Australian Transport Economic Account: An Experimental Transport Satellite Account methodology

For-hire transport activity is undertaken on a fee for-hire basis by units in Div I e.g. air passenger transport by commercial airlines or transport of goods by freight transport businesses. In the ATEA secondary production by other industries is captured as part of in-house transport activity.

In-house transport activity is conducted outside of Div I and includes:

• own-account (or ‘ancillary’) output, which is not intended for market but is consumed in the production of the industry’s primary output. This activity could potentially be outsourced to transport units in Div I e.g. a retail business using its own truck to deliver goods from a warehouse to the retail outlet, and
• Secondary production of transport, which is transport activity that is conducted by a non-Div I unit for a fee.

Transport related inputs (TRIs) are inputs considered essential to the provision of transport activity and in the main are used solely in the production of transport services. TRIs (based on primary data inputs) are grouped as:

• Fuel,
• Repairs, maintenance, parts, and accessories,
• Registration fees and transport vehicle insurance, including tolls and network access fees,
• Rental, leasing and hiring.

Transport Gross Domestic Product (transport GDP) measures the value added of the transport industry at purchasers' (market) prices. It therefore includes taxes paid less subsidies associated with the productive activity attributable to transport. In the case of market transactions (the for-hire transport industry), transport GDP will generally have a lower value than transport value added due to subsidies received for transport. For-hire transport GDP however, is identical to in-house transport GVA, as the input-based approach to measurement ensures its supply and use are already valued consistently.

Transport Gross Value Added (transport GVA) is equivalent to the value of the output of transport products (including both for-hire and in-house transport) by all industries less the value of the inputs used in producing these transport products. Output is measured at 'basic prices', that is before any taxes on transport products are added (or any subsidies on transport products are deducted). GVA is used for comparisons between industries because it is free of the effects of taxes and subsidies on products which can vary between industries and over time. The tax and subsidy component of a product's sale price does not represent value added by the industry producing that product.  Total transport GDP is a construct of this account to enable a direct comparison with the most widely recognised national accounting aggregate, GDP. While transport GDP is useful in this context, the total transport GVA measure should be used when making comparisons with other industries.

Transport margins are transport charges paid separately by the purchaser. This is in accordance with System of National Accounts 2008 (SNA08). In the ATEA delivery charges are included if they were separately invoiced and the delivery was undertaken by vehicles owned by the business.

Australian and New Zealand Standard Industrial Classification (ANZSIC) provides a standard framework under which business units carrying out similar productive activities can be grouped together, with each resultant group referred to as an industry. An individual business entity is assigned to an industry based on its predominant activity (e.g., mining, manufacturing, retail trade). The ANZSIC underpins the standardised collection, analysis, and dissemination of economic data on an industry basis in Australia.

Australian and New Zealand Standard Classification of Occupations (ANZSCO) is a skill-based classification covering all jobs in the Australian labour market. ANZSCO defines occupations according to their attributes and groups them on the basis of their similarity into successively broader categories for statistical and other types of analysis. The individual objects classified in ANZSCO are jobs.

National Accounts are designed to provide a systematic summary of economic activity and have been developed to facilitate the practical application of economic theory. At their summary level, the accounts reflect key economic flows: production, income, consumption, investment and saving. At their more detailed level, they are designed to present a statistical picture of the structure of the economy and the detailed processes that make up domestic production and its distribution.

Detailed transport data was collected in the Transport Industry and Activity Survey (TIAS) as part of the Economic Activity Survey (EAS) in 2010-11 and 2020-21, with less detailed data being collected in the other years as part of the ongoing EAS collections.

This data forms the basis of the ATEA and informs:

• expenditure on each mode of transport,
• transport specific expenditure grouped into fuel; repairs, parts, and maintenance; rental, leasing and hiring; and registration fees and transport vehicle insurance, and 
• the input structure of in-house transport in each ANZSIC industry.

Australian National Accounts: Supply-Use tables presents information on the supply and use of products in the Australian economy including an estimate of the total intermediate use (TIU) for each ANZSIC industry.

To ensure full coverage of the ATEA scope and consistency with the published Australian National Accounts, TIU from the supply-use tables is used to inform the calculation of in-house transport output through back-casting TIAS data and calibrating TIU totals for all industries.

Some data used in the estimates presented in this release have been revised with the publication of the 2022-23 National Accounts on 27 October 2023. These revisions are not reflected in this publication due to the proximity of release dates. Supply-use data used in the compilation of the ATEA estimates uses data from the 2021-22 Australian National Accounts: Supply-use tables that were released on the ABS website on 28 October 2022.

The Census of Population and Housing is conducted every five years and provides a comprehensive snapshot of the Australian population on Census day.

Census data is used to calculate the occupation by industry ratios used to estimate transport related and warehousing employed persons.

The Labour Account provides a framework through which existing labour market data from different sources can be confronted and integrated, with the aim of producing a coherent and consistent set of aggregate labour market statistics. It provides the ABS’s most robust industry level estimates of employed persons. The Industry employment guide outlines why the Labour Account is the best source of industry information. This data is used to provide industry and, for division I, sub-division level estimates of transport related and warehousing employed persons.

