GLOSSARY
Advertising expenses
Advertising expenses include all costs incurred by the business for promotional and publicity campaigns aimed at bringing the activities of the business to the attention of consumers for the purpose of increasing sales.
Advertising, marketing and promotion expenses
Advertising expenses include all costs incurred by the business for promotional and publicity campaigns aimed at bringing the activities and services of the business to the attention of consumers for the purpose of increasing sales. Marketing expenses are the costs incurred in the long-range promotion of the business and its goods or services. Promotion expenses are those costs associated with generating public awareness of the business and/or its products.
Average annual percentage change
A percentage change, p, from 2000-01 to 2004-05 is converted into an average annual change, a, as follows:
a = (1 + p)1/4 - 1
The average annual percentage change is not an arithmetic average of the actual percentage changes from year to year. It is labelled the 'average' change because if any value increases by a% every year for four years, then at the end of the four years it will have grown by a total p%.
Bad and doubtful debts
Bad debts and doubtful debts are the amount of accounts receivable that are either written off, or estimated to be uncollectable during an accounting period, that are expensed in a period's profit calculations.
Bookmakers
Bookmakers are businesses whose primary activity is accepting bets.
Casinos
Casinos are businesses mainly engaged in providing a range of gambling services in addition to totalisator or gaming machine services, and other amusements, in a building to which the general public have access.
Casino licence fees
Casino licence fees are the costs paid to the casino regulatory body for a licence to carry out gaming/gambling activity.
Casual employees
This item refers to employees who are not entitled to paid leave.
Commissions from gambling
This item includes commissions received by businesses acting as hosts for the sale of off-course TAB products, lottery tickets, Keno and poker/gaming machines.
Commissions from TAB operations/sports betting operations
This item refers to commissions received by businesses acting as agents for the sale of off-course TAB products and/or sports betting.
Community benefit levy
As part of gambling/gaming taxes and levies, casinos in most states and territories pay a community benefit levy directly to government, which is generally a levy on gaming revenue and is used to fund community service organisations and groups.
Depreciation and amortisation
This item refers to regularly recurring financial charges made in the accounts to reflect that part of the value of the asset which may be regarded as having been used up in producing revenue in a particular accounting period. Depreciation generally refers to physical (tangible) non-current assets, and amortisation generally refers to intangible non-current assets.
Electricity, gas and water charges
These charges relate to the consumption of electricity, gas and/or water during the normal operations of the business.
Employees at end June
This item represents all employees on the payroll for the last pay period ending in June 2005. Employees absent on paid or prepaid leave are included. Subcontractors and persons paid solely by commission without a retainer are excluded.
Employer contributions to superannuation funds
This item represents the cost of the employer's contributions during the reference period, made on behalf of employees, including salary sacrificed amounts.
Employment at end June
This item represents all working proprietors and partners and employees on the payroll of the business during the last pay period ending in June 2005. Permanent, temporary and casual employees and employees absent on paid or prepaid leave are included. Non-salaried directors, self-employed persons such as consultants and contractors, persons paid by commission only and volunteers are excluded.
Fringe benefits tax
Fringe benefits tax is payable by employers when certain benefits in excess of normal wages or salaries (e.g. free or discounted goods or services) are received by their employees (or associated employees) in connection with their employment.
Gambling/gaming taxes and levies
This expense item includes all taxes/levies paid to the government and funds transferred to government bodies in accordance with gambling regulations. It includes GST payments in respect of gambling services and excludes casino licence fees. Gambling/gaming taxes and levies that relate to poker/gaming machines are paid by the owners of the poker/gaming machines.
Gambling services n.e.c.
Businesses mainly engaged in providing totalisator, betting or other gambling services (except casinos or lotteries).
Gambling takings received online
This item refers to takings from all gambling activity, net of payouts to players, from orders received via the Internet or web. Examples of online gambling activity include: poker/gaming machines, lotteries, lotto style games and football pools, instant money sales, Keno, on-course and off-course betting on thoroughbred, harness and greyhound racing, and other (e.g. sports) betting.
Gross takings from gambling
This item represents takings from gambling activity before payouts are made to players.
Hospitality clubs
Hospitality clubs are associations mainly engaged in providing hospitality services to members, and may also provide gambling, sporting or other social or entertainment facilities.
Industry value added (IVA)
Industry value added (IVA) represents the value added by an industry to the intermediate inputs used by the industry. IVA is the measure of the contribution by businesses, in the selected industry, to gross domestic product.
The derivation of IVA for market producers is as follows:
sales and service income
plus funding from federal, state and/or local government for operational costs
plus capital work done for own use
plus closing inventories
less opening inventories
less intermediate input expenses
less capitalised purchases
equals IVA.
