ECONOMIC ACTIVITY SURVEY - NON-PROFIT INSTITUTIONS SURVEY
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Capital Expenditure and Disposal of Assets
I have received more than one form, do I need to complete all of them?
Do I still need to complete the survey even if I am not a not-for-profit organisation?
How should I report data when less than $1,000?
How accurate do the figures need to be?
How is a not-for-profit organisation defined?
Which of the following best describes the primary activity of this organisation?
I have received more than one form, do I need to complete all of them?
Yes, you will need to complete all forms you have received. For instance, some organisations will receive a main annual Economic Activity Survey (EAS) form and a supplementary Non-Profit Institutions (NPI) Survey form. Both of these forms will need to be completed and sent back by the due date.
Do I still need to complete the survey even if I am not a not-for-profit organisation?
Organisations that have a small turnover and therefore report income/expenditure of less than $1000 should use standard rounding techniques.
More than $0 but less than $499- round down to zero; more than $500 but less than $1000 round up to $1,000. Any figure larger than $1000 should round to the nearest thousand dollars. Please remember to report all monetary values in thousands of Australian dollars (A$’000).
Income of $400 should be reported as $0 (A$’000).Income of $600 should be reported as $1(A$’000).
Income of $1400 should reported as $1(A$’000). Income of $1600 should be reported as 2(A$’000).
- How accurate do the figures need to be?
The ABS requires information that is as accurate as possible. The more accurate the figures you supply, the more accurate the total estimate of our statistics will be. However, where accurate data are not readily available, careful estimates are accepted. You are better placed to provide these estimates given your knowledge of current business conditions. Careful estimates can be based on the latest financial year accounts, stocktake or last quarter's reported data.
We know that some businesses claim to fill in rubbish on their survey forms and possibly a few do. However, our processing systems contain checks for consistency and validity and we are usually able to identify figures which are seriously incorrect. These checks suggest that most businesses do behave responsibly and give the best figures that they can. As many businesses use ABS statistics to assist in managing their operations, they appreciate the need to supply the ABS with accurate information.
How is a not-for-profit organisation defined?
Not-for-profit organisations are legal or social entities, formed for the purpose of producing goods or services, and whose status does not permit them to be a source of income, profit or financial gain for the individuals or organisations that establish, control or finance them. To be eligible for not-for-profit status for this survey, an organisation must qualify as such with either the Australian Taxation Office or the Australian Securities and Investments Commission.
A key characteristic of not-for-profit organisations is that any operating surplus made is reinvested in the operations of the organisation, and is not redistributed to individuals or organisations that establish, control or finance them.
For more information see: http://www.ato.gov.au/Non-profit/Getting-started-for-non-profit-organisations/In-detail/Tax-concessions/Non-profit-organisations/Is-your-organisation-non-profit-/
- Which of the following best describes the primary activity of this organisation?
- Media and communications organisations including radio and TV stations; book, journal and newspaper or newsletter publishers; libraries and film production organisations
- Organisations providing production, dissemination and display of visual arts and architecture, including sculpture, photographic societies, painting, drawing, design centres and architectural associations
- Performing arts centres, companies and associations, including theatre, dance, ballet, opera, orchestras, choirs and music ensembles
- Organisations which promote the humanities, preserve historical and cultural artifacts and commemorate historical events, for example historical societies, poetry and literary societies, language associations, reading promotion, war memorials and commemorative funds and associations
- Museums - general and specialised museums covering art, history, sciences, technology and culture
- Zoos and aquariums
- Sporting organisations including those which provide amateur sport, training, physical fitness and sport competition services and events, including fitness and wellness centres and sporting clubs
- Organisations which provide recreational facilities and services to individuals and communities, including country clubs, travel and leisure clubs
- Service clubs - membership organisations providing services to members and local communities. For example, this category could include Lions, Rotary Club.
