Latest release

Chapter 9 Gross Domestic Product - Production approach (GDP(P))

Australian System of National Accounts: Concepts, Sources and Methods

Reference period

2020-21 financial year

Released

9/07/2021

Next release Unknown

Components of GDP(P)

9.1 GDP is the national accounting measure of production occurring in a whole economy during an accounting period (e.g. a quarter or a year). GDP is based on the concept of value added, which is the unduplicated value of goods and services produced in any given period. Gross value added at basic prices is equal to the total value of outputs at basic prices less the total intermediate consumption at purchasers' prices. GDP at purchasers' prices is equal to the sum of the gross value added at basic prices of all resident producers plus taxes on products payable less subsidies on products receivable. This measure is commonly referred to as GDP(P); that is:

GDP(P)	=	Gross value added
	+	Taxes on products
	-	Subsidies on products
	=	Output
	-	Intermediate consumption
	+	Taxes on products
	-	Subsidies on products

9.2 The following describes the components of GDP(P) and how they are valued in concept.

Output

9.3 Output consists of the value of goods and services produced within a type of activity unit (TAU). Output includes production that is completed in the accounting period as well as production in the accounting period that remains incomplete at the end of that accounting period. Goods and services produced as outputs may be:

sold at 'economically significant' prices (i.e. prices which have a significant influence on both the amounts producers are willing to supply and the amounts purchasers wish to buy);
bartered in exchange for other goods, services or assets that are provided to employees as compensation in kind, or used for other payments in kind;
held as unsold 'finished' goods in the producers' inventories for subsequent sale, or held as work-in-progress in producers' inventories;
supplied to another TAU belonging to the same enterprise as intermediate inputs into the latter's production;
retained by the producers for own final consumption or gross fixed capital formation; and
supplied free, or sold at prices that are not economically significant, to other institutional units (including households), as often occurs in the case of output of general government units and non-profit institutions.

9.4 The output of a TAU is defined as the value of total sales or other uses of goods (including capital work done on own account) and services produced as outputs plus the value of changes in the inventories of work-in-progress and finished goods produced as outputs. Three categories of output are recognised for national accounting purposes: market output, output produced for own final use and non-market output. The distinction is necessary to obtain an accurate valuation of output for each. The determining factor for market and non-market output is whether or not the unit sets economically significant prices.

Market output

9.5 Market output is output that is sold at economically significant prices or otherwise disposed of on the market, or output that is intended for sale or disposal on the market. Market output includes the value of goods or services bartered, supplied by one establishment to another in the same institutional unit for use as intermediate consumption, used for payments in kind, or margins on the supply of goods and services (including transport and financial services). Market output also includes the value of changes in inventories of finished goods and work-in-progress intended for disposal on the market.

9.6 Sales of goods are to be recorded when the ownership of the goods passes from the producer to the purchaser or when the services are provided to the purchaser. The valuation is at basic prices.

9.7 The valuation of changes in inventories poses special problems in a national accounting context. Changes in the valuation of inventories held at particular points in time can include the effects of price changes, as well as additions to and subtractions from inventories. As such, holding gains or losses are not the result of production, they are excluded from the value of output in the national accounts. Accordingly, values of inventories used in measuring changes in inventories need to be adjusted to exclude them. In the ASNA, this adjustment is known as the inventory valuation adjustment (IVA).

Output for own final use

9.8 Output for own final use includes output for own final consumption and output for own gross fixed capital formation.

Output for own final consumption
- Consists of goods and services that are produced for final use by the owners of the enterprises in which they are produced. Corporations have no final consumption (only intermediate consumption used in producing their outputs), and output for own final consumption is produced only by unincorporated enterprises. Two examples of such output are agricultural goods produced and consumed by members of the same household and rent of owner-occupied dwellings.
Output used for own gross fixed capital formation
- Goods or services used for own gross fixed capital formation can be produced by any kind of unit, whether incorporated or unincorporated. Examples are machinery or equipment produced by an establishment for use in the same establishment and the construction, extension, or alteration of an establishment's building by the enterprise owning the establishment. In the ASNA, imputations are made of the value added by owner-builders in the construction, alteration, or extension of their dwellings and for significant own-account construction carried out by private and public enterprises. An imputation is also made for computer software and research and development made on own account.

9.9 Output for own final use should be valued at the basic price at which the goods or services could be sold on the market; that is, the price that would prevail between a willing buyer and willing seller at the time and place the goods and services are produced. In the case of agricultural produce, the nearest equivalent price is likely to be the 'farm-gate' price; that is, the price the farmer could receive by selling the produce to a purchaser who comes to the farm to collect the produce.

9.10 When reliable market prices cannot be obtained, the value of output for own final use is the sum of costs of production; that is, the sum of intermediate consumption; compensation of employees; consumption of fixed capital; a net return to fixed capital; and other taxes (less subsidies) on production. Where the own-account production is undertaken by a non-market producer, net return to fixed capital is not included.

9.11 The ASNA also includes limited examples of output for own intermediate use in both the value of output and intermediate consumption. The two examples include the use of brown coal by electricity producers (where that coal is mined on-site and not charged for) and own-account production of electricity, where TAUs generate electricity which they use themselves. The choice to include these values was driven by a desire to fully reflect the input structure of the industries in question, and as the same values are added to both output and intermediate consumption, the inclusion does not affect gross value added.

Non-market output

9.12 Non-market output consists of goods and services produced by non-profit institutions serving households (NPISH) or general government units and supplied free, or at prices that are not economically significant, to other institutional units or to the community as a whole. For general government output, economically significant prices may not be charged to users. The reasons are that the consumption of the goods or services cannot be monitored or controlled, as is the case with public administration and defence, or that governments make policy decisions not to charge the full cost, as with education and health services. Likewise, NPISH often do not fully charge for their services because such institutions are formed to provide services to members or the needy.

9.13 The non-market output of general government units and NPISH is valued at the costs of producing the outputs, comprising compensation of employees, the cost of purchased goods and services used in production (intermediate consumption), other taxes (less subsidies) on production and consumption of fixed capital. These units therefore do not generate a net operating surplus from their non-market production.

Output of particular industries

9.14 The general rules governing the recording and valuation of output require elaboration regarding their application to the output of certain industries, mostly service industries such as transport and storage, wholesale trade and retail trade, and finance and insurance industries. Also included is a description of how to value the activities of research and development and the production of originals and copies.

Transport and storage

9.15 The output of transport services is measured by the amounts receivable for transporting goods or persons. A good in one location is considered to be a different quality from the same good in another location, so the transporting from one location to another is a process of production.

9.16 The activity of storage is important in the production process whereby goods are 're-transported' from one point-in-time to another (as opposed to locations in the instance of transport services). For example, the inventories of goods have to be physically stored until sold and may require storage in a properly controlled environment. The increase in the price of a product is due to storage; storage costs incurred represents a production process. It is important to note that this increase is clearly distinguished from holding gains and losses, which are excluded from production.

9.17 There can be an increase in the value of a product other than a simple price rise as a result of being held in storage, that is, there can be an increase in value which is construed as a further stage in production. For example:

the production process is sufficiently long that discounting factors should be applied to work put in place significantly long before delivery;
the quality of the good may improve with the passage of time (such as wine); and
there may be seasonal factors affecting the supply or the demand for the good that lead to regular, predictable variations in its price over the year, even though its physical qualities may not have changed.

9.18 Therefore, in principle, the values of additions to inventories include not only the values of the goods at the time they are stored but also the value of the additional output produced while the goods are held in store.

Wholesale and retail trade

9.19 The major output of the wholesale and retail trade industries is the value of the service provided in selling goods (i.e. goods purchased and resold are not treated as part of intermediate consumption). The value of the service is equal to the trade margins realised on the goods sold. The measurement of this service at basic prices is analogous to that for goods producing industries: output at basic prices is the value of the trade margins, including the value of any subsidies received by the wholesaler or retailer, and excluding taxes on production of the service.

9.20 A trade margin is the difference between the actual or imputed price realised on a good purchased for resale and the price that would have to be paid by the distributor to replace the good at the time it is sold or otherwise disposed of. Margins can be negative if prices have to be marked down or the goods are never sold because they go to waste or are stolen.

9.21 It is important to note:

goods sold are valued at the price they are actually sold (excluding GST);
goods provided to employees as remuneration in kind are valued at the current purchasers' prices payable by the traders to replace them, therefore zero margin;
additions to inventories of goods for resale are valued at the prices prevailing at the time of entry into inventories; and
goods on withdrawal from inventories are valued at the cost to the wholesaler or retailer at the time of the withdrawal of acquiring similar replacement goods for later sale, unless the goods were acquired with the intention of making a real holding gain over the storage period, in which case the value of the holding gain is excluded.

Financial intermediaries (except insurance and pension funds)

9.22 Banks and other financial intermediaries incur liabilities on financial markets by borrowing funds (for example, in the form of deposits) which they lend, on different terms and conditions, to other institutional units, such as households, governments and corporations. Such institutions intermediate between lenders and borrowers by channelling funds from one to the other, incurring risk in the process.

9.23 Although financial intermediaries make explicit charges for a number of financial services, the charges do not cover the cost of all services provided. If receipts from the charges were the only measure of output, financial intermediaries would invariably appear to be running at a loss. However, financial intermediaries are able to provide services for which they do not charge explicitly, through charging higher rates of interest to borrowers than they pay to lenders. The resulting 'interest margin' is used to defray expenses. The interest-rate differential therefore includes an implicit charge to customers for services provided and plays a part in determining the level of interest rates observed in practice.

9.24 In the ASNA, interest is treated as property income and is not recorded as either output or intermediate input. However, in effect, interest receivable by financial intermediaries excludes payments by borrowers for the services provided by the financial institutions, and interest payable by financial intermediaries is lower than it would otherwise be to cover the costs of financial services provided to depositors.

9.25 Accordingly, interest flows are adjusted to take account of the service charges that form part of the output of financial intermediaries. In effect, the interest paid by borrowers can be regarded as comprising two components, a service charge and a 'pure' interest flow. Likewise, the interest paid to depositors can be viewed as a 'pure' interest flow from which a service charge has been deducted. The 2008 SNA refers to the pure interest as 'SNA interest'. As these service charges cannot be measured directly, the imputed charges are accordingly referred to as financial intermediation services indirectly measured (FISIM).

9.26 The method for calculating FISIM has been refined in 2008 SNA. This refinement is consistent with the existing ASNA treatment. FISIM payable by both depositors and borrowers will be calculated by using the concept of a 'reference' rate of interest. The reference rate should contain no service element and reflect the risk and maturity structure of deposits and loans, and could be determined as being equal to a particular market rate of interest. The ASNA uses a practical approach to estimating the reference rate of interest as the mid-point between the average interest rate on loans and the average interest rate on deposits. The long-term bond rate is used as the reference rate for institutions that are not deposit taking institutions. For domestic transactions, the reference rates applied are in the domestic currency, whereas for exports and imports of FISIM different reference rates are applied for loans and deposits in other currencies.

9.27 In the ASNA, FISIM is an output of the following financial intermediaries: banks, other depository corporations, central borrowing authorities and securitisers. For banks and other depository corporations it is the sum of the imputed service charges for both borrowers and depositors while, for central borrowing authorities and securitisers, it is the sum of the imputed service charge for borrowers.

9.28 The FISIM calculation is based on stock levels of loans and deposits; that is:

\(\large[(Loan\:rate\:–\:reference\:rate) * Stock\:of\:loans] + [(reference\:rate\:–\:deposit\:rate)\:* \\ \large Stock\:of\:deposits]\)

9.29 As FISIM forms part of the output of financial intermediaries, it must also be recorded as part of consumption by the intermediaries' customers. FISIM is therefore shown as consumption by individual industries, government units and households, for both depositors and borrowers. Exports and imports of FISIM are also estimated.

9.30 Exports and imports of FISIM are calculated on reported income flows rather than reported asset and liability levels to ensure that calculated FISIM is consistent with reported income flows. The methodology for calculating FISIM by income flows is:

\(\large[(Loan\:rate\:–\:reference\:rate) * interest\:flow\:on\:loans/loan\:rate] + [(reference\:rate\:–\\ \large deposit\:rate) * interest\:flow\:on\:deposits/deposit\:rate]\)

9.31 Exports of FISIM are generated through two transactions:

interest income earned by resident financial intermediaries (providing services) on loans to non-resident non-financial entities;
interest income payable by resident financial intermediaries (specifically depository corporations) on deposits (providing services) to non-resident non-depository corporations. The non-resident is paying for the service component provided by the resident; therefore, it is recorded as an export of a service.

