Sources and methods - Annual
Benchmark years
11.30 Annual benchmark estimates for GOS and GMI are derived in total for all institutional sectors. It involves two stages where the first is to derive GOS/GMI in total for all industries. This is undertaken within the supply-use tables.
11.31 The second stage is to split total GOS/GMI into the remaining institutional sectors which requires GMI to be separately identified. The steps required to do this are as follows:
- Remove estimated GOS for public non-financial corporations, financial corporations and general government sectors, and dwellings owned by persons from total GOS/GMI.
- Derive non-farm private non-financial corporations GOS plus non-farm GMI in total.
- Disaggregate total farm GOS/GMI into components for farm GOS and farm GMI.
- Disaggregate total non-farm GOS/GMI into components for non-farm GOS and non-farm GMI.
- Add non-farm private non-financial corporations GOS (from step d) to farm GOS (from step c), and non-farm GMI (from step d) to farm GMI (from step c).
11.32 The tables below outline the data sources and methods used in the estimation of annual GOS and GMI in total (as per stage 1) and then the institutional sector split as per stage 2 following the steps outlined above. GOS and GMI are estimated in current prices only. Volume estimates are not calculated for GOS and GMI.
Item | Comment |
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Total Gross operating surplus/Gross Mixed Income (GOS/GMI) | |
Annual benchmarks for GOS and GMI of private non-financial corporations, unincorporated enterprises and private financial corporations providing auxiliary finance and insurance services (ANZSIC Subdivision 64) are derived from the Economic Activity Survey, using the following calculation: GOS/GMI = Output Note also the GOS for NPISH units is depreciation as reported in the Economic Activity Survey. This is a proxy for consumption of fixed capital, which is conceptually the GOS for the NPISH sector. The Perpetual Inventory Method which provides estimates of COFC does not distinguish between household and NPISH sectors. NPISH GOS is calculated as gross output less the costs incurred in producing that output (but before deducting consumption of fixed capital), leaving consumption of fixed capital (COFC) as the residual. |
Item | Comment | |
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Financial corporations and quasi-corporations – Concept | ||
GOS of financial corporations is the excess of gross output over the costs incurred in producing that output for all financial corporations in Australia. Explicit charges for services account for only a small proportion of the income of financial corporations, unlike non-financial corporations, whose gross output can generally be equated with the proceeds of the sales of goods and services. | ||
Finance services | ||
Banks and similar financial intermediaries largely finance their activities by the excess of interest received over interest paid. If GOS were calculated in the same way as for other institutional sectors, it would be negative because only explicit service charges and operating expenses would be taken into account. In the national accounts, interest received is not considered to be part of income from production, and likewise interest paid is not part of expenses incurred in deriving income from production. The approach adopted in 2008 SNA and the ASNA is to include the indirect charges as imputed service charges in addition to any actual charges which are made by these financial corporations, and to include it in the calculation of GOS. The imputed service charge is entitled financial intermediation services indirectly measured (FISIM). Financial intermediaries such as investment funds earn net income from their dividends and reinvested earnings. In the national accounts, dividends and reinvested earnings are not considered to be part of income from production, but part of property income recorded in the income accounts. The investment funds distribute all the net income to the investors of the funds. The ASNA imputes an output for these funds equal to the cost of running the fund (total administrative and investment expenses) less any income derived directly, with an assumption that the GOS for these funds equals zero. Balance sheet, income and expenditure and interest rate information are used to compile GOS for the following financial intermediaries – the Reserve Bank of Australia; banks; other depository corporations (credit unions, building societies, cash management trusts, registered financial corporations); central borrowing authorities; securitisers and financial intermediaries not elsewhere classified (e.g. public unit trusts excluding property trusts; public development authorities; investment companies; common funds; co-operative housing societies; public housing schemes; and other financial corporations). | ||
Data sources | ||
The following outlines the data sources used to estimate the various components of output: Balance sheets:
Income and expenditure:
Interest rates:
| ||
GOS derivation | ||
GOS is calculated as: FISIM imputation The following adjustment is also included to obtain GOS:
Note that profits and losses on foreign exchange dealings are excluded from GOS because they constitute holding gains and losses in the national accounts. The difference between buying and selling rates and mid-point exchange rates is treated as a service charge. | ||
FISIM imputation | ||
To compile the FISIM imputation estimate for all financial intermediaries (except the Reserve Bank of Australia and financial intermediaries n.e.c.), total interest receivable and payable estimates by financial instruments (i.e. deposits, bills of exchange, one-name paper, bonds and loans) and counterparty sector and subsector flows are compiled for the following six sectors and subsectors:
Three datasets are required to compile the interest flows, namely:
The next step is to calculate FISIM for loans and deposits (banks and other depository corporations) and for loans (securitisers and central borrowing authorities).
