The construction industry plays a significant part in the Australian economy. The demand for, and supply of construction is influenced by a variety of factors including interest rates, tax reforms and changes in populations. Gross value added (GVA) is the preferred national accounts measure of industry production as it excludes taxes and subsidies on products.
In 2002-03 construction was Australia's fourth largest industry contributing 6.3% of gross domestic product (GDP) (table 19.1).
19.1 CONSTRUCTION GROSS VALUE ADDED AND CONTRIBUTION TO GDP, Chain volume measures(a)
|
 | Units | 1998-99 | 1999-2000 | 2000-01 | 2001-02 | 2002-03 |
|
| Industry gross value added | $m | 38,639 | 41,014 | 35,335 | 39,540 | 45,977 |
| Industry contribution to GDP | % | 5.9 | 6.1 | 5.1 | 5.5 | 6.3 |
|
(a) Reference year for chain volume measures is 2001-02.
Source: Australian System of National Accounts, 2002-03 (5204.0). |
Graph 19.2 shows total production of the construction industry measured by industry GVA in chain volume terms (i.e. output adjusted for price changes). Production in the construction industry generally increased from 1991-92 to 1999-2000. The peak in 1999-2000 was followed by a sharp decline, coinciding with the introduction of The New Tax System in July 2000. Production has since steadily increased and in 2002-03 reached $45,977m.
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