Sources and methods - Quarterly

The quarterly Government Finance Statistics is the data source which provides data relating to expenditures on defence. It is sourced from the Department of Finance. It is used as an indicator which is applied to the annual benchmarks.

The data obtained are for the expenditures on defence employees (i.e. wages and salaries and employer social contributions) and on other defence inputs (i.e. operating expenses such as rent, electricity, stationery, etc.) plus details of the value of sales of goods and services. The estimate for government expenditure on Financial Intermediation Services Indirectly Measured (FISIM) is included as part of the costs (i.e. intermediate consumption) of general government.

Consumption of fixed capital is used in place of the depreciation recorded in government accounts. Consumption of fixed capital is the preferred conceptual treatment as it is compiled on a current replacement basis rather than the historical cost basis used to compute depreciation allowances. It is obtained from the Perpetual Inventory Method (PIM).

Current expenditures paid for in-house development of intellectual property are not included as intermediate consumption. They are capitalised and included in gross fixed capital formation.

Defence current price estimates are price deflated by each component to obtain volume estimates and are summed to derive a total defence estimate.

The deflator for employee expenses is weighted using wages and salaries data on army, airforce, navy, reserves and APS staff. The underlying indexes weighted include WPI Public administration and safety and WPI All industries.

Both sales of goods and services and use of goods and services are price deflated using a Commonwealth defence input cost deflator.

Quarterly data are directly sourced from the Department of Finance quarterly ledger. Data for universities are collected from a sample of 36 public universities. Intellectual property products estimates are recorded as gross fixed capital formation in the ASNA.

The data obtained are for the expenditures by Commonwealth agencies (other than those classified to Defence) and by public universities on employees (i.e. wages and salaries and employer social contributions) and on other inputs (i.e. operating expenses such as rent, electricity, stationery, etc.) plus details of the value of sales of goods and services. The estimate for government expenditure on Financial Intermediation Services Indirectly Measured (FISIM) is included as part of the costs (i.e. intermediate consumption) of general government.

Consumption of fixed capital is used in place of the depreciation recorded in government accounts. Consumption of fixed capital is the preferred conceptual treatment as it is compiled on a current replacement basis rather than the historical cost basis used to compute depreciation allowances. It is obtained from the Perpetual Inventory Method (PIM).

Current expenditures paid for in-house development of intellectual property are not included as intermediate consumption. They are capitalised and included in gross fixed capital formation.

National non-defence current price estimates are price deflated by each component to obtain volume estimates and are summed to derive a total national non-defence estimate.

Commonwealth non-defence employee expenses are price deflated using WPI All industries (Commonwealth). Social benefits to households are price deflated by a weighted index comprised of a Medicare, PBS, Child care and Commonwealth government input cost deflator. Other non-employee expenses are price deflated using a Commonwealth government input cost deflator.

Multi-jurisdictional employee expenses are price deflated using WPI Education and training (public). Sales of goods and services are price deflated using CPI Higher education fees while other non-employee expenses is price deflated using a Commonwealth (Multi-jurisdictional) input cost deflator.

The State and Territory treasuries provide the State and Territory level data. The data comes from monthly and quarterly statements of receipts and expenditure, compiled from agency based financial reporting. Local government data are sourced from a quarterly sample (approximately 15 per cent) of local government authorities.

The data obtained are for the expenditures by State and local government agencies on employees (i.e. wages and salaries and employer social contributions) and on other inputs (i.e. operating expenses such as rent, electricity, stationery, etc.) plus details of the value of sales of goods and services. The estimate for government expenditure on Financial Intermediation Services Indirectly Measured (FISIM) is included as part of the costs (i.e. intermediate consumption) of general government.

Consumption of fixed capital is used in place of the depreciation recorded in government accounts. Consumption of fixed capital is the preferred conceptual treatment as it is compiled on a current replacement basis rather than the historical cost basis used to compute depreciation allowances. It is obtained from the Perpetual Inventory Method (PIM).

Current expenditures paid for in-house development of intellectual property are not included as intermediate consumption. They are capitalised and included in gross fixed capital formation.

State and local current price estimates are price deflated by each component to obtain volume estimates and are summed to derive a total state and local estimate.

State and local employee expenses are price deflated using WPI All industries (State and local government). Sales of goods and services are price deflated by a weighted index including a state and local government input cost deflator, state and local health input cost deflator and CPI VET fees. Social benefits to households are price deflated using a state and local government input cost deflator. Other non-employee expenses are price deflated by a weighted price index comprised of a state and local government input cost deflator, state and local health input cost deflator and state and local education input cost deflator.