where the reference rate is mid-point between the average interest rate on loans and the average interest rate on deposits.
where the reference rate is weighted average bond yield. The above calculations are undertaken in separate loan and deposit FISIM tables for each of the four FISIM generating institutions. Each table captures the counterparty sector and subsector loan and deposit balances, their respective interest flows and interest margins and the subsequent FISIM estimates. | ||
Imputed output of the Reserve Bank of Australia (RBA) | ||
The ASNA has divided the activity of the RBA into two types:
| ||
Imputed output of financial intermediaries not elsewhere classified | ||
In ASNA, the estimate for an imputed output for units in this subsector is equal to the cost of running the business (total administrative and investment expenses) less any income derived directly, that is, the GOS for these funds equals zero. The majority of units in this subsector are investment funds, where the distributed surplus of the funds is measured as dividends and re-invested earnings and so is recorded as property income in the income accounts. The rest of the units are public sector units and are measured at cost. | ||
Explicit charges | ||
Explicit charges refer to direct charges levied e.g. loan establishment fees, loan account service fees and cheque account fees. Finance lease receipts are not classified as direct charges, in accordance with the treatment of finance leases in the ASNA. | ||
Gross non-land rent and other service income | ||
Rental income is predominantly from commercial buildings and infrastructure. Other service income includes income made on trading in securities, excluding holding gains and losses on these activities. | ||
Expenses | ||
Expenses include wages and salaries, purchases of goods and services, and other taxes (less other subsidies) on production. Also included as expenses are the imputed services for both FISIM and non-life insurance attributable to corporations in the financial corporations sector, which need to be deducted as a component of intermediate consumption. As business accounts of these financial corporations would have already included non-life insurance premiums as expenses rather than according to the 2008 SNA concept of the insurance service charge, it is necessary to add back the premium payments. An adjustment is also required to ensure that all expenditure on research and development and expenditure on software of a capital nature are capitalised rather than being deducted as current expenses. |
Item | Comment | |
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Insurance corporations and superannuation funds – Concept | ||
GOS of financial corporations is the excess of gross output over the costs incurred in producing that output for all financial corporations in Australia. However, unlike non-financial corporations, whose gross output can generally be equated with the proceeds of the sales of goods and services, explicit charges for services account for only a small proportion of the income of financial corporations. | ||
Insurance and pension fund services | ||
| Non-life insurance corporations do not identify an explicit service charge as part of their premiums. However, their premiums can be regarded as being composed of two components: an implicit service charge, and a transfer payment to cover the risk of providing insurance cover. The non-life insurance service charge is defined as premiums earned plus premium supplements less expected claims. Premiums earned include direct premiums earned plus inward reinsurance premiums less outward insurance premiums and statutory charges paid. The item represents the amount of premium income earned during the financial year and includes movements in the unearned premium provision. Premium supplements represent income earned on the technical reserves of non-life insurance corporations, which consist of unearned premiums (most premiums are paid for a full year in advance), and claims incurred but not yet paid (which arise because of delays in claims being lodged and assessed, and in finalising the payment of claims). Premium supplements do not include any income from the investment of the insurance corporations' own funds. As the technical reserves are considered to be assets of the insurance policyholders, the investment income receivable by insurance enterprises must be shown in the accounts as being paid by the insurance enterprises to the policyholders. However, in practice this income is retained by the insurance enterprises. Therefore, it is treated as being paid back to the insurance enterprises in the form of premium supplements that are additional to actual premiums payable under the terms of the insurance policies. In the case of workers' compensation, it is the worker who is regarded as the policyholder for the purposes of attributing the imputed property income earned on the insurance companies' technical reserves, not the employer. Although the employer is legally the policyholder for workers' compensation, for national accounts purposes the employer is deemed to be acting on behalf of the employee in paying workers' compensation premiums. Consequently, workers' compensation premiums are included as part of employers' social contributions, which is a component of compensation of employees. Expected claims are generally defined as a centred five-year moving average of claims incurred. A moving average is used to avoid irregular movements in the non-life insurance service charge which would otherwise arise because of volatility in the annual data for claims incurred. For superannuation funds the insurance service charge is equal to the cost of running the fund; included are administrative and investment expenses. For life insurance and friendly societies, the insurance service charge is equal to the cost of running the business plus a profit margin. The profit margin is calculated by estimating a proxy return on equity. | |