9.32 Imports of FISIM are generated through two transactions:

interest income receivable by resident non-depository corporations on deposits held with non-resident financial intermediaries (specifically depository corporations) providing the service. The resident is paying for the service component provided by the non-resident, therefore it is recorded as an import of a service.; and
interest payable by resident non-financial entities on loans from non-resident financial intermediaries (providing services).

9.33 A basket of international interest rates which are common to each major currency are monitored quarterly for deposits and loans. A mid-point between the average interest rate on loans and the average interest rates on deposits is used as the reference rate for each currency. FISIM is calculated for each currency and then aggregated to give a total figure for exports and imports of FISIM.

Insurance and pension funds

9.34 Insurance is a form of financial intermediation in which funds are paid by policyholders and invested in financial or other assets, which represent technical reserves to meet future claims arising from the events specified in insurance policies. Typically, insurance enterprises do not make a separate charge for the service of arranging the financial protection or security which insurance is intended to provide. This is known as the insurance service charge (ISC).The value of the ISC, which forms part of the output of insurance and pension funds, has to be estimated indirectly from the total receivables and payables of insurance enterprises, including the income accruing from the investment of technical reserves.

9.35 The value of output of the services is produced by:

non-life insurance corporations – estimated as premiums earned and investment income on the technical reserves less expected claims;
life insurance corporations – the sum of administrative costs incurred (including investment and labour costs) plus a profit margin; and
pension funds – the sum of administrative costs incurred (including investment and labour costs).

Research and development

9.36 Research and development (R&D) is creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and to enable this stock of knowledge to be used to devise new applications. A major change in 2008 SNA is the recognition of expenditure on R&D as capital formation, whereas 1993 SNA treated it as intermediate consumption where purchased and ancillary production (which is not recorded) if performed in-house. The 2008 SNA treatment has been implemented in ASNA.

9.37 In principle, R&D output is valued at market prices if purchased (or outsourced) or as the sum of total production costs plus an appropriate mark-up representing the costs of fixed assets used in production if undertaken on own account. Survey data indicate that over 90 per cent of R&D activity in Australia is undertaken on own account and representative market price data for R&D products are not available. Therefore R&D output is valued by the total production costs incurred.

9.38 Own account R&D is derived from the ABS Survey of Research and Experimental Development, published in Research and Experimental Development, Businesses, Australia. This dataset collects expenditure on the production of research and experimental development classified by both sector and type of research undertaken.

9.39 Survey aggregates are adjusted during S-U balancing to ensure alignment with other datasets used in the compilation of the ASNA.

9.40 With the exception of Ownership of dwellings, all industry divisions produce own account research and development.

9.41 The current price estimates are deflated using the Wage Price Index (WPI). The resulting estimates are used to construct chain volume measures.

The production of originals and copies

9.42 The production of books, recordings, films, software, tapes, disks, etc. is a two-stage process where the first is the production of the original and the second is the production and use of the copies. 2008 SNA (and 1993 SNA) recommended the capitalisation of the production of entertainment, literary and artistic originals as well as computer software. Prior to this it was treated as intermediate consumption. The ASNA complies with the 2008 SNA treatment.

9.43 2008 SNA clarified that 'licences to use' should be treated as capital formation if they are to be used for more than one year, regardless of payment arrangements. The ABS does not have information on the duration of 'licences to use' and assumes that most software is purchased with the intention to be used beyond one year and so should be treated as capital formation.

9.44 If the original is sold when it has been produced, the value of the output of the original producer is given by the price paid. If it is not sold, its value could be estimated on the basis of its production costs with a mark-up.

9.45 An estimation for computer software (consisting of packaged software, customised software and own account software) is included in the value of output. It is valued at market prices if purchased, while software developed in-house is valued at its estimated basic price or at its cost of production if it is not possible to estimate the basic price.

9.46 Estimates from the 2002-03 Information and Communication Technology (ICT) Satellite Account were incorporated into the ASNA for financial year 2002-03. Estimates for subsequent financial years are derived as follows:

customised software and own account software are extrapolated using estimates from the Economic Activity Survey (EAS); and
packaged software is derived from the level of imports of computer software as an indicator.

9.47 Estimates for own account software are added to output where a proportion of other own account capital formation is considered computer software and allocated to industry and sector.

9.48 Current price estimates are deflated using mainly relevant Producer Price Indexes (PPIs).

Adjustments made to output

Understatement of income

9.49 Most ANZSIC divisional estimates of Australian production at basic prices have an adjustment for the estimated level of understatement of income. The calculated value for each ANZSIC subdivision's understatement of income is added to the division's total output estimate to form the final Australian production at basic prices.

9.50 The percentage adjustment for each ANZSIC subdivision's estimated understatement of income is different. The estimated understatement of income is based on industry analysis conducted by the Australian Taxation Office from their audits of business income and business expenses.

9.51 It is considered that no understatement of income adjustments is required for the following industries:

Electricity supply
Gas supply
Rail transport
Water, pipeline and other transport
Air and space transport
Finance
Insurance and superannuation funds
Ownership of dwellings
Government administration and regulatory services and Defence Off-June year reporting

9.52 Business units may report on a calendar year basis other than for the year ending June, so an adjustment is required to ensure all output data are on a June financial year basis before they are used in S-U compilation. This adjustment is applied by deriving off-June factors for each data item using Business Indicators: Australia (QBIS) for each ANZSIC subdivision. The appropriate off-June factors are then applied to data items reported by individual businesses in the EAS for each ANZSIC subdivision who did not respond on a June financial year basis. Hence the data reported on an off-June financial year basis is adjusted onto a June financial year basis.

9.53 Further information can be found in the ABS publication, Experimental Estimates for Australian Industry Adjusted for Off-June Year Reporting.

Own account R&D

9.54 An estimate for own account R&D is included to derive output. More information can be found in the ABS publication, Research and Experimental Development, Businesses, Australia.

Intermediate consumption

9.55 Intermediate consumption (or intermediate use) consists of the value of the goods and services consumed as inputs to the production process. The goods and services may be either transformed (e.g. flour may be transformed into bread) or completely consumed or used up (e.g. electricity and most services) in the process of producing outputs.

9.56 In addition to goods and services used directly in the production process, intermediate consumption includes the value of all goods and services used as inputs into ancillary activities. Ancillary activities are undertaken within an enterprise for the sole purpose of supporting the main and secondary activities. Ancillary activities include purchasing, sales, marketing, accounting, data processing, transportation, storage, and security. The output of an ancillary activity is not intended for use outside the enterprise.

9.57 Intermediate consumption does not include valuables consisting of works of art, precious metals and stones and articles made out of them, that are acquired as stores of value and are not used up in the process of production. However, intermediate consumption does include precious stones and metals used in the production of jewellery and similar items.

9.58 Intermediate consumption excludes the costs incurred by the gradual using up of fixed assets, which is recorded as consumption of fixed capital in the income and capital accounts. Rentals paid on fixed assets that are leased from other institutional units under operating leases are included as part of intermediate consumption, along with fees, commissions, royalties, etc., payable under licensing arrangements.

9.59 As described previously, the ASNA includes output for own intermediate use in limited cases. In these cases, the imputed value of brown coal and electricity produced by those TAUs is also included in their intermediate consumption.

Distinction between operating leases and financial leases

9.60 Operating leases are leases that provide for the renting of machinery or equipment for specified periods of time that are substantially shorter than the total expected service lives of the machinery or equipment. An operating leasing is a form of production in which the owner of the machinery or equipment (the lessor) provides a service to the user (or lessee). The lessor is usually responsible for the maintenance and repair of the equipment as part of the service provided to the lessee. Rentals are treated as payment for the total service provided, and are included in the intermediate consumption of producers. For operating leases, consumption of fixed capital is charged to the lessor.

9.61 Under a financial lease, a change of ownership from the lessor to the lessee is deemed to have taken place, even though the leased goods legally remain the property of the lessor, at least until the lease expires. Financial leasing is an alternative to lending as a method of financing the acquisition of machinery and equipment, in which the lessor effectively makes a loan to the lessee to enable the latter to finance the acquisition of the equipment. Rentals under financial leases are treated as a combination of loan repayments and interest payments and not as part of intermediate consumption. Under a financial lease, consumption of fixed capital is charged to the lessee.

Boundary between intermediate consumption and compensation of employees

9.62 Certain goods and services used up by producers do not enter directly into the production process but are consumed by employees working on that process. Where goods and services are provided to employees and are used by the employees in their own time and at their own discretion, the goods and services constitute remuneration in kind rather than intermediate consumption. Fringe benefits, such as the private use of company cars, airline lounge memberships, telephones and rent subsidies, fall into this category. This distinction is important, because the inclusion of remuneration in kind in compensation of employees, rather than in intermediate consumption, increases labour income and GDP.

Boundary between intermediate consumption and gross fixed capital formation

9.63 This boundary is not always clear cut. The following provides an explanation of the treatment of particular expenditures.

Small tools

9.64 Expenditure on large items of machinery and equipment is recorded as gross fixed capital formation while regular expenditure on small durables, such as hand tools, is normally regarded as intermediate consumption.

Repairs and maintenance

9.65 The 2008 SNA recommends that ordinary maintenance and repairs of fixed assets used in production constitute intermediate consumption and that major renovations, reconstructions or enlargements of fixed assets are to be treated as gross fixed capital formation. Ordinary maintenance and repairs are necessary to ensure effective utilisation of assets over their expected service lives. Such maintenance and repairs do not change the asset or its usual level of performance. Major renovations, reconstructions or enlargements increase the performance capacity of existing assets or significantly extend their previously expected service lives. Examples are extending or enlarging existing buildings or structures and refitting or restructuring the interior of a building or ship.

Research and development

9.66 Research and development is treated as capital formation except in any cases where it is clear that the activity does not entail any economic benefit for its owner, in which case it is treated as intermediate consumption. This is a change in treatment as recommended by 2008 SNA and has been implemented in ASNA.

Mineral and petroleum exploration

9.67 Expenditures on mineral and petroleum exploration are not treated as intermediate consumption. Whether successful or not, they are needed to acquire new reserves and so are all treated as gross fixed capital formation.

Military equipment

9.68 Expenditure on major military equipment (such as weapon delivery systems) is treated as gross fixed capital formation in the ASNA. Expenditures on durable military items such as boots, bombs and bullets, torpedoes and spare parts, are recorded as increases in inventories on acquisition and decreases in inventories on use or disposal, and therefore as intermediate consumption as they are used up.

Adjustments made to intermediate use

Overstatement of expenses

9.69 Each ANZSIC division calculation of intermediate use has a correction for the level of overstatement of expenses. The calculated value for each ANZSIC subdivision overstatement of expenses is removed from the division's final intermediate use estimate.

9.70 The percentage adjustment for each ANZSIC subdivision's estimated overstatement of expenses is different. The estimated overstatement of expenses is based on industry analysis conducted by the Australian Taxation Office from their audits of business income and business expenses.

9.71 It is considered that no overstatement of expenses adjustments is required for the following industries:

Electricity supply
Gas supply
Water supply, sewerage and drainage services
Rail transport
Water, pipeline and other transport
Air and space transport
Motion picture and sound recording
Broadcasting (except Internet)
Finance
Insurance and superannuation funds
Ownership of dwellings
Government administration and regulatory services
Defence
Education and training
Health care and social assistance
Heritage and creative and performing arts
Gambling, sports and recreation.

Off-June year reporting

9.72 Business units may report for a non-June financial year, so an adjustment is required to ensure all intermediate consumption data are on a June-year basis before they are used in S-U compilation. This adjustment is applied by matching responses from the annual Economic Activity Survey (EAS) with those from Business Indicators: Australia for businesses reporting on an off-June financial year.

9.73 Further information can be found in the ABS publication, Experimental Estimates for Australian Industry Adjusted for Off-June Year Reporting.

