Economic Activity Survey - Construction Services

Employment is a headcount of all persons who worked for the business/organisation as proprietors, partners, salaried directors or other employees in the last pay period ending in June 2024. Report headcount rather than number of persons on a Full Time Equivalent (FTE) basis.  Report for the last pay period ending in June 2024 even if this is not the last pay period in the business/organisation's financial reporting year. Please ensure each person is counted only once in the total headcount to provide an accurate total number of persons who were paid in the last pay period in June 2024.

If this is an unincorporated business/organisation (e.g. sole trader, partnership, joint venture), include a count of all owner-operators or partners. Skip this question if this is an incorporated business/organisation, for example, a company.

A headcount of all other persons who worked for the business/organisation, including salaried directors, and persons employed on a fixed term contract or casual basis (only if they were paid through the payroll in the last pay period of June 2024 and Pay As You Go (PAYG) tax was deducted for them). Non-salaried directors are excluded and should not be counted in Employment.

Businesses/organisations or individuals contracted by this businesses/organisations that have a registered ABN and are paid on a fee for service, on invoice or on a commission only basis should not be counted in Employment. Staff who carried out work for this business/organisation during the last pay period ending in June 2024 but were paid through another business/organisation, for example, a labour hire company, should not be counted in Employment.  

Head contractor or project manager 
The head contractor or project manager is the sole entity which has overall control in managing and organising the construction work for a given project. The head contractor may also be known as the prime or principal contractor.

Subcontracting 
Subcontracting income is earned by a business where it is contracted and/or paid by the head contractor, project manager, or any other construction contractor.

Contracting 
Contracting income is earned by a business acting as a head contractor or project manager. Contracting income also includes income from construction services provided directly to non-construction businesses and individuals.

Improvements 
Alterations, additions, renovations and improvements include work done that improves the performance, productive capacity or expected useful life of an existing asset. This includes fit outs and physical additions to existing assets, such as an extension to a house. If the alterations convert a building to a different type of asset, the income should be reported for the latest type of asset.

Repairs and maintenance 
Repairs and maintenance includes remediation or refurbishment work done to maintain an asset over its expected useful life. Examples include repairing roof tiling or regular servicing of machinery. This work does not change the performance, productive capacity or expected useful life of an asset.

Dwelling 
A dwelling is a self-contained suite of rooms, including cooking and bathing facilities and intended for long term residential use.

House 
A house is a detached (free standing) building consisting of a single dwelling.

Other residential building 
An other residential building is a building containing more than one dwelling. Examples include semi-detached row or terrace houses and flats, units and apartments.

Non-residential building 
A non-residential building is a rigid, fixed and permanent structure with a roof that is primarily intended for purposes other than long term residential purposes. Examples include: 
• short term accommodation such as hotels, motels, boarding houses, hostels and holiday apartment buildings 
• industrial buildings such as factories, warehouses and agricultural buildings 
• commercial buildings such as offices, shops and restaurants 
• hospitals 
• education and religion buildings 
• stadiums, entertainment and recreation buildings.

Non-building construction 
Non-building construction includes demolition, site preparation and construction of all non-building assets. Examples include: 
• roads, footpaths, bridges, tunnels 
• dams, lakes, jetties, storm water drains 
• landscaping, sports fields, parks and gardens, streetscaping.
 

Generally, payment received for the provision of construction services, regardless of whether the service is a primary or secondary activity of the business/organisation, should be reported here. This includes payments received from government and non-government sources for providing services.

Using the definitions, report income received from contracting and subcontracting services for different construction activities (houses, other residential, non-residential, non-building) by type of work (new work, improvements, repairs and maintenance). For example, include income received from performing different building structure, installation and completion services (e.g. concreting, plumbing, plastering, painting). Include income received from 'wet hire' agreements, i.e. from hiring out construction vehicles, plant and equipment with an operator.
 

Exclude the following:

• Income received from 'dry hire' agreements, i.e. from hiring out vehicles, plant and equipment without an operator, should be reported in Income from non-construction services (Question 6(a)).
• Sales of property developments should be reported in Sales of goods. Property development income is earned when the business sells a property it owns, it had developed or constructed on its behalf and for which it is not the head contractor or project manager.