The Labour Force, Australia publication provides detailed employment related statistics on the number of employed people and unemployed people in the Australian economy.

This data is used to calculate the male and female employment ratios for each ANZSIC industry.

Ancillary activity

An activity undertaken within an enterprise to support the principal or secondary activities; this production being undertaken for the use of the producer. Activities which may be classified as ancillary include record keeping; electronic or other forms of communication; purchasing materials and equipment; personnel management; warehousing; transportation; sales promotion; cleaning, repairs and maintenance; security and surveillance. See also In-house transport and Secondary activity.

Basic price

The amount receivable by the producer from the purchaser for a unit of a good or service produced as output, minus any tax payable plus any subsidy receivable, on that unit as a consequence of its production or sale. It excludes any transport charges invoiced separately by the producer. See also Purchasers' price.

Compensation of employees

The total remuneration, in cash or in kind, payable by an enterprise to an employee in return for work done by the employee during the accounting period. It is further classified into two sub-components: wages and salaries; and employers’ social contributions. Compensation of employees is not payable in respect of unpaid work undertaken voluntarily, including the work done by members of a household within an unincorporated enterprise owned by the same household. Compensation of employees excludes any taxes payable by the employer on the wage and salary bill (e.g. payroll tax). See also Employers' social contributions and Wages and salaries.

Chain volume measures

Annually-reweighted chain Laspeyres volume indexes referenced to the current price values in a chosen reference year (See also reference year). Chain Laspeyres volume measures are compiled by linking together (compounding) movements in volumes, calculated using the average prices of the previous financial year, and applying the compounded movements to the current price estimates of the reference year.

Current prices

Estimates are valued at the prices of the period to which the observation relates. For example, estimates for this financial year are valued using this financial year's prices. This contrasts to chain volume measures where the prices used in valuation refer to the prices of the base year.

Employed person

Employed people is the sum of all people engaged by Australian resident enterprises in economic activity within the System of National Accounts (SNA) production boundary.

Employers' social contributions

Payments by employers which are intended to secure for their employees the entitlement to social benefits should certain events occur, or certain circumstances exist, that may adversely affect their employees' income or welfare - namely work-related accidents and retirement. See also Compensation of employees and Wages and salaries.

For-hire transport

Transport activity that is undertaken on a fee for-hire basis in the Transport, postal and warehousing industry (Division I), as defined in the Australian and New Zealand Standard Industry Classification (ANZSIC).

Gross domestic product (GDP)

The total market value of goods and services produced in Australia within a given period after deducting the cost of goods and services used up in the process of production, but before deducting allowances for the consumption of fixed capital. Thus gross domestic product, as here defined, is 'at market prices'. Consumption of fixed capital (or depreciation) represents the decline in the current value of the producer’s stock of fixed assets as a result of physical deterioration, foreseen obsolescence or normal accidental damage. Net Domestic Product (NDP) is the result after deducting depreciation from GDP.

Gross operating surplus (GOS)

A measure of the surplus accruing to owners from processes of production. It is the excess of gross output over the sum of intermediate consumption, compensation of employees, and taxes less subsidies on production and imports. It is calculated before deduction of consumption of fixed capital, dividends, interest, royalties and land rent, and direct taxes payable, but after deducting the inventory valuation adjustment.

Gross value added (GVA)

The value of output at basic prices minus the value of intermediate consumption at purchasers' prices. The term is used to describe gross product by industry and by sector. Basic prices valuation of output removes the distortion caused by variations in the incidence of commodity taxes and subsidies across the output of individual industries. See also Intermediate consumption and Output.

Hours worked

The hours worked by all labour engaged in the production of transport and warehousing, including hours worked by wages and salary earners, employers, self-employed persons, and persons working one hour or more without pay in a family business.

In-house transport

Transport undertaken outside of the Transport, postal and warehousing industry (Division I), as defined in the Australian and New Zealand Standard Industry Classification (ANZSIC). This encapsulates both own-account (or ‘ancillary’) production, which is not intended for market, and is consumed in the production of the industry’s primary input, as well as secondary production on transport on a fee for-hire basis. See also Ancillary activity and Secondary activity.

Intermediate inputs (alternately intermediate consumption or total intermediate use (TIU))

Consists of the value of the goods and services consumed as inputs by a process of production, excluding the consumption of fixed capital. See also gross value added.

Labour productivity estimates

Consist of indexes of real GDP per hour worked. For the whole economy, they have been derived by dividing the chain volume measure of GDP by hours worked. Transport labour productivity indexes have been derived by dividing the chain volume measure of transport GVA by the index for hours worked. Labour productivity indexes reflect not only the contribution of labour to changes in product per labour unit, but are also influenced by the contribution of capital and other factors affecting production.

Margin

The difference between the resale price of a good and the cost to the retailer or wholesaler of the good sold. A transport margin consists of the transport charges invoiced separately by the producer in the delivery of a good.

