Survey Participant Information - Economic Activity Survey - Health Care and Social Assistance Services


MULTI-STATE OPERATIONS
What to include in multi-state operations

      GENERAL INFORMATION

      AASB16 accounting standard for leases
      In January 2016, the International Accounting Standards Board (IASB) issued a revised standard for the accounting of leases in financial statements. This change has been adopted by the Australian Accounting Standards Board (AASB) in AASB 16 Leases.
      The Economic Activity Survey has been amended to better capture leasing information. Please visit the AASB 16 standard for leases help page for further information.

      AASB 15 Revenue from contracts with customers
      The Australian Accounting Standards Board (AASB) has changed the accounting standard applicable to revenue from contracts with customers.
      Revenue is recognised when a company transfers control of goods or services to a customer for the agreed amount. Full details on these changes can be found in the AASB 15 Revenue from Contracts with Customers standard. AASB 15 applies to all contracts with customers, except for contracts covered by other standards, such as leases, insurance and financial instruments. Please refer to the AASB 15 Revenue from Contracts with Customers standard for definitive accounting treatments.

      How many registered transport vehicles did this business/organisation own or lease as at 30 June 2021?
      • Report the number of vehicles owned separately to the number of vehicles leased using the response boxes provided on the EAS form.
      • Company fleet cars and vehicles under finance and operating leases should be included under "Leased".
      • Any unregistered transport vehicles and/or equipment (e.g. forklifts and quarry trucks) should be excluded from the count.
        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 2021.
        • Report headcount rather than number of persons on a Full Time Equivalent (FTE) basis. Report for the last pay period ending in June 2021 even if this is not the last pay period in your financial reporting year.
        • Please ensure each person is counted only once in the total headcount to provide an accurate total number of persons who were paid in the last pay period in June 2021.

        Working proprietors and partners if this is an unincorporated business (e.g. sole trader, partnership or joint venture)

        If this is an unincorporated business, include a count of all owner-operators or partners. Skip this question if this is an incorporated business, for example, a company.

        Employees (including salaried directors if this is an incorporate business( e.g. Pty Ltd)
        A headcount of all other persons who worked for the business including persons employed on a fixed term contract or casual basis only if they were paid through the payroll in the last pay period of June 2021 and Pay As You Go (PAYG) tax was deducted for them. Non-salaried directors are excluded and should not be counted in Employment.

        Employees who had a primary role in arranging outward and inward transportation of goods and/or operating warehouse/storage facilities

        'Primary role' refers to the main activity undertaken by the employee (i.e. the task they spent most of their time performing in their role).

          Covid-19 support measures
          • The JobKeeper payment scheme is a temporary government initiative to support eligible businesses impacted by coronavirus (COVID-19). Persons paid a wage or salary supplemented by the Australia Government's JobKeeper scheme should be included in the headcount.

          What about persons working for the business under contract?
          • Businesses or individuals contracted by this business that have a registered ABN and are paid on a fee for service, on invoice or on a commission only basis should not be counted in Employment. Staff who carried out work for this business during the last pay period ending in June 2021 but were paid through another business, for example, a labour hire company, should not be counted in Employment.


          INCOME ITEMS

          What should be included under Income from services?
          • Generally, payment received for the provision of services, regardless of whether the service is a primary or secondary activity of the business, should be reported in Income from services. This includes payments received from government and non-government sources for providing services.
          • Rent, leasing and hiring services income is not included in this question but should be reported separately in Rent, leasing and hiring income.

          From 2021, Income from services will be a two-part question to capture Income received from businesses/organisations and the general public, and Income received from federal state and government for providing services. Previously, businesses were asked to report government funding for Health services under operational funding from government on the EAS.

        What should be reported in Income received from businesses/organisations and the general public for services provided? Examples of Income from services from non-government sources include:
            • 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 which result in advertising and/or other benefits to the funding business/organisation;
            • management fees/charges from related and unrelated businesses;
            • food and beverages sold by the business and transformed through preparation and/or table or room service. Includes 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 services, and recognises progress payments in its accounts, the progress payments should be reported in Income from services, depending on the nature of the contract.

