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Household final consumption expenditure

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

Concept

10.13    In the ASNA, household final consumption expenditure (HFCE) consists of expenditure by resident households on goods and services, whether the expenditure is made within the domestic territory or by Australian residents abroad, and expenditure by NPISHs.

10.14    Specific transactions in household final consumption expenditure include:

  • the value of income received in kind by employees which is treated as simultaneously spent by the employees on final consumption expenditure;
  • the value of goods produced by households for their own consumption, such as agricultural goods produced and consumed on the same farm, and 'backyard' production;
  • FISIM, the service charge component of households' interest payments and receipts (however, FISIM attributed to unincorporated enterprises owned by households is classified as intermediate consumption of the unincorporated business);
  • the service charge component of premiums paid for insurance and pension fund services; and
  • the imputed value of the services of owner-occupied dwellings. The imputation of rent to owner-occupied dwellings enables the services provided by dwellings to their owner-occupiers to be treated consistently with the marketed services provided by rented dwellings to their tenants. This treatment is considered necessary because, if a large number of rented houses were sold to their occupiers and if estimates of imputed rent were not calculated for owner-occupied dwellings, there would be an apparent decrease in gross domestic product without any decrease in the provision of housing services. In effect, owner-occupiers (like other owners of dwellings) are regarded as operating businesses; they receive rents (from themselves as consumers), pay expenses, and make a net contribution to the value of production which accrues to them as owners.

10.15    Any expenditure undertaken for business purposes by unincorporated enterprises (which are part of the household sector) is treated as intermediate consumption expenditure of the unincorporated enterprise, and not part of household final consumption expenditure.

10.16    Expenditures on the purchase of dwellings are explicitly excluded from household final consumption expenditure because dwellings are goods used by owners to produce housing services for those owners. Purchases of dwellings therefore constitute gross fixed capital formation. Similarly, valuables should be excluded from household final consumption expenditure because they are not used up in consumption or production, nor do they deteriorate over time. Valuables are a store of value, and are classified as part of gross capital formation. In the ASNA, however, some expenditure on valuables may be included in HFCE as a separate estimate for valuables is not compiled.

10.17    Expenditures on licences to use or own vehicles, boats and aircraft, and fees for shooting, fishing and hunting permits are also excluded. These are treated as taxes rather than as payments for services. All other kinds of licences, permits, certificates, passports etc., are treated as purchases of services and included in household final consumption expenditure.

10.18    HFCE is a large aggregate covering a wide range of goods and services. It is therefore desirable to further dissect this item. The 2008 SNA (and 1993 SNA) proposes a 'functional' classification to identify the 'functions' – in the sense of 'purposes' or 'objectives' – for which households engage in these transactions. The Classification of Individual Consumption by Purpose (COICOP) is used to classify HFCE by purpose or function. The outlays covered include:

  • expenditure on consumer durables such as cars, furniture and high-value, long-lasting household appliances (but excluding dwellings, which are regarded as the fixed assets of an 'industry');
  • consumer semi-durables such as clothing and footwear, other appliances, and crockery and cutlery;
  • single-use goods such as food, cigarettes and tobacco, and alcoholic drinks; and
  • services of all kinds such as hairdressing, dry cleaning and public transport.

10.19    COICOP provides for HFCE to be classified into the following major categories:

01Food and non-alcoholic beverages
02Alcoholic beverages, tobacco and narcotics
03Clothing and footwear
04Housing, water, electricity, gas and other fuels
05Furnishings, household equipment and routine maintenance of the house
06Health
07Transport
08Communications
09Recreation and culture
10Education
11Hotels, cafes and restaurants
12  Miscellaneous goods and services

10.20    These major categories are further split into subcategories, with the following 17 headline COICOP categories published in original, seasonally adjusted, and trend terms:

01Food
02.1Alcoholic beverages 
02.2Cigarettes and tobacco
03Clothing and footwear
04.1Rent and other dwelling services
04.2Electricity, gas and other fuel
05Furnishings and household equipment
06Health
07.1Purchase of vehicles
07.2Operation of vehicles
07.3Transport services
08Communications
09Recreation and culture
10Education
11Hotels, cafes and restaurants
12.1Insurance and other financial services
12.2Other goods and services

10.21    In the ASNA the classification of HFCE is aligned, as far as possible, with COICOP. However, there are some instances where it is not yet possible for Australia to follow COICOP's recommendations. For example:

  • ASNA does not include an estimate of HFCE on narcotics in COICOP Division 02 Alcoholic beverages, tobacco and narcotics, as reliable data on narcotics expenditure are not available.
  • Expenditure on COICOP Group 09.6 (Package holidays) is not specifically identified in Australia's HFCE, but the components of package holidays (airfares, accommodation and food) are included in the corresponding major categories of HFCE.
  • ASNA does not include an explicit estimate of HFCE on prostitution services in COICOP Group 12.1 (Personal care) as reliable data on such expenditure are not available.

10.22    The COICOP category for Maintenance and repair of the dwelling (Group 04.3) includes minor maintenance and repair of dwellings (e.g. interior decoration and repair to fittings which are commonly carried out by both tenants and owners) but excludes maintenance and repair which is major, such as replastering walls or repairing roofs, which are typically carried out by owners only. Such a distinction is consistent with 2008 SNA.⁴⁴ The ASNA deviates from the 2008 SNA recommendation and has excluded all maintenance and repair of dwellings from HFCE. Expenses associated with these activities are included as intermediate consumption of the Ownership of Dwellings industry and COICOP Group 04.3 is not included in HFCE in the ASNA.

10.23    The final consumption expenditure of NPISHs is included with that of households in the ASNA. 2008 SNA recommends that the final consumption of NPISHs should be classified according to the Classification of the Purposes of Non-Profit Institutions Serving Households (COPNI). The major divisions of COPNI are as follows:

01Housing
02Health
03Recreation and culture
04Education
05Social protection
06Religion
07Political parties, labour and professional organisations
08Environmental protection
09Services n.e.c.

10.24    Consequently, in the ASNA, the final consumption expenditure of NPISHs is classified, as far as possible, to the corresponding category of HFCE. Specifically, expenditure by NPISHs on Health, Recreation and culture, and Education are classified to the corresponding categories of HFCE, while final consumption expenditure for the other divisions is classified to Other goods and services in HFCE. As data sources for estimating the final consumption expenditure of NPISHs are very limited, indirect means are generally employed to compile these estimates. It is often necessary to assume that the final consumption expenditure for NPISHs can be estimated as the sum of income transferred by households, corporations and general government in a period, less an allowance for net property income payments and capital formation.

Endnotes

Adjustments made to HFCE

10.25    The following outlines the adjustments that are made to some or all HFCE categories.

Net expenditure overseas

10.26    This item is included in HFCE COICOP categories 01-12 (excluding Water, electricity, gas and other fuels) as an adjustment so that total HFCE reflects the expenditure of resident households (in Australia and overseas) only. This adjustment is necessary because a number of the data sources for HFCE come from sales reported by Australian businesses. These sales include the expenditure by overseas visitors (treated as an export) and do not include expenditure of Australian overseas (recorded as an import).  Expenditures by overseas visitors on fares, meals, accommodation, entertainment, recreation and other goods and services in Australia are deducted from the appropriate HFCE categories while expenditures by Australian residents abroad are added.  

10.27    HFCE net expenditure overseas (NEO) is derived using Services Debits and Credits data obtained from Tables 8 and 9 in Balance of Payments and International Investments Position, Australia

10.28    Calculation of NEO is a two-stage process. The first stage estimates the total value of NEO while the second allocates expenditure to the appropriate HFCE category. The total value of NEO is calculated by offsetting two items against each other; namely, the expenditure of Australian residents abroad (debits) and the expenditure of non-residents in Australia (credits).

10.29    It should be noted that NEO does not include online purchases by Australian households from international websites. These are encompassed in the annual HFCE benchmarks, chiefly through alignment with data obtained from the Household Expenditure Survey (HES).

10.30    The expenditure of residents overseas is calculated as the sum of two items:

  • Personal travel debits; and
  • Expenditure of Australian Government employees.

10.31    Personal travel debits, as adjusted for national accounting purposes, record the acquisition of goods and services abroad by residents travelling at their own expense, including students. Business travellers are not included as their expenditure is largely intermediate consumption of the employing business. Examples are purchases of accommodation, meals, ground transportation and tours.

10.32    The estimate for personal travel debits is calculated as the sum of two original current price Balance of Payments series: Services Debits - Travel - Personal - Education-related and Services Debits - Travel - Personal - Other services. State/Territory splits are derived using proportions from the ABS publication, Overseas Arrivals and Departures, Australia.

10.33    Expenditure of Australian Government employees records the personal expenditure on goods and services by Australian diplomats and their dependants stationed abroad. It is also based on an original current price Balance of Payments series: an unpublished lower level component of Services Debits – Government goods and services n.i.e. State/Territory estimates are derived using figures on the number of Australian government employees abroad.

10.34    The expenditure of non-residents in Australia is derived by aggregating three items:

  • Business travel credits;
  • Personal travel credits; and
  • Expenditure of foreign government employees.

10.35    Business travel credits cover expenditures on goods and services by seasonal and non-resident workers employed in Australia, and by travellers who visit, for business purposes, on behalf of an enterprise resident in another economy. The Balance of Payments series for Business travel credits is Services Credits – Travel – Business. State/Territory splits are derived using proportions from the ABS publication, Overseas Arrivals and Departures, Australia.

10.36    Personal travel credits record expenditures on goods and services in Australia by non-residents travelling at their own expense, for purposes other than business. The estimate for personal travel credits is calculated as the sum of two original current price Balance of Payments series: Services Credits – Travel – Personal – Education-related and Services Credits – Travel – Personal – Other services. State and Territory estimates are again calculated using proportions from Overseas Arrivals and Departures, Australia.

10.37    Expenditure of foreign government employees records the personal expenditure in Australia on goods and services by foreign diplomats and their dependants stationed in Australia. It is based on the unpublished lower level component of the Balance of Payments series Services Credits – Government goods and services i.e. State/Territory estimates of the expenditure of foreign government employees in Australia are derived using information on the number of foreign diplomats.

10.38    Total NEO is calculated by subtracting the expenditure of non-residents in Australia from the expenditure of Australia residents overseas. This is then allocated to various categories of HFCE using information from the International Visitor Survey, published by Tourism Research Australia. Data on expenditure from this survey is used to derive weights for the HFCE categories, which are then applied to the total NEO estimate. The exception is NEO for HFCE rent which is allocated solely to actual rent.

10.39    Quarterly and annual estimates of total NEO in current price terms are published as a memorandum item in Australian National Accounts: National Income, Expenditure and Product and Australian System of National Accounts.

Update to Net expenditure overseas

From 04/03/2024, 

  • Housing is included in HFCE COICOP categories 01-12 as an adjustment so that total HFCE reflects the expenditure of resident households (in Australia and overseas) only. Previously Housing was excluded. Paragraph 10.26.
  • Net expenditure overseas for HFCE rent which is allocated solely to actual rent. Previous this was allocated using information from the International Visitor Survey. Paragraph 10.38.

Paragraphs 10.26 and 10.38 prior to 04/03/2024 update

Tourist refund scheme

10.40    An adjustment is made to applicable HFCE categories for the Tourist Refund Scheme (TRS), whereby individuals are able to claim back, under certain conditions, the goods and services tax (GST) and wine equalisation tax (WET) on goods purchased in Australia.

10.41    Information regarding the value of refunds from this scheme, broken down by type of good, is obtained quarterly from the Australian Border Force. These data are then allocated to the appropriate HFCE categories.

10.42    Adjustments for the TRS are made to the following COICOP categories:

2.1Alcoholic beverages;
03Clothing and footwear;
05Furnishings and household equipment;
09Recreation and culture; and
12Miscellaneous goods and services.

Low value threshold

10.43    An adjustment is made to applicable HFCE categories for goods imported into Australia that fall below the Low Value Threshold (LVT) of $1,000. This adjustment covers purchases by Australian households from international websites.

