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Level of government classification


4.16. The general government sector in SNA93 is divided into subsectors representing three levels of government (central, state and local). In Australia, the corresponding levels of government are described as national, state/territory and local. The SNA93 level of government classification is an integral part of the institutional sector classification whereas, in Australia, a separate LOG classification is defined which can be applied to public corporations as well as to the general government sector. Having a separate classification enables the public sector and each of its components to be classified by LOG, as shown in the following table.

		Components of the Public Sector
	Level of government	General government	Public non-financial corporations	Public financial corporations	Total public sector
	National
	State/Territory
	Local

National

4.18. All public sector units that have a national role or function are classified to the National LOG. Units are generally considered to have a national role or function if the political authority underlying their functions extends over the entire territory of Australia or the functions involve policies that are primarily of concern at a national level. The fact that a unit is controlled by the Commonwealth Government is prima facie (but not necessarily conclusive) evidence that the unit has a national role or function. Currently, all Commonwealth-controlled public sector units are classified to the National LOG. Such units include government units controlled by the Commonwealth Government, non-market NPIs that are controlled and mainly financed by the Commonwealth Government, and public non-financial and financial corporations (including the RBA) controlled by the Commonwealth Government.

4.19. Public sector units that are not controlled by the Commonwealth Government can also be classified to the National LOG. Currently, the only such cases are 'multi-jurisdictional' units (see paragraphs 4.24-4.27) that have a national role or function. Multi-jurisdictional units are public sector units that cannot be defined unambiguously as under the control of a single government. The main multi-jurisdictional units currently classified to the National LOG are the public universities which, as described in Chapter 3, are mainly financed and partly controlled by the Commonwealth Government but are subject to a degree of control by the establishing state or territory government. On balance, the public universities are considered to be implementing policy (i.e. tertiary education) that is primarily of concern at a national level.

State/Territory

4.20. All public sector units that have a state or territory role or function are classified to the State/Territory LOG. Units are generally considered to have a state or territory role or function if the political authority underlying their functions is limited to a state or territory or the functions involve policies that are primarily of concern at a state or territory level. The fact that a unit is controlled by a state or territory government is prima facie (but not necessarily conclusive) evidence that a unit has a state or territory role or function. Currently, all state/territory-controlled public sector units are classified to the State/Territory LOG. Such units include government units controlled by a state or territory government, non-market NPIs that are controlled and mainly financed by a state or territory government, and all public non-financial and financial corporations that are controlled by a state or territory government.

4.21. Although public sector units that are not controlled by a state or territory government, including multi-jurisdictional units, can be classified to the State/Territory LOG, none of them are so-classified currently.

Local

4.22. All public sector units that have a local role or function are classified to the Local LOG. Units are generally considered to have a local role or function if the political authority underlying their functions is limited to a local government area or other region within a state or territory or the functions involve policies that are primarily of concern at a local level. The fact that a unit is established as, or directly controlled by a local government authority is prima facie (but not necessarily conclusive) evidence that a unit has a local role or function. Currently, all local government authorities and the units they control are classified to the Local LOG. Such units include each local government authority constituted under one of the various Local Government Acts (or the equivalent) in each state and the Northern Territory, County Councils in New South Wales, all non-market NPIs that are controlled and mainly financed by a local government authority, and all public non-financial and financial corporations that are controlled by a local government authority.

4.23. Although public sector units that are not controlled by local government, including multi-jurisdictional units, can be classified to the Local LOG, none of them are so-classified currently.