- Play-schools, pre-schools, primary and secondary schools (but not child care or separate after school care organisations which are included in category (e))
- School canteens
- Higher education organisations including universities, business management, law and medical schools
- Vocational/technical schools including trade schools, paralegal training and secretarial schools
- Institutions engaged in providing education and training in addition to the formal educational system, including schools of continuing studies, correspondence schools, night schools and sponsored literacy and reading programs
- Research organisations for example those involved in medical and scientific research, engineering, social science and political research and analysis
- Rehabilitation facilities and organisations providing outpatient therapeutic care including physical therapy centres and yoga clinics
- Mental health facilities including psychiatric hospitals and halfway homes
- Crisis intervention and health services e.g. organisations providing support to victims of assault and abuse or for the prevention of suicide
- Organisations providing public health and wellness education services eg family planning services, first aid training
- Health clinics and vaccination centres
- Emergency medical services including ambulance services, paramedic emergency care, shock/trauma programs, lifeline programs
- Child welfare, child services and day care including adoption services, child development centres, foster care, day care centres and nurseries.
- Youth services and youth welfare including delinquency prevention services, teen pregnancy prevention, drop-out prevention, youth centres and job programs for youth. For example, this category could include YMCA, YWCA, Boy Scouts, Girl Scouts and Big Brothers/Big Sisters.
- Family services including family life/parent education, single parent agencies and services and family violence shelters and services.
- Services for the disabled and elderly (except residential services which are included in (c)), including in-home assistance, transport assistance, recreational facilities and meal assistance e.g. meals on wheels
- Self-help and other personal social service organisations including support groups, personal counselling and credit counselling/money management services
- Organisations that work to prevent, predict, control and alleviate the effects of disasters, to educate or otherwise prepare individuals to cope with the effects of disasters, or to provide relief to disaster victims, including volunteer fire departments, life boat services etc.
- Organisations providing temporary shelters to the homeless
- Organisations providing food, clothing, shelter and services to refugees and immigrants
- Organisations providing food, clothing, transport and other forms of assistance including financial assistance
- Organisations that promote clean air, clean water, reducing and preventing noise pollution, radiation control, treatment of hazardous wastes and toxic substances, solid waste management and recycling programs
- Natural resources conservation and protection - including land, water, energy and plant resources for the general use and enjoyment of the public
- Botanical gardens, arboreta, horticultural programs and landscape services
- Organisations promoting anti-litter campaigns; programs to preserve the parks, green spaces and open spaces in urban or rural areas; and city and highway beautification programs
- Animal protection and welfare services including animal shelters and humane societies
- Wildlife preservation and protection includes sanctuaries and refuges
- Animal hospitals and services providing care to farm and household animals and pets
- Community and neighbourhood organisations including local development organisations
- Economic and social development organisations which provide programs or services to improve economic and social infrastructure and capacity including those providing entrepreneurial programs and rural development assistance
- Organisations providing housing development services including construction, management, leasing, financing and rehabilitation of housing.
- Organisations providing housing assistance services including housing search and legal services
- Organisations providing and supporting apprenticeship programs, internships, on-the-job training and other training programs
- Vocational training and guidance services including career counselling
- Vocational rehabilitation and sheltered workshops including organisations that promote self-sufficiency and income generation through job training and employment
(h) Law, advocacy and/or politics
- Advocacy organisations including those that protect the rights and promote the interests of specific groups of people, e.g. the elderly or disabled, children and women
- Organisations that work to protect or preserve individual civil liberties and human rights
- Organisations that promote the interests of or provide services to members belonging to a specific ethnic heritage
- Organisations providing programs and services to encourage and spread civic mindedness
- Legal service organisations which provide advice and assistance in dispute resolution and court-related matters
- Organisations which promote crime prevention and safety
- Programs and services to reintegrate offenders; including halfway houses, probation and parole programs and prison alternatives
- Services, counsel and advice to victims of crime
- Consumer protection associations including the protection of consumer rights and product control and quality
- Political parties and organisations
(i) Philanthropic intermediaries and/or voluntarism promotion
- Grant making foundations including private, corporate and community foundations
- Organisations that promote and support volunteering through training, recruitment and placement
- Fundraising organisations including collectives and lotteries
- International exchange, friendship and cultural organisations
- International development assistance organisations including those that organise and provide assistance for social and economic development abroad
- International disaster and relief organisations including those that collect, channel and provide aid to other countries at times of disaster or emergency
- International human rights organisations
Religious congregations and associations including churches, synagogues, temples, mosques, shrines, monasteries, seminaries and others that promote religious beliefs, services and rituals
(l) Business and/or professional associations, unions
- Organisations which promote, regulate and safeguard the interests of business e.g. manufacturers' and industry associations
- Professional associations e.g. medical associations
- Unions and organisations which protect the rights of employees
(m) Other activities
Included in this category are not-for-profit organisations which are primarily engaged in activities which are not covered by the categories (a) to (l). Briefly describe the primary activity by expenses of the organisation.