Report income received for the provision of Contracting construction services according to payment sources: government, businesses and non-government organisations and individuals. 

The total here should equal the total reported in the Contracting column of Income from construction services (Question 4(e)).  Do not report income from Subcontracting services in this question.
 

For Question 6(d) include income received from 'dry hire' agreements, i.e. from hiring out vehicles, plant and equipment without an operator. Exclude income received from 'wet hire' agreements, i.e. from hiring out construction vehicles, plant and equipment with an operator (include in Question 4).

Do not include delivery charges for goods sold as this is reported separately in subsequent questions.

Report the total amount of Sales of goods. This includes both sales of goods produced by this business/organisation (or for it on commission) and sales of goods not produced by this business/organisation. The purchase of these items during the year should be reported in Purchases. Please exclude delivery charges separately itemised to customers and sales of assets.

Property developments are reported as follows: 

• Property development income is earned when the business sells a property it owns, it had developed or constructed on its behalf and for which it is not the head contractor or project manager. Income received from contracting or subcontracting services should be reported in Question 4.
• For Question 7(a), if applicable, include income received from selling property developments in the reporting period, including segments of large-scale projects. For long term contracts, include progress payments billed.
• For Question 7(b), report the value of land from the sales of property developments included in Question 7(a). If the land value at the time of sale is not available, report the cost of land acquisition (pro-rated if applicable). In the case of multiple developments, report the value of land associated with the proportion of properties sold in the reporting period. Careful estimates are accepted.
   

This item refers to the amount of income generated from charging customers separately on invoice for the delivery of goods. Income received from the delivery of goods not separately invoiced should be included in Sales of Goods.
 

Funding for operational costs includes all income received for ongoing operations and that helped to fund programs or pay for business overheads (e.g. wages and salaries, rent, food).

Other income includes income from all other sources, not already reported in income items that appear earlier on the form. Donations and bequests received should be included where the donor receives no material benefit other than a tax deduction (if eligible).  However, if the donor receives some material benefit e.g. advertising, report this income in Income from Services. 

Personal superannuation contributions of business owners drawing a wage from the business should be included in Employer contributions paid into superannuation. Personal superannuation contributions of business owners not drawing a wage should be excluded.

If this business/organisation self insures, include workers compensation provisions that are recognised as an expense. A provision should be recognised as an expense when the occurrence of the related obligation is probable and one can reasonable estimate the amount of the expense.
 

Payroll tax is levied by state/territory governments on businesses when the total wage bill of an employer (or group of employers) exceeds a threshold amount. The payroll tax rates and thresholds vary between states and territories. Do not include PAYG withholding amounts for employees.

Report payments made to another business/organisation (e.g. employment agencies) for the supply of staff on a fee or contract basis, where the staff entitlements are paid by the business/organisation supplying the employees.
 

Wages and salaries including provisions for employee entitlements do not include contractors or sub-contractors operating under their own ABN.
Report gross (i.e. before tax) wages and salaries. Capitalised wages and salaries (i.e. wages and salaries for work relating to the creation of capital assets) should be excluded from Wages and salaries including provisions for employee entitlements. Include capitalised wages and salaries in Cost of capital assets developed in-house by employees of this business/organisation. 
 

• Optional third party insurance premiums for motor vehicles, should be included in Insurance premiums.
• Compulsory third party insurance premiums, payable as part of the vehicle registration process should be excluded from Insurance premiums but included in Other operating expenses.
   

Repayments under a finance lease agreement consist of an interest and capital component.  The interest component only should be included in Total Interest expenses. Capital repayments should not be reported.

Report operating lease payments as follows:

• Interest component – include in Total interest expenses and Interest expenses in respect of operating leases
• Depreciation component – include in Total depreciation and amortisation and Depreciation expenses in respect of operating leases
• Operating expenses (for variable lease payments not included in the measurement of the lease liability, or service components previously embedded in the lease) – include in Rent, leasing and hiring expenses.

For more information on the accounting standard, please see AASB 16 Leases.
 