10.44    Information regarding the value of goods imported that fall below the LVT are provided by Australian Customs. Various scope and coverage adjustments are applied to this data. These data are then allocated to the appropriate HFCE categories.

10.45    Adjustments for the LVT are made to the following COICOP categories:

01Food and non-alcoholic beverages
02Clothing and footwear
05Furnishings and household equipment
06Health
07Transport
09Miscellaneous goods and services
12Recreation and culture

Underground economy

10.46    This adjustment attempts to capture the understatement in HFCE due to activities occurring in the underground economy. Measuring the Non-Observed Economy: A Handbook, a publication jointly authored by the OECD, the IMF, the International Labour Organization (ILO) and the Interstate Statistical Committee of the Commonwealth of Independent States, defined the underground economy as covering "those activities that are productive and legal but are deliberately concealed from the public authorities to avoid payment of taxes or complying with regulations".

10.47    In HFCE, the understatement is most likely to result from businesses under-reporting retail turnover in the source data used for the compilation of household expenditure estimates.

10.48    Annual estimates of home production are incorporated into S-U benchmarks. The annual value of self-supplied food is based on estimates of the amount of food produced for home consumption from the ABS publication, Home Production of Selected Foodstuffs, Australia. The value of homemade alcohol is based on estimates of the amount of alcohol produced for home consumption from the publication cited above.

10.49    Estimates for the underground activity occurring in the various HFCE categories are calculated as proportions of the expenditure estimates. The factors used have been compiled based on analysis by the ABS. These are not varied from year-to-year but are subject to periodic review. For more information, refer to Information Paper: The Non-Observed Economy and Australia’s GDP, 2012.

10.50    In ASNA, adjustments for the underground economy are made to the following COICOP categories:

01Food;
03Clothing and footwear;
05Furnishings, household equipment and routine household maintenance;
07Transport;
09Recreation and culture;
11Restaurants and hotels; and
12Miscellaneous goods and services.

Repair and maintenance

10.51    This adjustment represents the expenditure by households on the repair and maintenance of various HFCE products, other than those captured in the Repair and maintenance not identified elsewhere component of HFCE Other Services (COICOP Group 12.5).

10.52    The sources used to derive estimates of household expenditure such as retail sales do not include spending on repairs and maintenance, therefore making it necessary to adjust for this expenditure separately.

10.53    Data on the total repair and maintenance expenditure by households is benchmarked irregularly to the Household Expenditure Survey, Australia: Summary of Results. Quarterly estimates are obtained by interpolating and extrapolating these benchmarks. Total repair and maintenance expenditure is broken down into HFCE product categories by applying weights, also obtained from the Household Expenditure Survey.

10.54    Adjustments for repairs and maintenance expenditure are applied to the following COICOP categories:

03Clothing and footwear;
05Furnishings, household equipment and routine household maintenance;
09Recreation and culture; and
12Miscellaneous goods and services.

Sources and methods - Annual

Benchmark years

10.55    Final consumption expenditure by resident households is calculated as:

Final consumption expenditure in the domestic market
+Expenditure overseas by Australian residents
-Expenditure in Australian by foreign residents
=Household final consumption expenditure

10.56    When the annual compilation method is the sum of the quarters then reconciliation to the annual value is not necessary. When the quarterly series is estimated using an indicator then reconciliation to the annual value is required.

10.57    When the method for quarterly chain volume series is derived as extrapolation by a quarterly indicator the quarterly series is extrapolated from the latest annual estimate available. As each new annual value becomes available, the quarterly estimates are obtained by interpolating between the latest annual values using the quarterly indicator.

10.58    Unlike the quarterly production approach series, which draws most of its annual benchmarks from the balanced industry accounts, there are additional benchmarks for household final consumption expenditure. These include the ABS Economic Activity Survey and the Retail Trade Survey. The information on commodity expenditure from these sources is used to confront the industry production data. All benchmarks are therefore subject to revision. All quarterly current price estimates are reconciled to annual values based on the S-U confrontation. In cases where data are not available for every year, interpolation techniques are used for the intervening time span. Suitable indicators are used to obtain annual estimates for the span of the non-benchmark years. Once produced, these estimates are used in the supply and use framework to allow data confrontation.

10.59    A large proportion of household final consumption expenditure (HFCE) comprises sales by retail stores. Benchmarks are a combination of margin activity data (sales less cost of goods sold) in the Retail Trade and Wholesale Trade industries from the annual Economic Activity Survey, point of sale commodity data from the Retail Industry Survey and Wholesale Industry Survey (conducted every seven years) plus purchasing information from the Household Expenditure Survey which is held each 5 to 6 years. Latest data from these surveys are released in the publications: Retail and Wholesale Industries, Australia, Household Expenditure Survey, Australia: Summary of Results and Household Expenditure Survey, Australia: Detailed Expenditure Items. These surveys contain a product dimension which is classified to COICOP, for HFCE, with annual values being calculated via linear interpolation. For provisional years (that is, not yet balanced within the supply and use framework) and for the quarterly indicator series which are reconciled to these annual values, estimates are derived using movements in sales by outlet type from the Retail Trade Survey. This method is used for all commodities purchased from retail trade outlets except for motor vehicles and tobacco products where alternative information is available. For alcohol, the method is used for purchases from retail outlets and the Quarterly Business Indicator Survey (QBIS) is used for the portion purchased from non-retail outlets such as hotels, clubs and taverns. Quarterly chain volume series are derived by price deflation of commodities using sub-indexes of the Consumer Price Index and Retail Trade Survey outlet type deflators.

10.60    The Alcoholic beverages COICOP category includes only purchases of packaged alcohol which are consumed away from licensed premises. This excludes alcohol consumed on-premises such as pubs, bars, clubs or restaurants, which is considered a consumption of a service and is included under Hotels, cafes and restaurants. For the portion of alcohol purchased from non-retail outlets (QBIS), this captures packaged alcohol purchased on-premises and then consumed off-premise (i.e. a liquor store attached to a pub).

10.61    Retail expenditure estimates by consumption product are derived from retail trade data, which does not distinguish between resident and non-resident sales. Subsequently, estimates are made for expenditure by non-resident households in Australian (as these are recorded as exports) and alternatively expenditure by resident household’s overseas (imports). This ensures no double counting.

10.62    The tables below outline the data sources and methods used in the estimation of annual household final consumption expenditure by COICOP category. They include both the current price estimates and volume estimates.

Table 10.1 Annual household expenditure — Food and non-alcoholic beverages
ItemComment
Current price estimates
 

The periodic Retail and Wholesale Industry Surveys (RIS/WIS) provides the primary benchmark estimates for this series.

The value of self-supplied food is included and is based on estimates of the amount of food produced for home consumption from the ABS publication, Home Production of Selected Foodstuffs, Australia.

The following scope and coverage adjustments are made:

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

Volume estimates
 Current price estimates for purchases of food by Australian residents are re-valued using relevant price deflator from the Consumer Price Index.
Table 10.2 Annual household final consumption expenditure—Alcoholic beverages
ItemComment
Current price estimates

 

The periodic Retail and Wholesale Industry Surveys (RIS/WIS) provides the primary benchmarks for this series.

The value of home-made alcohol is included and is based on estimates of the amount of alcohol produced for home consumption from the ABS publication, Home Production of Selected Foodstuffs, Australia.

The following scope and coverage adjustments are made:

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

Volume estimates
 Volume estimates for alcoholic beverages are based on the sum of the quarterly volumes.
Table 10.3 Annual household consumption expenditure — Cigarettes and Tobacco
ItemComment
Current price estimates

 

The value of tobacco products consumed by households is estimated using the formula:

Domestic production

                     + imports

                     –  exports

                     –  re-exports

                     + taxes on products

                     + margin estimate

                     = Total consumption.

The value of domestic production is estimated using the estimates of income for sale of goods from the Economic Activity Survey. Exports and re-exports data are obtained from trade data as sourced from the ABS Balance of Payments. Taxes on products are sourced from Government Finance Statistics. Margins data are obtained from the RIS/WIS.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

Volume estimates
 Volume estimates for cigarettes and tobacco are based on the sum of the quarterly volumes.
Table 10.4 Annual household final consumption expenditure — Clothing and footwear
ItemComment
Current price estimates

 

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • manufacturing units selling directly to households; and
    • flea market sales.
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

Volume estimates
 Current price estimates for purchases of clothing and footwear by Australian residents are re-valued using the relevant price deflator from the CPI.
Table 10.5 Annual household final consumption expenditure — Housing, water, electricity, gas and other fuels
ItemComment
Imputed rentals for housing
 Current price estimates

 

 

The Census of Population and Housing is the benchmark data source for the number of owner-occupied and rented dwellings and information about rents paid for rented dwellings.

The imputed rent for owner-occupied dwellings is calculated by multiplying average rents (adjusted to exclude rents at less than market value) reported in the census for privately rented dwellings in various categories.

Estimates of imputed rent of owner occupiers for intercensal and post-census periods are obtained by multiplying an estimate of the stock of dwellings by an estimate of the average rent of rented dwellings.

The stock of dwellings is estimated by extrapolating the benchmark estimate. The benchmark stock of dwellings includes all occupied private dwellings and a proportion of unoccupied private dwellings but excludes short-term caravans in caravan parks.

Private dwellings include separate houses, duplexes, town houses, flats including those which are part of a building that is used for commercial purposes (e.g. a retail shop) and caravans used for long-term accommodation. Additions to the stock are calculated from the number of dwelling completions sourced from the ABS publication, Building Activity, Australia. This is then modified by a factor to take into account other changes to the stock of dwellings (demolitions, net conversions from commercial uses and dwelling completions not in the scope of the survey).

For intercensal periods, this factor is calculated by dividing the change in the stock between the census benchmarks by the total number of dwelling completions in the period. For the post-census period, the factor is assumed to be the same as for the latest intercensal period.

After the latest applied benchmarks from the Census of Population and Housing, the total and owner occupied rent prices have been obtained from a combination of the Survey of Income and Housing (SIH), the CPI and real estate bulletins (Australian Property Monitors and Real Estate Institute of Australia).

 Volume estimates
  Volume estimate for imputed rentals for housing is based on the sum of the quarterly volumes compiled using a productive capital stock series which represents the volume of services provided by imputed rent on private dwellings.
Actual rentals for housing
 Current price estimates

 

 

These estimates are produced using the same sources as for the estimates of imputed rentals for housing.

The benchmark calculation gives a direct measure of the dwelling rent paid by households to the owners of dwellings.

 Volume estimates
  Volume estimate for actual rentals for housing is based on the sum of the quarterly volumes compiled using a productive capital stock series which represents the number of private dwellings.
Other services related to the dwelling
 Current price estimates

 

 

Data is sourced from the ABS publication, Household Expenditure Survey, Australia: Summary of Results. HES provides the benchmark estimates for this series which includes water and sewerage and waste services.

The following scope and coverage adjustments are made:

  • household expenses on water and sewerage service charges for rental and investment properties, which are out of scope of HES - based on HFCE estimates of actual rent for housing and imputed rent for owner occupiers;
  • coverage for remote and non-private dwellings which are not in scope of the HES; and
  • to capture final consumption expenditure of NPISH units using waste collection and disposal services, based on current grants information sourced from the Government Finance Statistics.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
  

Volume estimates for water and sewerage services are based on the sum of the quarterly volumes.

Annual current price estimates in relation to waste collection and disposal services are re-valued using relevant price deflators from the Consumer Price Index to derive the annual volume estimates.

Electricity, gas and other fuels
 Current price estimates

 

 

The Household Expenditure Survey provides the benchmark estimates for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
  Current price estimates of purchases of electricity, gas and other fuels are re-valued using relevant price deflators from the Consumer Price Index.
Table 10.6 Annual household final consumption expenditure — Furnishings and household equipment
ItemComment
Furniture and furnishings, carpets and other floor coverings
 Current price estimates

 

 

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • manufacturing units selling directly to households;
    • dealers’ margins associated with second-hand goods; and
    • flea market sales and sales by NPISH units.
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

 

Current price estimates of purchases of furnishings and floor coverings in Australia are re-valued using relevant price deflators from the Consumer Price Index.

