8155.0 - Australian Industry, 2009-10 
Quality Declaration
Quality Declaration ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 27/05/2011
Page tools:
 Print Page
 Print All
| ||
|
GLOSSARY
Capital expenditure Total (gross) expenditure on acquiring fixed tangible and intangible assets, before deduction of trade-in allowances, and including expenses (except capitalised interest) incurred during the year in acquiring such assets. Fixed tangible assets include land, dwellings, other buildings and structures, plant, machinery and equipment (including motor vehicles). Intangible assets include capitalised exploration expenditure, patents, licences and goodwill. Capital work done for own use Capitalised work done by the employees or proprietors of a business in manufacturing, constructing, installing or repairing assets, in mineral and petroleum exploration activities, and the in-house development of computer software, for use by the business or for rental or lease. This work is valued at the capitalised costs of the materials and the wages and salaries involved. Capitalised purchases Goods drawn from inventories for use as fixed tangible assets in capital work done by the employees or proprietors of a business for use by the business or for rental or lease. Capitalised wages and salaries Capitalised payments for work done by own employees in manufacturing, constructing, installing or repairing assets, mineral and petroleum exploration activities or in developing computer software in-house for use by the business or for rental or lease. Change in inventories The value of total closing inventories less total opening inventories. Closing inventories The value of all inventories of finished goods (including inventories for resale), work-in-progress (less progress payments billed), raw materials, fuels and containers at the end of the reporting period. Commuter coach/bus fares (income from) This item refers to income derived from the transportation of passengers by bus or tramway, mainly within metropolitan areas. It includes income from airport and school bus services, but excludes income from sightseeing transport in urban areas. Commuter train fares (income from) This item refers to income derived from the transportation of passengers by train (or monorail), mainly within metropolitan areas. It excludes income from heritage or scenic railway operation. Cost of sales The sum of purchases, selected expenses and opening inventories less closing inventories. Any capitalised purchases are excluded. Cruise fares (income from) This item refers to income derived from the transportation of passengers by ship or boat. Income from the charter of a vessel with crew is included. Delivery charges separately invoiced to customers This item refers to the amount of income that is derived from the delivery of goods sold to customers, where the charge for delivery is separately invoiced to the customer rather than included in the sales price. Depreciation and amortisation Depreciation/amortisation allowed on tangible and intangible assets. Includes, for lessees only, depreciation/amortisation in respect of finance leases. Disposal of assets Proceeds from the sale of tangible assets (plant, machinery, equipment, land, dwellings, other buildings and structures), and intangible assets (such as patents, licences and goodwill). Earnings before interest, tax, depreciation and amortisation (EBITDA) Profit prior to the deduction of net interest (interest income minus interest expenses), income tax, depreciation and amortisation. Items classifiable to other income are also excluded. Employer contributions into superannuation Includes all employer contributions to superannuation funds (including the employer productivity contribution) and provisions for employer contributions to superannuation funds. Also includes expenses relating to employer funded defined benefit schemes. Employee contributions and salary sacrifice contributions are excluded. Employment at end of June Number of persons working for businesses during the last pay period ending in June of the given year. Includes working proprietors and partners, employees absent on paid or prepaid leave, employees on workers' compensation who continue to be paid through the payroll, and contract workers paid through the payroll. Excludes persons paid by commission only, non-salaried directors, volunteers and self-employed persons such as consultants and contractors. Enterprise See Explanatory Notes paragraph 13. Enterprise group See Explanatory Notes paragraph 13. Ferry fares (income from) This item refers to income derived from the transportation of passengers by water, mainly for commuting purposes, over regular routes and on regular schedules. Fares may include a fee for the carriage of passengers' motor vehicles. Freight forwarding Freight forwarding is a logistical service that involves warehousing and shipping. A freight forwarder is a business that organises shipments for individuals or other companies. Freight forwarders can also act as a carrier. Freight, cartage, delivery and transport expenses to other businesses This item refers to payments made to other businesses, including contractors and owner- drivers, for the movement of goods. It includes payments for freight forwarding and stevedoring services. Excludes the cost of delivery by own vehicles and employees, as well as overseas freight and cartage on goods exported, and payments to couriers. Funding from government for operational costs Funding from federal, state and/or local government for operational costs (e.g. wages and salaries, rent, food). Includes bounties, subsidies, export grants, apprenticeship and traineeship schemes, community service obligations, and amounts reimbursed under the Australian Government's Energy Grants (Credit) Scheme. Excludes funding from government for specific capital items. Funding from government for specific capital items Includes capital grants, and low interest or interest free loans made by government to businesses to encourage expenditure on specific equipment (e.g. environmental protection equipment). Gross fixed capital formation (GFCF) GFCF is measured by the total value of a producer's acquisitions, less disposals, of fixed assets during the reference period, plus certain additions to the value of non-produced assets realised by the productive activity of institutional units. Fixed assets are tangible or intangible assets produced as outputs from processes of production that are themselves used repeatedly or continuously in other processes of production for more than one year. The derivation of GFCF is as follows: Acquisition of