In the context of selling finished goods, Purchases (expenses) are not the same as cost of goods sold. Purchases represent the amount actually expended by the business/organisation in the reporting period. Cost of goods sold, which is not collected in this survey, represents the amount expended only on goods actually sold in the reporting period (cost of goods sold is equal to purchases plus opening inventories minus closing inventories). 

Any purchases that have been capitalised i.e. purchases made to create capital assets, should be excluded from Purchases. Instead, these costs should be reported in Capitalised expenditure including cost of capital assets developed in-house by employees of this business/organisation.

Land purchased for property development refers to the amount expended in the reporting period to purchase land for the purposes of development and not for use as a capital asset.

Include the following in Other purchases:

• Purchases of materials used in construction projects 
• Petroleum or diesel fuel purchased for use in vehicles and equipment including amounts reimbursed by the Fuel Tax Credits Scheme (FTCS)
• Parts for repairs and maintenance of vehicles, plant or machinery
• Office supplies and equipment purchased for the running of the business
• All utility costs associated with the business.

Exclude the following payments from purchases: 

• Payments to other businesses for the movement of goods. These payments should instead be included in Payments to contractors and other businesses for freight, cartage, delivery and transport services
• Rent, leasing and hiring expenses.
   

Where applicable, report payments made to contractors and other businesses for the listed services. Payments that do not fall into these categories should be reported in Other operating expenses.

A contractor or subcontractor has a registered ABN, that is they have their own business/organisation. This includes contractors paid on invoice. Include expenses associated with services delivered by contractors, subcontractors and consultants that are not employees of the business/organisation and do not receive a payment summary.

'Wet hire' of equipment by the business/organisation, i.e. the hire of equipment with an operator, should be included here if there is a relevant category for it. Otherwise, it should be included in Other operating expenses. For example, a payment made to hire an excavator with an operator should be included in the Construction services category.

'Dry hire' of equipment by the business/organisation, i.e. the hire of equipment to be operated by its own employees should be included in Rent, leasing and hiring expenses.

Any payments made to contractors and other businesses to create or develop capital assets should be excluded from this item. Instead, these costs should be reported in Capitalised expenditure including cost of capital assets developed in-house by employees of this business/organisation.
 

The operating expense component of operating leases should be reported in Rent, leasing and hiring expenses. For more information, please refer to AASB 16 Leases.

• 'Dry hire' of equipment by the business/organisation, that is, the hire of equipment to be operated by its own employees should be included in Rent, leasing and hiring expenses.  
• 'Wet hire' of equipment by the business/organisation, that is, the hire of equipment with an operator, should be excluded from Rent, leasing and hiring expenses. If relevant, it should be included in Payments made to contractors and other businesses for selected services. Otherwise, include it in Other Operating Expenses.

Do not include expenses associated with hiring staff. 

The expense questions on this form should be mutually exclusive. Report other operating expenses not specifically itemised elsewhere on the form.

Include the following:

• Payments to contractors and other businesses not reported elsewhere on the form. A contractor or subcontractor has a registered ABN, that is they have their own business/organisation (e.g. locums, contracted allied health professionals). This includes contractors paid on invoice. Include expenses associated with services delivered by contractors, subcontractors and consultants that are not employees of the business/organisation and do not receive a payment summary.
• Any 'wet hire' of equipment by the business/organisation, i.e. payments for the hire of equipment with an operator, that doesn't match a service in Payments made to contractors and other businesses for selected services.
• Compulsory third party insurance premiums, payable as part of the business/organisation vehicle registration process.
• Travel and accommodation expenses, including those incurred by employees undertaking professional development and training.
   

Exclude the following:

• 'Dry hire' i.e. payments for the hire of equipment without an operator. Include these payments in Rent, leasing and hiring expenses.
• Payments to contractors and other businesses, including the wet hire of equipment if relevant, reported in Payments made to contractors and other businesses for selected services.
• Capitalised contractor payments. Include these payments in Other capitalised costs.
• Donations made to other parties not tied to an expected benefit.
   

Inventories excludes depreciable assets of the business/organisation. These assets should be reported in the relevant categories in Capital expenditure and disposal of assets. 

