Part D - The classification of revenue

In the GFS system, revenue is classified according to different characteristics such as the type of revenue (using the economic type framework (ETF) codes), the source of the revenue (using an appropriate source destination classification (SDC) code), and in some cases by purpose (using an appropriate code within the classification of the functions of government - Australian (COFOG-A). For taxation revenue, the classification is further determined by the base on which the tax is levied using the taxes classification (TC) codes. The detailed revenue classification is shown in Table 6.1 below.

Taxation revenue makes up the largest proportion of government revenue in Australia. Taxation revenue (ETF 111) consists of direct input data from state and territory treasuries, the Department of Finance, and local governments. In the GFS system, taxation revenue (ETF 111) is further classified as:

• Taxes on income (ETF 1111, TC, SDC);
• Other current taxes (ETF 1112, TC, SDC);
• Taxes on products (ETF 1113, TC, SDC);
• Other taxes on production (ETF 1114, TC, SDC); and 
• Capital taxes (ETF 1115, TC, SDC).

Taxes on income (ETF 1111, TC, SDC) are defined as government revenue received from taxes assessed on the actual or presumed incomes of institutional units. These types of taxes are payable by either resident or non-resident individuals, corporations or other enterprises. Paragraph 5.41 of the IMF GFSM 2014 notes that this classification item includes revenue from taxes assessed on holdings of property, land or real estate when these holdings are used as a basis for estimating the income of their owners. By incorporating the appropriate tax classifications (TC) (see Appendix 1 Part A of this manual for full TC listing), taxes on income (ETF 1111, TC, SDC) are further classified as:

• Personal income tax (ETF 1111, TC 111, SDC); 
• Government health insurance levy (ETF 1111, TC 112, SDC); 
• Mining withholding tax (ETF 1111, TC 113, SDC); 
• Capital gains tax on individuals (ETF 1111, TC 114, SDC); 
• Prescribed payments by individuals (ETF 1111, TC 115, SDC); 
• Other income tax levied on individuals (ETF 1111, TC 119, SDC); 
• Company income tax (ETF 1111, TC 121, SDC); 
• Income tax paid by superannuation funds (ETF 1111, TC 122, SDC); 
• Capital gains taxes on enterprises (ETF 1111, TC 123, SDC); 
• Prescribed payments by enterprises (ETF 1111, TC 124, SDC);
• Income and capital gains taxes levied on enterprises not elsewhere classified (ETF 1111, TC 129, SDC); 
• Dividend withholding tax (ETF 1111, TC 131, SDC);
• Interest withholding tax (ETF 1111, TC 132, SDC); and 
• Other income tax levied on non-residents (ETF 1111, TC 139, SDC).

Personal income tax (TC 1111, TC 111, SDC) is a type of taxation revenue which consists of taxes levied on the net income or profits of individuals. Such taxes are usually levied on the total declared (or presumed) income from all sources of the individual, including compensation of employees (e.g. wages, salaries, tips, fees, commissions, and fringe benefits), property income (such as interest, dividends, rent and royalty incomes) and pensions (such as the taxable portion of social security benefits, pensions, annuities, life insurance and other retirement benefit distributions) after deducting certain allowances in accordance with income tax laws. Included in this classification category is personal income tax deducted by employers (Pay-As-You-Earn taxes), taxes on the income of owners of unincorporated enterprises, and taxes on the income of family estates and trusts where the beneficiaries are individuals.

The government health insurance levy (ETF 1111, TC 112, SDC) is a type of taxation revenue which consists of the higher rate of tax on the income of taxpayers without other health insurance cover, to finance the payment of Commonwealth medical and hospital benefits. These were known as Medibank during the period 1 October 1976 to 1 November 1978, and Medicare from 1 February 1984 onwards. A health care levy that applies to all income taxpayers is included under personal income tax (ETF 1111, TC 111, SDC).

The mining withholding tax (ETF 1111, TC 113, SDC) is a type of taxation revenue which consists of income tax on royalty payments made after 30 June 1979 to Aboriginal people and Aboriginal groups and bodies, in respect to mining and exploration activities on Aboriginal land. Whilst the liability for the tax rests with the Aboriginal people, the tax payable is deducted from the mining royalty payments and is paid directly by the mining companies involved.

Capital gains tax on individuals (ETF 1111, TC 114, SDC) is a type of taxation revenue which consists of taxes levied on capital gains made by resident households, individual proprietorships and partnerships. The taxes are usually payable on nominal rather than real capital gains, and on realised rather than unrealised capital gains.

Prescribed payments by individuals (ETF 1111, TC 115, SDC) are a type of taxation revenue which consist of taxes collected from individuals by the Commonwealth under the Prescribed Payments System.

Income and capital gains taxes levied on individuals not elsewhere classified (ETF 1111, TC 119, SDC) is a type of taxation revenue which consists of income taxes levied on individuals other than personal income tax (ETF 1111, TC 111, SDC), the government health insurance levy (ETF 1111, TC 112, SDC), the mining withholding tax (ETF 1111, TC 113, SDC), capital gains tax on individuals (ETF 1111, TC 114, SDC), prescribed payments by individuals (ETF 1111, TC 115, SDC), or fringe benefits tax (FBT) (ETF 1111, TC 116, SDC).

Company income tax (ETF 1111, TC 121, SDC) is a type of taxation revenue which consists of taxes levied on the net income or profits of trading and financial enterprises. This classification category includes the Mineral Resource Rent Tax, and Petroleum Resource Rent Tax, and covers income from all sources and not simply profits generated by production. Also included are income taxes on trusts where the beneficiaries are corporations.

Income tax paid by superannuation funds (TC 122) is a type of taxation revenue which consists of taxes levied on the profits made by superannuation funds. The tax will vary according to the portfolio mix chosen by the fund. Superannuation funds investing in government securities are subject to lower tax assessments and may be exempt from tax under certain circumstances.

Capital gains taxes on enterprises (ETF 1111, TC 123, SDC) are a type of taxation revenue which consist of taxes levied on capital gains which form part of the taxable income of trading and financial enterprises. The taxes are usually payable on nominal rather than real capital gains, and on realised rather than unrealised capital gains.

Prescribed payments by enterprises (ETF 1111, TC 124, SDC) are a type of taxation revenue which consist of taxes collected from enterprises by the Commonwealth under the Prescribed Payments System.

Income and capital gains taxes levied on enterprises not elsewhere classified (ETF 1111, TC 129, SDC) records income and capital gains taxes levied on enterprises not elsewhere classified as company income tax (ETF 1111, TC 121, SDC), income tax paid by superannuation funds (ETF 1111, TC 122, SDC), capital gains taxes on enterprises (ETF 1111, TC 123, SDC), or prescribed payments by enterprises (ETF 1111, TC 124, SDC).

Dividend withholding tax (ETF 1111, TC 131, SDC) is a type of taxation revenue which consists of taxation payments by companies that are levied on dividends accruing to non-residents of Australia.

Interest withholding tax (ETF 1111, TC 132) is a type of taxation revenue which consists of taxation payments by companies that are levied on interest accruing to non-residents of Australia.

Income tax levied on non-residents not elsewhere classified (ETF 1111, TC 139, SDC) is a type of taxation revenue which consists of income taxes levied on non-residents other than dividend withholding tax (ETF 1111, TC 131, SDC) or interest withholding tax (ETF 1111, TC 132, SDC). This classification category excludes withholding tax on royalties which are classified as taxes on the use of goods and performance of activities levied on non-residents (ETF 1111, TC 535, SDC).

Other current taxes (ETF 1112, TC, SDC) consist mainly of payments by households to obtain licences to own or use vehicles, boats or aircraft, and for licences to hunt, shoot or fish. Apart from the inclusion of fringe benefits tax (FBT) (ETF 1112, TC 116, SDC), other current taxes relate only to the household sector, and so will have a SDC code of 913. By incorporating the appropriate tax classifications (TC) (see Appendix 1 Part A of this manual for full TC listing), other current taxes (ETF 1112, TC, SDC) are further classified as:

• Fringe benefits tax (FBT) (ETF 1112, TC 116, SDC); 
• Stamp duty on vehicle registration (ETF 1112, TC 511, SDC 913); 
• Road transport and maintenance taxes (ETF 1112, TC 512, SDC 913); 
• Heavy vehicle registration fees and taxes (ETF 1112, TC 513, SDC 913); 
• Other vehicle registration fees and taxes (ETF 1112, TC 514, SDC 913) 
• Motor vehicle taxes not elsewhere classified (ETF 1112, TC 519, SDC 913); and 
• Departure tax (ETF 1112, TC 533, SDC 913)

Fringe benefits tax (FBT) (ETF 1112, TC 116, SDC) are other current taxes which consist of taxes collected from employers in relation to fringe benefits accruing to employees.