Household textiles
 Current price estimates

 

 

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • flea market sales and sales by NPISH units.
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

 

Current price estimates of purchases of household textiles in Australia are re-valued using relevant price deflators from the Consumer Price Index.

Household appliances
 Current price estimates

 

 

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • manufacturing and wholesaling units selling directly to households;
    • electricity, gas and water industry units selling directly to households;
    • dealers’ margins associated with second-hand goods; and
    • flea market sales and sales by NPISH units.
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore. adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

 

Current price estimates of purchases of household appliances in Australia are re-valued using relevant price deflators from the Consumer Price Index.

Glassware, tableware and household utensils
 Current price estimates

 

 

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • flea market sales.
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

 

Current price estimates of purchases of glassware, tableware and household utensils in Australia are re-valued using relevant price deflators from the Consumer Price Index.

Tools and equipment for house and garden
 Current price estimates

 

 

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • flea market sales.
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

 

Current price estimates of purchases of tools and equipment for house and garden in Australia are re-valued using relevant price deflators from the Consumer Price Index.

Non-durable household goods
 Current price estimates

 

 

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • manufacturing and wholesaling units selling directly to households; and
    • flea market sales.
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

 

Current price estimates of purchases of non-durable household goods in Australia are re-valued using relevant price deflators from the Consumer Price Index.

Table 10.7 Annual household final consumption expenditure — Health
ItemComment
Medicines, medical aids and therapeutic appliances
 Current price estimates
  

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
  Volume estimates for this series are based on the sum of the quarterly volumes.
Ambulatory health care
 Current price estimates
  

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • to capture current grants from government to NPISH units providing ambulatory health care sourced from annual time series data from the Government Finance Statistics;
  • to capture current grants and donations from corporations and households to NPISH units providing ambulatory health care as extrapolated from the ABS publication, Australian National Accounts: Non-Profit Institutions Satellite Accounts;
  • household claims from private health insurance funds sourced from the Private Health Insurance Administration Council (PHIAC);
  • an estimate of 15 per cent of household claims associated with the health service component of workers’ compensation and motor vehicle and third party insurance sourced from the Australian Prudential Regulation Authority (APRA). This was derived from workers’ compensation and other insurance estimates associated with health services for ANZSIC Subdivision 85 Medical and other health care services, published in Health Care Services; and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
  Volume estimates for ambulatory health care are based on the sum of the quarterly volumes.
Hospital, ambulance services and nursing home care
 Current price estimates
  

The Household Expenditure Survey (HES) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • to capture current grants from government to NPISH units providing ambulatory health care sourced from annual time series data from the Government Finance Statistics;
  • to capture current grants and donations from corporations and households to NPISH units providing ambulatory health care as extrapolated from the ABS publication, Australian National Accounts: Non-Profit Institutions Satellite Accounts;
  • household claims from private health insurance funds sourced from the Private Health Insurance Administration Council (PHIAC); and
  • an estimate of 15 per cent of household claims associated with the health service component of workers’ compensation and motor vehicle and third party insurance sourced from the Australian Prudential Regulation Authority (APRA). This estimate was derived from workers’ compensation and other insurance estimates associated with health services for ANZSIC Subdivision 85 Medical and other health care services published in Health Care Services;
  • an estimate of household expenses associated with nursing home fees. As nursing homes are not in scope of the HES, direct expenditure on these services is estimated using services income associated with Aged care residential services from the Economic Activity Survey; and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
  

Annual volume estimates for healthcare HFCE are estimated in conjunction with volume estimates for health output based on the direct volume index approach and output volume method, as described in Chapter 9, Table 9.30.

Hospital services are provided to both admitted and non-admitted patients, as well as through different settings such as emergency departments. The number of hospital separations, emergency presentations and non-admitted events are used as quantity indicators; direct volume indexes are constructed for admitted patient care, emergency departments and non-admitted patient care services using average costs for weights.

Weights for aggregation are sourced from the Australian Institute of Health and Welfare (AIHW), Government Finance Statistics and Economic Activity Survey. They are used to construct volume indexes for private, public and total hospitals. Other data are sourced from AIHW and the Independent Health and Aged Care Pricing Authority (IHACPA).

Non-hospital services are based on the number of non-hospital services provided, stratified at various levels of procedure type, and weighted together by their respective current price value of expenditures. Data are sourced from Medicare, the Private Health Insurance Administration Council and the Productivity Commission Report on Government Services.

 

Changes made to Table 10.7 Annual household final consumption expenditure — Health

From 04/03/2024, 

Volume estimates

  • Hospital services are provided to both admitted and non-admitted patients, as well as thorough different settings such as emergency departments.
  • Weights for aggregation are sourced from the Australian Institute of Health and Welfare (AIHW), Government Finance Statistics and Economic Activity Survey. They are used to construct volume indexes for private, public and total hospitals.
  • Non-hospital services are based on the number of non-hospital services provided, stratified at various levels of procedure type, and weighted together by their respective current price value of expenditures.

Table 10.7 prior to 04/03/2024 update

Table 10.8 Annual household final consumption — Transport
ItemComment
Purchase of vehicles
 Current price estimates
  

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • purchase of vehicles that are out of scope of the survey;
  • dealers’ margins on used vehicles traded between households;
  • the value of private imports of used vehicles are estimated using data supplied from Customs documentation and an average price for used cars sourced from Vehicle Sales from the Federal Chamber of Automotive Industries (FCAI) publication, Vehicle Facts (VFACTs), or Glass' Automotive Business Intelligence (Glass' Guide); and
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
  Volume estimates for this series are based on the sum of the quarterly volumes.
Operation of personal transport equipment
 Current price estimates
  

Annual household expenditure on automotive petroleum and coal products are based on the ABS publication, Survey of Motor Vehicle Use, Australia (SMVU).

The SMVU includes information on the fuel consumption of all motor vehicles by motor vehicle type and the private use of all vehicles by type of vehicle. Using this information and the national average retail price per litre of petrol and diesel sourced from the Australian Institute of Petroleum and the Automotive Petroleum Association, respectively, supplemented by Energy Accounts data, annual estimates of household expenditure for automotive petroleum and coal products are estimated.

The Household Expenditure Survey provides the primary benchmarks for the series relating to pneumatic tyres and tubes for motor cars and motor cycles, motor vehicle engines, chassis and panels; transport equipment not elsewhere classified, motor vehicle repair and maintenance expenditure and miscellaneous motoring expenditure.

The proportion of household claims associated with Motor Vehicle Comprehensive and third party insurance that captures estimates for the repair of accident damage to insured motor vehicles owned by the household sector is also included in compilation of Automotive repair and maintenance services.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES; and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
  Volume estimates for operation of personal transport equipment are based on the sum of the quarterly volumes.
Transport services
 Passenger transport by railway
  Current price estimates
   

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • to capture the final consumption expenditure of NPISH units using railway passenger transport services based on current grants information as sourced from the Government Finance Statistics;
  • current grants from government to NPISH (sourced from annual Government Finance Statistics); and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

  Volume estimates
   Expenditures on rail fares are re-valued using relevant price deflators from the Consumer Price Index.
Passenger transport by road
 Current price estimates
   

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES; 
  • to capture the final consumption expenditure of NPISH units using road passenger transport services based on current grants information as sourced from the Government Finance Statistics;
  • current grants from government to NPISH (sourced from annual Government Finance Statistics); and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
   Current price annual household expenditures on bus and taxi fares are re-valued using relevant price deflators from the Consumer Price Index.
Passenger transport by air
 Current price estimates
   

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • current grants from government to NPISH (sourced from annual Government Finance Statistics); and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
   Current price annual household expenditures on airfares are re-valued using relevant price deflators from the Consumer Price Index.
Passenger transport by sea and inland water
 Current price estimates
   

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • to capture the final consumption expenditure of NPISH units using passenger transport by sea and inland waterway services based on current grants information as sourced from the Government Finance Statistics;
  • current grants from government to NPISH (sourced from annual Government Finance Statistics); and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

  Volume estimates
   Current price annual household expenditures on passenger transport by sea and inland waterway services are re-valued using relevant price deflators from the Consumer Price Index.

 

Table 10.9 Annual household final consumption expenditure — Communications
ItemComment
Postal services
 Current price estimates

 

 

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • current grants from government to NPISH (sourced from annual Government Finance Statistics); and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

 

Current price estimates of expenditure on postal services are re-valued using relevant price deflators from the CPI.

Telecommunication services
 Current price estimates

 

 

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • to capture the final consumption expenditure of NPISH units using telecommunication services based on current grants information sourced from the Government Finance Statistics;
  • current grants from government to NPISH (sourced from annual Government Finance Statistics); and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

 

Current price annual estimates of expenditure on telephone and facsimile services are re-valued using relevant price deflators from the Consumer Price Index.

Volume estimates for internet services are based on the sum of the quarterly volumes.

Table 10.10 Annual household final consumption expenditure — Recreation and culture
ItemComment
Audio visual, photographic and data processing equipment and accessories
 Current price estimates

 

  

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
   Current price estimates of purchases of audio visual, photographic and data processing equipment and accessories in Australia are re-valued using relevant price deflators from the Consumer Price Index.
Other major durables for recreation and culture
 Current price estimates

 

  

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • manufacturing units selling directly to the public;
    • a proportion of caravans used as residences is excluded,
    • dealers’ margins for sales of second-hand boats and caravans, excluding transactions between households; and
    • flea market sales.
  • current grants from government to NPISH (sourced from annual Government Finance Statistics); and
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

  

Current price estimates of purchases of other major durables for recreation and culture are re-valued using relevant price deflators from the Consumer Price Index.

Other recreational items and equipment
 Current price estimates

 

  

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • manufacturing units selling directly to the public;
    • sales of ‘backyard’ pure bred pets based on a historical value extrapolated using a growth rate for retail sales of pets and live animals over the last seven years from RIS/WIS;
    • sales of toys and other goods provided by NPISH units; and
    • flea market sales.
  • current grants from government to NPISH (sourced from annual Government Finance Statistics); and
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

  

Current price annual estimates of purchases of other recreational items and equipment are re-valued using relevant price deflators from the Consumer Price Index.

Recreational and cultural services
 Sporting and recreational services
  Current price estimates

 

  

Household expenditure for sporting and recreational services not elsewhere classified is based on historical estimates which are rolled forward by multiplying movements associated with the estimated resident population and the CPI for the sports participation series.

The Household Expenditure Survey provides the primary benchmarks for this series relating to the cost of hiring entertainment equipment and facilities and sporting and educational services.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES; and
  • net expenditure overseas.

Current expenditure of NPISHs providing sporting and recreational services is sourced from current grants to NPISH units providing sporting and recreational services. These data are sourced from Government Finance Statistics and current grants and donations from corporations and households to NPISHs units extrapolated from the ABS publication, Australian National Accounts: Non-Profit Institutions Satellite Account.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

  Volume estimates

 

  

Current price estimates of purchases of expenditures on sporting and recreational services are re-valued using relevant price deflators from the Consumer Price Index.

 Cultural and entertainment services
  Current price estimates

 

  

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • to capture the final consumption expenditure of NPISH units providing cultural and entertainment services based on current grants information as sourced from the Government Finance Statistics and donations and sponsorship from households and corporations to NPISH units for providing these services extrapolated from the ABS publication, Australian National Accounts: Non-Profit Institutions Satellite Account; and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

  Volume estimates
   Current price estimates of expenditures on cultural and entertainment services are re-valued using relevant price deflators from the Consumer Price Index.
Net losses from gambling
 Current price estimates

 

  

Current price estimates on Net losses from gambling are sourced from the Australian Gambling Statistics publication (published by the Queensland government). This publication provides comprehensive annual data on gambling in Australia.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
   Net losses from personal outlays on gambling by households are re-valued using relevant price deflators from the CPI.
Newspapers, books and stationery
 Current price estimates

 

  

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
   Annual current price estimates of household expenditures on newspapers, books and stationery are re-valued using relevant price deflators from the Consumer Price Index.