FISIM

9.74 FISIM is recorded as part of intermediate consumption by financial intermediaries' customers; that is, for all businesses, government and households. The FISIM output is estimated so that it can be allocated by final use (to household final consumption expenditure) and intermediate use directly. FISIM is produced for the following intermediate use categories initially:

non-financial corporations (private, national, state and local);
financial corporations (finance, insurance and financial auxiliaries);
general government (national, state and local);
unincorporated enterprises; and
ownership of dwellings.

9.75 Estimates for FISIM produced by non-resident units and consumed by resident units (i.e. an import of goods and services) and FISIM produced by resident units and consumed by non-resident units (i.e. an export of goods and services) are obtained from Balance of Payments (BoP) data. Imports are allocated to intermediate use of private non-financial and financial corporations.

9.76 Intermediate use is allocated to sectors and industries as follows:

non-financial corporations (private, national, state and local) – FISIM is allocated to industries in proportion to the sum of interest income and interest expenses from the Economic Activity Survey;
general government – industry allocation is undertaken in proportion to non-market output of general government;
financial corporations – allocated entirely to the Financial and Insurance Services industry;
unincorporated enterprises – FISIM is allocated to industries in proportion to the sum of interest income and interest expenses from the Economic Activity Survey; and
FISIM is allocated to ownership of dwellings actual and imputed rent based on outstanding owner and investor loans estimates from the National Accounts Finance and Wealth account.

Changes to the allocation of FISIM to ownership of dwellings

From 04/03/2024 FISIM is allocated to ownership of dwellings actual and imputed rent based on outstanding owner and investor loans estimates from the National Accounts Finance and Wealth account. Previously ownership of dwellings industry was allocated entirely to ownership of dwellings. Paragraph 9.76.

Paragraph 9.76 prior to 04/03/2024 update

Insurance service charge (ISC)

9.77 ISC is recorded as part of consumption by non-life insurance corporations' customers; that is, for all businesses, governments and households. The ISC output is estimated so that it can be allocated by final use (to household final consumption expenditure) and intermediate use directly. The ISC is estimated for the following intermediate use categories:

non-financial corporations (private and public);
financial corporations (finance, insurance and auxiliaries);
general government;
unincorporated enterprises; and
ownership of dwellings.

9.78 Estimates for ISC produced by non-resident units and consumed by resident units (i.e. an import of goods and services) and ISC produced by resident units and consumed by non-resident units (i.e. an export of goods and services) are obtained from BoP data. Imports are allocated to intermediate use of private non-financial and financial corporations.

9.79 Intermediate use is allocated to sectors and industries as follows:

general government – industry allocation is undertaken in proportion to non-market output of general government;
financial corporations – allocated entirely to the Financial and insurance services industry;
unincorporated enterprises and public / private non-financial corporations – the ISC is allocated in proportion to insurance premiums obtained from the Economic Activity Survey; and
ownership of dwellings industry – allocated entirely to ownership of dwellings.

Taxes and subsidies on products

9.80 Taxes on products are taxes that are payable per unit of a good or service. They are payable when they are produced, delivered, sold, transferred or otherwise disposed of by their producers (e.g. GST, sales tax and excise tax).

9.81 Subsidies on products are subsidies that are payable per unit of a good or service. A subsidy usually becomes payable when the good or service is produced, sold or imported, but may also be payable in other circumstances such as when a good is transferred, leased, delivered or used for own consumption or own capital formation.

Sources and methods - Annual

Benchmark years

9.82 The current price estimates of gross value added by industry are produced from 1994-95 up to the year previous to the latest year using S-U tables and are in balance with the expenditure estimates.

9.83 The main data source for non-financial corporations and NPISH in the annual benchmarks is the Economic Activity Survey (EAS), published in Australian Industry. The EAS consists of a core component and a rolling component. The core component produces broad financial data and broad demographic data. The rolling component produces detailed financial data and some combination of product data, detailed demographic and activity data.

9.84 The outputs of the core and rolling components can be directly or indirectly constructed via the following streams of work:

the survey program – consists of questionnaires to directly collect data via the Economic Activity Survey, and includes irregular annual industry surveys such as the Wholesale Industry Survey (WIS);
the complementary program – uses data substitution and data modelling/synthetic estimation to fulfil some of the national accounts compilation needs not specifically met by the survey program;
the case study program – centres around the use of case studies to satisfy I-O data requirements of product level detail; and
the feasibility and research program – addresses known quality, conceptual and methodological issues. In most cases, it does not directly deliver new products or services, instead helps in the clarification and resolution of issues impacting on the quality of existing outputs or on the design and delivery of new outputs.

9.85 The tables below outline the data sources and methods used in the estimation of annual gross value added at current price estimates and volume measures by industry. They also include an outline of the data sources used to estimate the product level detail required to populate the S-U tables. References to the Economic Activity Survey as a data source encompasses the Annual Industry Statistics program as described above.

9.86 Market output is derived for all non-financial and financial corporations and household units covering all industries. Non-market output is derived for general government and NPISH units. General government activity is not allocated to all industries. NPISH units are concentrated in a small number of industries (i.e. Information media and telecommunications; Professional, scientific and technical services; Administrative and support services; Education and training; Health care and social assistance; Arts and recreation services; and Other services). Little, if any, NPISH activity is present in the other industries; if there is any NPISH activity (as reported in the Economic Activity Survey) in these industries then this small amount of non-market output would be included in gross value added estimates.

Table 9.1 Annual gross value added by industry - Agricultural (ANZSIC Subdivision 01)
Item		Comment
Current prices
	Output
		The Economic Activity Survey is the main data source used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. The following adjustments are also included to obtain output: understatement of income; off-June year reporting; Output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and output for own final use in the form of gross fixed capital formation for cultivated biological resources (including livestock used for breeding, vineyards and fruit orchard growth).
	Output – product level
		Industry product estimates for primary and secondary production are modelled using the estimates calculated from the ABS publication, Value of Agricultural Commodities Produced, Australia. Product movements are then confronted with the available product information found in the ABARES publication, Agricultural Commodities, and the ABS publication, Value of Agricultural Commodities Produced, Australia. S-U estimates at product level are published in the ABS publication, Australian National Accounts: Supply Use Tables. They also form the basis for the product dimension that is used in the Input-Output tables.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product, as well as information obtained from the media and industry associations. For this industry, volume data are also obtained from Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) statistics, and the ABS publication, Value of Agricultural Commodities Produced, Australia.

Table 9.2 Annual gross value added by industry - Aquaculture (ANZSIC Subdivision 02), Forestry and logging (ANZSIC Subdivision 03), Fishing, hunting, and trapping (ANZSIC Subdivision 04) and Agriculture, forestry and fishing support services (ANZSIC Subdivision 05)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Industry ANZSIC subdivision product estimates for primary and secondary production are modelled using weights from the Input-Output tables. Secondary production estimates are derived directly from Economic Activity Survey data corresponding to the related input and output product. Product movements are confronted according to available product information in the ABARES publication, Agriculture and Resource Quarterly.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; off-June year reporting; output of electricity produced for own intermediate use; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.3 Annual gross value added by industry - Coal mining (ANZSIC Subdivision 06), Oil and gas extraction (ANZSIC Subdivision 07), Metal ore mining (ANZSIC Subdivision 08) and Non-metallic mineral mining and quarrying (ANZSIC Subdivision 09)
Item		Comment
Current prices
	Output
		The Economic Activity Survey is the main data source used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product-level estimates for mining for the five commodity producing groups (060 Coal mining, 070 Oil and gas extraction, 080 Metal ore, 0801 iron ore and 090 Non-metallic mineral mining and quarrying) are compiled from detailed commodity-level information contained in the ABS publication, Australian Industry and Energy Account, Australia.
	Intermediate use
		The Economic Activity Survey and the Energy Account are the main data sources used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product; quantity information is obtained from the ABS publications, Australian Industry and Energy Account, Australia, as well as media and industry associations.

Table 9.4 Annual gross value added by industry - Exploration and other mining support services (ANZSIC Subdivision 10)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting. Industry estimates for primary and secondary production are calculated from Economic Activity Survey data.
	Output – product level
		Product level information is determined from detailed source data contained in the Mineral and Petroleum Exploration Survey and Economic Activity Survey.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product, as well as information obtained from the media and industry associations.

Table 9.5 Annual gross value added by industry - Manufacturing (Division C) except ANZSIC Subdivisions 16 (Printing), 17 (Petroleum, coal, chemical and rubber products manufacturing) and 18 (Basic chemical and chemical manufacturing)
Item		Comment
Current prices
	Output
		The Economic Activity Survey is the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, the complementary estimates program, extrapolated estimates based on the previous year’s estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.6 Annual gross value added by industry - Printing and recording media (ANZSIC Subdivision 16)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.7 Annual gross value added by industry - Petroleum, coal, chemical and rubber products manufacturing (ANZSIC Subdivision 17)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and the Energy Account are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey and the Energy Account are the main data sources used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product, as well as information obtained from the media and industry associations. For this industry, volume data are also obtained from the Department of Industry, Science, Energy and Resources.

Table 9.8 Annual gross value added by industry - Basic chemical and chemical manufacturing (ANZSIC Subdivision 18)
Item	Comment
Output
	The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
Output – product level
	Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
Intermediate use
	The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; off-June year reporting; output of electricity produced for own intermediate use; and FISIM; and insurance service charge.
Gross value added
	Output less intermediate use.
Volume measures
	Derived using the double deflation method for value added. The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product, as well as information obtained from the media and industry associations. For this industry, volume data are also obtained from the Department of Industry and Australian Institute of Petroleum (AIP).

Table 9.9 Annual gross value added by industry - Electricity supply (ANZSIC Subdivision 26)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and the Energy Account are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Estimates are added for brown coal produced and used by electricity generators imputed from the ABS Energy, Water and Environment Management Survey. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey and the Energy Account are the main data sources used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. Estimates are added for brown coal produced and used by electricity generators imputed from the ABS Energy, Water and Environment Management Survey. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product, as well as information obtained from the media and industry associations. For this industry, volume data are also obtained from the Energy Supply Association of Australia and the Bureau of Resources and Energy Economics.

Table 9.10 Annual gross value added by industry - Gas supply (ANZSIC Subdivision 27)
Item		Comment
Current prices
	Output
		The Economic Activity Survey is the main data source used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product, as well as information obtained from the media and industry associations.

Table 9.11 Annual gross value added by industry - Water supply, sewerage and drainages services (ANZSIC Subdivision 28)
Item	Comment
Output
	The Water Supply and Sewage Services Survey and the Economic Activity Survey are the main data sources used to derive output for both the private and public sectors. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
Output – product level
	Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity. Government Finance Statistics data is also used to allocate a share of the output to the general government consumption of fixed capital.
Intermediate use
	The Economic Activity Survey is the main data source used to derive intermediate use. In this industry, General government units are in scope of the Economic activity survey and therefore Government finance statistics data is not required. However, due to the secondary activities of these general government units, data on expenses from the Water Supply and Sewage Services Survey is examined to assess Supply-Use balancing process. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, general government, households and NPISH units. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
Gross value added
	Output less intermediate use.
Volume measures
	Derived using the double deflation method for value added. The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product, as well as information obtained from media and industry associations. Volume data for this industry are also Water Supply and Sewage Services Survey, and from the National Water Commission for confrontation and analysis purposes. Noting the concept of crown water, this industry is treated as a Service-producing industry, a deviation from SNA 2008 recommendations as a result of Australia’s water laws, so industry volumes will not always align with physical consumption rates.

Table 9.12 Annual gross value added by industry - Waste collection, treatment and disposal services (ANZSIC Subdivision 29)
Item	Comment
Output
	The Economic Activity Survey and Government Finance Statistics and the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
Output – product level
	Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
Intermediate use
	The Economic Activity Survey is the main data source used to derive intermediate use. In this industry, General government intermediate use is derived residually with the components coming from Government Finance Statistics, the Survey of Employment and Earnings and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, general government, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
Gross value added
	Output less intermediate use.
Volume measures
	Derived using the double deflation method for value added. The annual volume is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product, as well as information obtained from media and industry associations.