Wage and salary expenses and most other labour costs are not taken into account in its calculation nor are most insurance premiums, interest expenses or depreciation and a number of lesser expenses including bad debts, computer software expensed and state gambling taxes.
The derivation of IVA for non-market producers is as follows:
labour costs
plus depreciation
plus land tax
plus capital work done for own use
less capitalised purchases
equals IVA.
However, it should be noted that IVA is not a measure of operating profit before tax.
Insurance premiums
Insurance premiums are expenses incurred by a business in respect of different types of insurance policies but excluding workers' compensation and compulsory third party motor vehicle insurance.
Interest expenses
These are outflows of funds related to the cost of borrowing money.
Keno
Keno is a game of chance, played in casinos and other gambling venues, where the goal is to match chosen numbers to those that are selected by a computerised system.
Keno commissions paid to clubs, pubs, casinos and other outlets
This item refers to commissions paid by licensees of the Keno game to the clubs, pubs, casinos and other outlets that host Keno games.
Labour costs
Labour costs are staff related costs such as wages and salaries (including moneys paid directly to freelancers via the payroll), fringe benefits tax and payroll tax, employer contributions to superannuation funds, workers' compensation premiums, and provision expenses for employee entitlements.
Land tax and land rates
Land tax is an annual tax assessed to the owner of the land. Land rates are annual charges levied by local government for the provision of local government services. This is a combination of these two items.
Licensed gaming staff
Licensed gaming staff refers to those employees employed as either gaming machine managers or gaming machine operators. They are normally approved or licensed by the relevant state board or department. This allows these employees to work within gaming areas containing poker and other gaming machines.
Lotteries
Lotteries are businesses mainly engaged in operating lotteries or selling lottery tickets.
Lottery agents
Lottery agents are businesses mainly engaged in selling lottery tickets. As well as income from lottery commissions, these businesses often have some income from items such as cigarette sales, phone card sales and greeting card sales.
Lottery commissions paid to agencies
This item refers to commissions paid by lottery operators to agencies who sell their products.
Lottery operators
Lottery operators are businesses mainly engaged in operating lotteries. These businesses are generally larger than lottery agents, and almost all of their income is derived from gambling activities.
Management fees/charges paid to related and unrelated businesses
These are payments made to other businesses for management and administrative services.
Marketing, promotion and sponsorship expenses
Marketing and promotion expenses are the costs incurred in the long-range promotion of a casino business and its goods or services. It may include expenses associated with attracting premium and other rated players to the casino. It includes cash give-aways for competitions as well as printing costs. Sponsorship expenses are the costs incurred in the public support/promotion of sporting, arts or cultural activities.
Net takings from casino gambling
This item refers to turnover, minus payouts to players, from poker/gaming machines in casinos, casino gaming tables and casino Keno.
Net takings from gambling
This item consists of turnover, net of payouts to players/bettors, from poker/gaming machines, on-course and off-course totalisator betting, bookmakers' betting, lotteries, lotto style games, football pools, instant money sales, Keno and casino gaming tables.
Net takings from instant money
This item refers to turnover from instant money games, minus payouts to players.
Net takings from Keno
This item refers to takings from Keno net of payouts to players. It excludes takings from Keno gaming machines (which is included in net takings from poker/gaming machines).
Net takings from lotteries, lotto style games and football pools
This item refers to income, minus payouts to players, from lotteries, lotto style games and football pools.
Net takings from poker/gaming machines
This item represents takings from poker/gaming machines net of payouts to players.
Net takings from thoroughbred, harness and greyhound betting
This item refers to the turnover, net of payouts to bettors, of either on-course totalisators or off-course TABs from betting on thoroughbred, harness and greyhound races.
Net takings from thoroughbred, harness and greyhound betting bookmakers
This item refers to bookmakers' turnover, net of payouts to bettors, from betting on thoroughbred, harness and greyhound races.
Off-course TAB
Off-course TAB refers to businesses running parimutuel, or pool-based, betting located on premises away from the subject of the bet.
On-course totalisator
On-course totalisator refers to businesses running parimutuel, or pool-based, betting located where the subject of the bet takes place.
Operating profit before tax
This item is a measure of profit (or loss) during the reference period, taken before extraordinary items are brought to account and prior to the deduction of income tax and appropriations to owners (i.e. dividends paid, drawings). It is derived by subtracting total expenses from total income, and adding the difference between closing inventory and opening inventory for the period.
Operating profit margin
This represents the percentage of businesses' sales of goods and services which becomes profit after all operating expenses have been deducted. It is derived by expressing total operating profit before tax as a percentage of total sales of goods and services.