Select one category only
Primary activity is the main economic activity which is undertaken by the business/organisation. Economic activity refers to the provision of goods or services, for example, the provision of aged care accommodation; this may be unrelated to the main income, assets or ideological purpose/religion of the organisation.
Because not-for-profit organisations can provide a range of goods or services at below cost the main economic activity is that which incurs most of the expenses of the organisation. For example, an organisation may be involved in the provision of emergency accommodation and job training services including sheltered workshops for teenagers. Where most of the expenses relate to the provision of emergency accommodation select (e). Where most of the expenses relate to the provision of job training and employment select (g).
The different types of organisations which are included in each category are described below.
(a) Culture and/or recreation
(b) Education and research
(c) Residential services for the disabled and elderly
(i) Low care facilities including retirement villages and other organisations which provide a supported living environment for the elderly e.g. assistance with cleaning and meals and emergency assistance.
(ii) High care nursing homes which provide assistance with every day activities, 24 hours a day.
Organisations which provide both low care and high care facilities should select the category which incurs most of the organisation's expenses.
(e) Social services
(g) Development, housing and/or employment
- Contractors and subcontractors who are other businesses, (i.e. have their own ABN and are paid on a fee for service or commission only basis), should not be counted in Employment.
- If the business paid another business for contract staff, and those persons were on the payroll of the other business, they should not be counted in Employment.
- Persons employed on a fixed-term contract, e.g. temporary staff/ workforce, should be included in Other employees only if they were paid through the payroll in the last pay period of June 2013 and PAYG tax was deducted for them.
How should I report employment?
What about persons working for the business under contract?
How should I report employment?
Employment is a headcount of all persons who worked for the business as proprietors, partners, salaried directors or other employees in the last pay period in June 2013. It excludes casual or seasonal employees who are on the payroll, but did not work during this pay period. You should report for the last pay period in June 2013 even if this is not the last pay period in your financial reporting year.
Working proprietors and partners
If you are the owner-operator or partner of an unincorporated business, include yourself (and other partners) (working proprietors and partners). Owners/directors of Pty Ltd companies should not be counted as working proprietors, but should be included in (Salaried directors) or (Other employees).
- INCOME ITEMS
- combining chemicals to manufacture paint;
- using wood to manufacture furniture;
- selling waste or by-product (e.g. sawdust from timber processing);
- retail bakery operation;
- selling flowers or other crops grown by the business;
- electricity generation;
- assembling parts.
What is the difference between Sales of goods produced and Sales of goods not produced?
What is included in Investment income?
What should be reported as income from services?
Rent, leasing and hiring income
What is meant by volume based government funding?
What is meant by non- volume based government funding?
What is meant by funding provided for specific capital items?
What is meant by Income received from related or affiliated businesses/organisations?
What is meant by Donations, sponsorships and fundraising income?
Where to report income from various sources/activities?
What is the difference between Sales of goods produced and Sales of goods not produced?
Sales of goods produced occur when the business that sells a commodity is the same business which undertook production of the commodity, or had the commodity produced for it by a third party on a contract, sub-contract or commission basis. Examples of activity generating income from sales of goods produced include:
Sales of goods not produced are those goods the business purchased ready-made, then resold without making changes to the goods. Wholesale and retail sales of goods should be reported here. For example, income from the sale in Australia of cars imported from a related overseas manufacturer would be included in sales of goods not produced.