Table 9.13 Annual gross value by industry - Construction (ANZSIC Division E)
Item		Comment
Current prices
	Output
		The Economic Activity Survey is the main data source used to derive output for the Construction industry. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. In addition to this, output for construction activity that is out of scope of the Economic Activity Survey is included. This additional output relates to owner builders of new houses, alterations and additions and general government construction activity. The output for owner-builders of new houses is calculated by using the proportion of owner-builder activity to construction activity derived from the ABS publication, Private Sector Construction Industry, Australia, and applying this to the construction of new houses from the ABS publication, Building Activity, Australia. In order to calculate the output for owner builder alterations and additions, two components of alterations and additions are derived: Alterations and additions undertaken by enterprises within the construction industry – the estimate from the publication, Private Sector Construction Industry, Australia is rolled forward using indicators from another ABS publication, Building Activity, Australia. Alterations and additions undertaken by owner builders – an estimate derived using an independent non-ABS estimate of the value of alterations and additions, as well as ratios from the publication, Private Sector Construction Industry, Australia, are is rolled forward using indicators from the ABS publication, Building Activity, Australia. This is confronted with the ABS publication, Household Expenditure Survey, Australia: Summary of Results. An adjustment to the output of residential construction is made to remove the value of land from sales of house and land packages. This adjustment is the percentage of land value to sales of residential construction derived from the ABS publication, Private Sector Construction Industry, Australia and is applied to residential construction. The construction output for the general government sector is estimated using the ABS publication, Engineering Construction Activity, Australia. Total engineering construction by the public sector for the public sector (less engineering construction for the telecommunications and electricity industries) is added to total construction output. General government consumption of fixed capital is also included in output sourced from the Perpetual Inventory Method. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Industry ANZSIC subdivision product estimates for primary and secondary product production are modelled by using the following ABS publications: Building Activity, Australia; Engineering Construction Activity, Australia; and Private Sector Construction Industry, Australia.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.14 Annual gross value added by industry - Wholesale trade (ANZSIC Division F)
Item		Comment
Current prices
	Output
		The Economic Activity Survey is the main data source used to derive output. The output of wholesale trade services is equal to the trade margin realised on the goods sold. The margin is the value of sales less the value of the goods purchased for resale. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Industry ANZSIC subdivision product estimates for primary and secondary product production are modelled based on product level data from the Economic Activity Survey, and periodic industry surveys, such as the Retail and Wholesale Industries Surveys.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived from the Economic Activity Survey for non-financial corporations, households and NPISH units. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.15 Annual gross value added by industry - Retail trade (ANZSIC Division G)
Item		Comment
Current prices
	Output
		The Economic Activity Survey is the main data source used to derive output. The output of retail trade services is equal to the trade margin realised on the goods sold. The margin is the value of sales less the value of the goods purchased for resale. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Industry ANZSIC subdivision product estimates for primary and secondary product production are modelled based on product level data from the Economic Activity Survey, and periodic industry surveys, such as the Retail and Wholesale Industries Surveys.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.16 Annual gross value added by industry - Accommodation and food services (ANZSIC Division H)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Industry ANZSIC subdivision product estimates for primary and secondary product production are modelled based on product level data from Economic Activity Survey, and periodic industry surveys, published as Clubs, Pubs, Taverns and Bars, Australia; Cafes, Restaurants and Catering Services, Australia; and Accommodation Services, Australia.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.17 Annual gross value added by industry - Road transport (ANZSIC Subdivision 46)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.18 Annual gross value added by industry in current prices - Air and space transport (ANZSIC Subdivision 49)
Item		Comment
Current prices
	Output
		The Economic Activity Survey is the main data source used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.19 Annual gross value added by industry - Rail transport (ANZSIC Subdivision 47), Water transport (ANZSIC Subdivision 48), and Other transport (ANZSIC Subdivision 50)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product and primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.20 Annual gross value added by industry - Postal and courier pick-up and delivery services (ANZSIC Subdivision 51), Transport support services (ANZSIC Subdivision 52), and Warehousing and storage services (ANZSIC Subdivision 53)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.21 Annual gross value added by industry - Information media and telecommunications (ANZSIC Division J)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.22 Annual gross value added by industry - Finance (ANZSIC Subdivision 62)
Item		Comment
Current prices
	Output
		Balance sheet, income and expenditure and interest rate information are used to compile the output for the following financial intermediaries – the Reserve Bank of Australia (RBA); banks; other depository corporations (credit unions, building societies, cash management trusts, registered financial corporations); central borrowing authorities; securitisers and financial intermediaries not elsewhere classified (e.g. public unit trusts excluding property trusts; public development authorities; investment companies; common funds; co-operative housing societies; public housing schemes; and other financial corporations). The following outlines the data sources used to estimate the various components of output: Balance sheets: ABS publications: Australian National Accounts: Finance and Wealth; Assets and Liabilities of Australian Securitisers; Managed Funds, Australia; and the Australian System of National Accounts for capital stock estimates; RBA: Statistical Bulletin; and Australian Prudential Regulatory Authority (APRA) Monthly Bank Statement of Financial Position for detailed breakdown for bank loans and deposits; Income and expenditure: ABS publications: Balance of Payments and International Investment Position; Annual Statistics on Financial Institutions has ceased but the data in this publication still underpins estimates); ABS collections: Economic Activity Survey; Quarterly Survey of Financial Information; and Government Finance Statistics; RBA: Annual Report; Financial Stability Report (6 monthly); and Statement of Monetary Policy (quarterly); Suite of Australian Prudential Regulatory Authority (APRA) forms - Quarterly Bank Statement of Financial Performance and Quarterly Registered Financial Corporations Statement of Financial Performance; APRA publications: Quarterly Bank Performance Statistics; Quarterly Credit Unions; and Building Societies 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. Output is calculated as: FISIM imputation plus imputed output of financial intermediaries not elsewhere classified plus imputed output of RBA plus explicit charges plus gross non-land rent and other service income (excludes property income). The following adjustment is also included to obtain output: own-account computer software and R&D.
	FISIM imputation
		To compile the FISIM imputed estimate for all financial intermediaries (except the RBA and financial intermediaries n.e.c.), 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 six sectors and subsectors are compiled: Rest of the world; Reserve Bank Of Australia; Banks; Other depository corporations; Central borrowing authorities; and Securitisers. Three datasets are required to compile the interest flows; namely: total interest payable and receivable; interest rates for relevant financial instruments of various sectors and subsectors; and balance sheets for the six sectors and subsectors. The next step is to calculate FISIM for loans and deposits (banks and other depository corporations) and for loans (securitisers and central borrowing authorities); that is: for banks and other depository corporations, FISIM is derived as follows: [(counterparty loan rate – reference rate) * counterparty stock of loans] + [(reference rate – counterparty deposit rate) * counterparty stock of deposits] where the reference rate is mid-point between the average interest rate on loans and the average interest rate on deposits. for securitisers and central borrowing authorities, FISIM is derived as follows: [(counterparty loan rate – reference rate) * counterparty stock of loans] where the reference rate is weighted average bond yield. The above calculations are undertaken in separate loan and deposit FISIM tables for each of the four groups of FISIM generating institutions (banks, other depository corporations, central borrowing authorities and securitisers). Each table captures the counterparty sector and subsector loan and deposit balances, their respective interest flows and interest margins (i.e. reference rate – deposit rate, or loan rate – reference rate) and the subsequent FISIM estimates.
	Imputed output of financial intermediaries not elsewhere classified
		Described in Table 11.6
	Imputed output of the RBA
		Described in Table 11.6
	Explicit charges
		Described in Table 11.6
	Gross non-land rent and other service income (excludes property income)
		Described in Table 11.6
	Output – product level
		Product level estimates for finance services are obtained directly or modelled using the source data outlined above.
	Intermediate use
		Is derived residually from output at basic prices minus industry value added.
	Gross value added
		Sum of gross operating surplus, compensation of employees and other taxes less subsidies on production for the Finance Industry.
	Volume measures
		The detailed information from the current price FISIM loan and deposit tables for the four groups of 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 (e.g. ownership of dwellings; general government, etc.), as follows: Constant price estimates of balances (loans and deposits) by counterparty sectors and subsectors are calculated by deflating the current price estimates using the CPI Trimmed mean. The deflated loans and deposits are multiplied by the associated interest margin (i.e. reference rate – deposit rate, or loan rate – reference rate) 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 Volume estimates for exports are derived using the total HFCE implicit price deflator. Volume estimates for the rest of the Finance and insurance services industry are derived using the double deflation method. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Changes made to Table 9.22 Annual gross value added by industry - Finance (ANZSIC Subdivision 62)

From 04/03/2024 for volume measures, constant price estimates of balances (loans and deposits) by counterparty sectors and subsectors are calculated by deflating the current price estimates using the CPI Trimmed mean. Previously these estimates were calculated using the All groups CPI.

Table 9.22 prior to 04/03/2024 update

Table 9.22 Annual gross value added by industry - Finance (ANZSIC Subdivision 62)
Item		Comment
Current prices
	Output
		Balance sheet, income and expenditure and interest rate information are used to compile the output for the following financial intermediaries – the Reserve Bank of Australia (RBA); banks; other depository corporations (credit unions, building societies, cash management trusts, registered financial corporations); central borrowing authorities; securitisers and financial intermediaries not elsewhere classified (e.g. public unit trusts excluding property trusts; public development authorities; investment companies; common funds; co-operative housing societies; public housing schemes; and other financial corporations). The following outlines the data sources used to estimate the various components of output: Balance sheets: ABS publications: Australian National Accounts: Finance and Wealth; Assets and Liabilities of Australian Securitisers; Managed Funds, Australia; and the Australian System of National Accounts for capital stock estimates; RBA: Statistical Bulletin; and Australian Prudential Regulatory Authority (APRA) Monthly Bank Statement of Financial Position for detailed breakdown for bank loans and deposits; Income and expenditure: ABS publications: Balance of Payments and International Investment Position; Annual Statistics on Financial Institutions has ceased but the data in this publication still underpins estimates); ABS collections: Economic Activity Survey; Quarterly Survey of Financial Information; and Government Finance Statistics; RBA: Annual Report; Financial Stability Report (6 monthly); and Statement of Monetary Policy (quarterly); Suite of Australian Prudential Regulatory Authority (APRA) forms - Quarterly Bank Statement of Financial Performance and Quarterly Registered Financial Corporations Statement of Financial Performance; APRA publications: Quarterly Bank Performance Statistics; Quarterly Credit Unions; and Building Societies 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. Output is calculated as: FISIM imputation plus imputed output of financial intermediaries not elsewhere classified plus imputed output of RBA plus explicit charges plus gross non-land rent and other service income (excludes property income). The following adjustment is also included to obtain output: own-account computer software and R&D.
	FISIM imputation
		To compile the FISIM imputed estimate for all financial intermediaries (except the RBA and financial intermediaries n.e.c.), 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 six sectors and subsectors are compiled: Rest of the world; Reserve Bank Of Australia; Banks; Other depository corporations; Central borrowing authorities; and Securitisers. Three datasets are required to compile the interest flows; namely: total interest payable and receivable; interest rates for relevant financial instruments of various sectors and subsectors; and balance sheets for the six sectors and subsectors. The next step is to calculate FISIM for loans and deposits (banks and other depository corporations) and for loans (securitisers and central borrowing authorities); that is: for banks and other depository corporations, FISIM is derived as follows: [(counterparty loan rate – reference rate) * counterparty stock of loans] + [(reference rate – counterparty deposit rate) * counterparty stock of deposits] where the reference rate is mid-point between the average interest rate on loans and the average interest rate on deposits. for securitisers and central borrowing authorities, FISIM is derived as follows: [(counterparty loan rate – reference rate) * counterparty stock of loans] where the reference rate is weighted average bond yield. The above calculations are undertaken in separate loan and deposit FISIM tables for each of the four groups of FISIM generating institutions (banks, other depository corporations, central borrowing authorities and securitisers). Each table captures the counterparty sector and subsector loan and deposit balances, their respective interest flows and interest margins (i.e. reference rate – deposit rate, or loan rate – reference rate) and the subsequent FISIM estimates.
	Imputed output of financial intermediaries not elsewhere classified
		Described in Table 11.6
	Imputed output of the RBA
		Described in Table 11.6
	Explicit charges
		Described in Table 11.6
	Gross non-land rent and other service income (excludes property income)
		Described in Table 11.6
	Output – product level
		Product level estimates for finance services are obtained directly or modelled using the source data outlined above.
	Intermediate use
		Is derived residually from output at basic prices minus industry value added.
	Gross value added
		Sum of gross operating surplus, compensation of employees and other taxes less subsidies on production for the Finance Industry.
	Volume measures
		The detailed information from the current price FISIM loan and deposit tables for the four groups of 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 (e.g. ownership of dwellings; general government, etc.), as follows: Constant price 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 (i.e. reference rate – deposit rate, or loan rate – reference rate) 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 Volume estimates for exports are derived using the total HFCE implicit price deflator. Volume estimates for the rest of the Finance and insurance services industry are derived using the double deflation method. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.23 Annual gross value added by industry - Insurance and superannuation funds (ANZSIC Subdivision 63)
Item		Comment
Current prices
	Output
		Balance sheet, income and expenditure and interest rate information are used to compile the output for pension funds (superannuation), life insurance corporations (including friendly societies) and non-life (general) insurance corporations. The following outlines the data sources used to estimate the various components of output: Balance sheets: ABS publications: Australian National Accounts: Finance and Wealth; Managed Funds; and Australian System of National Accounts for capital stock estimates; Income and expenditure: ABS collections: Quarterly Survey of Financial Information; ABS publications: Balance of Payments and International Investment Position; Australian Prudential Regulatory Authority (APRA) form - Quarterly Superannuation Statement of Financial Performance; APRA publications: Quarterly Superannuation Performance Statistics; Quarterly Life Insurance Performance Statistics; Quarterly General Insurance Performance Statistics; Annual Superannuation Bulletin; Annual Friendly Society Bulletin; Half-Yearly General Insurance Bulletin; and Selected Statistics on General Insurance; General Insurance Supplementary Statistical Tables; Australian Taxation Office (ATO): Self-managed superannuation funds taxation data and website releases; and ad hoc private consultant reports: superannuation actuarial reports and real estate statistics. Output is calculated as: Insurance service charge (ISC) plus explicit charges plus gross non-land rent plus non-life insurance business income plus subsidies. The following adjustment is also included to obtain output: own-account computer software and R&D.
	Insurance service charge
		Non-life insurance corporations – estimated as premiums earned plus investment income on the technical reserves less expected claims: premiums earned include direct premiums earned plus inward reinsurance premiums less outward insurance premiums and statutory charges paid; premium supplements represent income earned on the technical reserves of non-life insurance corporations, which consist of unearned premiums (most premiums are paid for a full year in advance) and claims incurred but not yet paid (which arise because of delays in claims being lodged and assessed, and in finalising the payment of claims); premium supplements do not include any income from the investment of insurance corporations' own funds. The proportion of policyholder funds to total assets of non-life insurance corporations is applied to total investment income to derive premium supplements. The interest share of investment income is net of FISIM. Life insurance corporations – the sum of administrative costs incurred (including investment and labour costs) plus a profit margin; the profit margins is calculated by estimating a proxy return on equity. Pension funds – the sum of administrative costs incurred (including investment and labour costs).
	Explicit charges
		Described in Table 11.7
	Gross non-land rent
		Described in Table 11.7. It is assumed to be applicable only to commercial buildings and infrastructure.
	Output – product level
		Product level estimates for insurance services are obtained directly or modelled using the source data outlined above.
	Intermediate use
		Is derived residually from output at basic prices minus industry value added.
	Gross value added
		Sum of gross operating surplus, compensation of employees and other taxes less subsidies on production for the Insurance Industry.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