Data sources | ||
Balance sheet and income and expenditure data are used to compile the GOS for superannuation funds (superannuation), life insurance corporations (including friendly societies) and non-life (general) insurance corporations. Balance sheets:
Income and expenditure:
| ||
GOS derivation | ||
GOS is calculated as: Insurance service charge (ISC) The following adjustment is also included to obtain GOS:
| ||
Insurance service charge | ||
| Non-life insurance corporations – the ISC is estimated as premiums earned plus investment income on the technical reserves less expected claims:
Life insurance corporations – the ISC is the sum of administrative costs incurred (including investment and labour costs) plus a profit margin. The profit margin is calculated by estimating a proxy return on equity. Superannuation funds – the ISC is the sum of administrative costs incurred (including investment and labour costs). | |
Explicit charges | ||
Explicit charges include fees from stock lending activities. | ||
Gross non-land rent (excludes property income) | ||
Rental income is predominantly from commercial buildings and infrastructure. Other service income includes income made on trading in securities, excluding holding gains and losses on these activities. | ||
Expenses | ||
Expenses include wages and salaries, purchases of goods and services, and taxes on production and imports. Also included as expenses are the imputed services for both FISIM and non-life insurance attributable to corporations in the financial corporations sector. However, as business accounts of these financial corporations would have already included non-life insurance premiums as expenses and not the 2008 SNA concept of the insurance service charge, it is necessary to add back the premium payments. An adjustment is also required to ensure that all expenditure on research and development and expenditure on software of a capital nature are capitalised rather than being deducted as a current expense. |
Item | Comment |
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Auxiliary finance and insurance services | |
| Annual benchmarks for GOS of Auxiliary finance and insurance services are derived from the Economic Activity Survey, using the following calculation: Output |
Item | Comment |
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Health care and social assistance | |
Annual benchmarks for GOS of the Health industry are derived from the sum of the four quarters. |
Item | Comment |
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General Government | |
General government GOS is equivalent to the value of consumption of fixed capital on general government assets. By convention, the value of general government gross output is measured as the cost of producing that output, including consumption of fixed capital. GOS is estimated as equal to consumption of fixed capital and is therefore calculated as the residual of gross output less the costs incurred in producing that output. Consumption of fixed capital at current prices for general government is derived using the Perpetual Inventory Method (PIM). |
Item | Comment |
---|---|
Public non-financial corporations and quasi-corporations | |
The estimates of public non-financial corporations GOS are based on data from Government Finance Statistics, which are compiled using annual financial statements obtained from all Commonwealth and State Treasuries along with annual reports of corporations and quasi-corporations. The following adjustments are made:
|
Item | Comment |
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Financial corporations | |
Sum of the GOS for Finance (ANZSIC Subdivision 62), Insurance and Superannuation Funds (ANZSIC Subdivision 63) and Auxiliary Finance and Insurance Services (ANZSIC Subdivision 64) as described in the tables above. |
Item | Comment | |
---|---|---|
Dwellings owned by persons | ||
| GOS for Ownership of Dwellings is derived as: Output at basic prices An estimate of GOS for dwellings owned by sectors other than households is deducted to obtain GOS for dwellings owned by persons. The sources for estimating GOS relating to ownership of dwellings by other sectors are:
| |
Output at basic prices | ||
| The output estimate is equivalent to the estimate of household final consumption expenditure on imputed rentals for housing plus the actual rental on housing. No further adjustments are made. The data sources and methods used to compile annual estimates of imputed rentals on housing and actual rental on housing are described in Chapter 10 (see Table 10.5 Annual household final consumption-Housing, water, electricity, gas and other fuels). | |