Stamp duty on vehicle registration (ETF 1112, TC 511, SDC 913) are other current taxes payable by households, consisting of stamp duties imposed on motor vehicle registration and transfer. Stamp duty on vehicle registration payable by units other than households are recorded as other taxes on production - stamp duty on vehicle registration (ETF 1114, TC 511, SDC (except for SDC 913)).

Road transport and maintenance taxes (ETF 1112, TC 512, SDC 913) are other current taxes payable by households, consisting of taxes levied on the carriage of goods and passengers by road, including taxes collected specifically for road maintenance. Road transport and maintenance taxes payable by units other than households are recorded as other taxes on production - road transport and maintenance taxes (ETF 1114, TC 512, SDC (except for SDC 913))

Heavy vehicle registration fees and taxes (ETF 1112, TC 513, SDC 913) are a type of taxation revenue payable by households, consisting of motor vehicle registration, transfer, or number plate fees for vehicles with a gross vehicle mass greater than 4.5 tonnes. Heavy vehicle registration fees and taxes payable by units other than households are recorded as other taxes on production - heavy vehicle registration fees and taxes (ETF 1114, TC 513, SDC (except for SDC 913)).

Other vehicle registration fees and taxes (ETF 1112, TC 514, SDC 913) are a type of taxation revenue payable by households, consisting of motor vehicle registration, transfer, or number plate fees for vehicles (other than those with a gross vehicle mass greater than 4.5 tonnes which are classified as heavy vehicle registration fees and taxes (ETF 1112, TC 513, SDC 913)). Other vehicle registration fees and taxes payable by units other than households are recorded as other taxes on production - other vehicle registration fees and taxes (ETF 1114, TC 514, SDC (except for SDC 913)).

Motor vehicle taxes not elsewhere classified (ETF 1112, TC 519, SDC 913) records motor vehicle taxes not elsewhere classified as stamp duty on vehicle registration (ETF 1112, TC 511, SDC 913), road transport and maintenance taxes (ETF 1112, TC 512, SDC 913), heavy vehicle registration fees and taxes (ETF 1112, TC 513, SDC 913), or other vehicle registration fees and taxes (ETF 1112, TC 514, SDC 913).

Departure tax (ETF 1112, TC 533, SDC 913) is a type of taxation revenue payable by households, consisting of the levy imposed on all individuals leaving Australia. The fifty per cent indirect component of this tax consists of the estimated tax collected from Australian residents going abroad for business purposes. Departure tax payable by units other than households are recorded as other taxes on production - departure tax (ETF 1114, TC 533, SDC (except for SDC 913)).

Taxes on products (ETF 1113, TC, SDC) are taxes that are payable on goods and services when they are produced, delivered, sold, transferred or otherwise disposed of by their producers, e.g. GST, sales tax and excise tax. Taxes on products are payable per unit of the product (i.e. a flat amount dependent on the physical quantity of the product or a percentage of the value at which the product is sold). By incorporating the appropriate tax classifications (TC) (see Appendix 1 Part A of this manual for full TC listing), taxes on products (ETF 1113, TC, SDC) are further classified as:

• Sales tax (ETF 1113, TC 411, SDC); and
• Goods and services tax (GST) (ETF 1113, TC 412, SDC).
• Excises on crude oil, LPG and petroleum products (ETF 1113, TC 421, SDC);
• Excises on beer and potable spirits (ETF 1113, TC 422, SDC);
• Excises on tobacco products (ETF 1113, TC 423, SDC);
• Excise Act duties not elsewhere classified and refunds of Excise Act duties (ETF 1113, TC 424, SDC);
• Agricultural production taxes (ETF 1113, TC 425, SDC);
• Levies on statutory corporations (ETF 1113, TC 426, SDC);
• Excises not elsewhere classified (ETF 1113, TC 429, SDC);
• Customs duties on imports (ETF 1113, TC 431, SDC);
• Customs duties on exports (ETF 1113, TC 432, SDC);
• Agricultural produce export taxes (ETF 1113, TC 433, SDC);
• Taxes on international trade not elsewhere classified (ETF 1113, TC 439, SDC);
• Taxes on government lotteries (ETF 1113, TC 441, SDC);
• Taxes on private lotteries (ETF 1113, TC 442, SDC);
• Taxes on gambling devices (ETF 1113, TC 443, SDC);
• Casino taxes (ETF 1113, TC 444, SDC);
• Race and other sports betting taxes (ETF 1113, TC 445, SDC);
• Taxes on gambling not elsewhere classified (ETF 1113, TC 449, SDC);
• Insurance companies' contribution to fire brigades (ETF 1113, TC 451, SDC);
• Third party insurance taxes (ETF 1113, TC 452, SDC);
• Taxes on insurance not elsewhere classified (ETF 1113, TC 459, SDC);
• Financial institutions transactions taxes (ETF 1113, TC 461, SDC);
• Government borrowing guarantee levies (ETF 1113, TC 462, SDC);
• Stamp duties on conveyances (ETF 1113, TC 463, SDC);
• Stamp duty on shares and marketable securities (ETF 1113, TC 464, SDC);
• Other stamp duties on financial and capital transactions (ETF 1113, TC 465, SDC); and
• Taxes on financial and capital transactions not elsewhere classified (ETF 1113, TC 469, SDC).

General taxes on the provision of goods and services are taxes on products consisting of sales tax (ETF 1113, TC 411, SDC) and goods and services tax (GST) (ETF 1113, TC 412, SDC). Paragraph 5.57 of the IMF GFSM 2014 states that general taxes on goods and services may be levied regardless of whether the goods or services are produced domestically or imported, and they may be imposed at any stage of production or distribution.

Sales tax (ETF 1113, TC 411, SDC) are taxes on products consisting of all general taxes levied on sales at one stage only, whether at manufacturing or production stages or on wholesale or retail trade. Please note that this classification item has been superseded by goods and services tax (GST) (ETF 1113, TC 412, SDC) but remains part of the GFS classifications in order to maintain the time series. In Australia, sales tax was a single stage tax designed substantially to fall on sales by manufacturers and wholesalers to retailers. The sales tax applied to goods only and not to services. Second-hand goods that were used in Australia were not ordinarily taxed, but imported goods that had been used overseas were normally taxable in a similar fashion to new goods. Although termed a sales tax, the levy was not limited to sales only. Where goods had not already borne tax, it would (for example) fall on the leases of those goods or on the application of those goods to a taxpayer’s own use. It may have also been levied on importation of goods where they were not imported for sale by wholesalers, e.g. where they were imported by retailers or consumers. The tax was payable on what was termed a ‘sale value’ which was equivalent to a fair wholesale price.

Goods and services tax (GST) (ETF 1113, TC 412, SDC) are taxes on products consisting of taxes on goods or services collected in stages by enterprises but which are ultimately charged in full to the final purchasers. Paragraph 5.58 of the IMF GFSM 2014 describes this as a deductible tax because producers are not usually required to pay the government the full amount of the tax they invoice to their customers, as they are permitted to deduct the amount of tax they have been invoiced on their own purchases of goods or services intended for intermediate consumption or fixed capital formation. GST is usually calculated on the price of the good or service, including any other tax on the product. GST may also be payable on imports of goods or services in addition to any import duties or other taxes on the imports. This classification category includes GST revenue receivable by the Commonwealth Government, gross of the cost of collection but net of input tax credits.

Excises (ETF 1113, TC 42) are taxes on products consisting of taxes levied on specified goods (or ranges of goods) intended for domestic consumption other than taxes levied exclusively on the importation of goods (in which case they are treated as customs duties on imports (ETF 1113, TC 431, SDC)). However, paragraph 5.62 of the IMF GFSM 2014 specifies that if a tax collected principally on imported goods also applies (or would apply) under the same law to comparable domestically produced goods, then the revenue from this tax is classified as arising from excises rather than from import duties. This principle applies even if there is no comparable domestic production or no possibility of such production.

Paragraph 5.62 of the IMF GFSM 2014 further notes that excises may be imposed at any stage of production or distribution and are usually levied at differentiated rates on non-essential or luxury goods, alcoholic beverages, tobacco, energy, and gambling. Excises are usually assessed as a specific charge per unit based on characteristics by reference to the value, weight, strength, or quantity of the product. Excluded from this category are customs duties on imports which are classified as customs duties on imports (ETF 1113, TC 431, SDC), and customs duties on exports which are classified as customs duties on exports (ETF 1113, TC 432, SDC).

Excises on crude oil, LPG and petroleum products (ETF 1113, TC 421, SDC) are taxes on products consisting of excises levied on the production of crude oil and naturally occurring LPG from Australian fields, and on petroleum products (including 'fuel tax'). The levy on crude oil can vary depending on the volume and quality of the crude oil and the date the field came into production.

Excises on beer and potable spirits (ETF 1113, TC 422, SDC) are taxes on products consisting of duties levied on beer and potable spirits under the Excise Act.

Excises on tobacco products (ETF 1111, TC 423, SDC) are taxes on products consisting of duties levied on tobacco products under the Excise Act.

