The definitions are sourced mainly from the Australian Bureau of Statistics publications.
Gross domestic product (GDP) - total market value of goods and services produced in Australia in a given period after deducting the cost of goods and services used in the production process but before deducting for depreciation.
Gross state product (GSP) - GSP is conceptually equivalent to GDP but refers to production within a state or territory rather than to the nation as a whole.
State final demand (SFD) - the value of total expenditure on goods and services within a state or territory ie total demand for goods and services within a state or territory. It excludes sales as inputs to a production activity, export sales and inventories. It is derived by adding up private and public consumption expenditure, and public and private gross fixed capital formation. It is conceptually equivalent to domestic final demand at the national level.
Final consumption expenditure - bet expenditure on goods and services by persons (households) and general government.
Gross fixed capital formation - expenditure on fixed assets and net expenditure on second-hand fixed assets by the private sector (private gross fixed capital formation) and general government (public gross fixed capital formation).
Compensation of employees - total payment (remuneration), in cash or kind, paid to an employee in return for work done by the employee during the accounting period.
Gross operating surplus - the excess of gross output over costs incurred in producing that output of all financial and non-financial corporate trading enterprises. It is essentially property income and includes corporate profits, interest and rents.
Gross mixed income - return accruing to unincorporated enterprises (family-owned business, owner operators etc) and includes both compensation of employees (returns on labour input) and operating surplus (returns on capital inputs).
Gross value added - the value of goods and services produced in a sector / industry (output) minus the value of consumption of intermediate inputs (output used as inputs for production of goods and services).
Private business investment - it is part of private gross fixed capital formation and includes non-dwelling construction, machinery and equipment, cultivated biological resources (assets such as orchard growth and livestock) and intellectual property products.
Balancing item - implicitly comprises changes in inventories, total net interstate trade, balancing item discrepancy and balance of payments adjustments.
Total factor income - that part of the cost of producing the gross domestic product which consists of gross payments to factors of production (labour and capital). It represents the value added by these factors in the process of production and is equivalent to gross domestic product less taxes plus subsidies on production and imports.
Last updated: 11 January 2021
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