 

Table 10.11 Annual household consumption expenditure — Education services
ItemComment
Current price estimates

 

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • to capture current grants from government to NPISH units providing education services sourced from annual time series data from Government Finance Statistics;
  • to capture current grants and donations from corporations and households to NPISH units providing education services extrapolated from benchmark data in the ABS publication, Australian National Accounts: Non-Profit Institutions Satellite Accounts; and
  • net expenditure overseas.

The household expenditure associated with the tertiary education services Higher Education Loan Program (HELP) was derived from time series data on HELP provided by the Department of Education.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

Volume estimates

 

Annual volume estimates for education are estimated in conjunction with direct volume estimates for education output, as described in Chapter 9, Table 9.29.

The sources used are total numbers of students at both private and government schools, student load of universities, course hours for TAFE and other vocational education providers stratified at various levels of education and weighted together by their respective current price value of expenditures.

Student numbers are sourced from the ABS publication, Schools; annual reports from the departments of Education and Employment for school and university students; and data from the National Centre for Vocational Education Research (NCVER) for vocational students.

Table 10.12 Annual household final consumption expenditure — Hotels, catering and restaurants
ItemComment
Catering
 Current price estimates

 

 

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • to capture current grants from government to NPISH units providing catering services as sourced from annual time series data from Government Finance Statistics, and
  • to capture current grants and donations from corporations and households to NPISH units providing catering services as extrapolated from the ABS publication, Australian National Accounts: Non-Profit Institutions Satellite Accounts; and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates
  Expenditures on catering by Australian residents are re-valued using relevant price deflators from the Consumer Price Index.
Accommodation services
 Current price estimates

 

 

The Household Expenditure Survey provides the primary benchmarks for this series.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • to capture current grants from government to NPISH units providing accommodation services as sourced from annual time series data from Government Finance Statistics, and
  • to capture current grants and donations from corporations and households to NPISH units providing accommodation services as extrapolated from the ABS publication, Australian National Accounts: Non-Profit Institutions Satellite Accounts; and
  • net expenditure overseas.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

 

Expenditures on accommodation services by Australian residents are re-valued using relevant price deflators from the Consumer Price Index.

Table 10.13 Annual household final consumption expenditure — Miscellaneous goods and services
ItemComment
Personal care
 Current price estimates

 

  

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for the series relating to personal outlays on personal care products such as perfume, cosmetics and soap.

The Household Expenditure Survey (HES) provides the benchmarks for miscellaneous services including hair dressing and beauty salon services.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • sales on aircraft and ships; and
    • flea market sales.
  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • current grants from government to NPISH (sourced from annual Government Finance Statistics); and
  • net expenditure overseas.

For the years where RIS/WIS and HES data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS and HES benchmarks become available a linear interpolation technique is used to align the current estimates to best fit the linear model between the benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

  

Expenditures on personal care by Australian residents are re-valued using relevant price deflators from the Consumer Price Index.

Personal effects

 Current price estimates

 

  

The periodic Retail and Wholesale Industry Survey (RIS/WIS) provides the primary benchmarks for this series relating to personal outlays on jewellery and watches etc.

The following scope and coverage adjustments are made:

  • sales that are out of scope of the RIS/WIS survey, which are:
    • sales on aircraft and ships, and
    • flea market sales.
  • current grants from government to NPISH (sourced from annual Government Finance Statistics), and
  • net expenditure overseas.

For the years where RIS/WIS data are not available the annual estimate is the sum of the four quarters.

When the next RIS/WIS benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

  

Expenditures on personal effects by Australian residents are re-valued using relevant price deflators from the Consumer Price Index.

Insurance
 Description
   Included in this item is the service charge paid by householders for insurance. Premiums paid for general insurance of householders' effects, motor vehicle insurance, health insurance, and life insurance and superannuation can be seen to comprise a service charge for insuring, a payment for the risk of insuring and, for life insurance and superannuation funds, an element of saving.
 Current price estimates
  Homeowner and household insurance

 

  

This is the service charge for insuring householders' furniture and effects, generally called home contents insurance. Insurance of the dwelling itself is excluded from household final consumption expenditure as it is considered to be part of the intermediate consumption of the industry, Ownership of dwellings.

Premiums and claims for Homeowner and Household Insurance are obtained from Quarterly General Insurance Performance Statistics; General Insurance Supplementary Statistical Tables; half-yearly General Insurance Bulletin and Selected Statistics on the General Insurance Industry, published by the Australian Prudential Regulatory Authority (APRA) in quarterly, half-yearly and annual bulletins.

Expected claims are derived by using a centred five-year moving average of claims incurred.

Premium supplements are calculated using the proportion of Homeowner and Household premiums to total general insurance premiums multiplied by total investments earnings on general insurance technical reserves.

Premium supplements are added together with personal premiums to give the total value of premiums.

Personal premiums paid plus premium supplements less expected personal claims incurred gives the value of the service charge which is included in household final consumption expenditure.

Taxes on products are added to derive a purchases price value. Taxes on products are allocated to this product using a number of methods. These include the proportion of GST from net of premiums less claims and the supply proportion of Government taxes on insurance n.e.c. for other taxes on products.

  Motor vehicle insurance

 

  

Motor vehicle insurance service charges cover both compulsory third party (personal injury) insurance, and comprehensive and third party property insurance on motor vehicles.

Premiums and claims for motor vehicle property and compulsory third party (personal injury) insurance are obtained from Quarterly General Insurance Performance Statistics; General Insurance Supplementary Statistical Tables; half-yearly General Insurance Bulletin and Selected Statistics on the General Insurance Industry, published by the APRA in quarterly, half-yearly and annual bulletins.

APRA data are classified in a consistent manner to national accounts requirements. Domestic comprehensive motor vehicle insurance is applicable directly to household final consumption expenditure, commercial comprehensive motor vehicle insurance is categorised to business and government. Compulsory third party motor vehicle insurance for householders is obtained by multiplying total compulsory third party motor vehicle insurance by the proportion of personal vehicles to business and government vehicles from the ABS Survey of Motor Vehicle Use, Australia.

Expected claims are derived by using a centred five-year moving average of claims incurred.

Premium supplements are added together with personal premiums to give the total value of premiums for both motor vehicle property and compulsory third party (personal injury) insurance. Premium supplements for each type of motor vehicle insurance are calculated using the proportion of motor vehicle insurance premiums to total general insurance premiums multiplied by total investment earnings on general insurance technical reserves.

Personal premiums paid plus premium supplements less expected personal claims incurred gives the value of the service charge which is included in household final consumption expenditure.

Taxes on products are added to derive a purchases price value. Taxes on products are allocated to this product using a number of methods. These include the proportion of GST from net of premiums less claims and the direct amount of government third party insurance taxes for other taxes on products.

  Health insurance

 

  

The insurance service charge for health insurance is calculated in the same way as for general insurance of householders' effects.

Information about premiums paid and claims incurred by households from health insurers is sourced from the Private Health Insurance Administration Council publication, Operations of the Registered Health Benefits Organisations.

Expected claims are derived by using a centred five-year moving average of claims incurred.

Personal premiums paid plus premium supplements less expected personal claims incurred gives the value of the service charge which is included in household final consumption expenditure.

 Premium supplements are added together with personal premiums to give the total value of premiums. Premium supplements are calculated by dividing health insurance premiums by total general insurance premiums multiplied by investment earnings on general insurance technical reserves.

The Medicare levy paid by individuals is considered to be an element of income tax levied by the Commonwealth Government. As such, it is not included in household final consumption expenditure.

  Other non-life insurance by households as consumers

 

  

This is the service charge for various classes of insurance which are taken out by households, but which have not been explicitly discussed above. Included are travel, consumer credit, marine hull, and sickness and accident.

Premiums and claims for the relevant classes of insurance business are obtained from Quarterly General Insurance Performance Statistics; General Insurance Supplementary Statistical Tables; half-yearly General Insurance Bulletin and Selected Statistics on the General Insurance Industry, published by the Australian Prudential Regulation Authority in quarterly, half-yearly and annual bulletins.

The households' share of both premiums and claims for each class of business are estimated using available information and subjective judgement.

Expected claims are derived by using a centred five-year moving average of claims incurred.

Premium supplements are added together with personal premiums to give the total value of premiums.

Premium supplements are calculated using the proportion of households' premiums for the relevant classes of business to total general insurance premiums, multiplied by total investment earnings on general insurance technical reserves.

Personal premiums paid plus premium supplements less expected personal claims incurred gives the value of the service charge which is included in household final consumption expenditure.

Taxes on products are added to derive a purchases price value. Taxes on products are allocated to this product using a number of methods. These include the proportion of GST from net of premiums less claims and supply proportions of government taxes on insurance n.e.c. for other taxes on products.

  Life insurance and superannuation

 

  

Premiums and contributions paid by policyholders to life insurance corporations and superannuation are considered to include an insurance service charge element. A proportion of life insurance and superannuation premiums/contributions is actually paid by employers on behalf of their employees. However, for national accounts purposes these premiums are included in employers' social contributions, which is a component of compensation of employees. The employee pays the insurance service charge (a component of household final consumption expenditure) and invests in life insurance and superannuation funds recorded in the household financial account.

For life insurance corporations and friendly societies, the insurance service charge is equal to the cost of running the business plus a profit margin. The service charge is compiled from data on life insurance statutory funds available from Quarterly Life Insurance Performance Statistics; half-yearly Life Insurance Bulletin and the Annual Friendly Society Bulletin, published by the Australian Prudential Regulatory Authority. The profit margin is calculated by estimating a proxy return on equity (where the return on equity is defined as gross operating surplus over shareholders' funds).

For pension funds the insurance service charge is equal to cost of running the fund, included are administrative and investment expenses. The service charge is compiled from data on pension funds available from the ABS publications, Managed Funds, Australia  and Australian National Accounts: Finance and Wealth; and the APRA publications, Superannuation Performance Statistics and the Annual Superannuation Bulletin.

Taxes on products are added to derive a purchases price value. Other taxes on products are allocated to this product using supply proportions of government taxes on insurance n.e.c.

  Workers’ compensation insurance

 

  

The insurance service charge for workers’ compensation insurance paid by employers is included in household final consumption expenditure. The insurance service charge measures the value of services provided by the insurance enterprises in arranging payments for claims in exchange for the receipts of premiums.

Premiums and claims for the relevant classes of insurance business are obtained from, quarterly General Insurance Performance Statistics; General Insurance Supplementary Statistical Tables; half-yearly General Insurance Bulletin and Selected Statistics on the General Insurance Industry, published by the Australian Prudential Regulation Authority in quarterly, half-yearly and annual bulletins.

Premium supplements are added together with personal premiums to give the total value of premiums. Premium supplements are calculated using the proportion of workers’ compensation insurance premiums to total general insurance premiums, multiplied by total investment earnings on general insurance technical reserves. Personal premiums paid plus premium supplements less expected personal claims incurred gives the value of the service charge which is included in household final consumption expenditure.

Taxes on products are added to derive a purchases price value. Taxes on products are allocated to this product using a number of methods. These include the proportion of GST from net of premiums less claims and supply proportion of government taxes on insurance n.e.c. for other taxes on products.

  Supply and use balancing process for insurance services

 

  

The initial data is compiled at the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

The SUPC level data are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

  Volume estimates

 

  

Current price estimates of purchases of insurance services are re-valued using relevant price deflators from the CPI.

Financial services
 Description

 

  

The scope of this item is household expenditure, both actual and imputed, on services provided by financial institutions other than insurers. Three broad categories of expenditure are covered.

The first relates to the charges that households pay explicitly to financial institutions for services rendered. Examples are account-keeping fees; commission on money orders, travellers' cheques and overseas drafts; brokerage on share trading; and financial advisers' charges.