Excise Act duties not elsewhere classified and refunds of Excise Act duties (ETF 1113, TC 424, SDC) are taxes on products consisting of duties levied under the Excise Act that cannot be classified to excises on crude oil, LPG and petroleum products (ETF 1113, TC 421, SDC), excises on beer and potable spirits (ETF 1111, TC 422, SDC), or excises on tobacco products (ETF 1113, TC 423, SDC).

Agricultural production taxes (ETF 1113, TC 425, SDC) are taxes on products consisting of levies raised on specified agricultural products that are usually assessed by reference to weight or quality. Included are taxes levied on wool, dairy products, poultry, cattle, sheep, wheat, and wine grapes.

Levies on statutory corporations (ETF 1113, TC 426, SDC) are taxes on products consisting of contributions which are required under legislation to be paid by specified statutory corporations to state and territory governments. The taxes are calculated as a fixed proportion of the revenue earned by statutory corporations. Excluded are taxes assessed on amounts equivalent to net profits and capital gains by state and territory governments which are classified to dividend income (including tax equivalents) (ETF 1132, SDC).

Excises not elsewhere classified (ETF 1113, TC 429, SDC) records the value of excises not elsewhere classified as excises on crude oil, LPG and petroleum products (ETF 1113, TC 421, SDC), excises on beer and potable spirits (ETF 1113, TC 422, SDC), excises on tobacco products (ETF 1111, TC 423, SDC), excise Act duties not elsewhere classified and refunds of Excise Act duties (ETF 1113, TC 424, SDC), agricultural production taxes (ETF 1113, TC 425, SDC), or levies on statutory corporations (ETF 1113, TC 426, SDC).

Taxes on international trade and transactions (ETF 1113, SDC) are taxes on products consisting of taxes that become payable when goods cross the national or customs frontiers of the economic territory, or when transactions in services exchange between residents and non-residents. Excluded from this classification category are taxes collected on imports as part of a general tax on goods which should be classified as goods and services tax (GST) (ETF 1113, TC 412, SDC).

Customs duties on imports (ETF 1113, TC 431, SDC) are taxes on products consisting of revenue from all levies and duties payable on goods of a particular kind because they are entering the country or services because they are delivered by non-residents to residents. Paragraph 5.84 of the IMF GFSM 2014 states that these levies may be imposed with the intention to raise revenue or discourage imports in order to protect resident producers of the same goods or services. The duties may be determined on a specific or ad valorem basis, but they must be restricted by law to imported products. Included are duties levied under the customs tariff schedule and its annexes, including surtaxes that are based on the tariff schedule, consular fees, tonnage charges, statistical taxes, fiscal duties, and surtaxes not based on the customs tariff schedule. This category covers taxes that fall on imports only. Imports that fall into a wider category of goods that are subject to the tax should be recorded as excises. If excises are levied on imported goods under the same law to comparable domestically produced goods, then the revenue from the tax should be classified as arising from excises rather than from import duties.

Customs duties on exports (ETF 1113, TC 432, SDC) are taxes on products consisting of all levies that become payable on goods that are transported out of the country, or services that are provided to nonresidents by residents. Paragraph 5.85 of the IMF GFSM 2014 indicates that rebates on exported goods that are repayments of previously paid general consumption taxes, excises, or import duties are deducted from the gross amounts receivable from the respective taxes, and not from amounts receivable in this category.

Agricultural produce export taxes (ETF 1113, TC 433, SDC) are taxes on products consisting of taxes payable on specific agricultural produce exported from Australia. The rate is usually based on the quantity of products exported.

Taxes on international trade not elsewhere classified (ETF 1113, TC 439, SDC) records the value of taxes on international trade not elsewhere classified as customs duties on imports (ETF 1113, TC 431, SDC), customs duties on exports (ETF 1113, TC 432, SDC), or agricultural produce export taxes (ETF 1113, TC 433, SDC).

Taxes on gambling (ETF 1113, TC 44) are taxes on products consisting of taxes levied on gambling and betting stakes. These taxes may be collected either from the gamblers as a percentage of their stake or winnings, or from entities providing the gambling service either as a licence fee or percentage of their gross income from gambling. Excluded are taxes on individual gains from gamblers.

Taxes on government lotteries (ETF 1113, TC 441, SDC) are taxes on products consisting of taxes on the profits of lotteries, 'lotto' games, etc. organised by the government.

Taxes on private lotteries (ETF 1113, TC 442, SDC) are taxes on products consisting of stamp duties levied on the share of gross revenue from privately organised lotteries, 'lotto' games, football pools etc.

Taxes on gambling devices (ETF 1113, TC 443, SDC) are taxes on products consisting of taxes and licences imposed on clubs for the operation of poker machines and other gambling devices.

Casino taxes (ETF 1113, TC 444, SDC) are taxes on products consisting of licence fees and taxes levied on the holders of casino licences.

Race and other sports betting taxes (ETF 1113, TC 445, SDC) are taxes on products consisting of taxes levied on all forms of racing and both on-course and off-course betting.

Taxes on gambling not elsewhere classified (ETF 1113, TC 449, SDC)are taxes on products consisting of taxes levied on gambling that cannot be classified as part of taxes on government lotteries (ETF 1113, TC 441, SDC), taxes on private lotteries (ETF 1113, TC 442, SDC), taxes on gambling devices (ETF 1113, TC 443, SDC), casino taxes (ETF 1113, TC 444, SDC) or race betting taxes (ETF 1113, TC 445, SDC).

Taxes on insurance (ETF 1113, TC 45) are taxes on products consisting of taxes levied specifically on insurance companies. This classification category includes taxes levied on insurance premiums, and contributions collected to finance services which reduce risk.

Insurance companies' contribution to fire brigades (ETF 1113, TC 451, SDC) are taxes on products consisting of levies imposed on insurance companies to contribute to financing fire-fighting protection services.

Third party insurance taxes (ETF 1113, TC 452, SDC) are taxes on products consisting of surcharges and stamp duties on third party insurance premiums.

Taxes on insurance not elsewhere classified (ETF 1113, TC 459, SDC) are taxes on products consisting of taxes on insurance that do not fall within the categories of insurance companies' contribution to fire brigades (ETF 1113, TC 451, SDC) or third party insurance taxes (ETF 1113, TC 452, SDC).

Taxes on financial and capital transactions (ETF 1113, TC 46) are taxes on products consisting of taxes levied on the change in ownership of property, except those classified as estate, inheritance, and gift taxes (ETF 1115, TC 32, SDC). Paragraph 5.61 of the IMF GFSM 2014 indicates that these are taxes on the services of the unit selling the asset. Included in this concept are taxes on the purchase and sale of nonfinancial or financial assets (including foreign exchange or securities), taxes on cheques and other forms of payment, and taxes levied on specific legal transactions, such as the validation of contracts on the sale of immovable property. ).

Financial institutions transaction taxes (ETF 1113, TC 461, SDC) are taxes on products consisting of taxes on debits or credits to accounts with financial institutions, including state / territory government duties on credits to accounts held with financial institutions. Excluded from this classification category are stamp duties on cheques which are classified to other stamp duties on financial and capital transactions (ETF 1111, TC 465, SDC).

Government borrowing guarantee levies (ETF 1113, TC 462, SDC) are taxes on products consisting of guarantee fees / charges levied on the borrowings of public authorities by government.

Stamp duties on conveyances (ETF 1113, TC 463, SDC) are taxes on products consisting of the revenue earned from stamp duties on conveyances and transfer of real estate, business and other property. This item excludes stamp duties on motor vehicle registration which are classified to stamp duty on vehicle registrations (ETF 1113, TC 511, SDC). Also excluded are taxes on insurance which are classified to an appropriate category in taxes on insurance (ETF 1113, TC 45, SDC), and taxes on gambling which are classified to an appropriate category in taxes on gambling (ETF 1113, TC 44, SDC).

Stamp duty on shares and marketable securities (ETF 1113, TC 464, SDC) are taxes on products consisting of revenue earned from stamp duty on transfers of shares and marketable securities. This item excludes stamp duties on motor vehicle registration which are classified to stamp duty on vehicle registrations (ETF 1113, TC 511, SDC). Also excluded are taxes on insurance which are classified to an appropriate category in taxes on insurance (ETF 1113, TC 45, SDC), and taxes on gambling which are classified to an appropriate category in taxes on gambling (ETF 1113, TC 44, SDC).

Other stamp duties on financial and capital transactions (ETF 1113, TC 465, SDC) are taxes on products consisting of revenue earned from stamps affixed to (or franked on) documents which evidence financial and capital transactions. This item excludes stamp duties on motor vehicle registration which are classified to stamp duty on vehicle registrations (ETF 1113, TC 511, SDC), and on shares and marketable securities which are classified to stamp duty on shares and marketable securities (ETF 1113, TC 464, SDC). Also excluded are taxes on insurance which are classified to an appropriate category in taxes on insurance (ETF 1113, TC 45, SDC) and taxes on gambling which are classified to an appropriate category in taxes on gambling (ETF 1113, TC 44, SDC).