9.24 Annual gross value added by industry - Auxiliary finance and insurance services (ANZSIC Subdivision 64)
Item		Comment
Current prices
	Output
		The Economic Activity Survey is the main data source used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and
	Output – product level
		Industry ANZSIC subdivision product estimates for primary and secondary product production are modelled by using directly measured product levels from Economic Activity Survey, and periodic industry surveys.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.25 Annual gross value added by industry - Rental, hiring and real estate services (ANZSIC Division L)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.26 Annual gross value added by industry - Professional, scientific and technical services (ANZSIC Division M)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.27 Annual gross value added by industry - Administration and support services (ANZSIC Division N)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income, only for Building cleaning, pest control and other support services (ANZSIC Subdivision 73); output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.28 Annual gross value added by industry - Public administration and safety (ANZSIC Division O)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. Gross expenditure data taken from Government Finance Statistics, from which industry based data, are derived using a set of proportions derived from historical input and output data and with no secondary production assumed. Government Finance Statistics data are also adjusted to include national accounts data for FISIM, artistic originals and consumption of fixed capital. A consolidation adjustment for payroll tax is also included. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for output of Investigation and security services (ANZSIC Class 7712). The following adjustments are also included to obtain output: output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		Output minus total primary inputs (i.e. compensation of employees, gross operating surplus and other taxes less subsidies on production). Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for units classified to Investigation and security services (ANZSIC Class 7712).
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.29 Annual gross value added by industry - Education and training (ANZSIC Division P)
Item		Comment
Current prices
	Output
		The main data sources used to derive output are Government Finance Statistics, the Australian Curriculum, Assessment and Reporting Authority (ACARA) and Economic Activity Survey. Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units. General government output is the most significant component of output for this industry. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. Market output is estimated separately to the costs of production and final consumption. It is based on the primary incomes received by household institutional units and non-financial corporations. ACARA data relating to income from recurrent government funding and sales of goods and services are used to derive market output for non-government primary, secondary and special schools. EAS data relating to sales of goods and services plus changes in inventories of finished goods and work-in-progress are used to derive market output for household institutional units and non-financial corporations other than non-government schools. GFS and EAS data are used to derive output for preschools. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity. ACARA data has been used to derive the output of primary, secondary and special schools in the non-government sector from 2009-10 onwards.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using individual volume indexes for primary and secondary schools, higher education and vocational education and training (VET). Three of the four indexes are cost-weighted, requiring a quantity indicator and a corresponding indicator to capture the cost of production. Schools: The quantity indicator for the schools indexes is the total number of students at primary and secondary schools measured on a full-time equivalent basis. Production costs represent the expenses incurred by both private and government schools. Net recurrent income is used to create state and territory weights that are applied to national totals from the Economic Activity Survey and Government Finance Statistics. The final outputs are separate Laspeyres indexes for primary and secondary education, with data for combined schools incorporated into both indexes using weights derived from ACARA data. Student numbers are sourced from the ABS publication, Schools, Australia; enrolments and net recurrent income from the Australian Curriculum and Reporting Authority. Data from the Economic Activity Survey and Government Finance Statistics are used for expenses. Higher education: The cost-weighted volume index for higher education integrates three streams of output: teaching, research degree completions and research funded by government and industry. The quantity indicator is the total number of students at universities measured on a full-time equivalent basis, sourced from the Department of Education. Production costs or expenses incurred by universities are sourced from the financial reports of higher education providers available on the department’s website. Data for research income is also available from the same website. Vocational education and training: The volume index for vocational education and training is not cost-weighted. It is based on the change in hours of delivery from the National Centre for Vocational Education Research (NCVER) for vocational students for government and non-government VET. Adult, community and other education: Volume estimates are derived for adult, community and other education by deflating the current price estimates using the CPI for Total Education.

Changes made to to Table 9.29 Annual gross value added by industry - Education and training (ANZSIC Division P)

From 04/03/2024,

The main data sources used to derive output are Government Finance Statistics, the Australian Curriculum, Assessment and Reporting Authority (ACARA) and Economic Activity Survey.

Current prices

ACARA data relating to income from recurrent government funding and sales of goods and services are used to derive market output for non-government primary, secondary and special schools. EAS data relating to sales of goods and services plus changes in inventories of finished goods and work-in-progress are used to derive market output for household institutional units and non-financial corporations other than non-government schools.

Volume measures

Derived using individual volume indexes for primary and secondary schools, higher education and vocational education and training (VET). Previously this measure was derived using the output volume method for non-market producers.

Table 9.29 prior to 04/03/2024 update

Table 9.29 Annual gross value added by industry - Education and training (ANZSIC Division P)
Item		Comment
Current prices
	Output
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive output. General government output is the most significant component of output for this industry. Government Finance Statistics data relating to gross expenditure by government classified according to purpose are used to derive government output by industry. Purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each purpose category to product. Primary products are aggregated to derive industry data. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units. The following adjustments are also included to obtain output: understatement of income, only for Building cleaning, pest control and other support services (ANZSIC Subdivision 73); output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the output volume method for non-market producers. The output volume method is based on 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 output. Student numbers are sourced from the ABS publication, Schools, Australia; 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 9.30 Annual gross value added by industry - Health care and social assistance (ANZSIC Division Q)
Item		Comment
Current prices
	Output
		The industry output consists of significant amounts of both private and public output. The industry output is measured by the demand side approach which sums the intermediate consumption of health and social assistance related products and final demand (i.e. final consumption expenditure, and exports less imports). These are sourced from the Economic Activity Survey; Government Finance Statistics; Household Expenditure Survey; and Pharmaceutical Benefits Scheme (PBS) data from the Commonwealth Department of Health. The private sector output estimates are based on household final consumption expenditure, intermediate consumption and exports and imports of health care and social assistance related products. The public sector output estimates are based on the costs of production recorded for government final consumption expenditure on health care and social assistance related products, but before any receipts from sales are netted off. The following adjustment is also included to obtain output: output for own final use in the form of own-account computer software and R&D; and output of electricity produced for own intermediate use.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, case study information, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		Output minus total primary inputs (i.e. compensation of employees, gross operating surplus and other taxes less subsidies on production).
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the direct volume index approach for public and private hospitals, and the output volume method for non-market producers providing non-hospital services. 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; 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). The output volume method for non-hospital services is 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 (PC) Report on Government Services.

Changes made to Table 9.30 Annual gross value added by industry - Health care and social assistance (ANZSIC Division Q)

From 04/03/2024,

Volume measures are derived using the direct volume index approach for public and private hospitals, and the output volume method for non-market producers providing non-hospital services. Previously these measures were derived using the output volume method only.

Direct volume index approach

The number of hospital separations, emergency presentations and non-admitted events are used as quantity indicators; 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. Previously this data was sourced from AIHW only.