Inventories are categorised as follows: 

• Land holdings –  All uncapitalised land held by the business/organisation, including land attached to real estate, should be reported separately here and not included in the other categories. 
• Raw materials, fuels, containers etc – goods that a business/organisation holds with the intention of using them to produce other goods or in rendering services. For example, materials used in construction projects, such as steel, concrete, wood, brick, plaster board. Exclude land holdings.
• Work in progress less progress payments billed – goods that require some transformation to reach the condition they are to be sold in, for example, partially constructed buildings or infrastructure. The value of work in progress inventories should be reported net of progress payments billed and land holdings.
• Finished goods (including inventories for resale) – goods that are to be sold in their current condition, including goods for resale. For example, completed property developments not sold in the reporting period. Exclude land holdings.
   

Note: Report acquisition and disposals of new and used assets by each asset category.  Include assets acquired under finance leases and exclude right of use assets acquired under operating leases.  Only include assets acquired or disposed of in the reporting year. 

Capital expenditure refers to the amount spent by a business/organisation in the current reporting period on the acquisition of non-current assets. It can be considered the amount spent to purchase or upgrade productive assets like buildings or machinery to increase the business/organisation’s capacity or efficiency. If the business/organisation hires contractors to carry out capital work, then these contractor payments should be included in Other capitalised costs. 

The value of an asset, for example, a company car acquired under a finance lease arrangement, should be included in the relevant category under Capital expenditure and disposal of assets: 

• Land, building and infrastructure 
• Machinery and equipment 
• Information technology 
• Intangible assets.
   

Only include figures for assets acquired or disposed of in the reporting year. Do not include all balance sheet items unless all the assets are acquired or disposed of during the reporting year.
   
Additions: 

• Additions represents the expenditure on assets on an accruals basis. 
  Report any Capital Work in Progress (CWIP) values against the relevant asset.  
• Exclude additions to inventories.   
• Leasehold improvements to a right-of-use asset should be reported by the lessee in Additions to Land, buildings and infrastructure. 
• Under AASB 16, the assets created for new or pre-existing operating leases should not be reported as Capital expenditure for the lessee. The value of the underlying asset is reported by the lessor.  
• Assets acquired through finance leases during the period should continue to be reported as Additions in the Capital expenditure and disposal of assets section against the appropriate asset. 
• Any leasehold improvements to a right-of-use asset should be reported by the lessee as Additions in the Capital expenditure and disposal of assets section against the appropriate asset.
   

Disposals: 

• Disposals refers to the sale of the asset to another individual or business/organisation. It can also include the discarding of an asset. Only report the proceeds from the sale of the assets.
   

Reporting for this item is separated into two categories:

• Capitalised wages and salaries: If the business/organisation's staff develop an asset, for example a new piece of software for in-house use only and is not intended to be sold to another business/organisation,  then the wages and salaries of the employees of the business/organisation who contributed to the development, building, construction and/or creation of the asset (including any additional ‘on-costs’ such as Fringe Benefits Tax, workers compensation, superannuation) should be reported in Capitalised wages and salaries.  

Exclude the cost of contractors, consultants and other persons not on the businesses/organisation's payroll who contributed to the development of the asset - these costs should instead be reported in Other capitalised costs.
 

• Other capitalised costs: This may include both capitalised services and capitalised goods used as inputs to the building and development of the asset. If an upgrade or improvement to an existing building or infrastructure asset was project managed in-house then the cost of any goods or materials used and/or contractors undertaking the work should be reported in Other capitalised costs. The wages of the employees project managing should be reported under Capitalised wages and salaries.  

The cost of work undertaken by own employees of this business/organisation to install any asset acquired under a financial lease to make it operational should be reported in the relevant category.
 

Only medium and large size businesses/organisations will be asked to report state data. If your survey includes this question please provide a response.

• Report Employment and Wages and salaries for each state or territory of the office or location in which the staff are based. For staff who travel interstate or overseas to undertake work, report against the state or territory in which they are usually based. 
• Report Income from sales of goods and services for each state or territory where the sale was made or the service was provided.  Include export sales against the state or territory from which the sale was made.