The second covers taxes on production and imports levied by general government on financial transactions undertaken by households. Examples are financial institutions duty and stamp duty incurred by trading in financial instruments. The stamp duty payable on the transfer of titles to residential property is treated as part of the transfer costs of ownership of dwellings (which are included in gross fixed capital formation) and as such is not part of household final consumption expenditure.

The last component is the indirectly charged service charges of banks and other similar financial intermediaries. In the national accounts an imputation is made for the value of the services provided by financial intermediaries; that is, Financial Intermediation Services Indirectly Measured (FISIM). It is estimated by reference to the difference in interest rates offered to borrowers and depositors and the average levels of outstanding loans and deposits. The payment for financial services is implicit in both the higher interest paid by borrowers and the lower interest received by depositors. That part of this service which relates to personal loans to households to finance household consumption and household deposits held by financial intermediaries is regarded as being paid by persons and included in household final consumption expenditure. FISIM relating to mortgages on dwellings owned by persons is not included in household final consumption expenditure, but is treated as a component of intermediate consumption in the calculation of gross operating surplus for dwellings owned by persons.

 Current price estimates
  Explicit charges

 

  

The total value of explicit charges (e.g. account-keeping fees; commission on money orders; travellers' cheques and overseas drafts; brokerage on share trading; and financial advisers' charges) paid by households is calculated using data from the following sources:

  • Banks', Credit Unions' and Building Societies' performance statistics published quarterly by the Australian Prudential Regulatory Authority (APRA);
  • the Reserve Bank of Australia's Statistical Bulletin;
  • suite of APRA forms – quarterly Bank Statement of Financial Performance and quarterly Registered Financial Corporations Statement of Financial Performance; and
  • Economic Activity Survey

Taxes on products are added to derive a purchases price value. Taxes and subsidies on products are allocated to specific products using a number of methods. These include household final consumption expenditure proportions in the case of the Goods and Services Tax and supply proportions for other taxes on products.

  FISIM

 

  

FISIM is estimated as the difference between the interest rates on loans and deposits and a pure or reference rate of interest, multiplied by the level of loans and deposits, respectively. The total value of FISIM paid by households is calculated using data from the following sources:

  • Balance sheets:
  • Income and expenditure:
    • RBA: Annual Report; Financial Stability Report (6 monthly); Statement of Monetary Policy (quarterly);
    • ABS publications: Balance of Payments and International Investment Position; Statistics of Financial Institutions  (note: Statistics of Financial Institutions has ceased but for completeness it is included as the data in this publication still underpins the estimates);
    • ABS collections – Economic Activity Survey, quarterly Survey of Financial Information, Government Finance Statistics;
    • suite of APRA forms – quarterly Bank Statement of Financial Performance and quarterly Registered Financial Corporations Statement of Financial Performance;
    • APRA publications:  quarterly Banks, Building Societies and Credit Unions Performance Statistics; and
    • ad hoc reports: annual reports for small subsectors such as listed investment companies, bank annual reports and private consultant banking reports.
  • Interest rates:
    • RBA Statistical Bulletin.

To compile household final consumption expenditure FISIM estimates for banks, other depository corporations and securitisers, the total interest receivable and payable estimates by financial instruments (i.e. deposits, bills of exchange, one-name paper, bonds and loans) and counterparty sector and subsector flows for the following five sectors and subsectors are compiled:

  • Rest of the world;
  • Reserve Bank of Australia;
  • Banks;
  • Other depository corporations;
  • Securitisers.

Three datasets are required to compile the interest flows, namely:

  1. total interest payable and receivable;
  2. interest rates for relevant financial instruments for various sectors and subsectors; and
  3. balance sheets for the five sectors and subsectors.

The next step is to calculate FISIM for loans and deposits (banks and other depository corporations) and for loans (securitisers). That is:

  • For banks and other depository corporations, FISIM is derived as the sum of the counterparty sector and subsector stock levels of loans and deposits; that is:

[(counterparty loan rate – reference rate) * counterparty stock of loans] + [(reference rate – counterparty deposit rate) * counterparty stock of deposits]

where the reference rate is the mid-point between the average interest rate on loans and the average interest rate on deposits.

  • For securitisers, FISIM is derived as the sum of the counterparty sector and subsector stock levels of loans; that is:

[(counterparty loan rate – reference rate) * counterparty stock of loan]

where the reference rate is the weighted average bond yield.

The above calculations are undertaken in separate loan and deposit FISIM tables for each of the three FISIM generating institutions. Each table captures the counterparty sector and subsector loan and deposit balances, their respective interest flows and interest margins and the subsequent FISIM estimates.

The FISIM tables mentioned above for loans and deposits enable the allocation of FISIM by final use (i.e. household final consumption expenditure), exports and intermediate use directly.

  Supply and use balancing process for finance services

 

  

The initial data is compiled at the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

The SUPC level data are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results. For more information on the product flow method refer to Chapter 7.

 Volume estimates
  Explicit charges

 

  

Current price estimates of purchases of direct financial services by Australian residents are re-valued using relevant price deflators from the CPI.

  FISIM

 

  

The detailed information from the current price FISIM loan and deposit tables for the four financial intermediaries (i.e. banks, other depository corporations, central borrowing authorities and securitisers) are used to construct chain volume measures.

Chain volume FISIM measures are produced for the total, household final consumption expenditure, intermediate use of ownership of dwellings, intermediate use by general government, total intermediate use, exports and imports:

Laspeyres chain volume estimates of balances (loans and deposits) by counterparty sectors and subsectors are calculated by deflating the current price estimates using the All groups CPI.

The deflated loans and deposits are multiplied by the associated interest margin for the previous year to produce estimates of FISIM in prices of the previous year.

The estimates in the previous step are summed across the four financial intermediaries to produce Laspeyres chain volume estimates of total FISIM, final use (i.e. household final consumption expenditure), exports, imports, total intermediate use and dwellings and general government intermediate use.

Other goods and services
 Current price estimates

 

  

The Household Expenditure Survey provides the primary benchmarks for miscellaneous services including personal outlays on dry cleaning, photographic services, laundering, removalist services, funeral services and professional services (other than health care services) such as legal and accounting services.

The following scope and coverage adjustments are made:

  • coverage for remote and non-private dwellings which are not in scope of the HES;
  • to capture current expenditure of NPISH units providing professional services such as other social assistance services not elsewhere classified (including elderly, disabled, marriage and adoption services), legal services as compiled based on current grants from government to NPISH units as sourced from annual time series data from Government Finance Statistics;
  • to capture current grants and donations from corporations and households to NPISH units providing childcare services, interest groups not elsewhere classified (including welfare fundraising services) as extrapolated from the ABS publication, Australian National Accounts: Non-Profit Institutions Satellite Accounts, and
  • net expenditure overseas.

Current expenditure on NPISHs such as religious services are sourced from current grants and donations from corporations and households to NPISH units providing religious services extrapolated from the ABS publication, Australian National Accounts: Non-Profit Institutions Satellite Accounts.

For the years where HES data are not available, the annual estimate is the sum of the four quarters.

When the next HES benchmark becomes available a linear interpolation technique is used to align the current estimates to best fit the linear model between the two benchmarks.

The initial data is compiled according to the COICOP classification. This is mapped to the Input-Output Product Classification (IOPC) level. The IOPC level is then aggregated to the Supply-Use Product Classification (SUPC) level.

Supply and Use balancing process

The HFCE estimates at the SUPC level are inserted into the Use table which is balanced with the Supply table at the product level using the product flow method. Therefore, adjustments are likely to be applied to the initial HFCE estimate to obtain a balance between supply and use. The adjustments are determined by confronting the supply and use data with industry association data, annual reports of significant units within the industry, as well as other relevant ABS survey results.

For more information on the product flow method refer to Chapter 7.

 Volume estimates

 

  

Current price estimates on household expenditures on other goods and services by Australian residents are re-valued using relevant price deflators from the Consumer Price Index.

Latest year

10.63    For the majority of HFCE components, annual estimates are constructed by summing of the quarterly estimates for the years after the latest Supply and Use tables.

Sources and methods - Quarterly

10.64    The tables below outline the data sources and methods used in the estimation of quarterly household final consumption expenditure by COICOP category. They include both the current price estimates and volume estimates.

Table 10.14 Quarterly household final consumption expenditure — Food and non-alcoholic beverages
ItemComment
Current price estimates

 

Quarterly indicator series for Food and non-alcoholic beverages are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Surveys (RIS/WIS).

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for Food and non-alcoholic beverages past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas;
  • backyard production; and
  • underground (or cash) economy.
Volume estimates

 

Current price estimates of purchases of food and non-alcoholic beverages by Australian residents in Australia are re-valued using a weighted average of components from the CPI Food and non-alcoholic Beverages group.

Current price estimates of purchases of food and non-alcoholic beverages by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of Food and non-alcoholic beverages are derived by aggregating the elemental volume components above.

Table 10.15 Quarterly household final consumption expenditure — Alcoholic beverages
ItemComment
Current price estimates

 

Quarterly indicator series for Alcoholic beverages are derived by weighting together series from the ABS publication, Retail Trade, Australia and the quarterly Business Indicators: Australia, based on weights from the 20012-13 Retail and Wholesale Industries Surveys.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for Alcoholic beverages past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas;
  • backyard production; and
  • taxes refunded through the Tourist Refund Scheme.
Volume estimates

 

Current price estimates of purchases of alcohol by Australian residents in Australia are re-valued using a weighted average of components from the CPI Alcoholic beverages sub-group.

Current price estimates of purchases of alcohol by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of Alcoholic beverages are derived by aggregating the elemental volume components above.

Table 10.16 Quarterly household final consumption expenditure — Cigarettes and Tobacco
ItemComment
Current price estimates

 

The quarterly indicator for Cigarettes and tobacco is derived using price and quantity information sourced from the scanner data of the major supermarket chains. The data contains product codes (SKUs), product descriptions, prices, quantities and store metadata. SKUs are aggregated into five major categories: cartons, packs (normal cigarettes and cigars), grams of leaf tobacco sold, filters and papers.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for Cigarettes and tobacco past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
Volume estimates

 

Current price estimates of purchases of cigarettes and tobacco by Australian residents in Australia are re-valued using the CPI for Tobacco.

Current price estimates of purchases of cigarettes and tobacco by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of Cigarettes and tobacco are derived by aggregating the elemental volume components above.

Table 10.17 Quarterly household final consumption expenditure—Clothing and footwear
ItemComment
Current price estimates

 

Quarterly indicator series for Clothing and footwear are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Surveys.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for Clothing and footwear past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas;
  • repair and maintenance;
  • taxes refunded through the Tourist Refund Scheme; and
  • underground (or cash) economy.
Volume estimates

 

Current price estimates of purchases of clothing and footwear by Australian residents in Australia are re-valued using a weighted average of components from the CPI Clothing and footwear group.

Current price estimates of purchases of clothing and footwear by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of Clothing and footwear are derived by aggregating the elemental volume components above.

Table 10.18 Quarterly household final consumption expenditure — Housing, water, electricity, gas and other fuels
ItemComment
Imputed rentals for housing
 Current price estimates

 

 

Quarterly estimates of the imputed rent of owner-occupiers are obtained by multiplying the stock of owner-occupied dwellings by the average rent paid.

Information regarding the stock of owner-occupied dwellings and the rents paid for those dwellings are obtained from the Census of Population and Housing, conducted every five years.

The stock of owner-occupied dwellings includes all occupied private dwellings and a proportion of unoccupied private dwellings but excludes short-term caravans in caravan parks. Private dwellings include separate houses, duplexes, townhouses, flats (including those which are part of a building that is used for commercial purposes such as a retail shop) and caravans used for long-term accommodation.

For intercensal and post-Census periods, the stock is moved forward using the number of dwelling unit completions from the ABS publication, Building Activity, Australia. This is then modified by a factor to take account of other changes to the stock of dwellings; that is, demolitions, net conversions from commercial uses and dwelling completions not in the scope of the survey. For intercensal periods, this factor is calculated by dividing the change in the stock of owner-occupied dwellings between Census benchmarks by the total number of dwelling completions in the period. For the post-Census period, the factor is assumed to be the same as that for the latest intercensal period.

