GLOSSARY
Data presented in this publication have has been compiled from the standard financial accounts of businesses, therefore, the definition of each reported item aligns closely with that adopted in standard business accounting practice.
Australian Business Number (ABN) unit
The statistical unit used by the ABS to represent businesses, and for which statistics are reported, in most cases. The ABN unit is the business unit which has registered for an ABN, and thus appears on the ATO administered Australian Business Register. In most cases, the ABN unit represents the legal entity. This unit is suitable for ABS statistical needs when the business is simple in structure. For more significant and diverse businesses where the ABN unit is not suitable for ABS statistical needs, the statistical unit used is the type of activity unit (TAU).
Business Activity Statement (BAS) total sales
Represented by the form item G1 Total sales on businesses' BASs, supplied by them to the ATO. This item comprises all payments and other considerations (including GST) received during the nominated tax period for supplies made in the course of business.
Business Activity Statement (BAS) wages and salaries
Represented by the form item W1 Total salary, wages and other payments on businesses' BASs, supplied by them to the ATO. This item comprises all total gross payments for which a business is required to withhold amounts from during the nominated tax period.
Industry class
The structure of the ANZSIC classification comprises a hierarchy of four levels, ranging from industry division (broadest level) to industry class (finest level). Activities are narrowly defined within the industry class level, which is identified by a four-digit code, e.g. Industry Class 1351 Clothing Manufacturing. Usually, an activity is primarily defined to one class. However, some activities may be primary to more than one class.
Industry division
The structure comprises four levels, ranging from industry division (broadest level) to the industry class (finest level). The main purpose of the industry division level is to provide a limited number of categories which give a broad overall picture of the economy. There are 19 divisions within ANZSIC, each identified by an alphabetical letter, that is, 'A' for Agriculture, forestry and fishing, 'B' for Mining, 'C' for Manufacturing, etc.
Industry group
This is the intermediate level within each industry division of ANZSIC and is identified by a three-digit code, e.g. Industry Group 135 for Clothing and footwear manufacturing. It gives more detail than the industry subdivision, and is created in a way that groups like industry classes together.
Industry subdivision
This is the broadest level category within each industry division of ANZSIC and is identified by a two-digit code, e.g. Industry Subdivision 13 for Textile, leather, clothing and footwear manufacturing. Industry subdivisions are built up from industry groups which, in turn, are built up from industry classes.
Industry value added (IVA)
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:
However, it should be noted that IVA is a measure of economic activity and is not equivalent to operating profit before tax (OPBT). Wages and salary expenses and most other labour costs are not taken into account in its calculation for market producers, and nor are most insurance premiums, interest expenses or depreciation and a number of lesser expenses. On the income side, OPBT includes total income, whereas IVA only includes sales and service income.
IVA is related to, but different from, the national accounting variable gross value added. For national accounts purposes, gross value added is calculated by adjusting IVA to include General Government units and to also account for some other effects.
Reference period
For each collection year, businesses are asked to report data to the EAS for the financial year ended 30 June. However, if a business has a different financial year, it is asked to report for the 12 month period which ends between 1 October of the previous year and 30 September of the current year. This period is then used as a substitute for the financial year ended 30 June. For example, for the 2007-08 collection, a business may have reported data for the year ended 31 December 2007.
Sales and Services income
This item includes:
Sales of goods:
- whether or not produced by the business (including goods produced for the business on a commission basis). Includes export sales, sales or transfers to related businesses or to overseas branches of the business, progress payments relating to long term contracts if they are billed in the period, delivery charges not separately invoiced to customers, sales of goods produced by the business from crude materials purchased, and income from 'specific' rates (e.g. water, sewerage, irrigation and drainage rates). Excludes excise and duties received on behalf of the government, sales of assets, natural resource royalties income, interest income and delivery charges separately invoiced to customers. Exports are valued free on board (f.o.b.), i.e. export freight charges are excluded.
Income from services
- including income from consulting services, repair, maintenance and service income and fees, contract, subcontract and commission income, management fees/charges from related and unrelated businesses, installation charges, delivery charges separately invoiced to customers, royalties from intellectual property (e.g. patents and copyrights) and natural resource royalties income. Excludes interest income, and delivery charges not separately invoiced to customers.
Rent, leasing and hiring income
- derived from the ownership of land, dwellings, buildings and other structures, motor vehicles, plant, machinery and other equipment. Excludes royalties from mineral leases, income from finance leases and payments received under hire purchase arrangements.
These component items are valued net of discounts given and exclude goods and services tax (GST). Extraordinary items are also excluded.
Standard Institutional Sector Classification of Australia (SISCA)
The SISCA is the central classification among ABS Standard Economic Sector Classifications. It is based on the System of National Accounts 1993 (SNA93) institutional sector classification, and comprises the sectors:
non-financial corporations, financial corporations, general government, households, non-profit institutions serving households, and rest of the world (which includes only non-resident units, these being excluded from all other sectors). For more information, please refer to the
Standard Economic Sector Classifications of Australia (SESCA) (cat. no. 1218.0)
Wages and Salaries
The gross wages and salaries (including capitalised wages and salaries) of all employees of the business. The item 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 (e.g. provisions for annual leave and leave bonus, long service leave, sick leave, and severance, termination and redundancy payments) are also included, as are salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options.
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. The drawings of working proprietors and partners are also excluded.
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