- What is included in Investment income?
- Interest income - interest from all sources e.g deposits held with banks, interest on bonds etc
- Dividend income - income from shares, equities
- Other investment income - including income from managed funds, derivatives. Income from investment property
- What should be reported as income from services?
- delivery charges separately invoiced to customers;
- packaging services;
- freight forwarding;
- repairs and maintenance service. (Please note that, if a business providing repairs and maintenance services, invoices customers for parts and service separately, income from both parts and service is included in Income from services.
- Where the business derives income from hiring out equipment without operator ("dry" hire), that income should be reported as Rent, leasing and hiring income;
- Where the business derives income from hiring out equipment with operator ("wet" hire), the income should be reported as Income from services.
- sales commission;
- school or tuition fees;
- performing arts venue operation;
- income from the sale of advertising 'space' in print or other media;
- consulting fees;
- franchising fees received.
Generally, payment received for the provision of any services, regardless of whether they are a primary or secondary activity of the business, should be reported as Income from services.
Where the business receives payment for manufacturing or assembly work performed on behalf of another business on a commission or fee basis only (i.e. where the business does not own the inputs to production or the goods produced), such payment should be reported as Income from services, as should income from activity incidental to production or sales, including:
Rent, leasing and hiring income is conceptually a service income, but income from this source should be reported in Q11.
Distinction: "Wet" and "dry" hire
Some equipment, e.g. machinery, equipment or vehicles, may be hired either with or without operator/driver. This distinction, sometimes referred to as "wet" and "dry" hire, determines how this type of income should be reported.
Other examples of Income from services include:
Royalties income is also conceptually a service income, but income from this source should be reported in Q9. It includes payments received for the right to extract natural resources and payments received for the use of intellectual property owned by the business, e.g. patents and copyright.
- What is meant by volume based government funding?
- per student funding provided by the respective State government to schools
- per student Commonwealth funding of domestic students at universities
- per bed funding to residential aged care facilities
- per bed funding to hospitals
- per patient funding for the delivery of specific services in hospitals and other health facilities
- per child funding provided to child care operators
- per service provided e.g. to organisations providing travel, in home cleaning or other forms of assistance to the aged and disabled
Funding from federal, state/territory or local government provided subject to an agreement or contract between the government and the not-for-profit organisation which specifies the volume of services to be delivered in a given period. The funding paid to the not-for-profit organisation is in proportion to the volume of services delivered.
Examples of volume based government include:
What is meant by non-volume based government funding?
Non-volume based funding refers to general purpose grants or to funding which may be provided under a funding agreement for a specific purpose, but which is not dependent on the delivery of a specified volume of services.
What is meant by funding provided for specific capital items?
Funding for specific capital items includes funding to purchase motor vehicles, computers, computer software, buildings (or improvements/renovations), machinery and equipment including medical equipment, furniture
- What is meant by Income received from related or affiliated businesses/organisations?
- Includes income or funding provided by a head office or branch.
- Non-resident related or affiliated businesses/organisations are foreign branches and subsidiaries of this Australian not-for-profit organisation
- What is meant by Donations, sponsorships and fundraising income?
- Donations, sponsorship or fundraising income which is earned or received by a related or affiliated organisation and transferred to this not-for-profit organisation are included in Question 7.
- Philanthropic trusts/foundations - philanthropic trusts/foundations can be established for ongoing or perpetual grants/donations to a charity or other organisation from a private donor, family or community organisation
- In-kind donations from businesses/organisations include donations of goods such as machinery and equipment (eg motor vehicles, computers, furniture) and donations of services e.g. travel services, accounting or legal services.