Taxes on financial and capital transactions not elsewhere classified (ETF 1113, TC 469, SDC) record the value of taxes on financial and capital transactions not elsewhere classified as financial institutions transaction taxes (ETF 1113, TC 461, SDC), government borrowing guarantee levies (ETF 1113, TC 462, SDC), stamp duties on conveyances (ETF 1113, TC 463, SDC), or other stamp duties on financial and capital transactions (ETF 1113, TC 465, SDC).

Paragraph A7.33 of the IMF GFSM 2014 describes other taxes on production as consisting of all taxes except taxes on products that enterprises incur as a result of engaging in production. While taxes on products are taxes payable per unit of some type of good or service, other taxes on production are imposed on the producer regardless of the production of any product (e.g. land taxes). By incorporating the appropriate tax classifications (TC) (see Appendix 1 Part A of this manual for full TC listing), other taxes on production (ETF 1114, TC, SDC) are further classified as:

• Payroll taxes (ETF 1114, TC 221, SDC);
• Superannuation guarantee charge (ETF 1114, TC 212, SDC);
• Taxes on employers' payroll and labour force not elsewhere classified (ETF 1114, TC 299, SDC);
• Land taxes (ETF 1114, TC 311, SDC);
• Municipal rates (ETF 1114, TC 312, SDC);
• Metropolitan movement rates (ETF 1114, TC 313, SDC);
• Property owners' contribution to fire brigades (ETF 1114, TC 314, SDC);
• Taxes on immovable property not elsewhere classified (ETF 1114, TC 319, SDC);
• Stamp duty on vehicle registration (ETF 1114, TC 511, SDC (except for SDC 913));
• Road transport and maintenance taxes (ETF 1114, TC 512, SDC (except for SDC 913));
• Heavy vehicle registration fees and taxes (ETF 1114, TC 513, SDC (except for SDC 913));
• Other vehicle registration fees and taxes (ETF 1114, TC 514, SDC (except for SDC 913));
• Motor vehicle taxes not elsewhere classified (ETF 1114, TC 519, SDC (except for SDC 913));
• Gas franchise taxes (ETF 1114, TC 521, SDC);
• Petroleum products franchise taxes (ETF 1114, TC 522, SDC);
• Tobacco franchise taxes (ETF 1114, TC 523, SDC);
• Liquor franchise taxes (ETF 1114, TC 524, SDC);
• Franchise taxes not elsewhere classified (ETF 1114, TC 529, SDC);
• Broadcasting station licences (ETF 1114, TC 531, SDC);
• Television station licences (ETF 1114, TC 532, SDC);
• Departure tax (ETF 1114, TC 533, SDC (except for SDC 913));
• Clean energy and related taxes (ETF 1114, TC 534, SDC);
• Taxes on the use of goods and performance of activities levied on non-residents (ETF 1114, TC 535, SDC); and
• Other taxes on the use of goods and performance of activities not elsewhere classified (ETF 1114, TC 539, SDC).

Payroll taxes (ETF 1114, TC 211, SDC) are types of other taxes on production consisting primarily of taxes payable by enterprises assessed either as a proportion of the wages and salaries paid, or as a fixed amount per person employed. Taxes paid by the employees themselves out of their wages or salaries are excluded, and are instead classified as taxes on income as personal income tax (ETF 1111, TC 111, SDC).

Superannuation guarantee charge (ETF 1114, TC 212, SDC) are types of other taxes on production consisting of charges paid by employers under the superannuation guarantee charge.

Taxes on employers' payroll and labour force not elsewhere classified (ETF 1114, TC 299, SDC) records the value of taxes on employers' payroll and labour force not elsewhere classified as payroll taxes (ETF 1114, TC 211, SDC), or superannuation guarantee charge (ETF 1114, TC 212, SDC).

Taxes on immovable property are other taxes on production consisting of taxes that are levied for the ownership or use of immovable property such as land taxes (ETF 1114, TC 311, SDC), municipal rates (ETF 1114, TC 312, SDC), metropolitan improvement rates (ETF 1114, TC 313, SDC), property owners' contributions to fire brigades (ETF 1114, TC 314, SDC), and taxes on immovable property not elsewhere classified (ETF 1114, TC 319, SDC). Paragraph 5.49 of the IMF GFSM 2014 indicates that taxes on immovable property can be levied on proprietors, tenants, or both. The value of the taxes is usually based on a percentage of an assessed property value that is based on a notional rental income, sales price, capitalised yield, or other characteristics such as size or location. Unlike recurrent taxes on net wealth, liabilities incurred on the property are usually not taken into account in assessment of these taxes.

Land taxes (ETF 1114, TC 311, SDC) are other taxes on production consisting of taxes on the ownership of land, based on the assessed value of the land.

Municipal rates (ETF 1114, TC 312, SDC) are other taxes on production consisting of levies imposed by local government authorities on the assessed value of property for the purpose of financing the provision of ordinary local services. Excluded from this classification category are amounts collected with municipal rates but identified as charges for the direct supply of goods and services such as water and sewerage rates, and garbage charges.

Metropolitan improvement rates (ETF 1114, TC 313, SDC) are other taxes on production consisting of levies on property owners intended specifically for financing the planning and development of land within the metropolitan region. The financing purposes covered within this classification category include acquisition of land for the development of metropolitan parks, the support of regional studies, and financing for open space improvements.

Property owners' contribution to fire brigades (ETF 1114, TC 314, SDC) are other taxes on production consisting of levies imposed on property owners for contribution toward the financing of fire protection services.

Taxes on immovable property not elsewhere classified (ETF 1114, TC 319, SDC) are other taxes on production consisting of other taxes on the owners or users of immovable property that cannot be classified to land taxes (ETF 1114, TC 311, SDC), municipal rates (ETF 1114, TC 312, SDC), metropolitan improvement rates (ETF 1114, TC 313, SDC), or property owners' contribution to fire brigades (ETF 1114, TC 314, SDC).

Taxes on the use of goods and performance of activities (ETF 1114, TC 5) are other taxes on production consisting of fees levied for the issuance of a licence or permit that are not commensurate with the cost of the control function of government. Paragraph 5.72 of the IMF GFSM 2014 notes that governments provide permission to use certain goods or perform certain activities to individual units directly in the form of a licence, permit, certificate of registration or other authorisation in return for payment. This payment forms part of a mandatory process that ensures proper recognition of ownership, or ensures that activities are performed under the correct authorisation of the law.

This classification category includes taxes paid by enterprises in order to obtain a licence to carry on a particular kind of business or profession, and taxes payable by individuals to perform certain activities. The distinction between payments that are classified as government taxes or as government fees for services is not always clear and requires additional guidance (see Chapter 13 Part J of this manual). In principle, if a licence to carry on a particular kind of business or profession is valid for several years, the payment for the current period is classified as other taxes on production as part of taxes on the use of goods and performance of activities (ETF 1114, TC 5, SDC), and the prepayment covering future years is classified as transactions in liabilities (net) - accounts payable (ETF 3211, TALC 552, SDC). However, if the government unit does not recognise a liability to repay the licensee in the case of a cancellation, the whole of the fee payable is recorded as a single tax payment as other taxes on production as part of taxes on the use of goods and performance of activities (ETF 1114, TC 5, SDC) at the time it is paid.

Motor vehicle taxes (ETF 1114, TC 51) are other taxes on production consisting of taxes levied on the use of motor vehicles or permission to use motor vehicles, whether paid by households or enterprises. Paragraph 5.80 of the IMF GFSM 2014 indicates that this classification category does not include taxes on tolls for use of roads, bridges, and tunnels (classified as other taxes on the use of goods and performance of activities not elsewhere classified (ETF 1114, TC 539, SDC)). Also excluded are taxes on third party insurance which are classified as third party insurance taxes (ETF 1113, TC 452, SDC).

Stamp duty on vehicle registration (ETF 1114, TC 511, SDC (except for SDC 913)) are other taxes on production payable by units other than households, consisting of stamp duties imposed on motor vehicle registration and transfer. Stamp duty on vehicle registration payable by households are recorded as other taxes on production - stamp duty on vehicle registration (ETF 1112, TC 511, SDC 913).

Road transport and maintenance taxes (ETF 1114, TC 512, SDC (except for SDC 913)) are other taxes on production payable by units other than households, consisting of taxes levied on the carriage of goods and passengers by road, including taxes collected specifically for road maintenance. Road transport and maintenance taxes payable by households are recorded as other taxes on production - road transport and maintenance taxes (ETF 1112, TC 512, SDC 913).

Heavy vehicle registration fees and taxes (ETF 1114, TC 513, SDC (except for SDC 913)) are other taxes on production payable by units other than households, consisting of motor vehicle registration, transfer, or number plate fees for vehicles with a gross vehicle mass greater than 4.5 tonnes. Heavy vehicle registration fees and taxes payable by households are recorded as other taxes on production - heavy vehicle registration fees and taxes (ETF 1112, TC 513, SDC 913).

