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7.5. Transportation services cover services provided by residents of one economy to those of another economy which involve the carriage of passengers, the movement of goods, and related supporting and auxiliary services. Transportation is broken down by the type of service (passenger services, freight services and other services). While the international standards call for a dissection of transportation services by mode of transport (sea/air/other), in Australia confidentiality constraints preclude the presentation of data on this basis.

	7.3 CLASSIFICATION OF SERVICES IN AUSTRALIA’S BALANCE OF PAYMENTS (a)
		Transportation services
			Passenger Freight Other
		Travel services
			Business Personal
				Education-related
					Tuition fees			(c)
						Sponsored students Subsidised students Full fee students		(c) (c) (c)
					Other goods and services			(c)
						Sponsored students Subsidised students Full fee students		(c) (c) (c)
				Total education related expenditure
					Of which
						Long term Short term stay		(c) (c)
				Other				(c)
		Communication services
		Construction services
		Insurance services
			Freight insurance				(b)
			Other direct insurance				(b)
			Reinsurance				(b)
			Auxiliary services				(b)
		Financial services
		Computer and information services
			Computer services				(b)
				Data processing Maintenance Computer training and education Other computer hardware and software services				(c) (c) (c) (c)
			Information services				(b)
				Database services News agency services Other information services				(c) (c) (c)

		Royalties and licence fees
			Industrial processes Trademarks and franchising fees Music Computer software Computer design and hardware Other royalties					(c) (c) (c) (c) (c) (c)
		Other business services
			Merchanting and other trade-related services
				Merchanting Other trade related services			(b) (b)
			Operational leasing services Miscellaneous business, professional and technical Legal, accounting, management consulting and public relations services
				Legal services Accounting, auditing, bookkeeping and tax consultancy Business and management consultancy, public relations			(b) (b) (b)
			Advertising, market research and public opinion polling services Research and development Architectural, engineering and other technical services
				Architectural services Engineering services Surveying services Other				(c) (c) (c) (c)
			Agricultural, mining and on-site processing services
				Agricultural services Mining services Waste treatment and depollution Other				(c) (c) (c) (c)
			Services between affiliated enterprises, n.i.e. Other
				Manufacturing services Other				(c) (c)
		Personal, cultural and recreational services
			Audiovisual and related services
				Theatrical, films Television programs Video tapes Multimedia			(b) (b) (b) (b)
			Other personal, cultural and recreational services
				Education services Health and medical services Sporting and entertainment services Other
		Government services n.i.e.
			Embassies and consulates Military units and agencies Other				(b) (b) (b)
		Memorandum items:
			Gross insurance premiums Gross insurance claims
	(a) All services categories are published or otherwise disseminated as a quarterly series except for: (b) These services items which are not included in the monthly or quarterly publication, but are disseminated on a quarterly basis and are available on request. (c) These items which are only published or otherwise released annually.

Passenger services

7.7. Passenger services cover, in principle, all services provided between Australia and abroad, or between two foreign economies, involving the international transportation of non-resident persons by resident carriers (credit) and of resident persons by non-resident carriers (debit). Also included in passenger services are charges for excess baggage, or for moving other personal effects accompanying the passenger, and expenditures for food, drink or other items which passengers purchase while on board carriers.

7.8. In practice, the measurement of passenger services involves the following:

• passenger services are reported by resident shipping and airline companies as travel revenue earned from international airline tickets sold abroad, whether to residents or non-residents, and regardless of whether that revenue relates to international travel or travel within a foreign country. Similarly, non-resident shipping and airline companies report revenue earned from ticket sales in Australia, whether to residents or non-residents, and regardless of whether it involves transportation between Australia and the rest of the world or transportation within Australia as part of an international journey;

• for foreign visitors to Australia, data on their purchases of international airline tickets in Australia are used to adjust upwards the passenger fare earnings by resident carriers (credits) derived as explained above, and to adjust downwards passenger fare earnings by non-resident carriers (debits). A similar adjustment is not made in respect of Australian visitors abroad, resulting in a minor overstatement of travel debits offsetting both the slight overstatement of resident carrier earnings (transportation credits) and understatement of non-resident carrier earnings (transportation debits);

• the value of services provided to non-resident persons by Australian carriers in Australia, when sold abroad as part of an international ticket (on-carriage), is collected from the carriers and allocated to travel services. Services provided on purely domestic travel in Australia by non-residents, whether pre-purchased abroad or while in Australia, are also included in travel. No classification adjustments are made for non-resident earnings from residents for internal flights abroad, and all earnings from sales in Australia for on-carriage in a foreign country, or for pre-purchased domestic travel in a foreign country, are included indistinguishably in transportation debits; and

• cruise fares are excluded from passenger services and included in travel, although sea passenger services sold in Australia and provided to residents travelling from one country to another and any resident sea passenger earnings are included in transportation.

Freight services

7.9. Freight services refer mainly to the transport of goods. Also included in freight services are towing and services related to the transportation of oil platforms, floating cranes and dredges. To understand the scope of freight services, it is necessary to revisit the f.o.b. valuation of goods discussed in Chapter 6. In economic statistics any transportation service to the border of the exporting country is included in the value of the goods; thereafter the transport of the goods is treated as a freight service. This means, inter alia, that an Australian transport operator carrying imports from the border of the exporting country constitutes a service provided by a resident operator to a resident importer and hence is not recorded in balance of payments statistics; likewise the service provided by a non-resident operator on Australian exports does not need to be included in the balance of payments. Table 7.4 describes the implications of this treatment in more detail.

	7.4 TREATMENT OF FREIGHT SERVICES
	Credits: earnings by resident operators		Debits: earnings by non-resident operators
	on Australia's exports, beyond Australia's border		on Australia's imports, beyond the border of the exporting country
	on Australia's imports, before the border of the exporting country		on Australia's exports, to the Australian border
	on other goods owned by non-residents (a)		on other goods owned by residents of Australia (a)
	(a) Includes: the transport of goods between third countries (cross-trade); coastal transportation or other transportation of goods between points within an economy; and transport of mail for postal and courier services. Excludes goods accompanying passengers.

Other transportation services

7.10. Other transportation services cover a range of services provided in ports, airports and other terminal facilities by residents to non-residents (and vice versa). These services include cargo handling (loading and unloading of containers etc.); storage and warehousing; packing and repacking; towing, pilotage and navigational aid for carriers; customs agency services; counter and baggage services; maintenance and cleaning of transport equipment performed in ports; and salvage operations. Also included in this category are agents’ fees associated with passenger and freight transportation, including freight forwarding and brokerage services.