Appendix 5: Activity codes



This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

Activity code

Activity code description


Administrative services

Activities that relate to an entity's operations but excluding activities relating to financing and production. These activities include:

  • management services
  • marketing
  • back office services
  • administrative services associated with recharge amounts
  • accounting services.


Advisory services

Activities involving the provision and receipt of professional advice where a fee is paid for the advice, including:

  • consultancy activities
  • investment advice
  • legal advice.



Activities involving the mediation between a buyer and a seller, occurring in a range of products, including:

  • mortgages, where brokers act as intermediaries to sell mortgage loans on behalf of individuals or businesses
  • commodities, where brokers execute orders to buy or sell commodity contracts on behalf of clients
  • investment, where brokers act as intermediaries between investment buyers and sellers.


Cash & trade services

Activities involving the facilitation of fund transfers and the exchange of goods and services, including:

  • cash management systems (payment processing systems)
  • foreign exchange clearing services
  • trade settlements
  • letters of credit (trade, insurance and export).


Custody and transaction clearing services

Custody are all activities that are associated with the safekeeping of securities for customers, also includes the collection of dividends, interest and proceeds from securities sales.

Transaction clearing are all activities the management of post-trading, pre-settlement credit exposures, to ensure that trades are settled in accordance with market rules, including:

  • reporting and monitoring
  • risk margining
  • netting of trades to single positions.



Activities undertaken in respect of derivatives (a financial instrument derived from some other asset, index, event, value or condition). The overall derivatives market has five major classes of underlying asset:

  • interest rate derivatives (ie interest rate swaps/options)
  • foreign exchange derivative (ie currency swaps/options)
  • credit derivatives (ie credit default swaps/options)
  • equity derivatives (ie equity swaps/ warrants)
  • commodity derivatives (ie commodity swaps/gold options).


Financing activities

Activities involving dealings in financial instruments that would qualify as financial assets or financial liabilities under relevant Australian accounting standards or comparable foreign accounting standards but excludes financial instruments that would meet the definition of a derivative. At the time of this publication, the two key Australian accounting standards relevant to this question include:

  • AASB 132 Financial Instruments: Presentation
  • AASB 139 Financial Instruments: Recognition and Measurement.

Note: The relevant amounts may be reported in the financial statements as revenue/gains or expenses/losses, depending on the accounting treatment of your relevant financial assets and financial liabilities (and this includes amounts relating to hedging items that are classified in the financial statements as financial assets or financial liabilities). Therefore, for the purposes of this activity code, the terms: 'expenditure and losses'; and 'revenue and gains'; are interchangeable.



Activities associated with contracts under which a party agrees to perform an obligation or discharge a liability of another entity should that entity fail to do so.


Insurance and reinsurance

Insurance and reinsurance activities include general insurance, life insurance and health insurance.



Activities that relate to agreement between two parties under which one is granted the right to use the property of the other for a specified period of time in return for a series of payments by the user to the owner.


Licensing or transfer of intellectual property

Activities involving an intellectual property rights owner (licensor) and another entity which is given authorisation to use these rights (licensee) in exchange for an agreed payment (fee or royalty). This includes activities involving:

  • technology license agreements
  • trademark licensing agreements
  • copyright license agreements
  • trademark license agreements
  • franchise agreements.


Securitisation services

Activities involving the packaging of an income by the party entitled to it, and the subsequent sale of such income stream to investors.



Activities associated with providing, funding or offering investment strategies for financial security upon retirement.


Treasury activities

Activities involved in the managing of the taxpayer's financial operations, including:

  • the generation of internal and external funding
  • risk management systems development and review
  • the management of currencies and cash flows
  • complex strategies, policies and procedures relating to the taxpayer finance.


Underwriting services

Activities involves measuring risk exposure and determining the premium that needs to be charged to insure that risk, including:

  • securities underwriting (underwriter assumes risk in bringing the issue to market by guaranteeing the issuer will receive a certain price when the offering is sold to investors)
  • bank underwriting (underwriting is the detailed credit analysis preceding the granting of a loan, based on credit information furnished by the borrower).

Note: Insurance underwriting should be reported under activity code 9 - insurance and reinsurance.


Receipt/payment of dividends and distributions from trusts and partnerships



All other activities not listed above.

Last modified: 09 Nov 2011QC 24292