Other vehicle registration fees and taxes (ETF 1114, TC 514, SDC (except for SDC 913)) are other taxes on production payable by units other than households, consisting of motor vehicle registration, transfer, or number plate fees for vehicles (other than those with a gross vehicle mass greater than 4.5 tonnes which are classified as heavy vehicle registration fees and taxes (ETF 1114, TC 513, SDC (except for SDC 913)). Other vehicle registration fees and taxes payable by households are recorded as other taxes on production - other vehicle registration fees and taxes (ETF 1112, TC 514, SDC 913).

Motor vehicle taxes not elsewhere classified (ETF 1114, TC 519, SDC (except for SDC 913)) records the value of motor vehicle taxes not elsewhere classified as stamp duty on vehicle registration (ETF 1114, TC 511, SDC (except for SDC 913)), road transport and maintenance taxes (ETF 1114, TC 512, SDC (except for SDC 913)), heavy vehicle registration fees and taxes (ETF 1114, TC 513, SDC (except for SDC 913)), or other vehicle registration fees and taxes (ETF 1114, TC 514, SDC (except for SDC 913)).

Franchise taxes (ETF 1114, TC 52, SDC) are other taxes on production consisting of taxes levied in respect of the permission to sell certain goods.

Gas franchise taxes (ETF 1114, TC 521, SDC) are other taxes on production consisting of licence fees levied on gas suppliers. The fee is assessed by reference to the supplier's previous gross receipts of gas retailed to the public.

Petroleum products franchise taxes (ETF 1114, TC 522, SDC) are other taxes on production consisting of licence fees paid by petroleum wholesalers and petroleum retailers to conduct their business. The tax may be assessed on the marked or prescribed value, or volume of petroleum products sold.

Tobacco franchise taxes (ETF 1114, TC 523, SDC) are other taxes on production consisting of fees collected from wholesale tobacco merchants and retail tobacconists for licences that are required to be held. The taxes are usually assessed on the basis of value sold.

Liquor franchise taxes (ETF 1114, TC 524, SDC) are other taxes on production consisting of fees collected for licences and permits to supply liquor. These taxes are levied on hotelkeepers, wholesale and retail liquor merchants and licensed clubs. These fees are regarded as taxes because of the substantial revenue they generate. These fees are usually assessed on the basis of volume and alcoholic content of sales. Some state and territory governments offer an exemption or concession to encourage consumption of low alcohol liquor. This classification category also includes permits for the supply of liquor with meals, e.g. licensed restaurants.

Franchise taxes not elsewhere classified (ETF 1114, TC 529, SDC) records the value of franchise taxes not elsewhere classified as gas franchise taxes (ETF 1114, TC 521, SDC), petroleum products franchise taxes (ETF 1114, TC 522, SDC), tobacco franchise taxes (ETF 1114, TC 523, SDC), or liquor franchise taxes (ETF 1114, TC 524, SDC).

Other taxes on the use of goods and the performance of activities (ETF 1114, TC 53, SDC) are other taxes on production consisting of taxes levied on the use of goods or the permission to use goods or perform activities that cannot be classified to motor vehicle taxes (ETF 1114, TC 51, SDC) or franchise taxes (ETF 1114, TC 52, SDC). This classification category includes permits to carry on a business which provides a service (such as broadcasting and television services), pollution taxes not based on the value of particular goods, and taxes for the permission to perform an activity such as departure tax.

Broadcasting station licences (ETF 1114, TC 531, SDC) are other taxes on production consisting of fees for licences for commercial radio stations to transmit their service. These licence fees are regarded as taxes because of the substantial revenue they generate. The tax is assessed on gross earnings.

Television station licences (ETF 1114, TC 532, SDC) are other taxes on production consisting of fees for licences for commercial television stations to transmit their services. These licence fees are regarded as taxes because of the substantial revenue they generate. The tax is assessed on gross earnings.

Departure tax (ETF 1114, TC 533, SDC (except for SDC 913)) are other taxes on production payable by units other than households, consisting of the levy imposed on all individuals leaving Australia. The fifty per cent indirect component of this tax consists of the estimated tax collected from Australian residents going abroad for business purposes. Departure tax payable by households are recorded as other taxes on production - departure tax (ETF 1112, TC 533, SDC 913).

Clean energy and related taxes (ETF 1114, TC 534, SDC) are other taxes on production consisting of taxes levied on greenhouse gas emissions.

Taxes on the use of goods and performance of activities levied on non-residents (ETF 1114, TC 535, SDC) are other taxes on production consisting of taxes levied on the use of goods and permission to perform activities by non-residents. This classification category includes withholding tax on royalties levied on nonresidents and payments for a licence or permit to conduct extraction operations on sub-soil assets by non-residents.

Other taxes on the use of goods and performance of activities not elsewhere classified (ETF 1114, TC 539, SDC) are other taxes on production consisting of taxes on the use of goods or performance of activities that cannot be classified to broadcasting station licences (ETF 1111, TC 531, SDC), television station licences (ETF 1114, TC 532, SDC), departure tax (ETF 1114, TC 533, SDC), clean energy and related taxes (ETF 1114, TC 534, SDC) or taxes on the use of goods and performance of activities levied on nonresidents (ETF 1114, TC 535, SDC). Included in this classification category are other general business taxes or licences set as a fixed amount according to the kind of business, or on the basis of various indicators such as floor space, installed horsepower, capital, or shipping tonnage. Also included in this classification category are taxes payable by persons or households for licences for recreational hunting, shooting, or fishing, and taxes on the ownership of pets when the amount payable is not commensurate with the administrative cost. Excluded from this category are business taxes on gross sales which are classified under general taxes on provision of goods and services (ETF 1113, TC 41, SDC).

Capital taxes (ETF 1115, TC) are a type of taxation revenue which consist of capital levies and taxes on capital transfers. Capital levies are imposed at irregular and infrequent intervals on the value of assets or net worth owned by institutional units. Taxes on capital transfers are imposed at irregular and infrequent intervals on the value of assets transferred between institutional units as a result of legacies, gifts or other transfers. Included in this classification category are:

• Estate, inheritance, and gift taxes (ETF 1115, TC 321, SDC)

Estate, inheritance, and gift taxes (ETF 1111, TC 321, SDC) are a type of taxation revenue which consist of taxes on transfers of property at death and on gifts, including gifts made between living members of the same family to avoid (or minimise) the payment of inheritance taxes. Paragraph 5.51 of the IMF GFSM 2014 indicates that taxes on the transfer of property at death include estate taxes (which are usually based on the size of the total estate), and inheritance taxes (which may be determined by the amount received by beneficiaries and / or their relationship to the deceased).

Sales of goods and services (ETF 112) refers to revenues generated from the direct provision of goods and services by general government and public corporations, excluding GST. In GFS, revenue from sales of goods are recorded when legal ownership changes. Paragraph 5.141 of the IMF GFSM 2014 recommends that if this time cannot be determined precisely, recording may take place when there is a change in physical ownership or control. Transactions in services are normally recorded when the services are provided, however some services are supplied or take place on a continuous basis, e.g. rentals are continuous flows and are recorded continuously as long as they are being provided. In the GFS system, sales of goods and services (ETF 112) are further classified as:

• Sales by market establishments (ETF 1121, COFOG-A, SDC);
• Administrative fees (ETF 1122, COFOG-A, SDC);
• Incidental sales by non-market establishments (ETF 1123, COFOG-A, SDC); and
• Imputed sales of goods and services (ETF 1124, COFOG-A, SDC).

Sales by market establishments (ETF 1121, COFOG-A, SDC) are a type of revenue which consist of the sales of all market establishments that are part of the units for which statistics are being compiled. Paragraph 5.137 of the IMF GFSM 21014 defines an establishment as part of an enterprise situated in a single location and at which only a single productive activity is carried out or the principal productive activity accounts for most of the value added. A market establishment within a government unit is a government unit that sells (or otherwise disposes of) all, or most of its output at economically significant prices (for definition, see Chapter 2 of this manual). Because public corporations comprise market establishments, their sales are included in this category when compiling statistics for the public sector, unless the sales are of a specific type that are to be recorded elsewhere (such as under insurance premiums and administrative fees). Income from rental payments made under an operating lease for the use of produced assets such as buildings, ships, aircraft, vehicles, buildings, copyrights, patents, trademarks, etc, are included in this classification category. Government income derived from the sale of non-financial assets other than inventories are disposals of non-financial assets (classified as disposals of non-financial assets (ETF 421, TALC, SDC)); and are not included in this classification category.

