2.139. e. the difference between the face value of coins and notes and the costs of their production). Because notes and coin on issue are liabilities of the issuer, the face value of note and coin issues, including any seigniorage, is recorded as a financial transaction (i.e. incurring a liability). However, the difference between the face and sale value of commemorative coins sold at greater than face value is recorded as sales of goods and services.

2.140. Other current revenues refers to current revenue other than current revenue from taxes, sales of goods and services, and property income. It includes grants and subsidies received for current (rather than capital) purposes. Other current revenue also includes revenue from fines, which are defined as civil and criminal penalties imposed on law breakers other than penalties imposed by tax authorities. Penalties imposed by tax authorities are classified as tax revenue.

2.141. Capital revenues refers to revenues from grants and other unrequited transfers for capital purposes, including in-kind receipts of non-financial assets. The item includes grants received from other (including foreign) governments or international organisations with the requirement that they be used for capital purposes. Acquisitions of non-financial assets free or at a price below fair value are recorded as capital revenues when they are of an economic nature and where valuations are realistically obtainable. Such transfers are valued at the value of equivalent money transactions. Also included as capital revenues are transfers to sinking funds, capital levies from local government, and transfers from private bodies to government for capital works, e.g. donations for road construction.

This item also includes all revenue received by local governments in lieu of municipal rates, items such as gifts and conscience moneys, and unclaimed moneys such as unclaimed lottery prizes, unclaimed Totalisater Agency Board (TAB) dividends and unclaimed moneys in bank accounts

2.142. As previously noted expenses are defined as outflows of economic value arising from operational transactions. Expenses are recorded net of recoverable GST.

2.143. Employee expenses relate to uncapitalised compensation of employees for services provided in the current period. They include the costs of wages and salaries, and the accrued costs of annual leave, long service leave and superannuation.

2.144. Employee expenses include amounts payable by employers to superannuation schemes, in respect of services provided by employees in the current period, to finance future superannuation benefits. Superannuation schemes to which employers pay contributions are described as ‘funded’ schemes. A funded scheme is usually a separately constituted legal entity into which an employer contributes, on a regular basis, an amount actuarially determined to fully fund future superannuation liabilities. Except for relatively small amounts which may be in the nature of working balances, the employer therefore does not carry the superannuation liability on its balance sheet. Technically, a funded scheme may include a defined benefit plan or an accumulation plan or both as its components.

Seigniorage is the profit earned by the Commonwealth Treasury and the Reserve Bank of Australia (RBA) on the issue of coins and notes (i

2.145. Also included as employee expenses are unfunded superannuation expenses, which are superannuation expenses accrued under an unfunded scheme for services provided by employees in the current period. In an unfunded scheme the employer does not make contributions to a separately constituted legal entity and pays benefits to employees as payment of the benefits falls due. In the GFS system, the accruing cost of the future benefits payments rather than the cash payment of benefits has to be recorded as expenses. The employer is therefore regarded as compulsorily borrowing from employees the increase in superannuation liability each period. The amount of the liability accruing during the accounting period is split between employee expenses and the interest cost of the notional borrowing, which is classified as property expense. Pensions and lump sums paid to former employees are recorded as financial transactions in the statement of stocks and flows (i.e. repayment of the money ‘borrowed’ from employees).