Table 9.30 prior to 04/03/2024 update

Table 9.31 Annual gross value added by industry - Arts and recreation services (ANZSIC Division R)
Item		Comment
Current prices
	Output
		The Economic Activity Survey, Government Finance Statistics and components of total use are the main data sources used to derive output. Market output is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. Non-market output is measured as the costs of producing outputs including compensation of employees, the cost of purchased goods and services used in production, other taxes (less subsidies) on production and consumption of fixed capital. It is derived for general government and NPISH units. Gambling activity output is calculated by adding household final consumption expenditure, government final consumption expenditure and exports and subtracting imports and taxes on products. Government Finance Statistics data relating to gross expenditure by government classified according to function or purpose are used to derive government output by industry. Function or purpose categories are used as a proxy for both product and industry, with ratios derived from historical input and output data used to allocate each category to product. Primary products are aggregated to derive industry data. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey is the main data source used to derive intermediate use. General government intermediate use is derived residually with the components coming from various sources; namely, the Survey of Employment and Earnings, Government Finance Statistics and the Perpetual Inventory Method. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. Intermediate use for gambling services, however, is derived as output minus total primary inputs (i.e. compensation of employees, gross operating surplus and other taxes less subsidies on production). General government intermediate use is included and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.32 Annual gross value added by industry - Other services (Division S)
Item		Comment
Current prices
	Output
		The Economic Activity Survey, Government Finance Statistics and components of total use are the main data sources used to derive output. Output for personal and other services is derived using the demand side compilation method as opposed to supply side. Output is estimated as the sum of intermediate use and final use (i.e. household and government final consumption expenditures, exports less imports) less taxes on those products primary to the industry. Market output for repairs and maintenance services is measured as sales of goods and services plus changes in inventories of finished goods and work-in-progress. It is derived for non-financial corporations and household institutional units. The following adjustments are also included to obtain output: understatement of income; output for own final use in the form of own-account computer software and R&D; output of electricity produced for own intermediate use; and off-June year reporting.
	Output – product level
		Product estimates for both primary and secondary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, extrapolated estimates based on the previous year's estimates, the distribution from the latest Input-Output tables and the assumption that the products produced are primary to activities of the ANZSIC class reporting the activity.
	Intermediate use
		The Economic Activity Survey and Government Finance Statistics are the main data sources used to derive intermediate use. Intermediate use consists of the value of goods and services consumed as inputs in the production of output. It is derived for non-financial corporations, households and NPISH units. General government intermediate use is included for funeral and parking services and is derived as the general government estimates for gross output less compensation of employees less consumption of fixed capital. The following adjustments are also included to obtain intermediate use: overstatement of expenses; output of electricity produced for own intermediate use; off-June year reporting; FISIM; and insurance service charge.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Table 9.33 Annual gross value added by industry - Ownership of dwellings
Item		Comment
Current prices
	Output
		The components of final use are the main data sources used to derive output. Estimates of the output are derived using a demand side method. The household final consumption expenditure as derived from the actual rents model is combined with government final consumption expenditure, minus imports, plus exports, minus taxes less subsidies on products to form total industry output.
	Output – product level
		Product estimates for primary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, the distribution from the latest Input-Output tables and the ABS publication, Tourist Accommodation, Australia (for long-term caravan parks); and the assumption that the products produced are primary to activities of the ownership of dwellings industry. Output is disaggregated by actual rent for housing and imputed rent for owner-occupiers. These components are benchmarked using data from the latest Census of Population and Housing and is moved forward using quarterly indicators, such as dwelling information from the Building Activity Survey and rental growth from the Consumer Price Index (CPI).
	Intermediate use
		Intermediate use for the ownership of dwellings industry includes the following components: repairs and maintenance; building insurance service charge; FISIM; and real estate agent commissions charged for the management of rental properties; loan application fees; and miscellaneous expenses Repairs and maintenance are benchmarked using data from the ABS Household Expenditure Survey. The benchmarks are extrapolated using a combined indicator based on the estimated number of dwellings (the same estimate as used to estimate total dwelling rent) and movements in appropriate component price indexes from the Consumer Price Index (CPI). In this context repairs and maintenance cover the actual repairs to the dwelling and preventative maintenance such as painting internal and external surfaces. However, purchases of goods and services associated with cleaning a dwelling are not included (they are recorded as part of household final consumption expenditure). Estimates for building insurance service charges (premiums plus premium supplements less expected claims) are derived from annual data published by the Australian Prudential Regulatory Authority (APRA). FISIM is the imputed financial service charge component of interest payable on loans used to finance the purchase of dwellings owned by persons. Estimates are derived from data published by APRA. The derivation of FISIM estimates is described in Table 9.21 ANNUAL GROSS VALUE ADDED BY INDUSTRY— Finance (ANZSIC Subdivision 62). Estimates for real estate agents' management fees are derived using data from the most recent Census of Population and Housing to estimate the proportion of actual rent controlled by real estate agents, extrapolated by number of dwellings for non-census years. This proportion is applied to actual rent and multiplied by the average commission rate for each state. Estimates for loan application fees for loans from financial corporations to purchase dwellings are derived from sum of direct charges associated with dwellings which are obtained from Australian Prudential Regulatory Authority.
	Intermediate use - product level
		Intermediate use is disaggregated by actual and imputed rent using a variety of data sources. FISIM - allocated based on outstanding owner and investor loans using data from the National Accounts Finance and Wealth statistics. Building insurance service charge -allocated based on the proportion of actual and imputed rent for output. Repairs and maintenance - allocated based on the proportion of actual and imputed rent for output. Miscellaneous TIU - allocated based on the proportion of actual and imputed rent for output.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Changes made to table 9.33 Annual gross value added by industry - Ownership of dwellings

From 04/03/2024,

Current prices

Output - product level is disaggregated by actual rent for housing and imputed rent for owner-occupiers. These components are benchmarked using data from the latest Census of Population and Housing and is moved forward using quarterly indicators, such as dwelling information from the Building Activity Survey and rental growth from the Consumer Price Index (CPI).

Intermediate use no longer uses the series on Metropolitan and municipal improvement rates from the Government Finance Statistics to extrapolate the repairs and maintenance benchmarks.

Intermediate use - product level is disaggregated by actual and imputed rent using a variety of data sources.

Table 9.33 prior to 04/03/2024

Table 9.33 Annual gross value added by industry - Ownership of dwellings
Item		Comment
Current prices
	Output
		The components of final use are the main data sources used to derive output. Estimates of the output are derived using a demand side method. The household final consumption expenditure as derived from the actual rents model is combined with government final consumption expenditure, minus imports, plus exports, minus taxes less subsidies on products to form total industry output.
	Output – product level
		Product estimates for primary production at the industry level are modelled based on a variety of sources. These sources include, but are not restricted to, the distribution from the latest Input-Output tables and the ABS publication, Tourist Accommodation, Australia (for long-term caravan parks); and the assumption that the products produced are primary to activities of the ownership of dwellings industry.
	Intermediate use
		Intermediate use for the ownership of dwellings industry includes the following components: repairs and maintenance; building insurance service charge; FISIM; and real estate agent commissions charged for the management of rental properties; loan application fees; and miscellaneous expenses Repairs and maintenance are benchmarked using data from the ABS Household Expenditure Survey. The benchmarks are extrapolated using a combined indicator based on the estimated number of dwellings (the same estimate as used to estimate total dwelling rent) and movements in appropriate component price indexes from the Consumer Price Index (CPI) and the series on Metropolitan and municipal improvement rates from the Government Finance Statistics. In this context repairs and maintenance cover the actual repairs to the dwelling and preventative maintenance such as painting internal and external surfaces. However, purchases of goods and services associated with cleaning a dwelling are not included (they are recorded as part of household final consumption expenditure). Estimates for building insurance service charges (premiums plus premium supplements less expected claims) are derived from annual data published by the Australian Prudential Regulatory Authority (APRA). FISIM is the imputed financial service charge component of interest payable on loans used to finance the purchase of dwellings owned by persons. Estimates are derived from data published by APRA. The derivation of FISIM estimates is described in Table 9.21 ANNUAL GROSS VALUE ADDED BY INDUSTRY— Finance (ANZSIC Subdivision 62). Estimates for real estate agents' management fees are derived using data from the 2016 Census of population and housing to estimate the proportion of actual rent controlled by real estate agents, extrapolated by number of dwellings for non-census years. This proportion is applied to actual rent and multiplied by the average commission rate for each state. Estimates for loan application fees for loans from financial corporations to purchase dwellings are derived from sum of direct charges associated with dwellings which are obtained from Australian Prudential Regulatory Authority.
	Gross value added
		Output less intermediate use.
	Volume measures
		Derived using the double deflation method for value added. The first preliminary estimate is confronted with the sum of the four quarters volume estimate published in Australian National Accounts: National Income, Expenditure and Product.

Latest year

9.87 For all industries, except agriculture, finance services and insurance services, annual GDP(P) for the latest year (i.e. the year beyond the S-U period) is derived by aggregating the quarterly data previously derived, using largely the same set of sources and methods as those used to derive quarterly gross value added estimates.

9.88 For the latest year, volume estimates for the Agriculture industry (ANZSIC Subdivision 01) are obtained by double deflation.

9.89 For the latest year, chain volume estimates of FISIM for Finance (ANZSIC Subdivision 62) are produced using data sources and methodology as described for the annual benchmarks and used as an annual indicator series to move forward the benchmark volume estimate for gross value added for Finance.

9.90 For the latest year, current price estimates of total output for Insurance (ANZSIC Subdivision 63) are produced using data sources and methodology as described for the annual benchmarks. The current price annual insurance output is deflated by the all groups consumer price index (CPI) to produce an annual chain volume indicator series for insurance which is then used to move forward the benchmark for gross value added for Insurance.

Sources and methods - Quarterly

9.91 Gross value added in chain volume measures are derived by interpolating and extrapolating annual benchmarks using quarterly indicator series. Both the annual benchmarks and the quarterly indicators are calculated as chain volume measures.

9.92 Quarterly chain volume indicators of gross value added in the ASNA are derived using three different methods:

the output indicator method;
double deflation; and
the input indicator method.

9.93 The method selected to obtain chain volume measures for a particular industry depends on the data available in respect of that industry. The most commonly used method is the output indicator method. However, Agriculture uses the double deflation method. The input indicator method involves extrapolation using a measure of labour input such as hours worked and is used to obtain estimates for the Public administration and safety industry.

9.94 The use of output or input indicator methods is based on the implicit assumption that movements in output and intermediate use are consistent with each other. Whilst this is almost certainly not the case in practice, the assumption is made owing to limitations of quarterly source data as well as the time available for compilation and editing. Double deflation is applied to Agriculture as prices and volumes for both agricultural inputs and outputs can be highly volatile. This level of volatility does not exist for other industries and, while it is arguable that quarterly double deflation would improve the estimates of GDP(P) for other selected industries, it is not clear the improvement would be significant.

9.95 The output indicator method is the most commonly used by the ABS. It involves extrapolating reference year estimates of current price gross value-added using movements in a volume indicator of output. It assumes that the ratio of gross output volumes to intermediate input volumes remains constant over time. In a few cases the output indicator is just a single statistic, but in most cases, it is a combination of several statistics. In no cases do these output statistics precisely meet the national accounts definition of output, but in most cases, they approximate the national accounts definition reasonably closely. In some cases, the output statistics are merely highly correlated with the national accounts definition of output, as when turnover data are used as the output indicator for wholesale and retail trade. The principal output of these industries is their margin on the goods they sell (the margin is the difference between the price at which goods are sold and the price at which those goods are bought by the wholesaler or retailer). When a margin volume is estimated using a turnover volume as the indicator, the underlying assumption is that the ratio of the margin to the turnover volume is fixed over time.

9.96 Most industries produce many different commodities, and the ratio of output to value added can differ appreciably between industries and over time. Hence, in constructing a composite output indicator to be used as an indicator of growth in real value added, it is best for the constituent output statistics to be weighted together using current price value added data, and for re-weighting to occur as frequently as possible. The availability of current price value added data varies considerably between industries.

9.97 The volume estimates of gross value added for each industry are derived in the prices of the previous year. Chaining takes place after aggregation.

9.98 Quarterly current price sales data reported by survey respondents are aligned to concepts embedded in the Australian equivalents to International Financial Reporting Standards (AIFRS), net of the Goods and Services Tax (GST), and net of any discounts provided. In addition to income from sales of physical goods, sales estimates include sales of services, including consulting services, income from exports, income from leasing and hiring, income from contracts and commissions, sponsorship income, management fees and charges, income from operating leases, delivery charges, income from royalties pertaining to original artistic works, and billed progress payments from long-term contractual arrangements. They exclude items such as interest income, sales of assets, income from finance leases, payments under hire purchase arrangements, and royalties received in respect of natural resource ownership.

9.99 Inventories are also recorded according to AIFRS, and are closing book values, exclusive of GST, measured before deduction of provisions for losses. These also cover domestic activity only, and are collected according to three categories:

Inventories of raw materials – this includes materials and fuels designed to be consumed in productive activities, non-capitalised spare parts designated for use in fixed assets, and containers and packaging materials. Inventories of fuels for sale are excluded (these are classified as inventories of finished goods).
Inventories of work-in-progress – this includes partially processed or fabricated goods which will be further processed prior to sale, and general work-in-progress less payments billed. Prepayments are excluded.
Inventories of finished goods – this includes goods manufactured or processed which are ready for sale, goods purchased from other businesses which are ready for resale without further processing, and fuels for sale. Hired goods, inventories of land, and rented or leased buildings are excluded.

9.100 For many industries, quarterly industry gross value added is estimated in the latest year by making two assumptions: firstly, that sales growth is a proxy for output growth (in the case of manufacturing, growth in sales plus change in inventories (excluding raw materials) is a proxy for output growth), and that, if we assume movements in output and intermediate consumption are consistent with each other, that output growth is a proxy for growth in gross value added. This is the essence of the output indicator method.

9.101 Ideally, output growth would be better approximated by sales growth plus change in inventories (excluding raw materials) for all industries relying on QBIS data. However, change in inventories is only included for the derivation of estimates for manufacturing. See Table 9.44 for the rationale.

9.102 The tables below outline the data sources and methods used in the extrapolation of quarterly gross value added chain volume estimates by industry from the balanced annual supply and use data, as well as the quarterly distribution of annual supply and use estimates.