          Income received from federal, state and local government for providing services
          • Service income from government sources should be included in Income received from government for providing services. This means income paid to your business directly from the government or providing services that realise a social or financial benefit to the patient, client or resident using the service.
          • Social benefits are 'received by household intended to provide for the needs that arise from certain events or circumstances', for example, sickness, unemployment, retirement, housing, education or family circumstances.
          • Social benefits may be provided under social insurance schemes or by social assistance (System of National Accounts, 2008). For further information on the re-classification of Government funding schemes by the ABS, please see: Australian Industry, 2019-20 Revisions to 2018-19 Health data.

          COVID-19 additional services funded by government

          Federal, state and local governments have been funding additional services during the COVID-19 crisis. These services should be reported in Income received from federal, state and local government for providing services, and excluded from COVID-19 (novel coronavirus) operational funding support measures. Examples of services funded by government during the COVID-19 pandemic are:

          • additional domestic violence support services
          • additional mental health services
          • additional funding for dedicated COVID-19 clinics and COVID-19 pathology testing.

          All other non-service related income received from COVID-19 government funding measures (e.g. Job Keeper and Cash flow Boost) should be included in Funding from federal, state and/or local government.

          Income received from government for providing services include the following items:
          • Activity based funding: a funding method for public hospitals based on the number of weighted services provided to patients
          • Medicare Benefits: income received from Medicare for services provided as listed in the Medicare Benefits Schedule (MBS);
          • Pharmaceutical Benefits Scheme: income received for dispensing medicines to patients at a government subsidised price;
          • Department of Veterans' Affairs: income received from the Department of Veterans' Affairs for services provided to current and former serving members and their families;
          • Service Incentive Payments (SIPs) : these 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 Subsidies: 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) : 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): 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. Include any income your business has received from the provision of services to Home Care Package registered participants.
          • Commonwealth Home Support Program (CHSP) funding: provides entry level home support for older people who need assistance to keep living independently at home and in their community. CHSP providers must have a funding agreement with the Department of Health

          Note: Service income is recognised when realised and earned, not necessarily when received. Providers may receive 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

          How should I reported services bundled with sales of goods?
          • Income from services also includes any sales of goods that are bundled together and invoiced in conjunction with a service (e.g. the purchase of a pair of spectacles after an eye examination, the sale of dentures that were fitted during a dental appointment).
          • Where sales of goods are invoiced separately to an 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.

          Funding from federal, state and/or local government

          Note: New questions have been introduced in the Economic Activity Survey to measure the impacts of COVID-19 support payments across Australian industries.

          What should be reported for COVID-19 (novel coronavirus) operational funding support measures?
          • Federal, state and local governments are providing funds through a range of initiatives to support eligible businesses during the economic downturn associated with COVID-19 (coronavirus).
          • Only report payments received from COVID-19 support schemes for the 2020-21 financial year.

          Note: The System of National Accounts 2008 states that subsidies on production consist of subsidies, except subsidies on products, that resident enterprises may receive as a consequence of engaging in production. For example, subsidies on payroll or workforce: these consist of subsidies payable on the total wage or salary bill, or total work force, or on the employment of particular types of persons. Government funding provided to businesses during the COVID-19 crisis that subsidises production should be reported only in the relevant category of COVID-19 (novel coronavirus) operational funding support measures. Examples of subsidies on production during the COVID-19 crisis include: Jobkeeper Payments, Boosting Cash Flow for Employers and other packages in scope of Other COVID-19 support payments and subsidies.

          In contrast, social benefits are received by households intended to provide for the needs that arises from certain events or circumstances. For example, sickness, unemployment, retirement, housing, education or family circumstances. Social benefits may be provided under social insurance schemes or by social assistance. Funding provided by government to businesses/organisations for services during the COVID-19 crisis that provide social benefits to the public should be reported in Income received from federal, state and local government for providing services but excluded from Funding from government - Other COVID-19 support payments and subsidies. This applies to additional funding for services during the COVID-19 crisis.