Other sales of goods
This item includes income from the sale of clothing, publications and sports equipment, as well as royalties received from the sale of merchandise. It excludes commissions/concessions received from merchandise outlets operated by other businesses.
Other sporting clubs and venues
Businesses mainly engaged in operating any kind of indoor or outdoor sports facility other than those for thoroughbred, harness and greyhound racing.
Payroll tax
Payroll tax is a tax levied by state and territory governments upon the amount of wages and salaries paid by a business.
Permanent full-time employees
This item refers to permanent employees who work 35 hours or more per week and are entitled to paid leave.
Permanent part-time employees
This item refers to permanent employees who work less than 35 hours per week and are entitled to paid leave.
Poker/gaming machines
Poker/gaming machines are electronic gaming machines which usually have a certain rate of return and rewards are based on chance.
Poker/gaming machine commissions paid to clubs and pubs
This item refers to payments made by the owners of poker/gaming machines to the businesses that host the machines and make them available to the public.
Pubs, taverns and bars
These are hotels, bars or similar businesses (except licensed clubs) mainly engaged in selling alcoholic beverages for consumption on the premises, or in selling alcoholic beverages both for consumption on and off the premises.
Purchases
This includes purchases of liquor and other beverages, foodstuffs for use in preparing meals and takeaway food, merchandise/goods for resale and other non-capitalised purchases.
Purchases of goods for resale
This includes purchases of finished goods for resale, foodstuffs for use in preparing meals and takeaway food, liquor and other beverages, and other non-capitalised purchases such as containers and packaging materials.
Rent, leasing and hiring expenses
Rent, leasing and hiring expenses are the costs for the rent, leasing (excluding finance leases) and hiring of land, buildings and other structures, sporting venues, facilities and equipment, vehicles, machinery and any other property from other businesses or individuals.
Repair and maintenance
This item includes costs associated with work undertaken on plant and machinery etc. to maintain normal business operations.
Sponsorship expenses
Sponsorship expenses are the costs incurred in the public support/promotion of sporting, arts or cultural events.
Sporting clubs and venues
Sporting clubs and venues are businesses/organisations mainly engaged in operating individual sports or physical recreation clubs or teams or sporting venues.
TAB agents
TAB agents are businesses acting on behalf of the totalisator to accept bets on thoroughbred, harness and greyhound racing and other activities.
TAB/totalisator commissions paid to clubs, pubs, agencies and other outlets
This item refers to commissions paid by totalisators to the businesses who provide totalisator betting services to the public.
Takings from accommodation
This item refers to income received from the provision of short-term accommodation. All takings from meals are excluded, including the meals component where meals and accommodation are a combined charge.
Takings from liquor and other beverages
This item includes sales of beer, wine, spirits and other beverages sold for consumption on the premises with or without meals.
Takings from meals
This item refers to takings from meals sold for consumption on the premises.
Telecommunication services expenses
This item refers to all payments (of a non-capital nature) for telecommunication services which engage wire, cable or radio transmission. It includes the cost of leased lines for computer and Internet services, but excludes installation costs and the cost of leasing telecommunication equipment.
Thoroughbred, harness and greyhound racing clubs
This item refers to businesses mainly engaged in operating facilities especially used and designed for horse or dog racing. Other activities may include operation of racing stables and kennels. Horse racing includes the racing horses which are ridden or which are pulling a vehicle.
Total income (net of payouts to players)
This item is the sum of all sources of income, minus the total value of payouts to players/bettors.
Travelling, accommodation and entertainment expenses
This item refers to the costs of transport and accommodation for staff which are incurred when business activities occur away from the normal place of business. Entertainment expenses are the costs incurred by a business for the provision of entertainment activities.
Wages and salaries
This item refers to the gross wages and salaries (including capitalised wages and salaries) of all employees of the business. It includes severance, termination and redundancy payments, salaries and fees of directors and executives, retainers and commissions of persons who received a retainer, bonuses, and annual and other types of leave. Provision expenses for employee entitlements are also included (e.g. provisions for annual leave and leave bonus, long service leave, sick leave, and severance, termination and redundancy payments). Payments related to salary sacrifice and payments to self-employed persons such as consultants, contractors and persons paid solely by commission without a retainer, are excluded.
Workers' compensation costs
Workers' compensation is a compulsory insurance cover to be taken out by all employers, except for self-insured workers, according to legislative schemes to cover employees suffering injury or disease in the course of or arising out of employment.
Working proprietors and partners of unincorporated businesses
A working proprietor operates his or her own business (a sole proprietorship), while a partner, along with one or more other partners, operates a partnership. Working proprietors and partners are the owners of their business and as such, they are not considered to be employees of that business.
Print Page
Print All