Net taxes on products

Also referred to as taxes less subsidies on products. A tax or subsidy on a product is payable per unit of a good or service. The tax or subsidy may be a specific amount of money per unit of quantity of a good or service (quantity being measured either in terms of discrete units or continuous physical variables such as volume, weight, strength, distance, time, etc.), or it may be calculated ad valorem as a specified percentage of the price per unit or value of the goods or services transacted. A tax or subsidy on a product usually becomes payable when the product is produced, sold or imported, but it may also become payable in other circumstances, such as when a good is exported, leased, transferred, delivered, or used for own consumption or own capital formation. See also Other taxes on production and Taxes less subsidies on products and imports.

Non-additivity

Additivity refers to an aggregate being the sum of its components. This only exists in volume index estimates when a fixed set of prices is used. As weights of a chain volume index change from year to year, chain volume indexes have no base period in the sense of a fixed weight index base period and therefore non-additivity exists in the chain volume measures. In the context of the transport chain volume estimates, 'totals' have been chained separately based on deflating the aggregate current price values, rather than summing the component chain volume estimates. Therefore, it is not recommended to calculate the proportion transport contributes to GDP or gross value added in chain volume terms.

Other intermediate Inputs

Other intermediate inputs which are not primarily used in the production of a specific mode of transport, but support transport activities. Common examples include accounting services and office supplies.

Other taxes on production

Consist of all taxes that enterprises incur as a result of engaging in production, except taxes on products. Other taxes on production include: taxes related to the payroll or workforce numbers excluding compulsory social security contributions paid by employers and any taxes paid by the employees themselves out of their wages or salaries; recurrent taxes on land, buildings or other structures; some business and professional licences where no service is provided by the Government in return; taxes on the use of fixed assets or other activities; stamp duties; taxes on pollution; and taxes on international transactions. See also Taxes less subsidies on production and imports.

Output

This consists of those goods and services that are produced within an establishment that become available for use outside that establishment, plus any goods and services produced for own final use. See also Gross value added.

Price deflation

A measure of the price component of the current price value is obtained (usually in the form of a price index) and is divided into the current price value in order to re-value it in the prices of the previous year.

Primary inputs (alternatively, value added)

Refers to compensation of employees, operating surplus and other taxes less subsidies on production.

Production boundary

Defined to include:

• The production of all individual or collective goods or services that are supplied to units other than their producers, or intended to be so supplied, including the production of goods or services used up in the process of producing such goods or services;
• The own-account production of all goods that are retained by their producers for their own final consumption or gross capital formation; and
• The own-account production of housing services by owner-occupiers and of domestic and personal services produced by employing paid domestic staff.

Purchasers’ price

The amount paid by the purchaser, excluding any deductible tax, in order to take delivery of a unit of a good or service at the time and place required by the purchaser. The purchaser’s price of a good includes any transport charges paid separately by the purchaser to take delivery at the required time and place. See also Basic Price.

Reference year

Chain volume estimates need to be expressed in terms of the values of a particular reference year. The reference year for an index series is equal to 100, that is, the chain volume estimates are set equal to the current price values. The reference year chosen for the transport chain volume estimates is the previous financial year (t-1).

Secondary activity

Activity carried out within an enterprise in addition to the principal activity and whose output, like that of the principal activity, must be suitable for delivery outside the enterprise. See also Ancillary activity and In-house transport.

Taxes less subsidies on production and imports

Defined as ‘taxes on products’ plus ‘other taxes on production’ less 'subsidies on products' less 'other subsidies on production'. The taxes do not include any taxes on the profits or other income received by an enterprise. They are payable irrespective of the profitability of the production process. They may be payable on the land, fixed assets or labour employed in the production process, or on certain activities or transactions. See also Other taxes on production and Net taxes on products.

Transport related inputs (TRI)

Intermediate inputs primarily used in the production of a specific mode of transport. In the ATEA these inputs are considered essential to the provision of transport activity and in the main are used solely in the production of transport services. These are:

• Fuel,
• Repairs, maintenance, parts and accessories, and maintenance,
• Registration fees and transport vehicle insurance,
• Rental, leasing and hiring.

Volume indexes

Measures growth in the volume of production and expenditures on products between any two periods of interest. Where there is more than one type of product, it is necessary to apply some kind of weighting. This is possible by valuing products at their prices in one or other period and dividing the total value of their combined production in the second period by that in the first. The same prices must be used for both periods to ensure the index reflects only changes in quantities produced. Chain linked volume indexes take account of changes to price relativities that occur from one year to the next. It is the price relativities that determine the weight given to each component of a volume index.

Wages and salaries

Consist of amounts payable in cash including the value of any social contributions, income taxes, fringe benefits tax, etc., payable by the employee even if they are actually withheld by the employer for administrative convenience or other reasons and paid directly to social insurance schemes, tax authorities, etc., on behalf of the employee. Wages and salaries may be paid as remuneration in kind instead of, or in addition to, remuneration in cash. Separation, termination and redundancy payments are also included in wages and salaries. Wages and salaries are also measured as far as possible on an accrual rather than a strict cash basis.