Intermediate consumption | ||
| Intermediate use related to GOS for dwellings owned by persons include:
| |
Repairs and maintenance | ||
| Repairs and maintenance are benchmarked from the periodic Household Expenditure Survey. The benchmarks are extrapolated using a combined indicator based on the estimated number of dwellings (the same estimate as used to estimate total dwelling rent) and movements in appropriate component price indexes from the CPI. In this context repairs and maintenance cover the actual repairs to the dwelling and preventative maintenance such as painting internal and external surfaces. However, purchases of goods and services associated with cleaning a dwelling are included in household final consumption expenditure. | |
Building insurance | ||
Estimates for building insurance service charge (premiums plus premium supplements less expected claims) are derived from annual data published by the Australian Prudential Regulatory Authority. | ||
FISIM on dwelling loans | ||
FISIM comprises the imputed service charge component of interest payable on loans used to finance the purchase of dwellings by persons. | ||
Real estate management fees | ||
Estimates for real estate agents' management fees are derived using data from the Census of Population and Housing to estimate the proportion of rented dwellings managed by real estate agents, extrapolated by the number of rented dwellings for non-Census years. This proportion is applied to actual rent and multiplied by the average commission rate for each state. | ||
Loan application fees | ||
Estimates for loan application fees and other direct financial charges associated with dwellings are obtained from APRA. | ||
Miscellaneous expenses | ||
Estimates for miscellaneous expenses are derived as a percentage of actual rents and imputed rents. | ||
Other taxes on production | ||
Other taxes on production include:
| ||
Municipal rates | ||
General municipal rates are benchmarked from the periodic Household Expenditure Survey. The benchmarks are extrapolated using an indicator based on the Metropolitan and Municipal Improvement Rates series from the ABS publication, Government Finance Statistics, Annual. | ||
Land tax | ||
Estimates for land tax on residential land are based on data from Government Finance Statistics and State Treasuries. |
Item | Comment | |
---|---|---|
Total farm Gross operating surplus (GOS)/Gross Mixed Income (GMI) | ||
Total farm GOS/GMI is derived as: Gross value added for Agriculture (ANZSIC Subdivision 01) | ||
Gross value added for agriculture industry | ||
For the benchmark years, gross value added is directly sourced from the benchmark estimate. The gross value of agricultural production for the benchmark is estimated from data collected in the Economic Activity Survey, together with additional data from various marketing organisations, wholesalers, brokers and auctioneers. The general approach used is:
For wheat, the current period crop is initially valued at the price expected to be realised on eventual sale. For the latest year’s output and intermediate use (and therefore gross value added) for agriculture is estimated using data published in the ABS publication, Value of Agricultural Commodities Produced, Australia, and is supplemented by annual data from the ABARES publication, Agricultural Commodities. Compensation of employees is estimated using supply-use benchmarks for wages and salaries and employer social contributions. | ||
Production valuation adjustment (PVA) | ||
See Table 10.54 Quarterly changes in inventories - Inventory Valuation Adjustment (IVA). The PVA is compiled up to June quarter 2010 for wheat inventories and March quarter 2011 for wool inventories prior to the cessation of marketing boards. | ||
Compensation of employees | ||
Is directly sourced from the benchmark estimate of agriculture compensation of employees. | ||
Other taxes on production | ||
Are directly sourced from the benchmark estimate of agriculture other taxes on production. | ||
Other subsidies on production | ||
Are directly sourced from the benchmark estimate of agriculture other subsidies on production. | ||
Split of total farm GOS/GMI into farm GOS and farm GMI | ||
| A ratio of unincorporated enterprises to incorporated enterprises for the agriculture industry is derived using data from the Australian Industry Statistics (AIS). This ratio is reviewed from time to time to ensure it remains relevant to current industry conditions. This ratio is applied to the total farm GOS/GMI estimate to derive the farm GOS and farm GMI estimates. The following calculation is then made: Total private non-financial corporations GOS and GMI |
Item | Comment | |
---|---|---|
Non-farm private non-financial corporations and quasi-corporations GOS from Australian Taxation office (ATO) data | ||
