8622.0 - Retail and Wholesale Industries, Australia, 2012-13 
Quality Declaration
Quality Declaration ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 31/07/2014
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GLOSSARY
The value of total closing inventories less total opening inventories. Closing inventories See Inventories. Commission income on goods sold Income received by a business for selling goods on behalf of another business on a fee or commission basis. Excludes sales of goods bought in and resold by the business. Depreciation and amortisation Depreciation/amortisation allowed on tangible and intangible assets. Includes, for lessees only, depreciation/amortisation in respect of finance leases. 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 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.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 associates of employees) in connection with their employment. 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 fuel tax credits. 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). Income from services See the entry for Sales and service income. 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 3322 Metal and mineral wholesaling. 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,'F' for Wholesale trade, and 'G' for Retail trade. Industry group
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 33 Basic material wholesaling. Industry subdivisions are built up from Industry groups which, in turn, are built up from Industry classes.Industry value added (IVA) IVA is an estimate of the difference between the market value of the output of an Industry and the purchases of materials and expenses incurred in the production of that output. 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:
Capital work done for own use Closing inventories
Purchases of goods and materials Other intermediate input expenses 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 the calculation for market producers, neither are interest expenses, depreciation or a number of lesser expenses. 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:
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 IVA to include General government units and also to account for some other effects. Inventories This item is 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 (i.e. opening inventories) and at the end (i.e. closing inventories) of the reference period.Labour costs Comprises wages and salaries (including salary sacrificed earnings paid on behalf of employees and employee share based payments and stock options), employer contributions into superannuation, workers' compensation premiums/costs, fringe benefits tax and payroll tax. Also includes capitalised wages and salaries. Online retail sales See Retail sales. Opening inventories See Inventories. 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 less total expenses plus change in inventories. Operating profit margin The percentage of sales and service income available as operating profit before tax (OPBT), i.e. (OPBT divided by sales and service income) multiplied by 100. Other expenses Expenditure items not separately itemised. Examples include bad and doubtful debts, natural resource royalty expenses, land tax and land rates, computer software expenses, freight, other royalties expenses, payments to employment agencies for staff and other operating expenses. Other income Income from sources not separately itemised in this publication, including:
Other labour costs Includes employer contributions into superannuation, workers' compensation premiums/costs, fringe benefits tax and payroll tax. Excludes wages and salaries.
Payments to contractors and other businesses for freight, cartage, delivery and transport services Refers to amounts paid to other businesses for the outward, inward or internal movement of goods. Includes payments made to contracted and owner drivers, delivery charges by third parties invoiced to customers and postal and courier expenses. Excludes costs associated with delivery by own vehicles and employees, overseas freight and cartage on goods exported and payments for addressing and mailing services. 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. Purchases Comprises purchases of materials, components, containers and packaging materials for manufacture or construction, and purchases of finished goods for resale. Excludes delivery charges separately invoiced or itemised by suppliers and capitalised purchases. Purchases of goods for resale Comprises purchases of finished goods for resale including fuel for resale. Excludes delivery charges separately invoiced or itemised by suppliers. Rent, leasing and hiring expenses Payments made to other businesses or individuals for the rent, leasing and hiring of:
Rent, leasing and hiring income See the entry for Sales and service income. Retail sales of goods Income generated from sales of new or used goods to final consumers for personal or household consumption, including
Repair and maintenance services income Income from repairs, servicing or maintenance of plant, machinery and other equipment, including motor vehicles, agricultural and construction machinery, business machines and household appliances. Royalties income See the entry for Sales and service income. 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 of goods See the entry for Sales and service income.Sales of goods bought in and resold Refers to finished goods bought in and resold including fuel for resale. Does not include goods produced by the business (or goods produced for the business on a commission basis). Service income See the entry for Sales and service income. Superannuation See the entry for Employer contributions into superannuation. Total expenses The sum of all expense components. Total income Comprises sales and service income, interest income, funding from government for operational costs and specific capital items, and other income (for details, see the entries for these items). 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 previous issues of this publication, salary sacrificed earnings and remuneration of employees in the form of share based payments and stock options were included with other expenses. 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. Wholesale sales Income generated from sales of new or used goods to other businesses and organisations. 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. Working proprietors and partners A working proprietor of an unincorporated business 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:
As such, working proprietors and working partners are not considered to be employees of their business. Document Selection These documents will be presented in a new window.
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