Part C: Capital expenditure

Capital expenditure is the sum of outlays for the purchase of fixed tangible and/or intangible assets by the business during the reference period. Capital work done by own employees should be included in the appropriate capital expenditure item(s), and also separately identified in the data item “Of which Capitalised work done by own employees”.

Include:

• all costs capitalised in this business’ books (including legal fees, real estate transfer costs and assets acquired under finance leases);
• progress payments made to contractors for capital work done by them; and
• major improvements, alterations and additions to fixed assets.

Exclude:

• progress payments for plant, machinery and equipment being produced on order;
• payments for repair and maintenance of fixed assets;
• payments of fixed assets on rental or acquired through an operating lease; and
• interest paid.

Computer software capitalised

If software and hardware costs cannot be separated, include total in “Computers and computer peripherals capitalised”.

Include:

• capitalised computer software license fees;
• installation costs;
• purchase or development of large databases; and
• computer software developed in-house.

Exclude:

• computer software expensed (include in “Computer software expensed”); and
• software maintenance (include in “Repairs and maintenance”).

Intangible assets

Include:

• patents, licences and goodwill.

Exclude:

• capitalised computer software licence fees.

Capital expenditure - of which capitalised work done by own employees

Include:

• capitalised work done by own employees in developing computer software in-house.

Exclude:

• interest associated with the cost of the assets (reported as Interest Expenses on ARF 331.0); and
• payments made to other businesses for costs associated with the original acquisition of the assets (include in Capital expenditure).