- Sponsorships - these are income received from a sponsoring business/organisation for which there is a reciprocal benefit such as advertising or promotional benefits for the individual or business making the payment. Individual donations known as 'child sponsorships' are included in 7(d)
- Donations/bequests/legacies from individuals. Include donations/bequests/legacies from individuals in this category (if a foundation has been established include the donation in 7(a)). Donations from businesses are included in 7(b). Include the value of in-kind donations of goods (motor vehicles, computers) and services eg accounting services provided by individuals as recorded in this organisation's end of year accounts.
- Other fundraising
- Where to report income from various sources/activities?
- If the business sells non-customised software it has created, this income should be reported as Sales of goods
- Where the business provides a customised software solution, income should be reported as Income from services
- Onselling software created by another business is reported as Sales of goods
- Food and beverages manufactured and sold to the consumer on the same premises (e.g. retail bakery) are considered Sales of goods
- Food and beverages sold in original packaging, for example bottled water or confectionery, are considered Sales of goods
- If the food sold by the business is transformed through preparation and/or table service, sales should be reported as Income from services. This treatment covers restaurant food sales, takeaway meals in containers, and catering services.
- If liquor and other beverages are sold for consumption on premises (i.e. bar, cafe or restaurant sales), then these sales should be reported as Income from services. If they have been sold for consumption off premises (e.g. bottle shop sales), then these sales should be reported as Sales of goods
Although this list is not exhaustive, it does address some of the common reporting problems encountered by businesses.
Computer Software Sales: The treatment of income from computer software sales differs depending on the situation.
Export sales (f.o.b): Where goods are produced or purchased in Australia for sale overseas, income from Sales of goods should represent the free-on-board (f.o.b.) price of the goods, i.e. a price which may cover the cost of transporting goods to the Australian customs frontier (point of exit from Australia) only, and not the cost of transporting the goods outside Australia. (Note the exclusion of Export freight charges from the concept of Sales of goods)
Food and beverages:
Gambling: Takings from gambling activities, including lottery tickets, are Income from services. This includes gambling taxes or levies but excludes payouts and rebates.
Progress payments billed on long term contracts: Where a business has entered into a long term contract to supply goods or services, and recognises expenses and progress payments in its accounts, the progress payments should be reported as sales of goods or income from services, depending on the nature of the contract.
Public transport operation
Where the business receives funding for contracted government public transport service (e.g. rail, bus, ferry services under a franchise or contract agreement with a government), the funding received should be included in Funding from federal, state and/or local government, (Funding for operational costs).
Passenger fare income should be included in Income from services.
Ticket sales (admission): Where a business sells tickets for admission to a venue for an event (entertainment, sporting, cultural etc.), it is commission income and revenue should be included in Income from services
Ticket sales (travel agents): Where a business sells travel tickets as an agent for a passenger transport business, income from these sales should be reported as Income from services.
Asset sales: The proceeds from the sale of assets should be reported as Disposal of selected assets. The profit or loss from the sale of assets should be reported in Other Income as a positive or negative value.
Asset revaluation/impairment: should be reported under Other income as either a net gain or loss. Negative revaluations and impairments should not be reported as an expense. This follows the same principles that apply to other examples listed on the form, such as share trading or sales of assets.
- EXPENSE ITEMS
How should I report Labour costs?
How should I report Purchases?
How should I report expenditure on electricity, fuels and water?
How should I report payments to contractors and other businesses for services?
Where do I report my specific expense item?
How should I report Labour costs?
Payments made to an unrelated business for the supply of staff on a fee or contract basis, where the staff entitlements are paid by the business supplying the employees, should be recorded in Labour Costs question part (e) Payments to employment agencies for staff . Payment to another business for recruitment services (i.e. advertising vacancies, conducting interviews) on behalf of your business should also be included in Payments to employment agencies for staff . However, any costs incurred by your business in the conduct of its own recruitment processes (e.g. payment directly to newspapers for running job vacancy advertisements) should be reported in Other operating expenses.
Labour costs exclude payments to contractors or sub-contractors operating under their own ABN. Information on payments to contractors can be found under How should I report payments to contractors and other businesses for services?