Table 9.34 Quarterly data sources of gross value added by industry - Agriculture (ANZSIC Subdivision 01)
Item			Comment
General
			Updating of source data: Annual data from the ABARES publication, Agricultural Commodities are revised during the March quarter with the release of the ABS publication, Value of Agricultural Commodities Produced, Australia. During this process, the new farm forecast for the current year provided by the Australian Bureau of Agricultural and Resource Economics and Sciences is incorporated into the time series. Quarterly apportionment of annual data: Annual data are split across the four quarters using weights that reflect the estimated production of that commodity throughout the year; for example, wheat is harvested in December and March quarters, not in June or September quarters. For some commodities quarterly data sources are available, including: sheep, lambs, cattle, calves, pigs, poultry, goats, milk, and wool.
Gross Output
	Livestock
		Sheep, lambs, cattle & calves
			Gross value of production for sheep, lambs, cattle and calves is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities publication, and quarterly data from the ABS publication, Livestock Products, Australia.
		Pigs, deer, poultry for slaughtering and egg laying hens
			Gross value of production for pigs, deer, poultry for slaughtering and egg laying hens is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities and quarterly data from the ABS publication, Livestock Products, Australia.
		Pets and live animals n.e.c.
			Gross value of production for pets and live animals n.e.c. is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities, and quarterly data from the ABS publication, Livestock Products, Australia.
	Milk, eggs and honey
		Milk
			Gross value of production for milk is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities and monthly quantity data from Dairy Australia, Milk Production Reports.
		Eggs and honey
			Gross value of production for eggs is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities. Data for honey is no longer available in ABS cited above; ABARES estimates are used instead.
	Grains
		Wheat
			Gross value of production for wheat is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities.
		Barley, oats, rice, sorghum & cereal grains n.e.c.
			Gross value of production for barley, oats, rice, sorghum and cereal grains n.e.c. is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities.
		Other grains n.e.c.
			Gross value of production for other grains n.e.c. is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities.
	Total other crops
		Fodder & grass
			Gross value of production for fodder and grass is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities.
		Plants & flowers
			Gross value of production for plants and flowers is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities.
		Fruit, nuts & vegetables
			Gross value of production for fruits, nuts and vegetables is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities.
		Sugar cane
			Gross value of production for sugar cane is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities.
		Other agriculture (includes cotton, wine grapes, hops and tobacco output (Note: tobacco production ceased in Australia in 2006-07))
			Gross value of production for other agriculture is estimated using price and quantity data from the ABS publication, Value of Agricultural Commodities Produced, Australia, supplemented by annual data from the ABARES publication, Agricultural Commodities.
	Miscellaneous agriculture
		Sheep & beef cattle agistment services
			Gross value of production for sheep and beef cattle agistment services is derived using the gross value of production of sheep, lambs, cattle and calves.
		Livestock products n.e.c., horse agistment services
			Gross value of production for livestock products n.e.c. and horse agistment services is estimated using price and quantity data published in the ABARES publication, Agricultural Commodities.
		Non-agricultural products (production which is secondary to agriculture)
			Gross value of Agriculture industry production for non-agricultural products (e.g. maintenance of farm infrastructure such as barns and fences, on-farm meat processing, road freight transport etc.) is derived from the growth in the value of total agricultural production.
Intermediate use
	Marketing costs
		Wheat
			Marketing costs are derived from the ABS publication, Value of Agricultural Commodities Produced, Australia supplemented by annual data from ABARES publication, Agricultural Commodities. They are calculated by taking the local value of production of wheat from the gross value of production.
		All other
			Marketing costs are derived from the ABS publication, Value of Agricultural Commodities Produced, Australia supplemented by annual data from ABARES publication, Agricultural Commodities. They are calculated by taking the local value of production for a commodity from the gross value of production.
	Seed & fodder
			Seed costs are derived using data from ABARES publication, Agricultural Commodities, for area sown multiplied by corresponding seeding rates multiplied by the price per tonne. Fodder costs are derived as a residual after deducting the value of exports and non-fodder uses for these products from the gross value of production.
	Other input costs
			Historical data for farm costs such as chemicals, electricity, fuel and maintenance are moved forward using data from the ABARES publication, Agricultural Commodities. These data were originally collected in the ABS Agricultural Finance Survey (AFS), but this collection ceased in 2001.

Table 9.35 Quarterly chain volume measures of gross value added by industry - Agriculture (ANZSIC Subdivision 01)
Item		Comment
Gross value added
		The double deflation method is used. Prior to chaining, volume measures of output and intermediate use in the prices of the previous year are derived, as described below, with the difference between the two components being the gross value-added volume.
Gross output
		Volume measures of output in the prices of the previous year for most commodities are derived by quantity revaluation. Volume measures of output in the prices of the previous year for the remaining commodities are derived by deflation using implicit price deflators obtained for similar commodities.
Intermediate use
		The sum of marketing costs, fodder, seed, fertiliser and other intermediate inputs (fuel, maintenance of plant and structures, chemicals, insurance, etc.), as described below.
	Marketing costs
		Volume estimates in the prices of the previous year are derived for 13 commodity groups by using chain volume measures of the output of each group to extrapolate the previous year's current price value and then summing the results.
	Fodder & seed
		Components are re-valued using price indexes derived from unit price data which have been adjusted in some cases to allow for timing differences between production of the commodities and their use as fodder or seed.
	Other intermediate inputs
		Fertiliser volume estimates in the prices of the previous year are derived by quantity revaluation. For other components, current price estimates are re-valued using the relevant component indexes from Index of Prices Paid by Farmers in the ABARES publication, Agricultural Commodities.

Table 9.36 Quarterly chain volume measures of gross value added by industry - Aquaculture (ANZSIC Subdivision 02) and Fishing, hunting and trapping (ANZSIC Subdivision 04)
Item	Comment
Gross value added
	Quarterly volume measures are derived by linear trend interpolation of annual estimates. Annual volume estimates are obtained by quantity revaluation of the major commodities using quantity data from Agricultural Commodities published by the Australian Bureau of Agricultural and Resource Economics and Sciences. Note that commercial fishing activities reflect only part of ANZSIC Subdivision 04. There is no quarterly data source to reflect the remainder of this ANZSIC subdivision; that is, hunting and trapping.

Table 9.37 Quarterly chair volume measures of gross value added by industry - Forestry and logging (ANZSIC Subdivision 03)
Item	Comment
Gross value added
	Quarterly volume measures are derived by linear trend interpolation of annual estimates. Annual volume estimates in the prices of the previous year are derived by quantity revaluation using current price gross value of production and production quantities for total softwood and hardwood logs as published in ABARE's Agricultural Commodities.

Table 9.38 Quarterly chain volume measures of ross value added by industry - Agriculture, forestry and fishing support services (ANZSIC Subdivision 05)
Item	Comment
Gross value added
	Quarterly volume measures are derived by price deflation of current price values for cotton ginning, shearing and other services. Shearing current price values are estimated using quarterly estimates of the value of shorn wool production. Cotton ginning and other services are estimated using annual production values for cotton and total farm production, respectively, from the ABARES publication, Agricultural Commodities. These are then averaged across the four quarters of the year to derive the quarterly current price values. Cotton ginning and shearing price indexes are based on the hourly wage rates while the other services price deflator is the All groups CPI.

Table 9.39 Quarterly chain volume measures of gross value added by industry - Coal mining (ANZSIC Subdivision 06)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. A quarterly output indicator is production tonnage collected on the ABS Supplementary Survey of Mining Inventories and Production Volumes. Prior to September quarter 2019, coal volume measures were estimated using production values from the Department of Industry, Science, Energy and Resources.

Table 9.40 Quarterly chain volume measures of gross value added by industry - Oil and gas extraction (ANZSIC Subdivision 07)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. The primary data source is monthly production volumes of oil and gas, published by the Department of Industry, Science, Energy and Resources. in the publication, Australian Petroleum Statistics. The specific output indicators used are (a) total crude oil and condensate, in megalitres; (b) ethane, in millions of cubic metres; and (c) natural gas, in millions of cubic metres.

Table 9.41 Quarterly chain volume measures of gross value added by industry - Metal ore mining, except iron ore mining, (ANZSIC Subdivision 08) and Non-metallic mineral mining and quarrying (ANZSIC Subdivision 09)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. The Department of Industry, Science, Energy and Resources provides quarterly production estimates of copper (kilotonnes), nickel (kilotonnes), zinc (kilotonnes) and gold (tonnes) produced. These estimates are preliminary and unpublished at the time the quarterly national accounts are compiled, but are subsequently published by the department in Resources and Energy Statistics. Revisions to the published data are subsequently incorporated into the quarterly national accounts. The Department of Industry, Science, Energy and Resources publication, Resources and Energy Statistics provides the output indicator data for other commodities such as bauxite, alumina, tin, silver, uranium and manganese, as well as mineral sands such as ilmenite, rutile and zircon. Data relating to these commodities are generally not available for the most recent quarter. A preliminary estimate for the current quarter is generated for each of these commodities using a simple average of production for the same quarter in the recent past. These preliminary estimates are then replaced by data published by the department in the subsequent quarter. Revisions in the published data are also incorporated. Weights applied to each commodity within this industry are derived from the ABS publication, Australian Industry. ANZSIC classes not covered by an output indicator as described above are assumed to have the same quarterly growth rate as the classes that are measured.

Table 9.42 Quarterly chain volume measures of gross value added by industry - Iron ore mining (ANZSIC Class 0801)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. A quarterly output indicator is production tonnage collected on the ABS Supplementary Survey of Mining Inventories and Production Volumes. Prior to September quarter 2019, iron ore volume measures were estimated using production values from the Department of Industry, Science, Energy and Resources.

Table 9.43 Quarterly chain volume measures of gross value added by industry - Exploration and other mining support services (ANZSIC Subdivision 10)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy for output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.44 Quarterly chain volume measures of gross value added by industry - Manufacturing (ANZSIC Subdivisions (11-25), except Subdivision 17 Petroleum and coal product manufacturing)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales plus change in inventories (work-in-progress and finished goods) from Business Indicators: Australia and applying the same level of growth. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates. The inclusion of change in inventories generates a more conceptually correct measure of output growth than just growth in sales. Change in inventories is only included in the quarterly output indicator for manufacturing because, for all other industries relying on Business Indicators: Australia, change in inventories is small when compared with sales volumes (and for most service industries, inventories of work-in-progress and finished goods are so insignificant they are not measured).

Table 9.45 Quarterly chain volume measures of gross value added by industry - Petroleum and coal product manufacturing (ANZSIC Subdivision 17)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Volume measures, in the prices of the previous year, are obtained by revaluing quantity data for a range of petroleum and coal products, published by Department of Industry, Science, Energy and Resources in Australian Petroleum Statistics.

Table 9.46 Quarterly chain volume measures of gross value added by industry - Electricity supply (ANZSIC Subdivision 26)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Electricity produced in New South Wales, Victoria, Queensland, Tasmania, South Australia and Western Australia is obtained from the Australian Energy Market Operator (AEMO). Electricity produced in the ACT and NT is excluded from the indicator series, and therefore not reflected in the quarterly growth rates. These two jurisdictions comprise less than one per cent of national output, so that the extra effort to incorporate them would not result in materially improved statistical output.

Table 9.47 Quarterly chain volume measures of gross value added by industry - Gas supply (ANZSIC Subdivision 27)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from the Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy for output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.48 Quarterly chain volume measures of gross value added by industry - Water supply, sewerage and drainage services (ANZSIC Subdivision 28)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. The current price indicator series is quarterly sales revenue data for public authorities classified to the water services industry, sourced from the Government Finance Statistics collection. The indicator series is not published in its own right. The volume data are derived by deflating this current price data with the same deflator applied to Business Indicators: Australia sales for water services which is then chained. The reason QBIS data is not used to measure water services on a quarterly basis is that most water services units are classified to the public sector, and are therefore out of scope of Business Indicators: Australia. The choice to use Government Finance Statistics instead of Business Indicators: Australia means that any privately-owned water services units, such as regional irrigators, are not reflected in the quarterly growth rates.