| Annual estimates for non-farm private non-financial corporations and quasi-corporations are derived from Australian Taxation Office (ATO) statistics supplemented by information from the ABS and other sources. Estimates for the most recent two years are based on preliminary tax data and various other indicators as there is a time lag in obtaining complete income tax data. At the time of the release of the annual national accounts, the third last year is based on complete tax data, the second last year is based on preliminary tax data and the last year is based on the same sources as those used to prepare the quarterly estimates. Net business income for private non-financial corporations (excluding agriculture) is derived from the ATO data as follows: Total income To align the net business income as closely as possible with 2008 SNA guidelines for GOS, the following adjustments are made: Non-farm private non-financial GOS equals: | |
Depreciation | ||
This adjustment is required because in the net business income data, depreciation has already been deducted as an expense but for national accounting purposes the decline in the value of assets (consumption of fixed capital) is not deducted when deriving GOS. | ||
Net interest, land rent and rent on natural resource assets | ||
| Estimates for net interest, land rent and rent on natural resource assets are prepared using a matrix of flows for each of the three components. The matrices represent a fully balanced system of flows between each sector including the unincorporated sector. They are constructed using data from Government Finance Statistics; ABS collections from financial corporations; Reserve Bank of Australia; Australian Prudential Regulatory Authority; the ABS Balance of Payments; and Australian Taxation Office. This adjustment is applied as net business income has already included net interest, land rent and rent on natural resource assets in its calculation but GOS needs to be valued prior to taking these items into account. | |
Finance lease adjustment | ||
The finance lease adjustment is required because businesses can choose to write off the whole of the lease payments as a deduction for taxation purposes in the period of payment whereas, for national accounting purposes, lease payments are divided into notional interest and principal components and only the service charge component of the interest payable is deducted in deriving GOS. Estimates of the adjustment have been derived from tax data and ABS statistics on financial corporations' income derived from finance leasing. | ||
Understatement of net business income | ||
Understatement of net business income can arise as a result of businesses understating business receipts or overstating expenses (or both) in their income tax returns, or by not filing a tax return at all. To the extent that such understatement remains undetected by the Australian Taxation Office, without adjustment the basic source data for estimates of GOS will be negatively biased. Consequently, an adjustment is made to the net business income data obtained from tax data for the purpose of compiling estimates of GOS. There is limited direct evidence about the extent of understatement, for example, by ongoing audits of a random sample of businesses by the Australian Taxation Office. Therefore, the adjustment applied relies on an assessment of diverse information including anecdotal evidence. | ||
Intellectual property products | ||
Expenditure on software which is to be used in the production process for more than one year is treated as part of gross fixed capital formation rather than as intermediate consumption, so an adjustment is made to the intermediate consumption estimate to reflect the correct treatment. A similar adjustment is also applied for expenditure on research and development and for artistic originals which are capitalised. | ||
Non-life insurance premiums | ||
An adjustment is made to add back in the total amount of non-life insurance premiums as a business can expense the whole of their payments for insurance but for national accounting purposes they are not considered as part of intermediate consumption when calculating GOS. | ||
Insurance service charge | ||
A further adjustment is also made to account for the value of the imputed insurance services consumed by incorporated businesses. | ||
FISIM | ||
An adjustment is required to appropriately record the value of imputed financial services consumed by incorporated businesses. | ||
Inventory valuation adjustment | ||
Described in Chapter 10 (see Table 10.57 Quarterly changes in inventories-Inventory Valuation Adjustment (IVA). | ||
Non-farm GMI from Australian Taxation Office data | ||
| Annual non-farm GMI for unincorporated enterprises is derived from the Australian Taxation Office statistics supplemented by information from ABS and other sources. Estimates for the most recent two years are based on preliminary tax data and various other indicators as there is a time lag in obtaining complete income tax data. At the time of the release of the annual national accounts, the third last year is based on complete tax data, the second last year is based on preliminary tax data and the last year is based on the same sources as those used to prepare the quarterly estimates. Net business income for non-farm GMI is derived from the ATO data as follows: Total income The following adjustments are made in order to align the net business income as closely as possible with 2008 SNA guidelines for GMI: Non-agricultural GMI equals; | |