          How should I report income from JobKeeper Payments?
          • Jobkeeper payments were provided to eligible employers by the Australian Government to pay their eligible employees a wage of at least $1500 per fortnight, between the period of 30 March 2020 and 28 March 2021. All payments to employees were reported through the tax system using Single Touch Payroll. Employees’ income tax liabilities included JobKeeper payments.
          • Report all JobKeeper payments received by this business for the reporting period in Funding from federal, state and/or local government, including payments to employees, sole traders and partners.

          How should I report income from Boosting Cash Flow for Employers?
          • From 28 April 2020, the Australian Government provided temporary cash flow support to eligible small and medium businesses and not-for-profit organisations that employed staff during the economic downturn associated with COVID-19 (novel coronavirus). This support was delivered as tax credits based on an eligible business' withholding amounts. The initial cash flow boosts were generally equal to the amount withheld from employee wages for each monthly or quarterly period from March to June 2020. Cash flow boost 2 was an additional cash flow boost provided by the government from June to September 2020.
          • Report credits and payable amounts received from cash flow boost following the lodgement of the business' activity statements for the period ending June 2021.
            Other COVID-19 support payments and subsidies

            There are a large number of other COVID-19 scheme payments and subsidies that your business may receive, which should be reported under Other COVID-19 support payments and subsidies (Funding from government section). For example:

            • apprentices and Trainees wage subsidy;
            • reimbursement on utility bills.

            If your business received additional COVID-19 scheme payments for providing specific services, this income should be reported in Income received from federal, state and local government for providing services.

            How should I report government funding for other operational costs (e.g. wages and salaries, rent, food)?
            • Funding for other operational costs includes all non-COVID-19 income received for ongoing operations and helps to fund programs or pay for business overheads (e.g. wages and salaries, rent, food).
            • Funding for the provision of specific services to patients, clients or residents should be excluded from Funding for other operational costs and included in Income received from federal, state and local government for services provided.

            Examples of government funding that may be received for operational costs include:
            • Block funding 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;
            • 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.

            Sales of Goods

            Note: 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. in Purchases items or Other operating expenses).

            What is the difference between Sales of goods not produced and Sales of goods produced by this organisation?

            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, include income from:

              • the sale in Australia of medical equipment purchased locally or imported from an overseas manufacturer;
              • food and beverages sold over the counter in original packaging, for example bottled water or confectionery.

            The purchase of these items during the year should be reported in Purchases of finished goods for resale.


            Sales of goods produced by this business/organisation (or for it on commission) 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.

            Income from delivery service charges itemised to customers for goods sold by this business/organisation

              • Delivery charges separately invoiced or itemised to customers for goods sold by this business/organisation. This refers to the amount of income that is charged separately on invoice for the delivery of sales of goods to customers. 
              • Income received from the delivery of sales of goods not separately invoiced should be included in Sales of goods.

            How should I report the percentage split of income from delivery service charges?

              (a) Deliveries undertaken by third party businesses/organisations. Of the total income earned by this business from delivery service charges, estimate the proportion that were undertaken by other businesses on this business' behalf.

              (b) Deliveries undertaken by vehicles owned/leased by this business/organisation. As above in (a), but relates to deliveries undertaken by your own business/drivers.

              • Example 1: Your business outsources all deliveries of sold goods to another business and customers are charged a separate fee for this delivery service. You should report 100% in (a) Deliveries undertaken by third party businesses/organisations.
              • Example 2: Your business undertakes some deliveries of goods sold to customers (e.g. uses its own vehicles/drivers), and charges customers a fee for this service. However in some situations, your business contracts a third party to deliver goods sold, and charges the customer an amount for freight costs. In these cases, some or all of these charges to customers will be paid to the contracted third party. You should estimate the percentage of the total delivery service charges to customers (including delivery undertaken by your business and by third parties) that your business receives from delivery of it's goods.

            Rent, leasing and hiring income

            Rent, leasing and hiring income is conceptually service income, however income from this source should be reported only in Rent, leasing and hiring income.