The benchmark average rent paid for owner-occupied dwellings is calculated by multiplying average rents reported in the Census (adjusted to exclude rents at less than market value) for privately rented dwellings in various categories (major urban, other urban, rural etc., cross-classified by the structure of the dwelling and number of bedrooms) by the number of owner-occupied dwellings in those same categories.

For intercensal and post-Census periods, the benchmark average rent paid is updated using data from the Survey of Income and Housing, and industry reports from Australian Property Monitors (APM) and the Real Estate Institute of Australia (REIA).

The latest benchmark of average rent paid is moved forward using a weighted average of price indexes from the CPI for privately-owned dwelling rents. The weights used have been derived from the Census of Population and Housing.

Separate estimates of imputed rentals for housing are published on an annual basis in Australian System of National Accounts.

 Volume estimates
  Chain volume estimates of imputed rentals for housing are derived using the relative proportion of the nominal current price values for imputed rentals to the sum of actual and imputed rentals for housing. The derived ratio is applied to the chain volume estimate for total dwelling rent.
Actual rentals for housing
 Current price estimates

 

 

Quarterly estimates of actual rent for housing is the difference between total dwelling rent and the imputed rent of owner-occupiers.

Separate estimates of actual rent for housing are published on an annual basis in Australian System of National Accounts.

 Volume estimates
  Chain volume estimates of actual rentals for housing are derived using the relative proportion of the nominal current price values for actual rentals to the sum of actual and imputed rentals for housing. The derived ratio is applied to the chain volume estimate for total dwelling rent.
Total dwelling rent
 Current price estimates

 

 

Quarterly estimates of total dwelling rent (the imputed rent of owner-occupiers plus actual rent paid by renters) are obtained by multiplying the total stock of dwellings by the average rent paid.

Similar to imputed rentals for housing, information regarding the stock of total dwellings and rents paid is obtained from the Census of Population and Housing.

The stock of total dwellings includes all occupied private dwellings and a proportion of unoccupied private dwellings but excludes short-term caravans in caravan parks. Private dwellings include separate houses, duplexes, townhouses, flats (including those which are part of a building that is used for commercial purposes such as a retail shop) and caravans used for long-term accommodation.

For intercensal and post-Census periods, the stock of total dwellings is again moved forward using the number of dwelling unit completions from the ABS publication,  Building Activity, Australia. This is then modified by a factor to take account of other changes to the stock of dwellings; that is, demolitions, net conversions from commercial uses, and dwelling completions not in the scope of the survey. For intercensal periods, this factor is calculated by dividing the change in the total stock of dwellings between Census benchmarks by the total number of dwelling completions in the period. For the post-Census period, the factor is assumed to be the same as that for the latest intercensal period.

The benchmark for average rent paid is calculated by multiplying the average rents reported in the Census (adjusted to exclude rents at less than market value) for privately rented dwellings in various categories (major urban, other urban, rural, etc., cross-classified by the structure of the dwelling and number of bedrooms) by the number of rented dwellings in those same categories.

For intercensal and post-Census periods, the benchmark average rent paid is updated using data from the Survey of Income and Housing, and industry reports from Australian Property Monitors and the Real Estate Institute of Australia.

The latest benchmark of average rent paid is moved forward using a weighted average of price indexes from the CPI for privately-owned and government-owned dwelling rents. The weights used have been derived from the Census of Population and Housing.

 Volume estimates

 

 

Quarterly volume estimates for total rent for housing are obtained by quantity revaluing the current price estimates using the average net capital stock of dwellings. Quarterly estimates of capital stock are derived by linearly interpolating and extrapolating the annual estimates.

Initial State allocations are derived using estimated resident population.

Other services related to the dwelling
 Current price estimates

 

 

Quarterly indicator series for other services related to the dwelling are derived by multiplying estimated resident population by the CPI for water and sewerage.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for other services related to the dwelling past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

No additional adjustments are made to current price estimates of other services related to the dwelling.

 Volume estimates
  Current price estimates of purchases of services relating to the dwelling by Australian residents are re-valued using the CPI for water and sewerage.
Total rent and other dwelling services
 Volume estimates
  Chain volume estimates of rent and other dwelling services are derived by aggregating the elemental volume estimates for these subcategories.
Electricity, gas and other fuels
 Current price estimates

 

 

Quarterly indicators for household expenditure on electricity and gas are derived using Energy Retailing Survey (ERS) data from the Survey of Consumer Sales (SOCS) in Table 17 of Retail Trade, Australia. The ERS covers registered electricity and gas suppliers to households.

The quarterly indicator series for other household fuels is derived from sales of heating oil and kerosene from the monthly Australian Petroleum Statistics report, published by the Department of Industry, Science, Energy and Resources (DISER), together with price data from the CPI for gas and other household fuels.

These indicator series are used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates for electricity and gas are derived from the national estimates using the relative proportions in the indicator series. Other household fuels is apportioned according to data from the Household Expenditure Survey, Australia: Summary of Results.

No additional adjustments are made to current price estimates of Electricity, gas and other fuels.

 Volume estimates
  Current price estimates of purchases of electricity, gas and other fuels by Australian residents are each re-valued using relevant components of the CPI Utilities sub-group.
Table 10.19 Quarterly household final consumption expenditure — Furnishings and household equipment
ItemComment
Furniture and furnishings, carpets and other floor coverings
 Current price estimates

 

 

Quarterly indicator series for furniture and furnishings, carpets and other floor coverings are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Surveys.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for furniture and furnishings, carpets and other floor covering past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas;
  • taxes refunded through the Tourist Refund Scheme; and
  • underground (or cash) economy.
 Volume estimates

 

 

Current price estimates of purchases of furniture and furnishings, carpets and other floor coverings in Australia are re-valued using the CPI for Furniture and furnishings.

Household textiles
 Current price estimates

 

 

Quarterly indicator series for household textiles are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Surveys.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for household textiles past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas; and
  • taxes refunded through the Tourist Refund Scheme.
 Volume estimates

 

 

Current price estimates of purchases of household textiles in Australia are re-valued using a weighted average of relevant components from the CPI.

Household appliances
 Current price estimates

 

 

Quarterly indicator series for household appliances are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for household appliances past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas;
  • taxes refunded through the Tourist Refund Scheme; and
  • repairs and maintenance.
 Volume estimates

 

 

Current price estimates of purchases of household appliances in Australia are re-valued using a weighted average of relevant components from the CPI Household appliances, utensils and tools sub-group.

Glassware, tableware and household utensils
 Current price estimates

 

 

Quarterly indicator series for glassware, tableware and household utensils are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for glassware, tableware and household utensils past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas; and
  • taxes refunded through the Tourist Refund Scheme.
 Volume estimates

 

 

Current price estimates of purchases of glassware, tableware and household utensils in Australia are re-valued using a weighted average of relevant components from the CPI Household appliances, utensils and tools sub-group.

Tools and equipment for house and garden
 Current price estimates

 

 

Quarterly indicator series for tools and equipment for house and garden are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for tools and equipment for house and garden past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas;
  • taxes refunded through the Tourist Refund Scheme; and
  • repairs and maintenance.
 Volume estimates

 

 

Current price estimates of purchases of tools and equipment for house and garden in Australia are re-valued using the CPI for Tools and equipment for house and garden.

Non-durable household goods
 Current price estimates

 

 

Quarterly indicator series for non-durable household goods are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for non-durable household goods past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas;
  • taxes refunded through the Tourist Refund Scheme; and
  • repairs and maintenance.
 Volume estimates

 

 

Current price estimates of purchases of non-durable household goods in Australia are re-valued using a weighted average of relevant components from the CPI.

Total furnishings and household equipment
 Volume estimates

 

 

Current price estimates of purchases of furnishings and household equipment by non-residents in Australia are re-valued using a weighted average of relevant components from the CPI.

Current price estimates of purchases of furnishings and household equipment by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

In deriving the chain volume estimates of furnishings and household Equipment, the elemental volume estimate of purchases by non-residents in Australia is subtracted from the sum of the other elemental volume components above.

 

Table 10.20 Quarterly household consumption expenditure—Health
ItemComment
Medicines, medical aids and therapeutic appliances
 Current price estimates

 

 

Quarterly indicator series for total expenditure on medicines, medical aids and therapeutic appliances are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The indicator includes both household (out-of-pocket) and government (benefit) expense. HFCE captures the out-of-pocket expenditure of households on medicines, medical aids and therapeutic appliance, so an adjustment is made to remove the government contribution. Government Finance Statistics provide an estimate of the benefits paid by the Government as part of the Pharmaceutical Benefits Scheme. This estimate, at the national level, is apportioned across each State and Territory based on the relative proportions in the indicator series above.

These amounts are then deducted from the retail-based series to obtain indicators for household expenditure on medicines, medical aids and therapeutic appliances.

The national indicator derived from this process is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for medicines, medical aids and therapeutic appliances past the latest available benchmark.

State/Territory estimates are derived from the national estimate using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.

A further adjustment is made to remove cosmetic and toiletry goods retailing which is included in the Retail Trade indicator for medicines, medical aids and therapeutic appliances. Cosmetic and toiletry goods retailing products are captured in personal care products under the Other goods and services COICOP category.

 Volume estimates

 

 

Current price estimates of purchases of medicines, medical aids and therapeutic appliances in Australia are re-valued using the CPI for Pharmaceutical products.

Ambulatory health care
 Current price estimates

 

 

Quarterly indicator series for total expenditure on ambulatory health care are compiled using data from Services Australia on the fees charged for medical services and procedures where Medicare benefits were paid, as well as information from the Private Health Insurance Administration Council’s (PHIAC) A report on the private health insurance claims by households.

Government Finance Statistics provide an estimate of the benefits paid by the Government under Medicare. This estimate, at the national level, is apportioned across each State and Territory based on the relative proportions in the indicator series above.

These amounts are deducted from DoH and PHIAC based series to obtain indicators for household expenditure on ambulatory health care.

The national indicator derived from this process is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for ambulatory health care past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
 Volume estimates

 

 

Current price estimates of purchases of ambulatory health care in Australia are re-valued using relevant components from the CPI Health group.

Hospital, ambulance services and nursing home care
 Current price estimates

 

 

The Private Health Insurance Administration Council’s series on health insurance benefits paid for hospital care is used as the quarterly indicator for household expenditure on private hospitals.

The indicator for fees paid to public hospitals, nursing homes, and for ambulance services is data from the Department of Health on the fees charged for medical services and procedures where Medicare benefits were paid.

These indicators are used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for hospital, ambulance services and nursing home care past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas
 Volume estimates

 

 

Current price estimates of purchases of hospital, ambulance services and nursing home care are re-valued using relevant component of the CPI Medical, dental and hospital services sub-group.

Total Health
 Volume estimates

 

 

Current price estimates of purchases of health by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Current price estimates of purchases of health by non-residents in Australia as re-valued using a weighted average of relevant components from the CPI Health group.

In deriving chain volume estimates of health, the elemental volume estimate of purchases by non-residents in Australia is subtracted from the sum of the other elemental volume components above.

 

Table 10.21 Quarterly household final consumption expenditure—Transport
ItemComment
Purchase of vehicles
 Current price estimates
  New motor vehicles

 

  

The number of new motor vehicle sales by type of vehicle and sector (private, business and government), and the average price of these sales are obtained quarterly from the Federal Chamber of Automotive Industries’ VFACTS report.

From these data, the quarterly indicator series for purchase of new motor vehicles is derived by multiplying the number of sales of each type of vehicle by their average sale price and aggregating.

The indicators for all the subcomponents of this COICOP category (New motor vehicles, used vehicles from other sectors and Dealers’ margins) are summed to derive an indicator for total purchase of vehicles. The aggregated indicator is used to allocate benchmarked annual estimates of purchase of vehicles to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

The national estimate for purchase of vehicles is apportioned across each State/Territory using the relative proportions in the indicator series.

