums, company brand, customer bases, licenses, patents and goodwill, etc.
If the business I am reporting for has adopted AASB 16 accounting standard for leases, how should I report my right-of-use assets which were previously off-balance sheet?
- The assets created by AASB 16 for preexisting operating leases should not be reported as Capital expenditure for the lessee. The value of the underlying asset is collected through the lessors’ reporting.
- Assets recognised due to the commencement of new operating leases, remeasurement of an existing operating lease or lease modifications should not be reported as Capital expenditure for the lessee. The value of the underlying asset is collected through the lessors’ reporting.
- Assets acquired through finance leases during the period should continue to be reported as Additions in the Capital expenditure and disposal of assets section against the appropriate asset.
How should I report leasehold improvements to my right-of-use assets?
Leasehold improvements to a right-of-use asset should be reported by the lessee as Additions to Dwellings, other buildings and structures in the Capital expenditure and disposal of assets section of the survey.
What is the cost of capital assets developed in-house by employees of this business/organisation?
This question aims to capture the extra layer of production in the economy that might never be exchanged in the market. Activity reported here is a subset of that reported at Capital expenditure (and therefore should not exceed it).
- Example: if your staff develop a new piece of software that improves the efficiency and the production process of your business but is only used in-house and never sold to another business, then the cost of this production activity needs to be reported under the Cost of capital assets developed in-house by employees of this business/organisation question. For our survey purposes, we want to know the wages and salaries of employees of your business that contribute to the development, building, construction and/or creation of the asset (including any additional ‘on-costs’ such as Fringe Benefits Tax, workers compensation, superannuation) that is used exclusively for business purposes (not for resale). This is deemed to be capitalised wages and salaries.
- Another example may be an employee of your business who is tasked with project managing the building and construction of an asset. Whilst they aren’t actually involved in the physical build of the asset, their insight and involvement is integral to the completion of the asset and as a result their wages are deemed as ‘capitalised wages’. The other capital costs such as hiring contractors and the materials purchased to build the asset would be deemed as ‘other capitalised costs’.
- 'Other capitalised costs’ may include both capitalised services and capitalised goods used as inputs to assist in the building and development of the asset. For example if an upgrade or improvement to an existing building or infrastructure such as a road was project managed in-house then the cost of any goods or materials used and/or contractors undertaking the work would need to be reported in Other capitalised costs with the wages of the employees project managing reported under Capitalised wages and salaries.
What are the impacts of the legislation change introduced in the May 2015 Budget for small business owners?
In the May 2015 Budget, the Federal Treasurer announced a new incentive for Small Business owners to immediately write off the business portion of assets costing less than $20,000 (now extended to 30 June 2019). The ABS expect small business owners to continue reporting these eligible capital asset purchases under capital expenditure, with the relevant write off amount reflected in Depreciation and amortisation expense.
How do I report income from sales of goods and services by state?
Income from sales of goods and services should be reported against the state or territory where the sale was made or the service was provided. For export sales, report against the state or territory from which the sale was made.
How do I report employment and wages by state?
Employment and wages should be reported against the state or territory of the office or location in which the staff are based. For staff who travel interstate or overseas to undertake work, report against the state or territory in which they are usually based.
The purpose of this checklist is to assist in reviewing the information which you have entered in your survey form before submitting to the ABS. Use of the checklist may reduce the need for us to contact you with further enquiries. The points covered reflect some of the most common reporting errors.
- Are the reported numbers a headcount of persons working for the business? (Not Full-Time Equivalent or FTE).
- Have you reported only those who worked for the business in the last pay period ending in June 2019?
- Working proprietors and partners should only be reported for an unincorporated business, not if the business is incorporated (e.g. Pty Ltd).
- If the business had offices/locations with staff in more than one state or territory, does the total for Australia equal Total number of persons?
- Are all reported financial items reported in $'000s (thousands)? For example, if business income for the year were $123,456, it should be reported as 123 on the survey.
- Have income items been properly split into detailed services and goods categories?
- Have the nature and amount of the main components of 'Other...' items been provided in questions such Other income and Other operating expenses?
- If income from Sales of goods produced by the business has been reported, have associated purchases been reported correctly, i.e. as Purchases of other consumables, materials, components, containers and packaging materials?
- If income from Sales of goods not produced by the business has been reported, have purchases been reported correctly, i.e. as Purchases of finished goods for resale?
- Have total wages and salaries been reported either in Wages and salaries expenses or Capitalised wages and salaries or split across the two questions without duplication?
- Have the values of both opening and closing inventories been reported, where applicable?
- If Cost of capital assets developed in-house by employees of this business/organisation has been reported, the value must be less than or equal to the sum of Capital expenditure items reported prior.
- Have you provided comments on any unusual movements regarding the information you have supplied? By taking the opportunity to do this you will enhance the value of the data you supply as well as minimising the chance of ABS staff being required to call you directly for clarification.
- Have you provided an estimate of the time taken to complete this form? (Please note that we use the time taken information to help us to design effective survey forms while minimising the burden on our providers).