Administrative fees (ETF 1122, COFOG-A, SDC) are a type of revenue which consist of fees and charges for compulsory licences and other administrative fees that make up a part of sales of services. If the government exercises a regulatory function, such as checking the competency or qualifications of a wouldbe licensee, then such fees are treated as revenues from sales of goods and services. In this case, the payment is taken to be proportional to the cost of producing the service. If there is little or no work involved on the part of the government in the processing or granting of the licence, permit or other service, or if the revenues raised are clearly out of all proportion to the cost of providing the service, then the fee is classified as other taxes on use of goods and performance of activities (ETF 1111, TC 539, SDC). Examples of administrative fees include drivers’ licence fees, court fees, and radio and television licence fees when public authorities provide general broadcasting services. Paragraph 5.138 of the IMF GFSM 2014 notes that fees payable for voluntary participation in deposit insurance or other guarantee schemes that do not qualify to be a standardised guarantee scheme are also included in this classification category. For further information on the boundary between taxes and the purchases of services, see Chapter 13 of this manual.

Incidental sales by non-market establishments (ETF 1123, COFOG-A, SDC) are a type of revenue which consist of incidental sales by non-market establishments of general government units other than administrative fees. Paragraph 5.139 of the IMF GFSM 2014 indicates that this classification category includes sales incidental to the usual social or community activities of government departments and agencies, such as sales of products made at vocational schools, seeds from experimental farms, postcards and art reproductions by museums, fees at government hospitals and clinics, tuition fees at government schools, and admission fees to government museums, parks, and cultural and recreational facilities that are not public corporations.

Imputed sales of goods and services (ETF 1124, COFOG-A, SDC) are a type of revenue which consist of imputed income from sales rather than actual sales of goods and services. Paragraph 5.140 of the IMF GFSM 2014 states that it may be necessary to record imputed sales of goods and services in situations where a unit produces goods and services for the purpose of using them as compensation of employees in kind, or when goods or services are provided on a continuous basis, but where payment or the change in legal ownership takes place at a different time to the sale of goods and / or provision of services. Paragraph 5.140 of the IMF GFSM 2014 further notes that for a defined contribution pension scheme, this category also includes an imputed sale for the services rendered if the employer operates the scheme itself. In that case, the value of the costs of operating the scheme is recorded as an imputed contribution payable to the employee as part of compensation of employees. The counterpart of this amount should be recorded as an imputed sale of a financial service to the household sector under imputed employers’ contributions - defined benefit superannuation (ETF 1213, COFOG-A, SDC).

Property income (ETF 113) is defined as revenue receivable in return for putting financial assets and natural resources at the disposal of another unit. This refers to income accrued from the ownership of financial assets or tangible non-produced assets. In the GFS system, property income (ETF 113) is further classified as:

• Interest income (ETF 1131, SDC);
• Dividend income (including tax equivalents) (ETF 1132, SDC);
• Withdrawal from income of quasi-corporations (ETF 1133, SDC);
• Land rent income (ETF 1134, SDC);
• Royalty income (ETF 1135, SDC);
• Revenue from investment funds (ETF 1136, SDC);
• Reinvested earnings from foreign direct investments (ETF 1137, SDC); and
• Property income not elsewhere classified (ETF 1139, SDC).

Interest income (ETF 1131, SDC) is a type of revenue which consists of income that is receivable by owners of certain kinds of financial assets (SDRs, deposits, debt securities, loans, and other accounts receivable) for putting the financial asset at the disposal of another institutional unit. In the case of financial assets that give rise to interest, an amount of outstanding debt will increase as interest accrues continuously over the period that the financial asset exists. The amount due to the creditor will decline as payments are made on the debt by the debtor. The balance that a debtor owes to a creditor at any time is referred to as the principal outstanding. Paragraph 5.108 of the IMF GFSM 2014 notes that interest income can accrue on advances to the private sector, public corporations, building societies and foreign governments, and on bank account balances, fixed deposits held with banks, government securities, intra-sector deposits and short-term money market balances.

Paragraph 5.109 of the IMF GFSM 2014 notes that interest may be a predetermined sum of money or a fixed or variable percentage of the principal outstanding. If some (or all) of the interest is not paid during the period in question, the accrued interest should be added to the amount of the principal outstanding.

Interest income (ETF 1131, SDC) includes interest on advances to the private sector, public corporations, building societies and foreign governments; interest on bank account balances and fixed deposits held with banks, government securities, intra-sector deposits and short term money market balances; imputed interest that originates from interest foregone by employers when they provide loans to employees at reduced, or even zero rates of interest as part of the remuneration in kind of government and public sector employees; and interest charged on overdue taxes. Also included are accrued interest flows from a funded defined benefit superannuation scheme that is over-funded, that is, the financial assets held by the defined benefit superannuation scheme exceeds the value of the superannuation entitlements, leading to a claim of the employer on the superannuation scheme. When the superannuation scheme is over-funded, the accounts should show an accrued interest flow from the defined benefit superannuation scheme to the employer, equal to the discount rate that is used in calculating the superannuation entitlements times the claim of the superannuation scheme on the employer. Excluded from the concept of interest income (ETF 1131, SDC) are cash settlements of interest swap contracts, which are treated as financial transactions.

In Australian GFS, interest income includes financial intermediation services indirectly measured (FISIM). FISIM is a service fee charged by financial institutions for providing their services to depositors and borrowers. FISIM represents the service implicitly provided by financial intermediaries such as banks, on deposit and loan facilities. It is measured as the difference between the interest rates on loans and deposits and a pure or reference rate of interest, multiplied by the level of loans and deposits, respectively. For depositors and borrowers of financial institutions, FISIM is implicit in the interest rates charged by financial intermediaries and cannot easily be separately identified from interest income. A large part of the output of financial institutions has to be imputed by the ABS because part of the interest received by the institutions is deemed to arise from production (i.e. payment for services rendered by the institutions), and part is deemed to be property income, which does not arise from production and is recorded in the allocation of primary income account. The imputed amounts of FISIM are deducted from the interest receivable by financial institutions and included in their output, and are also deducted from the interest payable by users of the institutions’ services and included in their intermediate consumption. FISIM remains included as part of the concept of interest income (ETF 1131, SDC) reported by Australian state and territory treasuries, the Department of Finance and other providers. The FISIM portion is estimated by compilers of the National Accounts in the ABS for all depositors and borrowers of financial institutions, and is then removed from interest income (ETF 1131, SDC) for national accounting purposes.

Dividend income (including tax equivalents) (ETF 1132, SDC) is a type of revenue which consists of distributed earnings allocated to government or public sector units (as the owners of equity), for placing funds at the disposal of corporations. Dividend income is not funded by the sale of assets, capital restructure, borrowings or other credit arrangements. Paragraph 5.111 of the IMF GFSM 2014 consider dividends as a form of property income to which government or public sector units become entitled in their capacity as shareholders and / or owners of a corporation. General government units may receive dividends from private or public corporations. Dividends may occasionally take the form of an issue of shares, but the concept of dividend income excludes issues of bonus shares that represent a reclassification between own funds, reserves and undistributed profits. Dividend income is also distinguished from the sale or other divestment of equity holdings, which are sales of financial assets and not revenues.

For GFS purposes, dividends are recorded at the time the dividend is declared payable for non-quoted shares. Paragraph 5.112 of the IMF GFSM 2014 states that quoted shares may be sold 'ex-dividend', which is the date that the dividend is excluded from the market price prior to sale. The owner of the equity at the ex-dividend date (not the owner on the date dividends became payable), has the right to the dividend. A share sold ex-dividend is therefore worth less than one sold without this constraint. In this case, the time of recording of dividends is the point at which the share price starts to be quoted on an ex-dividend basis rather than at a price that includes the dividend.

The concept of dividend income includes income from dividends to public enterprises from subsidiaries; dividends from shares held as investments in private and public corporations; transfers of income from public non-financial corporations and public financial corporations; profits of central banks transferred to government units; profits transferred or distributed from the operation of monetary authority functions outside the central bank; profits transferred by state lotteries that compete with other privately organised lotteries; and issues of shares as a dividend.

Excluded from the concept of dividend income is revenue from the IMF’s gold disbursements (classified to transactions in financial assets (net) - equity including contributed capital (ETF 3111, TALC 424, SDC); issues of bonus shares that represent a reclassification between own funds, reserves and undistributed profits (classified to transactions in financial assets (net) - equity including contributed capital (ETF 3111, TALC 424, SDC)); profits of fiscal monopolies (classified to taxes on products (derived by the ABS) (ETF 1114)); profits of export or import monopolies (classified to taxes on products (derived by the ABS) (ETF 1114, TC, SDC)); dividends declared greatly in excess of the recent level of dividends and earnings (classified to transactions in financial assets (net) (ETF 3111), equity including contributed capital (TALC 424), (SDC)); and interim dividends where evidence exists that such dividends are not from the current period’s operating surplus (classified to transactions in financial assets (net) (ETF 3111), advances other than concessional loans (TALC 433), (SDC)).