            Wet and dry hire
            Some equipment, e.g. machinery, equipment or vehicles, may be hired either with or without an operator/driver. Only 'dry hire' income should be reported in this question.

            • Where the business derives income from hiring out equipment with operator ('wet hire'), the income should be reported in Income from services.
            • Where the business derives income from hiring out equipment without operator ('dry hire'), that income should be reported in Rent, leasing and hiring income.
            Other income

            Other income includes income from all other sources, not already reported in other income items on the form. Examples of Other income are:

            • Donations and bequests received should be included where the donor receives no material benefit other than a tax deduction (if eligible). However, if the donor receives some material benefit e.g. advertising, report this income in Income from Services.

            Asset sales

            The profit or loss from the sale of assets should be reported in Other income as a positive or negative value. Asset revaluation/impairment should be reported as either a net gain or loss in Other Income. 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. The proceeds received from the sale of assets however should be reported as disposals in the relevant category under Capital Expenditure and Disposal of assets. For example:

            • 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).

            EXPENSE ITEMS

            Note: Discounts or rebates given to customers by this business should not be reported as an expense item, but should be netted off the income item to which the discount/rebate applied, for example, Income from Services or Sales of Goods.
            Labour costs

            How should I report Labour costs?

            • Labour costs do not include payments to contractors or sub-contractors operating under their own ABN.
            • 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 Labour Costs question Payments to other businesses/organisations (e.g. employment agencies) for staff.
            • Payment to another business for recruitment services (i.e. advertising vacancies, conducting interviews, screening job applicants) 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. payment directly to newspapers for running job vacancy advertisements) should be reported in Other operating expenses.
            How should I report Employer contributions to superannuation?

            Personal superannuation contributions of business owners drawing a wage from the business should be included in Employer contributions paid into superannuation. Personal superannuation contributions of business owners not drawing a wage should be excluded.

            Payroll tax (excluding Pay As You Go withholding tax)

            Payroll tax is levied by state/territory governments on businesses when the total wage bill of an employer (or group of employers) exceeds a threshold amount. The payroll tax rates and thresholds vary between states and territories.

            • Do not include PAYG withholding amounts for employees.
            • Report payroll tax net of any refunds received from COVID-19 state government support measures i.e. subtract the eligible refund amount from the total payroll tax paid.

            Wages and salaries including provisions for employee entitlements
            • Please report gross (i.e. before tax) wages and salaries.
            • Capitalised wages and salaries (i.e. wages and salaries for work relating to the creation of capital assets) should be excluded from Wages and salaries including provisions for employee entitlements. Include capitalised wages and salaries in Capitalised wages and salaries only.
            Insurance premiums
            • Optional third party insurance premiums for motor vehicles, should be included in Insurance premiums.
            • Compulsory third party insurance premiums, payable as part of the vehicle registration process should be excluded from Insurance premiums but included in Other operating expenses.

            Interest expenses/Depreciation and amortisation

            Repayments under a finance lease agreement consist of an interest and capital component. The interest component only should be included in Total Interest expenses. Capital repayments should not be reported.

            The reporting of lease payments, for example rent for business premises, will depend on whether the new accounting standard for leases (AASB 16) has been adopted and applied to the lease.

            If the AASB 16 Standard was adopted or applied to that lease, report the lease payments as follows:

            • Interest component – include in Total interest expenses and Interest expenses in respect of operating leases;
            • Depreciation component – include in Total depreciation and amortisation and Depreciation and amortisation in respect of operating leases;
            • Operating expenses (for variable lease payments not included in the measurement of the lease liability, or service components previously embedded in the lease) – include in Rent, leasing and hiring expenses.

            If the AASB 16 Standard was not adopted or applied during the reporting period, then please report the rent payments for your leases in Rent, leasing and hiring expenses.

            For more information on the new accounting standard, please see AASB 16 Leases.

            The 2020-21 Economic Activity Survey includes a three part question for Depreciation expenses:
            (a) Total depreciation and amortisation expenditure for the 2020-21 reference period, including assets acquired under finance and/or operating leases, and assets owned outright;
            (b) Depreciation expenses in respect of operating leases for registered transport vehicles only; and
            (c) Depreciation expenses in respect of any other operating leases.