No additional adjustments are made to current price estimates of new motor vehicles purchases.

  Used vehicles from other sectors

 

  

Quarterly indicator series for purchases of used vehicles from other sectors are based on movements in the average value of new motor vehicle purchases from [q-6] to [q-12].

The indicators for all the subcomponents of this COICOP category (New motor vehicles, used vehicles from other sectors and Dealers’ margins) are summed to derive an indicator for total purchase of vehicles. The aggregated indicator is used to allocate benchmarked annual estimates of purchase of vehicles to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

The national estimate for purchase of vehicles is apportioned across each State/Territory using the relative proportions in the indicator series.

No additional adjustments are made to current price estimates of used vehicles from other sectors.

  Dealers’ margins

 

  

Quarterly indicator series for dealers’ margins on used vehicles traded between households through dealers are based on movements in the average value of new motor vehicle purchases from [q-6] to [q-12].

The indicators for all the subcomponents of this COICOP category (New motor vehicles, used vehicles from other sectors and Dealers’ margins) are summed to derive an indicator for total purchase of vehicles. The aggregated indicator is used to allocate benchmarked annual estimates of purchase of vehicles to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

The national estimate for purchase of vehicles is apportioned across each State/Territory using the relative proportions in the indicator series.

No additional adjustments are made to current price estimates of dealers’ margins.

 Volume estimates

 

  

Current price estimates of purchases of motor vehicles by Australian residents in Australia are re-valued using the CPI for Motor vehicles.

Current price estimates of purchases of motor vehicles by Australian residents overseas are re-valued using a composite index of overseas CPIs.

Chain volume estimates of purchase of vehicles are derived by summing the elemental volume components above.

Operation of personal transport equipment
 Current price estimates
  Motoring goods

 

  

The quarterly indicator for household expenditure on fuel is derived from petroleum sales volumes from the Department of Industry, Science, Energy and Resources (DISER) publication, Australian Petroleum Statistics, together with price data from the CPI for Automotive fuel.

The quarterly indicator for household purchases of tyres is private kilometres travelled from the Survey of Motor Vehicle Use (SMVU) multiplied by the CPI for Spare parts and accessories for motor vehicles.

The quarterly indicator for household expenditure on batteries and car accessories is derived from the number of vehicles registered to households and price data from the CPI.

These indicators are aggregated to derive an indicator for total motoring goods, which is then used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

The national estimate for motoring goods is apportioned across each State and Territory by applying weights derived from the Household Expenditure Survey, Australia: Summary of Results.

The following adjustment is made:

  • net expenditure overseas.
  Repair and maintenance expenditure

 

  

The quarterly indicator for household expenditure on repairs and servicing is private kilometres travelled from the SMVU, multiplied by the CPI for Maintenance and repair of motor vehicles.

For panel beating and smash repairs, the indicator is the number of vehicles registered to households multiplied by the CPI for Motor vehicle insurance.

These indicators are aggregated to derive an indicator for total repair and maintenance expenditure, which is then used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

The national estimate for repair and maintenance expenditure is apportioned across each State and Territory by applying weights derived from the Household Expenditure Survey, Australia: Summary or Results.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
  Miscellaneous motoring expenditure

 

  

The quarterly indicator for miscellaneous motoring expenses paid by households is the CPI for Other services in respect of motor vehicles multiplied by the number of vehicles registered to households.

This indicator is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

The national estimate for miscellaneous motoring expenditure is apportioned across each State and Territory by applying weights derived from the Household Expenditure Survey, Australia: Summary of Results.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
 Volume estimates

 

  

Current price estimates of expenditures on operation of vehicles by Australian residents in Australia are each re-valued using relevant components of the CPI Private motoring sub-group.

Current price estimates of expenditures on operation of vehicles by non-residents in Australia are re-valued using a weighted average of relevant components from the CPI.

Current price estimates of expenditures on operation of vehicles by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

In deriving volume estimates of operation of vehicles, the elemental volume estimate of purchases by non-residents in Australia is subtracted from the total of the other elemental volume components above.

Transport services
 Passenger transport by railway
  Current price estimates

 

  

Quarterly indicator series for passenger transport by railway are derived using the revenue data of government transport authorities, from Government Finance Statistics, and data from private operators of rail services.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for passenger transport by railway past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
  Volume estimates

 

  

Current price estimates of expenditures on passenger transport by railway in Australia are re-valued using the CPI for Urban transport fares.

 Passenger transport by road
  Current price estimates

 

  

Quarterly indicator series for household expenditure on bus fares is derived using the revenue data of government transport authorities, from Government Finance Statistics, and data from major private operators of bus services.

For expenditure on taxi and hire car charges, the indicator is the CPI price data on taxi fares, multiplied by an estimate of usage.

These indicators are used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas; and
  • underground (or cash) economy.
  Volume estimates

 

  

Current price estimates of expenditures on passenger transport by road in Australia are each re-valued using relevant components of the CPI Transport group.

 Passenger transport by air
  Current price estimates

 

  

The quarterly indicator series for domestic air fares is based on revenue data provided by the major airlines.

For international air fares, the indicator is derived using data on imports of transportation services from the ABS Balance of Payments and revenue information provided by the major airlines.

These indicator series are aggregated to derive an indicator for total passenger transport by air, which is then used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

The national estimates for passenger transport by air are apportioned across each State and Territory by applying weights derived from the Household Expenditure Survey, Australia: Summary of Results.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
  Volume estimates
   Current price estimates of expenditures on passenger transport by air in Australia are re-valued using relevant components of the CPI Holiday travel and accommodation sub-group.
 Passenger transport by sea and inland water
  Current price estimates

 

  

Quarterly indicator series for household expenditure on domestic passenger transport by sea are derived using the revenue data of public transport authorities, from Government Finance Statistics.

For international shipping fares, the quarterly data are moved forward using a constant growth rate.

These indicator series are aggregated to derive an indicator for total passenger transport by sea and inland water, which is then used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
  Volume estimates

 

  

Expenditures on domestic shipping fares in Australia are re-valued using the CPI for Urban transport fares.

Expenditures on overseas shipping fares in Australia are re-valued using a specially constructed cruise ship price index.

Total transport services
 Volume estimates

 

  

Current price estimates of expenditure on transport services by non-residents in Australia are re-valued using the CPI for Urban transport fares.

Current price estimates of expenditures on transport services by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

In deriving the chain volume estimates of transport services, the elemental volume estimate of expenditure by non-residents in Australia is subtracted from the total of the other elemental volume components above.

 

Table 10.22 Quarterly household final consumption expenditure — Communications
ItemComment
Postal services
 Current price estimates

 

 

The quarterly indicator series for postal services is estimated from data provided by Australia Post on the sales of stamps and postage labels, and the hire of mail boxes and bags.

This indicator is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for postal services past the latest available benchmark.

The national estimate is apportioned across each State and Territory by applying weights derived from the Household Expenditure Survey, Australia: Summary of Results.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
 Volume estimates
  

Current price estimates of expenditures on postal services in Australia are re-valued using the CPI for Postal services.

Telecommunication services
 Current price estimates

 

 

The quarterly indicators for household expenditure on telephone and internet services are derived using the SOCS Communications Services Survey (CSS) in Table 17 of Retail Trade, Australia. The CSS covers registered telecommunication providers to households.

The quarterly indicators for telephone and internet services are aggregated to derive an indicator for total telecommunication services, which is then used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

The national estimate for telecommunication services is apportioned across each State and Territory by applying weights derived from the Household Expenditure Survey, Australia: Survey of Results.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
 Volume estimates

 

 

Current price estimates of expenditures on telecommunication services in Australia are re-valued using the CPI for Telecommunication equipment and services.

Total communications services
 Volume estimates

 

 

Current price estimates of expenditure on communication services by non-residents in Australia are re-valued using the CPI for Communication.

Current price estimates of expenditures on communication services by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

In deriving the chain volume estimates of communication services, the elemental volume estimate of expenditure by non-residents in Australia is subtracted from the total of the other elemental volume components above.

Table 10.23 Quarterly household final consumption expenditure — Recreation and culture
ItemComment
Goods for recreation and culture
 Audio visual, photographic and data processing equipment and accessories
  Current price estimates

 

  

Quarterly indicator series for audio visual, photographic and data processing equipment and accessories are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas; and
  • taxes refunded through the Tourist Refund Scheme.
  Volume estimates

 

  

Current price estimates of purchases of audio-visual, photographic and information processing equipment excluding computers in Australia are re-valued using a weighted average of relevant components from the CPI Audio, visual and computing equipment and services sub-group.

Current price estimates of purchases of computer equipment in Australia are re-valued using the CPI for Computing equipment.

Current price estimates of purchases of audio-visual, photographic and information processing equipment by non-residents in Australia are re-valued using a weighted average of relevant components from the CPI Audio, visual and computing equipment and services sub-group.

Current price estimates of purchases of audio-visual, photographic and information processing equipment by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

In deriving the chain volume estimates of audio-visual, photographic and information processing equipment, the elemental volume estimate of expenditure by non-residents in Australia is subtracted from the total of the other elemental volume components above.

Other major durables for recreation and culture
 Current price estimates

 

  

Quarterly indicator series for other major durables for recreation and culture are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for other major durables for recreation and culture past the latest available benchmark.

State/Territory estimates are derived from the national estimate using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas
 Volume estimates

 

  

Current price estimates of purchases of other major durables for recreation and culture by Australian residents in Australia are re-valued using a weighted average of components from the CPI Recreation and culture group.

Current price estimates of purchases of other major durables for recreation and culture by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of other major durables for recreation and culture are derived by aggregating the elemental volume components above.

Other recreational items and equipment
 Current price estimates

 

  

For each of the components of other recreational items and equipment, quarterly indicator series are derived by weighting together the series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The indicator at the national level for each of these components is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas;
  • taxes refunded through the Tourist Refund Scheme; and
  • repairs and maintenance.
 Volume estimates

 

  

Current price estimates of purchases of other recreational items and equipment by Australian residents in Australia are re-valued using a weighted average of relevant components from the CPI.

Current price estimates of purchases of other recreational items and equipment by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of other recreational items and equipment are derived by aggregating the elemental volume components above.

 Volume estimates
   Chain volume estimates of goods for recreation and culture are derived by aggregating the elemental volume components for the three subcategories above.
Recreational and cultural services
 Sporting and recreational services
  Current price estimates

 

  

The quarterly indicator series for sporting and recreational services is estimated resident population multiplied by the CPI for Sports participation.

This indicator is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for Sporting and recreational services past the latest available benchmark.

The national estimate is apportioned across each State and Territory by applying weights derived from the Household Expenditure Survey, Australia: Summary of Results.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
  Volume estimates

 

  

Current price estimates of expenditures on sporting and recreational services in Australia are re-valued using the CPI for Sports participation.

Cultural and entertainment services
 Current price estimates

 

  

The quarterly indicator for cinema and other admissions is box office takings provided by the Motion Picture Distributors Association of Australia (MPDAA). For Pay TV, the indicator is revenue information from major service providers.

The quarterly indicator for television and video hire is moved forward using series from the ABS publication, Retail Trade, Australia.

Quarterly indicator series for veterinary and other services for pets are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The above indicators are used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates for Cinema and other admissions and Pay TV are derived from the national estimates by applying weights from the Household Expenditure Survey, Australia: Summary of Results. State/Territory estimates of Television and video hire and Veterinary and other services for pets are calculated using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas;
  • taxes refunded through the Tourist Refund Scheme; and
  • underground (or cash) economy.
 Volume estimates

 

  

Current price estimates of expenditures on cultural and entertainment services in Australia are re-valued using a weighted average of relevant components from the CPI Recreation and culture group.

Net losses from gambling
 Current price estimates

 

  

Quarterly indicators for net losses by resident households on gambling are derived using data provided by Government Finance Statistics. These data include taxes levied on gaming machines, casinos and racing, lottery ticket sales and prizes paid, and TAB turnover and dividends paid.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for net losses from gambling past the latest available benchmark.