plus Other transport equipment
Computer software capitalised Computers and computer peripherals Electronic equipment and electrical machinery Communications equipment Other plant and equipment Dwellings, other buildings and structures Computer software expensed Mining exploration expenditure written off less Disposal of plant, machinery and equipment (including motor vehicles)
equals GFCF Income from passenger fares This item refers to income derived from the transportation of passengers. It incorporates tolls and levies paid by passengers, including excess baggage charges. Industry class The structure of ANZSIC comprises 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 1510 Pulp, paper and paperboard 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 of ANZSIC comprises four levels, ranging from industry division (broadest level) to 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 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 14 for Wood product 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 individual businesses depends on whether they are classified as market or non-market producers. Non-market producers are those institutions which provide goods or services either free or at prices that are not economically significant. In other words, their prices are not significantly influenced by the amounts that producers are willing to supply, nor the amounts that users are willing to pay to purchase the goods or services being provided. Conversely, market producers provide goods and services at prices that are economically significant. For market producers, the derivation of IVA is as follows:
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 Purchases of goods and materials less Other intermediate expenses (for details, see the entry for total expenses) equals IVA However, it should be noted that IVA is a measure of economic activity and is not equivalent to operating profit before tax (OPBT). Wage and salary expenses and most other labour costs are not taken into account in its calculation for market producers, and nor are interest expenses or depreciation and a number of lesser expenses (see the entry for total expenses for further details). On the income side, OPBT includes total income, whereas IVA only includes sales and service income and government funding for operational costs. As a principle, the output of non-market production is valued at cost, including intermediate input expenses. As shown in the above derivation, purchases and other intermediate input expenses are deducted from output in order to arrive at IVA. Accordingly, the derivation of IVA for non-market producers can be described as follows:
plus Depreciation and amortisation equals IVA Estimates of industry value added are obtained by summing the contributions of businesses classified to that industry, both market and (if any) non-market producers. Market producers predominate in most industries. Industry value added is related to, but different from, the national accounting variable gross value added. For national accounts purposes, gross value added is calculated by adjusting industry value added to include General government units and also to account for some other effects. Industry value added per person employed IVA of businesses which operated in a given industry during the given year ended 30 June, divided by the number of persons employed by businesses in that industry during the last pay period ending in June of that year. Persons employed include working proprietors and partners. Insurance premiums Premiums for fire, general, accident, public liability, optional third-party and comprehensive motor vehicle insurance, professional indemnity insurance, and common law liability. Excludes workers' compensation insurance premiums/costs (included in labour costs) and compulsory third party motor vehicle insurance premiums (included in other operating expenses). Interest coverage The number of times that businesses can meet their interest expenses from their earnings before net interest, tax, depreciation and amortisation (EBITDA), i.e. earnings before interest, tax, depreciation and amortisation/interest expenses. Interest expenses Includes interest paid on loans from banks, finance companies, partners, and related or unrelated businesses, and in respect of finance leases. Also includes interest equivalents such as hedging costs and expenses associated with discounted bills. Excludes bank charges other than interest, and capital repayments. Interest income Includes interest received from deposits in banks and non-bank financial institutions, loans, advances, finance leases and earnings on discounted bills. Excludes capital payments received. Intermediate input expenses See the entry for total expenses. Intermediate inputs Intermediate inputs consist of materials and certain services which are used up in the production process. The calculation is:
plus Opening inventories (excluding finished goods) less Closing inventories (excluding finished goods) equals Intermediate expenses