Only include Employer contributions paid into superannuation. This does not include personal superannuation contributions for business owners not drawing a wage.
Payroll tax is levied by State/Territory governments on businesses with large payrolls (usually greater than $0.5 million for the year). It does not refer to income tax withholding for employees.
Wages and salaries including provisions for employee entitlements - gross (i.e. before tax) wages and salaries should be reported.
- How should I report Purchases?
- where a business buys packaging materials for its use, the cost of the packaging materials should be included in Purchases of materials, components, containers, packaging materials, electricity, fuels and water; but
- where a business buys packaging materials for sale (without processing) to other business or to the public, the cost of the packaging materials should be included in Purchases of finished goods for resale.
If a commodity is purchased to be used or consumed in the production of goods or services, or for repairs and maintenance of equipment, its cost should be reported as Purchases of materials, components, containers, packaging materials, electricity, fuels and water. If the same commodity is purchased simply to be onsold in the same form (without transformation), its cost should be reported as Purchases of finished goods for resale. For example:
In the context of selling finished goods, Purchases (expenses) are not the same as cost of goods sold. Purchases represent the amount actually expended by the business in the reporting period. Cost of goods sold, which is not collected in this form, represents the amount expended only on goods actually sold in the reporting period. (Cost of goods sold is equal to purchases plus opening inventories minus closing inventories).
- How should I report expenditure on electricity, fuels and water?
- Petroleum and diesel fuel purchased for retail sale - report as Purchases of finished goods for resale.
- Petroleum and diesel fuel purchased for use in own vehicles and equipment - report as Purchases of materials, components, containers and packaging materials, electricity, fuels and water.
- Water rates paid - include in Purchases of materials, components, containers and packaging materials, electricity, fuels and water.
- Electricity bills for powering office, plant, etc - include in Purchases of materials, components, containers and packaging materials, electricity, fuels and water.
Reporting of expenditure on electricity, fuels and water depends on how the electricity, fuels and water are used by the business, as shown in the following examples.
- How should I report payments to contractors and other businesses for services?
- Postage costs - include in Outward freight, cartage, delivery and transport expenses
- Payments made to owner-drivers to transport goods sold by your business to customers - include in Outward freight, cartage, delivery and transport expenses
- Payment made to a courier for pick-up of goods and delivery to your office - include in Other freight, cartage, delivery and transport expenses
- Payment of separately invoiced delivery charges to a supplier of goods - include in Other freight, cartage, delivery and transport expenses
- Payment for rent for your business premises - include in Other operating expenses
- Payment of commission to another business for selling goods owned by your business - report in the appropriate expense item
- Payment to another business for training your employees - include in the appropriate expense item
- Travel and accommodation expenses for your employees - include in Other operating expenses
- Payment to another business for advertising - include in the appropriate expense item
There is a specific question for Payments to contractors and other businesses for freight, cartage, delivery and transport services. Otherwise, all payments to other businesses for non-transport-related services provided should be reported in the appropriate expense item.
The following examples show how some commonly incurred expenses should be reported
- Where do I report my specific expense item?
- Optional third party insurance premiums, payable at the discretion of the business, should be included in Insurance premiums.
- Compulsory third party insurance premiums, payable as part of the vehicle registration process should be included in Other operating expenses.
Although this list is not exhaustive, it does address some of the common reporting problems encountered by businesses:
Consumables: Consumables such as stationery, staff amenity supplies, cleaning materials etc. should be reported as Purchases of materials, components, containers and packaging materials.
Discounts/Rebates given: Discounts or rebates given by your business to its customers should not be reported as an expense item, but should be netted off the income item to which the discount/rebate applied, e.g. Sales of goods or Income from services.
Equipment hire: should be included in Other operating expenses.
Finance lease payments: When an asset, e.g. company car, is acquired under a finance lease arrangement, the value of the acquisition should be included in Capital expenditure including capitalised work done by own employees in the year of acquisition. Repayments under a finance lease agreement consist of two components: interest and capital repayments. Capital repayments should not be reported in this form. The interest component only should be included in Interest expenses.