State/Territory estimates are derived from the national estimate using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
 Volume estimates

 

  

Current price estimates of net losses from gambling in Australia are re-valued using the All groups CPI excluding medical and hospital services. This treatment is not an attempt to measure the quantum of gambling as such, but rather to estimate the purchasing power, over other consumer goods and services, attributable to net losses from gambling.

Total recreational and cultural services
 Volume estimates

 

  

Current price estimates of expenditure on recreational and cultural services by non-residents in Australia are re-valued using the CPI for Services.

Current price estimates of expenditures on recreational and cultural services by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

In deriving the chain volume estimates of recreational and cultural services, the elemental volume estimate of expenditure by non-residents in Australia is subtracted from the total of the other elemental volume components above.

Newspapers, books and stationery
 Current price estimates

 

  

Quarterly indicator series for newspapers, books and stationery are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for newspapers, books and stationery past the latest available benchmark.

State/Territory estimates are derived from the national estimate using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas; and
  • underground (or cash) economy.
 Volume estimates

 

  

Current price estimates of purchases of newspapers, books and stationery by Australian residents in Australia are re-valued using the CPI for Newspapers, books and stationery.

Current price estimates of purchases of newspapers, books and stationery by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of newspapers, books and stationery are derived by aggregating the elemental volume components above.

Total recreation and culture services
 Volume estimates
   Chain volume estimates of recreation and culture are derived by aggregating the elemental volume estimates for its subcategories.
Table 10.24 Quarterly household final expenditure —Education services
ItemComment
Education services
 Current price estimates
  Tertiary education

 

  

Data on government receipts from the Higher Education Contribution Scheme (HECS), obtained from the Government Finance Statistics, is used as the indicator to compile estimates of expenditure on HECS.

Quarterly indicator series for the remaining components of tertiary education are derived by multiplying estimated resident population by the CPI for Tertiary education.

The indicators for all the subcomponents of this COICOP category are summed to derive an indicator for total education. The aggregated indicator is used to allocate benchmarked annual estimates of education to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
  Post-secondary education

 

  

Quarterly indicator series for post-secondary education is derived by multiplying estimated resident population by the CPI for Secondary education.

The indicators for all the subcomponents of this COICOP category are summed to derive an indicator for total education. The aggregated indicator is used to allocate benchmarked annual estimates of education to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the National estimates using the relative proportions in the indicator series.

The following adjustment is made:

  • net expenditure overseas.
  Primary and secondary education

 

  

The quarterly indicators for household expenditure on government primary and secondary education are benchmarked to the Household Expenditure Survey, Australia: Summary of Results, and moved forward using estimated resident population and CPI price data.

Similarly for private tutoring services, the indicator series are benchmarked to the Household Expenditure Survey, Australia: Summary of Results and moved forward using estimated resident population and the CPI for Secondary education.

Quarterly indicator series for private primary and secondary education are derived by multiplying estimated resident population by the CPI for Secondary education.

The indicators for all the subcomponents of this COICOP category are summed to derive an indicator for total education. The aggregated indicator is used to allocate benchmarked annual estimates of education to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
  Preschools

 

  

The quarterly indicators for preschool education are benchmarked to the Household Expenditure Survey, Australia: Summary of Results and moved forward using estimated resident population and the CPI for Preschool and primary education.

The indicators for all the subcomponents of this COICOP category are summed to derive an indicator for total education. The aggregated indicator is used to allocate benchmarked annual estimates of education to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
 Volume estimates

 

  

Current price estimates of purchases of education services by Australian residents in Australia are re-valued using the CPI for Education.

Current price estimates of purchases of education services by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of education services are derived by aggregating the elemental volume components above.

Table 10.25 Quarterly household final consumption expenditure — Hotels, catering and restaurants
ItemComment
Catering
 Current price estimates

 

 

Quarterly indicator series for catering are derived by weighting together series from the ABS publications, Retail Trade, Australia and Business Indicators, Australia, based on weights from the 2005-06 Retail and Wholesale Industries Survey.

The indicator at the national level is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates for catering past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas; and
  • underground (or cash) economy.

 

 Volume estimates

 

 

Current price estimates of expenditure on catering services by Australian residents in Australia are re-valued using a weighted average of relevant components from the CPI.

Current price estimates of expenditure on catering services by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of catering services are derived by aggregating the elemental volume components above.

Accommodation services
 Current price estimates

 

 

Quarterly indicators for Temporary accommodation services are derived from accommodation turnover data from Business Indicators, Australia.

For hostel accommodation for the aged or handicapped, the indicator is the All groups CPI multiplied by estimated residential population.

These indicators are used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
 Volume estimates

 

 

Current price estimates of purchases of accommodation services by Australian residents in Australia are re-valued using the CPI for Domestic holiday travel and accommodation.

Current price estimates of purchases of accommodation services by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of accommodation services are derived by aggregating the elemental volume components above.

Total hotel, cafes and restaurants services
 Volume estimates
  

Chain volume estimates of hotels, cafes and restaurants are derived by aggregating the elemental volume estimates.

Table 10.26 Quarterly household final consumption expenditure — Miscellaneous goods and services
ItemComment
Personal care
 Current price estimates

 

  

The quarterly indicator series for hairdressers and beauty salons are benchmarked to the Household Expenditure Survey, Australia: Summary of Results  and moved forward using series from the ABS publication, Retail Trade, Australia.

For perfumes and cosmetics, quarterly indicator series are derived by weighting together series from the ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey.

The indicators for these two subcomponents are used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas;
  • taxes refunded through the Tourist Refund Scheme; and
  • underground (or cash) economy.
 Volume estimates

 

  

Current price estimates of purchases of personal care by Australian residents in Australia are re-valued using a weighted average of relevant components from the CPI Furnishings, household equipment and services group.

Current price estimates of purchases of personal care by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of personal care are derived by aggregating the elemental volume components above.

Personal effects
 Current price estimates

 

  

The ABS publication, Retail Trade, Australia  is used as the indicator to derive quarterly estimates for this series.

Quarterly indicator series for both jewellery, watches and clocks and Other personal effects are derived by weighting together series from ABS publication, Retail Trade, Australia, based on weights from the 2012-13 Retail and Wholesale Industries Survey (RIS/WIS).

These indicators at the national level are used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the national estimates using the relative proportions in the indicator series.

The following scope and coverage adjustments are made:

  • net expenditure overseas; and
  • taxes refunded through the Tourist Refund Scheme.
 Volume estimates

 

  

Current price estimates of purchases of personal effects by Australian residents in Australia are re-valued using a weighted average of relevant components from the CPI.

Current price estimates of purchases of personal effects by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of personal effects are derived by aggregating the elemental volume components above.

Insurance
 Current price estimates
  Homeowner and household insurance
   Quarterly estimates of the insurance service charge for general insurance of householders' effects are derived using linear trend interpolation and extrapolation of the annual estimates.
  Motor vehicle insurance
   Quarterly estimates of the insurance service charge for motor vehicle insurance are derived using linear trend interpolation and extrapolation of the annual estimates.
  Health insurance
   Quarterly estimates of the insurance service charge for health insurance are derived using linear trend interpolation and extrapolation of the annual estimates.
  Other non-life insurance by households as consumers
   Quarterly estimates of the insurance service charge for other non-life insurance are derived using linear trend interpolation and extrapolation of the annual estimates.
  Life insurance and superannuation

 

  

Quarterly estimates of Life insurance and superannuation are derived using an indicator of the insurance service charge for pension funds and life insurance. (See the methodology for current price insurance services output indicator described for quarterly gross value added (GVA), Insurance and superannuation funds in Table 9.64.)

This indicator is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

  Workers’ compensation insurance

 

  

Quarterly estimates of Workers' compensation are derived using linear trend interpolation and extrapolation of the annual estimates.

 Volume estimates

 

  

Current price estimates of purchases of non-life insurance of householders' effects, other non-life insurance, health insurance and life insurance by Australian residents in Australia are each re-valued using the All groups CPI.

Current price estimates of purchases of motor vehicle insurance by Australian residents in Australia are re-valued using the CPI for Vehicle insurance.

Current price estimates of purchases of workers' compensation by Australian residents in Australia are re-valued using the relevant component of the Wage Price Index.

Current price estimates of purchases of insurance by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of Insurance are derived by aggregating the elemental volume components above.

Financial services
 Current price estimates

 

  

Quarterly estimates for the explicit charges levied by financial institutions are obtained by linear interpolation and extrapolation of the annual estimates.

Taxes on financial transactions passed on to households are set to a fixed value each quarter.

Quarterly estimates of Financial Intermediation Services Indirectly Measured (FISIM) are obtained using an indicator of the household use of FISIM generated by banks (see the methodology for quarterly gross operating surplus (GOS), financial corporations and quasi-corporations in Table 11.25.)

This indicator is used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

The following scope and coverage adjustments are made:

  • net expenditure overseas.
 Volume estimates

 

  

Current price estimates of purchases of explicitly charged financial services by Australian residents in Australia are re-valued using the All groups CPI.

Current price estimates of taxes levied on financial transactions are re-valued using the All groups CPI excluding Housing.

Quarterly estimates of FISIM are obtained using a chain volume indicator of the household sector's use of FISIM generated by banks. (See the methodology for the quarterly gross value-added finance services described in Table 9.62.) This methodology derives a chain volume estimate for bank total FISIM output and the share of its use allocated to household final consumption expenditure (HFCE).

Current price estimates of purchases of financial services by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of financial services are derived by aggregating the elemental volume components above.

Total insurance and other financial services
 Volume estimates

 

  

Chain volume estimates of insurance and other financial services are derived by aggregating the elemental volume estimates for these subcategories.

Other services
 Current price estimates
  Personal outlays on miscellaneous services

 

  

For dry cleaning and laundering services, the quarterly indicator is estimated resident population multiplied by the CPI for Repairs to household durables.

The quarterly indicator for repair and maintenance not elsewhere included is derived using the estimated resident population estimates and the CPI for Hairdressing and personal grooming services.

For expenditure on funerals, the quarterly indicator is the number of deaths, taken from the ABS publication, National, State and Territory Population.

The quarterly indicators for estimates of household expenditure on child care services are the number of children under 10, from the ABS publication, National, State and Territory Population, and the CPI for Child care.

Household expenditure on photographic services is estimated using the CPI for Photographic services as the indicator.

Estimates of domestic services are moved forward quarterly using estimated resident population and the CPI for Gardening services.

Household expenditure on removalists' services, advertising services, services to students at post-secondary institutions, professional services other than health and other miscellaneous services are all derived using the CPI for Services as the indicator.

The above indicators are used to allocate benchmarked annual estimates to the four quarters of the year, as well as to derive quarterly estimates past the latest available benchmark.

State/Territory estimates are derived from the National using the relative proportions in the indicator series.

Estimates of expenditure on public authority fees (such as passport and marriage certificate charges) are moved forward quarterly using a constant growth rate.

The following scope and coverage adjustments are made:

  • net expenditure overseas; and
  • underground (or cash) economy.
  NPISH

 

  

Quarterly estimates of the current expenditure of non-profit institutions serving households (NPISHs) not elsewhere covered are moved forward using a constant growth rate.

 Volume estimates

 

  

Current price estimates of purchases of other services by Australian residents in Australia are re-valued using relevant components of the CPI and Wage Price Index (WPI).

Current price estimates of purchases of other services by Australian residents overseas are re-valued using a composite index of overseas CPIs adjusted for exchange rate changes.

Chain volume estimates of other services are derived by aggregating the elemental volume components above.

Total other goods and services (i.e. personal care, personal effects and other services)
 Volume estimates
   Chain volume estimates of other goods and services are derived by aggregating the elemental volume estimates for its subcategories.
Total miscellaneous services
 Volume estimates
   Chain volume estimates of miscellaneous goods and services are derived by aggregating the elemental volume components for Insurance and other financial services and other goods and services.