            Therefore (b) and (c) above should equal depreciation expenses in respect of total operating leases.

            How should I report purchases?

            Note: Any purchases of materials that have been capitalised i.e. purchases made to create capital assets, should not be included in Purchases. Instead, these costs should be reported in Capitalised expenditure including cost of capital assets developed in-house by employees of this business/organisation.

            Purchases of materials, components, containers, packaging materials, electricity, and water

            Examples of purchases to include in this category are:

            • The cost of surgical or medical supplies, purchased by the business for its own use;
            • Office supplies and equipment purchased for the running of the business;
            • All utility costs associated with the business.

            Exclude the following payments from Purchases of materials, components, containers, packaging materials, electricity and water:
            • Payments to other businesses for the movement of goods. These payments should instead be included in Payments to contractors and other businesses for freight, cartage, delivery and transport services.
            • Rent, leasing and hiring expenses.
            • Purchases of fuel and gas are captured in a separate question on the EAS form for 2020-21.

            Purchases of finished goods for resale

            The purchase value of goods that are to be on sold without transformation, should be reported in Purchases of finished goods for resale. For example:

            • Surgical, medical or other supplies that are purchased by this business for re-sale to other businesses or to the general public.
            Repair and maintenance expenses

            Repair and maintenance of registered transport vehicles includes on-road transport vehicles. A registered on-road transport vehicle is one which satisfies all three of the following criteria:

            • is powered;
            • is registered for public road use; and
            • is designed primarily for road transport purposes.
            Any vehicle failing to satisfy all of the above criteria is considered an 'off-road' vehicle. Repairs and maintenance of "off-road" and unregistered vehicles should be included in Other repair and maintenance expenses.
            Payments made to contractors and other businesses for freight, cartage, delivery and transport services


            Outward freight, cartage, delivery and transport expenses

            • Payments made to contracted and owner-drivers to transport goods sold by your business to customers. Refers to movement of goods sold by this business/organisation and delivered by a third party.

            How do I report outward freight expenses recovered from itemised charges to customers?

            Of the total expenditure on outward freight for goods sold by this business, estimate the percentage that was recovered from charges to customers.

            Internal freight, cartage, delivery and transport expenses

            • Payments made for the movements of goods between different locations of this business/organisation by a third party.

            Other freight, cartage, delivery and transport expenses
            • payment made to a courier for pick-up of goods and delivery to your place of business;
            • payment of separately invoiced delivery charges to a supplier of goods;
            • postage costs.

            All other payments to contractors for non-transport-related services provided should be reported in Other operating expenses (or Repair and maintenance expenses if applicable to your business).

            Rent, leasing and hiring expenses

            Note: AASB 16 Leases

            The reporting of rent payments for your business premises will depend on whether the new accounting standard for leases (AASB 16) has been adopted and applied to the lease. If this business has not adopted the latest AASB 16 standard, rent paid for business premises should be reported in Rent, leasing and hiring expenses.

            For more information, please refer to AASB 16 Leases.

            'Dry hire' of equipment by the business, that is, the hire of equipment to be operated by its own employees should be included in Rent, leasing and hiring expenses.
            'Wet hire' of equipment by the business, that is, the hire of equipment with an operator, should be excluded from Rent, leasing and hiring expenses but included in Other Operating Expenses.
            Other Operating Expenses

            Report other operating expenses not included in other expense items on the form.

            Include the following:

            • ''wet hire' of equipment by the business, i.e. payments for the hire of equipment with an operator;
            • payments to a contractor or subcontractor who has a registered ABN, that is they have their own business (e.g. locums, contracted allied health professionals, building cleaning services, IT specialists). This includes contractors paid on invoice. Include expenses associated with services delivered by contractors, subcontractors and consultants that are not employees of your business and do not receive a payment summary;
            • compulsory third party insurance premiums, payable as part of the business vehicle registration process;
            • sponsorship payments which involve a transaction, usually advertising or promotional benefits for the business making the payment should be included. Donations made to other parties not tied to an expected benefit are excluded;
            • travel and accommodation expenses, including those incurred by employees undertaking professional development and training.