These are dividends that are received during a reporting period, but before the final operating result of a corporation is known. Paragraph 5.117 of the IMF GFSM 201 recommends that if evidence exists that such dividends are not from the current period’s operating surplus, the interim dividend payments should be recorded as transactions in financial assets (net) - advances other than concessional loans (ETF 3111, TALC 433, SDC).

All dividends are notionally paid from the operating surplus of the current period by a corporation. However, corporations sometimes adjust the value of dividends, particularly if their operating surplus is very volatile. Paragraph 5.115 of the IMF GFSM 2014 indicates that such adjustments to the value of dividends is normal, except when dividends are disproportionately large in relation to the recent level of dividends and earnings. Disproportionately large payments of dividends are referred to as super dividends, and are often based on accumulated reserves, privatisation receipts, other sales of assets, or holding gains, rather than operating surpluses. Therefore, the payment of super dividends more closely resembles an equity transaction than a dividend payment, and any dividends declared greatly in excess of the recent level of dividends and earnings should be recorded as the withdrawal of owners’ equity from the corporation in GFS and classified as transactions in financial assets (net) - equity including contributed capital (ETF 3111, TALC 424, SDC). Determining whether dividends are in line with past practice is recommended for all corporations, including the central bank.

Withdrawals from income of quasi-corporations (ETF 1133, SDC) is a type of revenue which consists of that part of distributable income that the owner withdraws from the entity. A quasi-corporation is an enterprise owned by a resident institutional unit (or non-resident institutional unit that is deemed to be a resident institutional unit) that keeps a full set of accounts (including a balance sheet) and functions as if it were a corporation, but is not incorporated or otherwise legally established. By definition, a quasicorporation cannot distribute income in the form of dividends, however, the owner may choose to withdraw some (or all) of the distributable income. Conceptually, the withdrawal of such income is equivalent to the distribution of dividends and is treated as property income accruing to the owners of the quasi-corporation.

Excluded from the concept of withdrawal of income from quasi-corporations (ETF 1133, SDC) are withdrawals of funds realised from the sale or other disposal of the quasi-corporation’s assets such as inventories, non-financial produced assets, land or other non-produced assets (classified to transactions in financial assets (net) - equity including contributed capital (ETF 3111, TALC 424, SDC)); and withdrawals of funds realised from the liquidation of large amounts of accumulated retained earnings or other reserves (classified to transactions in financial assets (net) - equity including contributed capital (ETF 3111, TALC 424, SDC)).

Land rent income (ETF 1134, SDC) is a type of revenue which consists of income in the form of rent for the use of land and other non-produced assets. This classification category includes rent on leasehold land in the territories (ACT and NT), and other leasing of crown lands. Rent on land accrues continuously throughout the period of the lease contract. Paragraph 5.127 of the IMF GFSM 2014 recommends that rent payable to government sector units that own inland waters and rivers for the right to exploit such waters for recreational or other purposes (including fishing), or non-cultivated land for the right to cut timber on the land be included as part of land rent income (ETF 1134, SDC). In the case of permits that allow timber felling in a natural forest, fees payable per unit volume of timber felled (stumpage) are also recorded as land rent income (ETF 1134, SDC).

In situations where a single payment covers both land rent and rentals of produced assets (such as rentals on the buildings or fixtures on the land) in a single contract or lease, and there is no objective basis on which to split the payment between rent on land and rental on the produced assets, then paragraph 5.132 of the IMF GFSM 2014 recommends to treat the whole amount as land rent income (ETF 1134, SDC) if the value of the land is believed to exceed the value of the buildings and other produced assets.

Royalty income (ETF 1135, SDC) is a type of revenue which consists of rent income relating to the use of non-produced subsoil assets such as deposits of minerals, off-shore petroleum or fossil fuels such as coal, oil, or natural gas. Paragraph 5.130 of the IMF GFSM 2014 states that general government units may grant leases to other institutional units that permit them to extract these deposits over a specified period of time in return for a payment, or series of payments. These payments are called royalties in GFS. The rent may take the form of periodic payments of fixed amounts that are irrespective of the rate of extraction, or they may be a function of the quantity, volume, or value of the asset extracted. Enterprises engaged in exploration on government land may make payments to general government units in exchange for the right to undertake test drilling or otherwise investigate the existence and location of subsoil assets. Such payments are also treated as rents even though no extraction may take place.

Although the terms rent and royalties are widely used in commercial accounting, paragraph 5.133 of the IMF GFSM 2014 warns that rents and royalties in the macroeconomic context should not be confused with severance taxes, business licences, or other taxes. Severance taxes are imposed on the extraction of minerals and fossil fuels from reserves owned privately or by another government. If the payment counts toward the taxes on profits, then it should be classified as taxation revenue (ETF 1111, TC, SDC). Payments received from licences or permits to conduct extraction operations should be classified as land rent income (ETF 1134, SDC) or royalty income (ETF 1135, SDC).

Revenue from investment funds (ETF 1136, SDC) is a type of revenue which consists of revenue from collective investment undertakings through which investors pool funds specifically for investment in financial or non-financial assets. Investment funds may take the form of mutual funds or unit trusts. Investors in an investment fund will receive shares if the investment fund operates under a corporate structure, or units if the investment fund operates under a trust structure. Paragraph 7.174 of the IMF GFSM 2014 states that investment funds are divided into Money Market Funds (MMF) and non-MMFs. MMFs invest in money market instruments with a residual maturity of less than one year, and the units of MMFs are taken as close substitutes for bank deposits. Non-MMF investment funds invest in longer-term financial assets and real estate.

An investor in an investment fund can choose to either leave their investment in the fund, or withdraw their investment at the current market value through secondary market trading / redemption facilities. Because of this high degree of control that investors have over their investment in an investment fund, and because there can be no savings in an investment fund because all earnings are issued to the investors, paragraph 9.56 of the IMF GFSM 2014 considers any increases in the value of investment fund shares (that are not the result of holding gains and after reinvested earnings have been deducted) to be property income resulting from deliberate investment decisions.

Paragraph 5.121 of the IMF GFSM 2014 notes that investment income attributed to holders of share or units in investment funds includes two separate items. The first of these is the dividends distributed to investment fund shareholders. The second is retained earnings attributed to investment fund shareholders. The increase in value of investment fund shares or units other than from holding gains and losses is recorded as if they were distributed to the share or unit holders and then reinvested by them in the financial instrument.

Paragraph 5.120 of the IMF GFSM 2014 indicates that insurance enterprises hold technical reserves in the form of prepayments of premiums, reserves against outstanding claims, and actuarial reserves against outstanding risks with respect to life insurance policies. These reserves are liabilities toward the beneficiaries, including any government or other public sector units that are policyholders. Any income receivable from the investment of the corresponding assets should also be attributed as the property income of the policyholders or beneficiaries. However, for government sector units as the holder of policies, the revenue related to this item is likely to be unknown, and therefore this revenue item is excluded from GFS and is treated as an adjustment item between GFS and national accounts.

Reinvested earnings on foreign direct investment (ETF 1137, SDC) are a type of revenue which consist of direct investor’s share of the retained earnings of the direct investment enterprise. Paragraph 5.134 of the IMF GFSM 2014 describes direct investment as a category of cross-border investment associated with a resident in one economy having control or a significant degree of influence on the management of an enterprise that is resident in another economy. A general government unit or public corporation may have foreign direct investment in non-resident special purpose entities (SPEs), or non-resident branches or subsidiaries of public corporations. Actual distributions receivable from such non-resident units out of their distributable income should be recorded as dividend income (including tax equivalents) (ETF 1132, SDC) or withdrawal from income of quasi-corporations (ETF 1133, SDC).

Paragraph 5.135 of the IMF GFSM 2014 states that any retained earnings of a foreign direct investment enterprise are to be recorded as if they were distributed to foreign direct investors in proportion to their ownership of the equity of the enterprise and then reinvested by them. The imputed remittance of these retained earnings is classified as a form of distributed income that is separate from, and additional to, any actual payments of dividends or withdrawals of income from quasi-corporations, and should be recorded as reinvested earnings on foreign direct investment (ETF 1137). The counterpart entry for the imputed reinvestment should be recorded as the acquisition of equity and classified as transactions in financial assets (net) (ETF 3111), equity including contributed capital (TALC 424, SDC). The rationale behind this treatment is that, because a direct investment enterprise is subject to control or influence by the direct investor or investors, the decision to retain some of its earnings within the enterprise represents an investment decision on the part of the foreign direct investor(s).

Property income not elsewhere classified (ETF 1139, SDC) records the value of property income not elsewhere classified as interest income (ETF 1131, SDC), dividend income (including tax equivalents) (ETF 1132, SDC), withdrawals from income of quasi-corporations (ETF 1133, SDC), land rent income (ETF 1134, SDC), royalty income (ETF 1135, SDC), revenue from investment funds (ETF 1136, SDC), or reinvested earnings on foreign direct investment (ETF 1137, SDC).