Internal freight, cartage, delivery, and transport expenses This refers to expenses incurred in the transporting of freight between different locations of a business. Investment rate (value added) The proportion of industry value added (IVA) used to acquire capital, i.e. ( capital expenditure / IVA ) x 100. Labour costs Comprises wages and salaries, employer contributions into superannuation, workers' compensation premiums/costs, fringe benefits tax and payroll tax. Large business See the entry for business size. Long distance coach/bus fares (income from) This item refers to income derived from the transportation of passengers by road coach or bus, mainly outside metropolitan areas and over long distances. It includes charter bus services (with driver), outside metropolitan areas, but excludes sightseeing bus services. Long distance train fares (income from) This item refers to income derived from the transportation of passengers by train, mainly outside metropolitan areas and over long distances. It excludes income from heritage or scenic railway operation. Medium business See the entry for business size. Natural resource royalties expenses Includes payments under mineral lease arrangements, payments under timber and quarrying lease arrangements, and resource rent taxes and royalties. Excludes payments for royalties from intellectual property (e.g. patents and copyrights) and computer software licence fees. Gold tax payments are also excluded. See the entry for total expenses for the definition of other operating expenses. Net capital expenditure The value of total capital expenditure less proceeds received from the disposal of assets. Non-employing business See the entry for business size. Opening inventories The value of all inventories of finished goods (including inventories for resale), work-in-progress (less progress payments billed), raw materials, fuels and containers at the beginning of the reporting period. Operating profit before tax (OPBT) Profit before extraordinary items are brought to account and prior to the deduction of income tax and appropriations to owners (e.g. dividends paid), i.e. total income - total expenses + change in inventories. Other freight, cartage, delivery and transport expenses This refers to expenses incurred in the transporting of freight other than expenses for outward freight. The item includes internal and inward freight costs, and postal and courier services. Other intermediate input expenses Comprises intermediate input expenses less current purchases of goods and materials used in production (i.e. excludes any capitalised purchases). Further detail is included in the entry for total expenses. Other operating expenses See the entry for total expenses. Other selected income Includes dividend income and other income such as net profit (or loss) on the sale of fixed tangible assets, net profit (or loss) resulting from variations in foreign exchange rates/transactions, and funding from federal, state and/or local government for specific capital items. It excludes extraordinary profits or losses, i.e. those not associated with the normal operations of the business and of a non-recurring nature. Other transport and motor vehicle running expenses Refers to transport and motor vehicle running expenses other than petroleum products and other fuels, and repair and maintenance expenses. This item includes electricity to power train or tram networks, registration fees, compulsory third party insurance premiums, parking fees and other miscellaneous expenses. Outward freight, cartage, delivery and transport expenses This refers to the cost of transporting (carting) goods or merchandise either by land, water or air from the producer/supplier of the goods to the purchaser of the goods. Payroll tax A tax levied by state and territory governments on the amount of wages and salaries paid by a business. Excludes pay-as-you-go withholding tax. Profit margin The percentage of sales and service income available as operating profit before tax (OPBT), i.e. ( OPBT / sales and service income ) x 100. Purchases of goods and materials Purchases of materials, components, containers, packaging materials, fuels, electricity and water, and purchases of finished goods for resale. Also includes capitalised purchases. Reference period For each collection year, businesses are asked to report data for the financial year ended 30 June. However, if a business has a different financial year, it is asked to report (apart from employment) for a 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 2009-10 collection, a business may have reported data for the year ended 31 December 2009. Rent, leasing and hiring expenses Payments for the rent, leasing and hiring of land, dwellings, other buildings and structures, motor vehicles, plant, machinery and other equipment (including telecommunication equipment). Includes operating lease payments; excludes finance lease payments. Rent, leasing and hiring income See the entry for sales and service income. Rent, leasing and hiring of transport and motor vehicles Refers to payments made to another business for the rent, leasing and hiring of any registered vehicle (without driver) that is being used to transport freight or passengers, includes pipeline, trailers, containers and company cars. Excluded are expenses relating to the rent, leasing and hiring of vehicles with a driver. Repair and maintenance expenses Includes repair and maintenance of computer and communication software and hardware, and repair and maintenance of off-road motor vehicles. Excludes wages and salaries of own employees and the repair and maintenance costs of on-road motor vehicles. Sales and service income Includes: Sales of goods
Income from services
Rent, leasing and hiring income
These are valued net of discounts given and exclusive of goods and services tax (GST). Extraordinary items are also excluded. Sales and service income per person employed Sales and service income of businesses which operated in a given industry during the given year ended 30 June, divided by the number of persons employed by businesses in that industry during the last pay period ending in June of that year. Persons employed include working proprietors and partners. Sales of fuel This item refers to income derived from the sale of fuels, including petrol, diesel, LPG and lubricating oils. Sales of goods See the entry for sales and service income. Sales of liquor and other beverages for consumption off the premises This item refers to income derived from the sale of alcoholic beverages, (beer, wine and spirits), and non-alcoholic beverages, (including tea, coffee, soft drinks, water), packaged for consumption away from the point of sale, (e.g. in bottles or disposable cups). It includes bottle shop sales. Sales of liquor and other beverages for consumption on the premises This item refers to income derived from the sale of alcoholic beverages, (beer, wine and spirits), and non-alcoholic beverages, (including tea, coffee, soft drinks, water), served for immediate consumption at the point of sale. It includes income from bar sales and from the service of beverages with meals consumed on the same premises. Selected labour costs See the entry for total expenses. Small business See the entry for business size. 