Franchise fees: If the business is a franchisee paying fees to a franchisor, those fees should be included in Other operating expenses.
Motor vehicle insurance premiums:
Sponsorship Payments: Sponsorship is not considered the same as a donation, as it involves a transaction, usually advertising or promotional benefits for the individual or business making the payment. It should therefore be reported in the appropriate expense item, whereas donations are excluded altogether.
- Assets are items of economic value that are owned by the organisation, and from which economic benefits are derived by the organisation by holding or using them over a period of time.
- Land on which dwellings, non-residential buildings and structures are constructed or into which their foundations are dug, including yards and gardens deemed an integral part of farm and nonfarm dwellings and access roads to farms.
- Land on which agricultural or horticultural production is carried on for commercial or subsistence purposes, including land under plantations, orchards and vineyards
- Land that is used as privately owned amenity land, parklands and pleasure grounds together with associated surface water.
- Non-residential building refer to buildings other than dwellings, including fixtures, facilities and equipment that are integral parts of the structures and costs of site clearance and preparation. Historic monuments identified primarily as non-residential buildings are also included. Examples include warehouse and industrial buildings, commercial buildings, buildings for public entertainment, hotels, restaurants, educational buildings, health buildings, etc.
- Structures other than buildings, including the cost of the streets, sewers and site clearance and preparation other than for residential or non residential buildings. Also included are historic monuments for which identification as dwellings or non-residential buildings is not possible and shafts, tunnels and other structures associated with mining subsoil assets. Examples include railways, airfield runways, bridges and tunnels, communication and power lines, local pipelines and cables, ancillary works constructions for mining and manufacture and constructions for sport and recreation.
- Transport equipment refers to equipment for moving people and objects, such as motor vehicles, trailers and semitrailers, ships, railway and tramway locomotives, aircraft, motorcycles etc
- Other machinery and equipment includes machinery used for production of goods or services, fork lifts, assembly line machines, presses and crane, agricultural machinery, electrical devices such as computers and medical equipment etc
Cash and deposits refers to holdings of currency (notes and coin) in current circulation and all types of deposits held with authorised deposit taking institutions, including transferable and non-transferable deposits.
Investments held with fund managers refers to investment funds that are managed by an external fund manager on behalf of the organisation. Fund managers hold and manage a portfolio of assets on behalf of their investors. Buy and sell decisions are made by an investment professional on behalf of your organisation.
Land refers to the ground, including the soil covering and any associated surface waters, over which ownership rights are enforced. Also included are major improvements that cannot be physically separated from the land itself. Excluded are any buildings or other structures situated on it or running through it, cultivated crops, trees and animals, subsoil assets, biological and water resources below the ground. Land consists of land underlying buildings and structures, land under cultivation, recreational land and associated surface water and other land and associated surface water, as defined below.
Dwellings refers to buildings that are used entirely or primarily as residences, including any associated structures, such as garages, and all permanent fixtures customarily installed in residences. Houseboats, barges, mobile homes and caravans used as principal residences of households are also included, as are historic monuments identified primarily as dwellings.
Other buildings and structures refer to Non-residential buildings and other structures, as defined below
Plant and equipment refers to transport equipment and other machinery and equipment, as defined below, other than that acquired by households for final consumption. Tools that are relatively inexpensive and purchased at a relatively steady rate, such as hand tools, are excluded. Also excluded is machinery and equipment integral to buildings that is included in dwellings and non-residential buildings.
How should I report inventories?
Inventories are divided into three sections; Raw materials, Work-in-progress and Finished goods.
Raw materials consist of goods that a business holds with the intention of using to produce other goods or in rendering services. For example, paper supplies for use in printing newspapers (good produced) or raw food to make a meal (provide a service).
Work-in-progress consists of goods that still require work to reach the condition they are to be sold in, such as partially assembled machinery. The value of work-in-progress inventories should be reported net of progress payments billed.
Finished goods consist of goods that are to be sold in their current condition, including goods for resale.