Other current revenue (ETF 155, SDC) are types of revenue which consist of revenue other than from taxation revenue (ETF 111, TC, SDC), sales of goods and services (ETF 112, COFOG-A, SDC), and property income (ETF 113, SDC). In the GFS system, other current revenue (ETF 114) is further classified as:

• Revenue from current grants and subsidies (ETF 1141, SDC);
• Fines, penalties and forfeits (ETF 1142, SDC)
• Premiums, fees and current claims related to non-life insurance and standardised guarantee schemes (ETF 1143, SDC); and
• Other current revenue not elsewhere classified (ETF 1149, SDC).

Revenue from current grants and subsidies (ETF 1141, SDC) are a type of revenue which consist of current transfers receivable by government units. Current transfer revenues comprise current grants which are defined as amounts receivable for current purposes for which no economic benefits are payable in return, and subsidies which are defined in paragraph 5.146 of the IMF GFSM 2014 as current unrequited transfers received by public enterprises on the basis of the level of their production activities, or the quantities or values of the goods and services they produce, sell, export or import. Grants are normally receivable in cash, but may also take the form of the receipt of goods or services (in kind). Subsidies include transfers receivable by public corporations to offset recurring losses that are a consequence of government policy to maintain the corporations’ prices at a level that does not cover the cost of production.

Fines, penalties and forfeits (ETF 1142, SDC) are a type of revenue which consist of compulsory current transfers imposed on units by courts of law or quasi-judicial bodies for violations of laws or administrative rules. Paragraph 5.142 of the IMF GFSM 2014 states that out-of-court agreements are included as part of this classification item, as are forfeits which are amounts deposited with a general government unit pending a legal or administrative proceeding that have been transferred to the general government unit as part of the resolution of that proceeding.

Penalties imposed by tax authorities are excluded from fines, penalties and forfeitures (ETF 1142), and are instead classified to the appropriate category under taxation revenue (ETF 1111, TC, SDC). However, paragraph 5.143 of the IMF GFSM 2014 recommends that fines and penalties charged on overdue taxes or for the attempted evasion of taxes should be recorded as fines, penalties and forfeitures (ETF 1142) and not as taxation revenue (ETF 1111, TC, SDC). However, it may not be possible to separate payments of fines or other penalties from the taxes to which they relate. Therefore, the fines and penalties relating to a particular tax are recorded together with that tax, and any fines and penalties related to unidentifiable taxes are classified as other income tax levied on individuals (ETF 1111, TC 119, SDC) for individuals, and other income taxes levied on non-residents not elsewhere classified (ETF 1111, TC 139, SDC) for non-residents.

In the GFS system, fines, penalties, and forfeits are recorded when the general government unit has an unconditional claim to the funds. Paragraph 5.144 of the IMF GFSM 2014 states that this may be at the time that a court renders judgment or an administrative ruling is published, or it may be when a late payment or other infringement automatically causes a fine or penalty. Fines also include bail set by courts when bail conditions have been violated. When bail is set, repayable amounts should be recorded as transactions in liabilities (net) - other liabilities not elsewhere classified (ETF 3211, TALC 559, SDC) and should only be recorded as revenue once the conditions for the bail are violated. In cases where no actual payment is made when bail is set, the government acquires a conditional claim to the funds which is not recorded in the GFS system until the conditions are fulfilled.

Premiums, fees and current claims related to non-life insurance and standardised guarantee schemes (ETF 1143, SDC) are a type of revenue which consist of premiums receivable by non-life insurance schemes from insurance policyholders, claims receivable from insurance schemes by beneficiaries, and fees receivable for the issuance of standardised guarantees of a current nature. Paragraph 5.149 of the IMF GFSM 2014 states that while premiums and fees are always of a current nature, claims receivable could be of a capital or current nature.

Paragraph 5.150 of the IMF GFSM 2014 indicates that premiums and fees receivable recorded under this classification category should only include those that provide insurance coverage in the current reporting period. Receipts of prepayment of premiums and fees should not be recognised as revenue, but should be recorded as the incurrence of a liability under transactions in liabilities (net) - non-life insurance technical reserves (ETF 3211, TALC 541, SDC).

Other current revenue not elsewhere classified (ETF 1149, SDC) is a type of revenue which consists of the receipt of transfers from sources other than from revenue from current grants and subsidies (ETF 1141, SDC), fines, penalties and forfeits (ETF 1142, SDC), or premiums, fees and current claims related to nonlife insurance and standardised guarantee schemes (ETF 1143, SDC). This classification category includes gifts and transfers of a current nature (other than grants or subsidies). Paragraph 5.147 of the IMF GFSM 2014 states that these transfers could be in cash or in kind, e.g. contributions of food, blankets, and medical supplies for relief purposes. This classification category also includes the revenue of local governments in lieu of municipal rates, gifts, conscience moneys, and unclaimed moneys such as unclaimed lottery prizes, unclaimed TAB dividends, and unclaimed moneys in bank accounts.

Capital revenue (ETF 115) consists of other revenue for capital purposes. In the GFS system, capital revenue (ETF 115) is further classified as:

• Revenue from capital grants (ETF 1151, SDC);
• Assets acquired below market value (ETF 1152, COFOG-A, TALC, SDC);
• Capital claims related to non-life insurance and standardised guarantee schemes (ETF 1153, SDC); and
• Capital revenue not elsewhere classified (ETF 1159, SDC).

Revenue from capital grants (ETF 1151, SDC) are a type of transfer revenue which consist of receipts of a capital nature for which no economic benefits are payable in return. These differ from current grants which are transfers receivable for current purposes. Capital grants are usually non-recurrent, and irregular for the donor or the recipient. Included are grants for capital purposes received from private non-profit institutions serving households, foreign governments, and international organisations (including grants received from aid projects), and capital grants received by one level of government from another (e.g. Commonwealth to state / territory). Included are transfers received in the form of compensation for damage or destruction of non-financial assets, or to increase financial capital.

Assets acquired below market value (ETF 1152, COFOG-A, TALC, SDC) consists of the capital grant received when capital assets are acquired below current market value or without cost. The capital grant is equal to the difference between the current market value and the acquisition cost of the asset. This type of acquisition is recorded by imputation of equivalent transactions when they are of an economic nature and where valuations are realistically obtainable.

Capital claims related to non-life insurance and standardised guarantee schemes (ETF 1153, SDC) are a type of revenue which consist of the claims receivable from insurance schemes by beneficiaries of a capital nature. Paragraph 5.149 of the IMF GFSM 2014 states that while premiums and fees are always of a current nature, claims receivable could be of a capital or current nature. Paragraph 5.151 of the IMF GFSM 2014 states that all non-life insurance claims are classified as current transfers, unless the nature of the claim makes it necessary to record a capital transfer.

Other capital revenue not elsewhere classified (ETF 1159, SDC) is a type of revenue which consists of all other revenue for capital purposes. Included in this classification category are gifts and transfers of a capital nature (other than grants) from individuals, private non-profit institutions, non-governmental foundations, or corporations. Paragraph 5.148 of the IMF GFSM 2014 gives the following examples of items that are included in this classification category:

• Major non-recurrent payments receivable in compensation for extensive damages or serious injuries not covered by insurance policies. The payments may be awarded by courts of law or settled out of court. They include payments of compensation for damages caused by major explosions, oil spillages, etc.;
• International aid of a capital nature receivable after natural disasters from non-residents other than international organisations and foreign governments;
• Payments receivable for damage to property other than payments from an insurance settlement;
• Transfers receivable from government units by public corporations to cover large operating deficits accumulated over two or more years. Where a realistic expectation exists that such amounts will be repayable, the transaction should be classified as the acquisition of a financial asset under transactions in financial assets (net) (ETF 3111, TALC, SDC) for the government unit and incurrence of liability for the public corporation (transactions in liabilities (net) (ETF 3211, TALC, SDC));
• Legacies or large gifts receivable by government or public sector units, including gifts of land, buildings, or research and development assets such as patents and copyrights;
• Exceptionally large donations receivable from households or enterprises to public sector units to finance gross fixed capital formation (measured in macroeconomic statistics as acquisitions minus disposals of non-financial produced assets). For example, transfers for the construction or purchase of hospitals, schools, museums, theatres, and cultural centres, or gifts to universities to cover the costs of building new residential colleges, libraries, laboratories, etc.;
• Capital transfers from corporations, quasi-corporations, non-profit institutions serving households, households, and non-residents other than governments and international organisations for the cancellation or assumption of a debt by mutual agreement with the government without the government incurring an effective liability toward them;
• Amounts receivable in excess of the expected value of liabilities assumed for the provision of employment related pension entitlements. Amounts receivable up to the expected value of the liabilities should be recorded as transactions in liabilities (net) - insurance, superannuation, and standardised guarantee schemes (ETF 3211, TALC 54, SDC); and
• Community built assets where responsibility for maintenance is then assumed by a public sector unit.