Australian National Accounts

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Australian National Accounts
State Accounts
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States of Australia
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State Level Data Produced

• Limited set of state data published in the
  Quarterly National Accounts
• State Final Demand
• Household and Government Consumption
• Private and Government Capital Formation
• International Trade in Merchandise
• Compensation of Employees

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State Level Data Produced

• Full set of State Accounts produced annually
• All three measures Income, Expenditure
  Production
• Plus
• Income and Outlay Accounts
• Capital Accounts
• Agricultural Income

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General Approach

• National
• At the national level supply-use benchmarks are
  in place for t-1
• These benchmarks are moved forward using
  movements from sub-annual indicator series
• State
• Headline measure GSP(A) average of GSP(E/I)
  and GSP(P)
• National Benchmarks all state aggregates are
  set to equal national benchmarks
• Note GSP Gross State Product

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GSP(E)

• Calculated for each state by adding
• Final expenditures (government and household)
• Private and public gross fixed capital formation
• Exports less imports of goods and services
• A balancing item
• Balancing item includes changes in inventories
  and net interstate trade.

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GSP(I)

• Calculated for each state by adding
• Compensation of employees
• Gross operating surplus
• Gross mixed income
• Taxes less subsidies on production and imports
• Deflated to chain volume estimates using the
  implicit price deflator from GDP(E)

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GSP(P) Methodology

• Australia GVA by industry in current prices
• Allocate to state using factor income shares in
  reference year
• State GVA by industry in current prices
• Apply quantity revaluation or price deflation to
  create the output indicator
• Use output indicator with price information to
  create chain volume measure

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GSP(P) methodology

1. State GVA by industry chain volume measures
2. Ownership of dwellings and Taxes less subsidies
   on products
3. GSP(P)

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GSP(P) methodology

• Almost all industries use an output indicator
  approach
• i.e. extrapolate reference year estimates of
  current price GVA using movements in volume
  indicator of output
• Agriculture uses a double deflation methodology
• Most volume indicators derived by price deflation
• i.e. dividing a price index into a current price
  value of sales or turnover
• Quantity revaluation used when there are
  individual commodities that are reasonably
  homogeneous and not subject to quality change or
  where price change difficult to measure

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GSP(P) methodology

• Once each states current price and volume GVA
  estimates have been derived for each industry and
  Ownership of dwellings they are then benchmarked
  to the Australian total for each industry
• This ensures that the sum of the states for each
  industry equals the Australian total
• Each states benchmarked industry GVA estimates
  (current price and chain volume) are then summed
  to produce GVA at basic prices for each state
• To derive GSP(P) Taxes less subsidies on products
  needs to be added to each states GVA at basic
  prices

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Key Data Sources GSP(P)

• Quarterly Business Indicator Survey
• All private non-financial corporations (excl
  agriculture) by state
• Data Items Sales, Wages, Profits, Inventories
• Government Finance Statistics
• All general government and public corporations by
  state/national
• Administrative data from other government
  departments
• Mining, Agriculture, Finance Insurance, Health,
  Education
• Price Indexes
• Consumer Price Index (by State)
• Producer Price Indexes (national except for
  construction)
• Labour Price Index (by state)

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Industry Methodology Price Indexes
A - Agriculture, Forestry and Fishing Combination price deflation and quantity revaluation. Double deflation (for Agriculture) and quantity revaluation (for Forestry and Fishing). State production value data and quantity data. Producer Price Indexes
B - Mining Combination price deflation and quantity revaluation. State production value data and quantity data Producer Price Indexes
C - Manufacturing Price deflation method. Current price turnover GVA by state by sub-division Producer Price Indexes
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Industry Methodology Price Indexes
D - Electricity, Gas, Water and Waste Services Combination price deflation and quantity revaluation. Electricity Gas and the Water groups are compiled by quantity revaluation at the subdivision level Waste services compiled by price deflation Producer Price Indexes
E - Construction Price deflation method. Current price turnover by state by sub-division Construction price indexes by state
F - Wholesale Trade Price deflation method. Current price turnover by state by sub-division Producer Price Indexes
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Industry Methodology Price Indexes
G - Retail Trade Price deflation method. Retail turnover data for all of Retail Consumer Price index
H - Accommodation and Food Services Price deflation method. Turnover data by subdivision Consumer Price index
I - Transport, Postal and Warehousing Combination price deflation and quantity revaluation. Turnover data for transport and warehousing, quantity data for postal Producer Price index
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Industry Methodology Price Indexes
J - Information Media and Telecommunication Price deflation method Turnover data by subdivision Consumer Prices Index
K - Financial and Insurance Services Quantity revaluation method. National data are collected from the Australian Prudential Regulatory Authority (APRA) State splits using hours worked by state, by industry group from the Labour Force survey Domestic Final Demand IPD
L - Rental, Hiring and Real Estate Services Price deflation method. Current price turnover by state by sub-division Producer Price Index
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Industry Methodology Price Indexes
M - Professional, Scientific and Technical Services Price deflation method. Current price turnover by state by sub-division Producer Price Indexes
N - Administrative and Support Services Price deflation method. Current price turnover by state by sub-division Producer Price Indexes
O - Public Administration and Safety Combination price deflation and quantity revaluation methods. Indicators are average hours worked by Government Administration employees -
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Industry Methodology Price Indexes
P - Education and Training Quantity revaluation method. Student numbers for Preschool, Primary and Secondary, University, Vocational Education Training Public sector expenditure on education by state is sourced from the Government Finance data -
Q - Health Care and Social Assistance Combination price deflation and quantity revaluation methods. Private health turnover Public health number of treatments Consumer Price Index
R - Arts and Recreation Services Price deflation method. Current price turnover by state by sub-division Consumer Price Index
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Industry Methodology Price Indexes
S - Other Services Price deflation method. Current price turnover by state by sub-division Consumer Price Indexes
Ownership of dwellings Quantity revaluation method National current price split into states using the state shares of TFI Current price state estimates are quantity re-valued using the CVM for HFCE - Gross Dwelling Rents (actual plus imputed rent from owners of dwellings) Consumer Price Index
Taxes less subsidies on products Quantity revaluation method Government Finance data are used to determine state shares -
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Key Issues GSP(P)

• A number of price indexes are representative of
  national, rather than state, price movements
• Single deflation methodology used output used
  as an indicator for value added, data on
  intermediate consumption not available on timely
  basis
• We do not produce state supply-use or
  input-output tables - product mixes within
  industries may vary on a state basis, this is not
  picked up
• Allocation of activity spread across regions i.e.
  Mining operation vs Mining company headquarters

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Further information

• National Accounts Concepts Sources and Methods
• Catalogue number 5216.0
• Information Paper Gross State Product using the
  Production Approach GSP(P)
• Cat. No. 5220.0.55.002
• Australian National Accounts State Accounts
• Cat. No. 5220.0

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Questions?