            Exclusions:
            • Exclude 'dry hire' i.e. payments for the hire of equipment without an operator.
            • Payments to contractors for freight, delivery and transport services. Include these payments in Payments made to contractors and other businesses for freight, cartage, delivery and transport services
            • Capitalised contractor payments should be excluded from Other Operating Expenses but included in Other capitalised costs.


            INVENTORIES

            What's included in inventories?

            Inventories excludes depreciable assets of the business. These assets should be reported in the relevant categories in Capital expenditure and disposal of assets. Inventories are categorised as follows:


            Raw materials, fuels, containers etc.

            • Goods that a business holds with the intention of using them 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 less progress payments billed.
            • Goods that require some transformation to reach the condition they are to be sold in, for example, partially assembled machinery. The value of work in progress inventories should be reported net of progress payments billed.

            Finished goods (including inventories for resale).
            • Goods that are to be sold in their current condition, including goods for resale.

            CAPITAL EXPENDITURE AND DISPOSAL OF ASSETS

            Note: Report acquisition and disposals of new and used assets by each asset category. Include assets acquired under finance leases and exclude right of use assets acquired under operating leases. Only include assets acquired or disposed of in 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 Other capitalised costs.

            The value of an asset, for example, a company car acquired under a finance lease arrangement, should be included in the relevant category under Capital expenditure and disposal of assets:

            • Land, building and infrastructure
            • Machinery and equipment
            • Information technology
            • Intangible 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.
            Additions
            • Additions represents the expenditure on assets on an accruals basis.
            • Report any Capital Work in Progress (CWIP) values against the relevant asset.
            • Exclude additions to inventories. Leasehold improvements to a right-of-use asset should be reported by the lessee in Additions to Land, buildings and infrastructure.
            • Under AASB, the assets created for new or pre-existing operating leases should not be reported as Capital expenditure for the lessee. The value of the underlying asset is reported by the lessor.
            • 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.
            • Any leasehold improvements to a right-of-use asset should be reported by the lessee as Additions in the Capital expenditure and disposal of assets section against the appropriate asset.
            Disposals
            • Disposals refers to the sale of the asset to another individual or business. It can also include the discarding of an asset. Only report the proceeds from the sale of the assets.
            Cost of capital assets developed in-house by employees of this business/organisation

            The cost of work undertaken by own employees of this business to install any asset acquired under a financial lease to make it operational should be reported in the relevant categories Cost of capital assets developed in-house by employees of this business/organisation.

            Capitalised wages and salaries

            • If your staff develop a new piece of software for in-house use only and is not intended to be sold to another business, then the wages and salaries of the employees of your business who contributed to the development, building, construction and/or creation of the asset (including any additional ‘on-costs’ such as Fringe Benefits Tax, workers compensation, superannuation) should be reported in Capitalised wages and salaries.
            • Include the wages and salaries of employees of your business that contributed to the development, building, construction and/or creation of the asset (including any additional ‘on-costs’ such as Fringe Benefits Tax, workers compensation, superannuation). Exclude the cost of contractors, consultants and other persons not on the business' payroll who contributed to the development of the asset - these costs should instead be reported in Other capitalised costs.

            Other capitalised costs

            This may include both capitalised services and capitalised goods used as inputs to the building and development of the asset. If an upgrade or improvement to an existing building or infrastructure asset was project managed in-house then the cost of any goods or materials used and/or contractors undertaking the work should be reported in Other capitalised costs while the wages of the employees project managing reported under Capitalised wages and salaries.

            MULTI-STATE OPERATIONS


            What to include in multi-state operations

            For the 2020-21 Economic Activity Survey, only medium and large size businesses will be asked to report state data, although the multi-state questions appear on the form preview.

            • Report Employment and Wages and salaries for each 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. Include employees who receive JobKeeper payments.
            • Report Income from sales of goods and services for each state or territory where the sale was made or the service was provided. Include export sales against the state or territory from which the sale was made.







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