Table 9.49 Quarterly chain volume measures of gross value added by industry - Waste collection, treatment and disposal services (ANZSIC Subdivision 29)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy for output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.50 Quarterly chain volume measures of gross value added by industry - Building construction (ANZSIC Subdivision 30) and Heavy and civil engineering construction (ANZSIC Subdivision 31)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Volume measures of the value of work done for non-residential building construction and heavy and civil engineering construction are compiled using volume indicators sourced from ABS publications, Building Activity, Australia and Engineering Construction Activity, Australia, whereas residential building construction volume measures are compiled using volume indicators derived from private gross fixed capital formation.

Table 9.51 Quarterly chain volume measures of gross value added by industry - Construction services (ANZSIC Subdivision 32)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy for output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.52 Quarterly chain volume measures of gross value asses by industry - Wholesale trade (ANZSIC Division F)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia and applying the same level of growth. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates. Measuring gross value added for the wholesale trade industry is problematic on a quarterly basis. Conceptually, output for the wholesale trade industry is equal to the margin between the value at which goods are acquired and at which goods are on-sold, after allowing for inventory valuation adjustments. However, there are no appropriate data sources for measuring wholesale trade margins on a quarterly basis. Additionally, to derive volumes of margins, price indexes which are directly applicable to measurement of change in margins would be required, but these also do not exist. In using Business Indicators: Australia, sales chain volume growth rates as an indicator of growth in gross value added, the additional assumption is made that margins volumes move in line with sales volumes.

Table 9.53 Quarterly chain volume measures of gross value added by industry - Motor vehicle and motor vehicle parts retailing (ANZSIC Subdivision 39) and Fuel retailing (ANZSIC Subdivision 40)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Estimates of growth in gross value added for motor vehicle retailing and fuel retailing are based on growth in current price expenditure data for purchase of vehicles, and operation of vehicles, by households. These are deflated and chained to create a chain volume indicator series. This assumes that growth in these household expenditure categories is a reliable proxy for output growth, and that growth in output and intermediate consumption occur at identical rates. Measuring gross value added for the Retail trade industry is problematic on a quarterly basis. Conceptually, output for the Retail trade industry is equal to the margin between the value at which goods are acquired and at which goods are on-sold, after allowing for inventory valuation adjustments. However, there are no appropriate data sources for measuring retail trade margins on a quarterly basis. Additionally, to derive volumes of margins, price indexes which are directly applicable to measurement of change in margins would be required, but these also do not exist. In using the household expenditure chain volume growth rates as an indicator of growth in gross value added for retail trade in motor vehicles, the additional assumption is made that margins volumes move in line with expenditure volumes.

Table 9.54 Quarterly chain volume measures of gross value added by industry - Food retailing (ANZSIC Subdivision 41), Other store-based retailing (ANZSIC Subdivision 42) and Non-store retailing and retail commission-based buying and/or selling (ANZSIC Subdivision 43)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Estimates of growth in gross value added for these ANZSIC subdivisions are based on quarterly volume turnover growth rates published quarterly in the ABS publication, Retail Trade, Australia. This assumes that growth in these retail turnover categories is a reliable proxy for output growth, and that growth in output and intermediate consumption occur at identical rates. Measuring gross value added for the Retail trade industry is problematic on a quarterly basis. Conceptually, output for the Retail trade industry is equal to the margin between the value at which goods are acquired and at which goods are on-sold, after allowing for inventory valuation adjustments. However, there are no appropriate data sources for measuring retail trade margins on a quarterly basis. Additionally, to derive volumes of margins, price indexes which are directly applicable to measurement of change in margins would be required, but these also do not exist. In using the Retail Trade chain volume turnover growth rates as an indicator of growth in gross value added, the additional assumption is made that margins volumes move in line with turnover volumes.

Table 9.55 Quarterly chain volume measures of gross value added by industry - Accommodation and food services (ANZSIC Division H)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.56 Quarterly chain volume measures of gross value added by industry - Road transport (ANZSIC Subdivision 46)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.57 Quarterly chain volume measures of gross value added by industry - Rail transport (ANZSIC Subdivision 47)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Private sector activity is measured using sales data, in current and constant prices, from the Quarterly Business Indicators Survey. Public sector activity is measured using expenditure on rail fares as reflected in household final consumption expenditure, in current and constant prices. The current and constant price values for public and private are aggregated to form total current and constant price values for rail transport. These are then chained to form the indicator for the whole ANZSIC subdivision.

Table 9.58 Quarterly chain volume measures of gross value added by industry - Air and space transport (ANZSIC Subdivision 49)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. A quarterly output indicator is compiled in-house, based on data from a survey of revenue passenger kilometres and freight tonne kilometres from the major domestic and Australian-based international airlines. The term revenue passenger kilometres is a measure of traffic and is derived by multiplying the number of revenue-paying passengers by distances travelled. Calculations are made by the providers. Revenue passenger kilometres is considered to be a more accurate volume estimator for output given it is a combined measure of distances travelled as well as passengers carried. The same measurement principle applies for deriving freight tonne kilometres.

Table 9.59 Quarterly chain volume measures of gross value added by industry - Water transport (ANZSIC Subdivision 48) and Other transport (ANZSIC Subdivision 50)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.60 Quarterly chain volume measures of gross value added by industry - Postal and courier pickup and delivery services (ANZSIC Subdivision 51)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Private sector activity (reflecting private courier services, etc.) is measured using the sales data from Business Indicators: Australia, in current and constant prices. Public sector activity is measured using a variety of indicator data from providers on sales revenue in current prices, as well as quantities of letters and parcels carried. The current and constant price values for public and private are aggregated to form total current and constant price values for this ANZSIC subdivision. These are then chained to form the indicator for the whole subdivision.

Table 9.61 Quarterly chain volume measures of gross value added by industry - Transport support services (ANZSIC Subdivision 52) and Warehousing and storage services (ANZSIC Subdivision 53)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.62 Quarterly chain volume measures of gross value added by industry - Information media and telecommunications (ANZSIC Division J)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates. Telecommunications Services also includes quarterly sales revenue data from Government Finance Statistics. The volume data are derived by deflating the sales revenue data using price deflators.

Table 9.63 Quarterly chain volume measures of gross value added by industry - Finance (ANZSIC Subdivision 62)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Chain volume measures for quarterly bank financial intermediation services indirectly measured (FISIM) are compiled using bank balance sheets; detailed breakdown for bank loans and deposits (Australian Prudential Regulatory Authority (APRA) Monthly Banking Statistics); income and expenditure (Suite of APRA forms - Quarterly Bank Performance Statistics); and indicator interest rates (RBA Statistical Bulletin). The methodology is the same as described for the annual benchmarks for FISIM. Chain volume estimates of bank FISIM are the quarterly indicator series for gross value added.

Table 9.64 Quarterly chain volume measures of gross value added by industry - Insurance and superannuation funds (ANZSIC Subdivision 63)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Current price estimates of the Insurance service charge (ISC) are compiled as follows: Life insurance - The quarterly source data indicator is the operating expenses for total life insurance businesses sourced from the Quarterly Life Insurance Performance Statistics published by the Australian Prudential Regulatory Authority. The quarterly life insurance ISC indicator is then calculated by using the quarterly movement of the indicator source data to extrapolate the previous quarter's life insurance ISC indicator level. Pension funds - There are two quarterly source data indicators used for pension funds. Total investment expenses and total operating expenses of pension funds are sourced from the Quarterly Superannuation Performance Statistics report published by the Australian Prudential Regulatory Authority. The quarterly pension fund ISC indicator is then calculated by using the quarterly movement of the indicator source data to extrapolate the previous quarter's pension fund ISC indicator level. Non-life insurance - The non-life insurance ISC indicator is estimated via a linear trend interpolation of the annual estimates. A weighted sum of the three components is derived to produce a quarterly current price indicator of the ISC. This is deflated using the All groups CPI index and chained to produce a chain volume series.

Table 9.65 Quarterly chain volume measures of gross value added industry - Auxiliary finance and insurance services (ANZSIC Subdivision 64)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.66 Quarterly chain volume measures of gross value added by industry - Rental, hiring and real estate services (ANZSIC Division L)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.67 Quarterly chain volume measures of gross value added by industry - Professional, scientific and technical services (ANZSIC Division M)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.68 Quarterly chain volume measures of gross value added by industry - Administrative and support services (ANZSIC Division N)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia, and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.69 Quarterly chain volume measures of gross value added by industry - Public administration and safety (ANZSIC Division O)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the input indicator method. The sales data from Business Indicators: Australia are not appropriate for measuring gross value added for division O because of the large proportion of non-market activity in this division. Aggregate hours worked in Division O, is the main data source. Defence is out of scope of the LFS so additional hours worked estimates for Defence are added to the LFS estimates to obtain total hours worked.

Table 9.70 Quarterly chain volume measures of gross value added by industry - Education and training (ANZSIC Division P)
Item	Comment
Gross value added
	No appropriate quarterly indicator currently exists. Quarterly growth is estimated via linear trend interpolation of the annual estimates.

Table 9.71 Quarterly chain volume measures of gross value added by industry - Health care and social assistance (ANZSIC Division Q)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Private sector activity is expenditure by households on private health services, excluding pharmaceuticals, sourced from the household final consumption expenditure dataset, re-expressed as a volume index. Public sector activity is captured through data received from Medicare Australia, which reflects health services classified by broad type of service. The number of the various services provided are weighted together to produce a total volume index. Public and private outputs are expressed as volume indexes because the units of measurement in the original source data are not consistent. The public sector data are derived from numbers of services performed whereas the private sector data uses dollar values of household expenditures as the starting point. These resulting volume indexes are re-weighted (approximately two-thirds public, one-third private) to derive a weighted volume index for the industry. This is then chained to create output in chain volume terms for the whole industry.

Table 9.72 Quarterly chain volume measures of gross value added by industry - Arts and recreation services (ANZSIC Division R)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. Private sector activity is measured via the sales data from Business Indicators: Australia, in current and constant prices. Annual current price estimates for public sector expenditure on recreation and culture are obtained from Government Finance Statistics and re-valued by the implicit price deflator for non-defence government final consumption expenditure. Quarterly estimates are obtained by linear trend interpolation of the annual estimates. An adjustment was made for the one-off impact of the Sydney Olympic Games in 2000. Current and constant price estimates for the public and private sectors and for the Sydney Olympic Games are summed to form total current and constant price values for this division. These are then chained, with the resulting chain volume being the indicator for the whole industry.

Table 9.73 Quarterly chain volume measures of gross value added by industry - Other services (ANZSIC Division S)
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. This involves extrapolating the quarterly series by taking a chain volume measure of sales growth from Business Indicators: Australia and applying the same level of growth to industry gross value added. This assumes that sales growth is a reliable proxy of output growth, and that growth in output and intermediate consumption occur at identical rates.

Table 9.74 Quarterly chain volume measures of gross value added by industry - Ownership of Dwellings
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. The chain volume of the 'Rent and other dwelling services' component of household final consumption expenditure is the output indicator for Ownership of dwellings.

Table 9.75 Quarterly chain volume measures of taxes less subsidies on products
Item	Comment
Gross value added
	Quarterly volume measures are derived by the output indicator method. A range of individual taxes and subsidies on products is used to extrapolate supply and use benchmarks for taxes on products and subsidies on products. Taxes include the Goods and Services Tax (GST), gambling taxes, insurance taxes, excises on petroleum, import duties and tobacco and alcohol taxes. Subsidies include those payable under the Fuel Tax Credits scheme, as well as subsidies payable to bus, tram and rail operators. Current price estimates are sourced from the annual Government Finance Statistics dataset and are smoothed evenly across the four quarters of the year to which they relate. Constant price estimates are obtained from the quarterly household final consumption expenditure dataset, with the exception of import duties, which are mainly sourced from the International Trade in Goods and Services dataset. When calculating GST in constant prices, consumption categories which are exempt from GST (e.g. raw food) are excluded from the calculation. GST relating to the purchase of dwellings is included. Each individual type of tax and subsidy is quantity re-valued. The constant price measures for each tax and subsidy are aggregated allowing the creation of separate chain volume measures of taxes and subsidies. The constant price value for net taxes is derived by subtracting the constant price measure of subsidies from the constant price measure of taxes, and the result is chained to create the chained volume indicator series.

9.103 Backcast quarterly gross value added chain volume estimates – prior to the period covered by annual S-U benchmarks (i.e. June quarter 1994 and earlier) on an ANZSIC06 basis – are compiled by backcasting growth from the most applicable series under the previous ANZSIC93 industry classification.