Inventories do not include depreciable assets of the business.
- CAPITAL EXPENDITURE AND DISPOSAL OF ASSETS
Capital expenditure refers to the amount spent by a business in the current reporting period on the acquisition of non-current assets. It does not represent the value of asset holdings purchased prior to the current reporting period and does not include additions to inventories. It is reported under Capital expenditure including capitalised work done by own employees.
If the business hires contractors to carry out capital work, then these contractor payments should be included in the cost of the capital works.
The following are examples of how some common types of acquisitions should be reported under Capital expenditure including capitalised work done by own employees. (The value reported should be the purchase price of the asset acquired.)
1. Cars, trucks and buses - in Road Vehicles.
2. Aeroplanes, trains and ships - in Other transport vehicles and equipment:.
3. Fork lifts, assembly line machines, presses and tractors - in Industrial machinery and equipment.
4. Audio visual equipment, electric lighting or signs, transformers and generators - in Electronic equipment and electrical machinery.
5. Photographic equipment, medical diagnostic equipment, fencing and office fittings - in Other plant and equipment.
- What is capitalised work done by own employees?
- employees carry out work to build a structure, such as an outbuilding;
- employees carry out work to develop an in-house software inventory control system.
Capitalised work done by own employees occurs when a business uses its own employees to add to the value of its assets by virtue of project work. Examples include:
In these cases, the cost of the project - both wages and salaries paid to employees and materials used for the capital work - may be capitalised, so that the cost can be amortised over more than one reporting period.
If the project work relates to a non-current asset, it is included in the relevant section of the question Capital expenditure including capitalised work done by own employees. Capitalised work done by own employees should also be reported as Capitalised wages and salaries and Purchases of materials for capital work. That is to say that Capitalised work done by own employees is a subset of Capital expenditure
Capitalised wages and salaries and purchases of materials must relate to capital works. If they are wages and salaries or purchases relating to the daily operations of the business, they are reported as an expense item.
- Are the reported numbers a headcount of persons working for the business? (Should not be Full Time Equivalent (FTE))
- Have you reported only those who worked for the business in the last pay period ending in June 2013? (i.e. Regardless of your reporting period; not including casual/seasonal employees who did not work during that pay period.)
- Does Total number of persons equal the sum of Working proprietors and partners, Salaried directors and Other employees?
- Working proprietors and partners should only be reported for an unincorporated business, not if the business is incorporated (e.g. Pty Ltd).
- If the business had offices/locations with staff in more than one state or territory, does the total for Australia equal both the sum of components and Total number of persons?
- Are all reported financial items reported in $'000s (thousands)? For example, if business income for the year were $123,456, it should be reported as 123.
- Do total income and total expenses equal the sum of their components?
- Have sales and purchases been reported net of GST?
- Have the nature and amount of the main components of 'other income, other operating expenses and Assets and Liabilities been provided in the relevant sections
- If income from sales of goods produced by the business has been reported, have purchases been reported correctly, i.e. as Purchases of materials, components, containers and packaging materials, electricity, fuels and water?
- If income from sales of goods not produced by the business has been reported, have purchases been reported correctly, i.e. as Purchases of finished goods for resale?
- If the business derived income from gaming/gambling, did it pay gambling taxes or levies? If so, has the amount paid as gambling taxes or levies been included in both Expense Items and part 5 of the form
- Have the values of both opening and closing inventories been reported, where applicable?
- If Capitalised work done by own employees is reported under total value of capital work done, the value must be less than or equal to the sum of Capital expenditure items
- If the business had offices/locations with staff in more than one state or territory, please check that totals for Australia equal both the sum of state components in each column
- Have you provided an estimate of the time taken to complete this form? (Please note that we use the time taken information to help us to design effective survey forms while minimising the burden on our respondents.)
The purpose of this checklist is to assist you, if you wish, to check the information which you have supplied in the form before returning it to ABS. Use of the checklist may reduce the need for us to contact you with further enquiries. The points covered reflect some of the most common reporting errors.