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, Not-for-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). Stevedoring Stevedoring is the service of loading or unloading of ships on the dock. Superannuation See the entry for employer contributions into superannuation. Takings from gambling activities This item represents income from gambling commissions and the net proceeds from gambling activities undertaken by a business or organisation. It includes commissions from TAB and Keno operations and income from poker/gaming machines. For businesses or organisations operating in Victoria and Tasmania, income from poker/gaming machines represents venue share or commission from poker/gaming machines. For businesses or organisations operating in other states or territories, it represents takings from poker/gaming machines net of payouts. Takings from meals This item refers to income derived from:
It excludes income from the sale of liquor, other beverages and confectionery and from catering commissions or concessions. Takings from the provision of accommodation This item refers to income received from the provision of short-term accommodation in facilities such as hotels/motels, caravan or camping sites and services apartments. Excluded are all takings from meals and sales of liquor and other beverages, even where there is a combined charge for all sales/services. Also excluded are phone call charges paid by guests. Total expenses For the purposes of calculating economic and accounting variables, expenses incurred by businesses are divided into several categories. However, some expenses are excluded entirely from all such calculations: excluded are capital repayments, costs associated with the transfer of real estate, dividends, donations, export freight charges, extraordinary losses, foreign exchange losses, goods and services tax (GST), excise and duties payable to governments, income tax and other direct taxes, losses on asset sales, and unrealised gains/losses from revaluations of assets. Those expenses used for calculations are categorised as follows: Intermediate input expenses This category covers the major expenses incurred by businesses in producing and distributing goods and services (except labour costs), and comprises two sub-categories of operating expenses: (i) Purchases of goods, materials and services used in production, which include:
(ii) Other intermediate input expenses Expenses related to the sale of goods and administrative expenses, which include:
Also included are 30% of the value of insurance premiums (except workers' compensation and compulsory third party motor vehicle insurance premiums). This represents the service charge component of insurance premiums, and is derived as premiums paid less expected claims incurred, which on average is estimated to be 30% of premiums paid. Excluded from intermediate input expenses are selected labour costs and selected other operating expenses, as follows. Selected labour costs
Selected other operating expenses Some expenses are excluded from the calculation of intermediate input expenses and selected labour costs, but are included in the calculation of the accounting variable operating profit before tax (OPBT). These expense items are included in the Industry Performance table as:
Also included are the remaining 70% of insurance premiums (except workers' compensation and compulsory third party motor vehicle insurance premiums). Total income Comprises sales and service income, interest income and other income (for details, see the entries for these items). Total selected industries Total selected industries comprises data for all ANZSIC divisions, excluding ANZSIC Division K Financial and insurance services. For a detailed discussion of the scope and coverage of the estimates, see Explanatory Notes paragraphs 6-25. Units classified to the General government institutional sector are excluded from the scope of estimates for most industries that comprise Total selected industries. This limits coverage to private sector entities only in the Public administration and safety, Education and training, and Health care and social assistance divisions. Type of activity unit (TAU) The TAU is the statistical unit used by the ABS to represent businesses, and for which statistics are reported, in cases where the ABN unit is not suitable for ABS statistical needs. For further detail refer to Explanatory Notes, paragraph 13. 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. (Note that in issues of this publication prior to 2006-07, salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options were reported under related expense items. For example, salary sacrificed for superannuation was included in employer contributions into superannuation.) Payments related 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. Wages and salaries per employee The wages and salaries paid by businesses which operated in a given industry during the given year ended 30 June, divided by the number of employees in that industry during the last pay period ending in June of that year. Working proprietors and partners are not included in employee estimates. The drawings of working proprietors and partners are not included in estimates of wages and salaries. Wages and salaries to sales and service income ratio The wages and salaries paid by businesses which operated during the year ended 30 June as a proportion of the sales and service income of businesses which operated during the same year. Water taxi fares (income from) This item refers to income derived from the transportation of small numbers of passengers by water, mainly for commuting purposes. Workers' compensation premiums/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. Document Selection These documents will be presented in a new window.
|
|