Depreciation | ||
This adjustment is required because in the net business income data, depreciation has already been deducted as an expense but for national accounting purposes the decline in the value of assets (consumption of fixed capital) is not deducted when deriving GMI. | ||
Net interest, land rent and rent on natural resource assets | ||
| Estimates for net interest, land rent and rent on natural resource assets are prepared using a matrix of flows for each of the three components. The matrices represent a fully balanced system of flows between each sector including the unincorporated sector. They are constructed using data from Government Finance Statistics; ABS collections from financial corporations; Reserve Bank of Australia; Australian Prudential Regulatory Authority; the ABS Balance of Payments; and Australian Taxation Office. This adjustment is applied as the net business income has already included net interest, land rent and rent on natural resource assets in its calculation but GMI needs to be valued prior to taking these items into account. | |
Finance lease adjustment | ||
The finance lease adjustment is required because businesses can choose to write off the whole of the lease payments as a deduction for taxation purposes in the period of payment whereas, for national accounting purposes, lease payments are divided into notional interest and principal components and only the service charge component of the interest payable is deducted in deriving GMI. Estimates of the adjustment have been derived from tax data and ABS statistics on financial corporations' income derived from finance leasing. | ||
Owner builders’ GMI | ||
Owner-builders' GMI is derived as a proportion of owner-builders' value of work done, as recorded in the quarterly Building Activity Survey. | ||
Net non-dwelling rent received | ||
Net non-dwelling rent received is based on taxation data adjusted to exclude rent received on tenanted dwellings. This adjustment is made in order to capture all units that receive income from rents or dividends. | ||
Understatement of net business income | ||
Understatement of net business income can arise as a result of businesses understating business receipts or overstating expenses (or both) in their income tax returns, or by not filing a tax return at all. To the extent that such understatement remains undetected by the Australian Taxation Office, without adjustment the basic source data for estimates of GMI will be negatively biased. Consequently, an adjustment is made to the net business income data obtained from tax data for the purpose of compiling estimates of GMI. There is limited direct evidence about the extent of understatement (e.g. by ongoing audits of a random sample of businesses by the Australian Taxation Office). Therefore, the adjustment applied relies on an assessment of diverse information including anecdotal evidence. | ||
‘Backyard’ production | ||
An allowance is included for the imputed income derived by households who produce some of their own goods. | ||
Intellectual property products | ||
Expenditure on software which is to be used in the production process for more than one year is treated as part of gross fixed capital formation rather than as intermediate consumption so an adjustment is made to the intermediate consumption estimate to reflect the correct treatment. A similar adjustment is also applied for expenditure on research and development and for artistic originals which are capitalised. | ||
Non-life insurance premiums | ||
An adjustment is made to add back in the total amount of non-life insurance premiums as a business can expense the whole of their payments for insurance but for national accounting purposes they are not considered as part of the intermediate consumption when calculating GMI. | ||
Insurance service charge | ||
A further adjustment is also made to account for the value of the imputed insurance services consumed by unincorporated businesses. | ||
FISIM | ||
A similar adjustment is also required to appropriately record the value of imputed financial services consumed by unincorporated businesses. | ||
Inventory valuation adjustment | ||
Described in Chapter 10 (see Table 10.57 Quarterly changes in inventories-Inventory Valuation Adjustment (IVA)). | ||
Split non-farm private non-financial corporations (and quasi-corporations) GOS and non-farm GMI | ||
| Australian Taxation Office data are used to derive the ratios of non-farm private non-financial corporations (and quasi-corporations) GOS and non-farm GMI to total non-farm GOS and GMI. These ratios are applied to total non-farm private non-financial corporations GOS and non-farm GMI to obtain estimates for both components. |
Item | Comment |
---|---|
Private non-financial corporations and quasi-corporations GOS | |
The sum of farm private non-financial corporations GOS and non-farm private non-financial corporations GOS. | |
GMI | |
The sum of farm GMI and non-farm GMI. |
Latest year
11.33 The sources and methods used to estimate GOS for Dwellings owned by persons are the same as for the benchmark years.
11.34 The tables below outline the data sources and methods used in the estimation of GOS and GMI for the latest financial year by institutional sector in current prices only. Volume estimates are not calculated for GOS and GMI.
Item | Comment |
---|---|
Private non-financial corporations | |
Derived by extrapolating the benchmarked annual gross operating surplus for the year t-1, using the movements in annualised quarterly estimates, of company gross operating profit (CGOP), between year t-1 and t, from the Quarterly Business Indicators Survey. CGOP measures the profit earned from the production of goods and services, excluding the effects of financing activities and income tax. | |
Public non-financial corporations | |
Derived by extrapolating the latest benchmark year t-1 using an annual indicator obtained from quarterly data from Government Finance Statistics. | |
Financial corporations | |
For the latest year, GOS for financial corporations is compiled using data sources and methodology as described for the annual benchmarks section for (i) financial services and (ii) insurance and pensions funds services. Separate growth rates are derived for the latest year (t) and the unbenchmarked (prior to supply-use balancing) year t-1 GOS estimates for (i) financial services and (ii) insurance and superannuation funds services. The growth rates are applied to the benchmarks for the year t-1 to derive GOS estimates for the latest year for (i) financial services and (ii) insurance and pension superannuation services. For auxiliary finance and insurance services GOS, an annual output indicator representing the funds management industry (a significant contributor to the GOS of auxiliary services) is derived. The pension fund investment expense from the GOS calculation of superannuation funds is used as the indicator. The superannuation funds predominately use the funds management industry to invest their members’ funds, and the investment expense would represent the fees charged by the funds management industry. The growth rate for the latest year from the indicator series is applied to the benchmarks for the year t-1 to derive GOS estimates for the latest year for auxiliary finance and insurance services. The latest year GOS estimates for (i) financial services, (ii) insurance and superannuation funds services and (iii) auxiliary finance and insurance services are summed to produce the total GOS for financial corporations. | |
General Government | |
General government GOS is equivalent to the value of consumption of fixed capital on general government assets because, by convention, the value of general government gross output is measured as the cost of producing that output, including consumption of fixed capital. GOS is calculated as gross output less the costs incurred in producing that output (but before deducting consumption of fixed capital), leaving consumption of fixed capital as the residual. For the latest year annual estimates of consumption of fixed capital at current prices for general government (general government GOS) are derived using a Perpetual Inventory Method. |
Item | Comment |
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Farm | |
Total farm gross operating surplus and gross mixed income for the latest year is derived using a production approach and is measured as gross value of agricultural production less the costs incurred (but before deducting net interest and land rent paid and consumption of fixed capital). The gross value of agricultural production includes an allowance for backyard production of fruit and vegetables and the value of meat produced from livestock raised for household use. Gross value of production for agriculture is estimated using data in the ABS publication, Value of Agricultural Commodities Produced, Australia, and is supplemented by annual data from the ABARES publication, Agricultural Commodities. Intermediate inputs use the same data sources as the gross value of production. Compensation of employees is estimated using S-U benchmarks for wages and salaries and employer social contributions and extrapolating benchmark estimates for the latest year using data from the ABARES publication, Agricultural Commodities (Farm Costs and Returns – Labour). An estimate of farm GOS for private non-financial corporations and quasi-corporations has to be removed from total farm GOS and GMI to obtain an estimate of gross mixed income of farm unincorporated enterprises. The estimate of farm GOS for private non-financial corporations is derived by applying ratios of unincorporated and incorporated farm enterprises to the total farm GOS and GMI. This ratio was derived from business income data from Australian Taxation Office several years ago. | |
Non-farm | |
| Non-farm GMI is derived by extrapolating the benchmarked annual gross mixed income for the year t-1, using the movements in annualised quarterly estimates of unincorporated gross operating profit (UGOP), between year t-1 and t, from the quarterly Business Indicators, Australia. UGOP measures the profit earned from the production of goods and services, excluding the effects of financing activities and income tax. UGOP is used for most industries with the exception of:
|
Total Gross Mixed Income (GMI) | |
The summation of farm GMI and non-farm GMI. |