1350.0 - Australian Economic Indicators, Sep 2001  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 31/08/2001   
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Special Article - Experimental State Dissection of Industry Data

INTRODUCTION

The Australian Bureau of Statistics (ABS) is aware of the interest among users for more State dissections of industry data. In response, the ABS has produced an Information paper Experimental Estimates: Australian Industry, a State Perspective (Cat. no. 8156.0) which presents experimental estimates of selected industries for 1998-1999. The estimates are derived by combining information from the ABS annual Economic Activity Survey, other ABS business collections and Australian Taxation Office (ATO) data to produce State estimates of operating income and expense measures across selected industries. These statistics are experimental in nature and are the first part of an ongoing program to make State estimates available for the full range of industries.

This article presents a summary of findings for the 1998-1999 year. The ABS plans to continue this work for 1999-2000 estimates, to improve methods of providing more detailed information, and to release estimates for subsequent years on a regular basis.

Due to the experimental nature of the estimates and the methodology employed, the Methodology section of the Information Paper should be reviewed before undertaking any analysis on the tables presented in this article. Broadly the methodology involved separating the Economic Activity Survey/Tax units into two groups. The first was those businesses identified as operating only in one State (single-State businesses); the second was those identified as operating across more than one state (multi-State businesses). Single-State businesses (including all non-employers) were assigned to a State using the mail address postcode. For multi-State businesses, dissections of both sales and wages for each State were obtained for all significant contributors from other ABS collections or from direct contact with the business.

Some of the key assumptions include:

  • all businesses fitting the non-employer definition were assumed to operate in only one State;
  • for single-State businesses, the mailing address was in the same State in which the business operates;
  • the vast majority of multi-State businesses have been identified;
  • some inconsistencies may result from sourcing State proportions from various ABS collections with different reporting periods, definitions and scope.

The ABS is investigating state estimates using the methodology outlined in the Information Paper and seeks feedback on the methodology specifically, as well as the usefulness, range and quality of the data presented and explanations provided. The tables included are an example of what the ABS would like to be producing on an ongoing basis.


CAVEATS

The estimates are considered experimental and should be used with caution. The estimates shown in this article are to illustrate the level of detail available and to give readers an indication of future possibilities. Some of the assumptions that have been relied upon in the production of these estimates cannot easily be directly tested. Users are advised to review the assumptions and methodology for themselves before deciding on fitness for purpose. Details regarding the quality of the estimates and assumptions can be found in the Information Paper.

Differences between data presented in this paper and other ABS publications may be due to differences in scope, reference
period, statistical unit and the definition of data items. It is hoped that the methodology to produce these experimental estimates can be continually improved to a point when the ABS can remove the ‘experimental’ tag. The work so far has focused on the estimates at the industry level with further analysis to be undertaken to produce finer level industry data and expansion of the industry coverage. The Communication Services and Accommodation, Cafes and Restaurants industries have already been identified as areas requiring further investigation. Increasing the quality of labour cost State dissections for multi-State businesses will also be a major focus.

TABLE 1. EXPERIMENTAL ESTIMATES, Selected items by employing status-1998-1999

Period
New
South
Wales
($m)
Victoria
($m)
Queens-
land
($m)
South
Australia
($m)
Western
Australia
($m)
Tasmania
($m)
Northern
Territory
($m)
Australian
Capital
Territory
($m)
Australia
($m)

EMPLOYERS
Total operating income
288,780
213,761
125,278
45,753
71,234
11,669
5,989
11,862
774,325
Total operating expenses
274,588
197,855
120,639
43,230
67,399
11,194
5,722
11,129
731,946
Operating profit before tax
15,590
16,160
5,167
2,096
4,205
574.0
282.0
764.0
44,838
Labour costs
50,995
32,492
21,431
7,533
11,601
2,017
1,211
2,219
129,500

NON EMPLOYERS
Total operating income
18,453
13,171
9,877
3,829
5,954
933.0
431.0
778.0
53,426
Total operating expenses
14,029
10,045
7,511
2,824
4,153
701.0
303.0
569.0
40,134
Operating profit before tax
4,424
3,126
2,366
1,006
1,800
232.0
128.0
209.0
13,292
Labour costs(a)

TOTAL SELECTED BUSINESSES
Total operating income
307,233
226,932
135,154
49,583
77,187
12,602
6,420
12,639
827,751
Total operating expenses
288,617
207,900
128,150
46,243
71,552
11,895
6,025
11,698
772,080
Operating profit before tax
20,015
19,286
7,533
3,101
6,006
806.0
410.0
973.0
58,130
Labour costs
50,995
32,492
21,431
7,533
11,601
2,017
1,211
2,219
129,500

(a) Not applicable
Source: Experimental Estimates: Australian Industry, a State Perspective(Cat. no. 8156.0).


EMPLOYER AND NON-EMPLOYER ESTIMATES

Table 1 shows the experimental estimates of total operating income, total operating expenses, operating profit before tax and labour costs for employers and non-employers for each State and Territory of Australia. Employing businesses in New South Wales and Victoria account for 70.8% of Operating Profit Before Tax (OPBT) of employing businesses across Australia while the non-employing businesses in New South Wales and Victoria account for 56.8% of the OPBT of the non-employing businesses across Australia.

In contrast, for Queensland, South Australia, Western Australia, Tasmania and the Northern Territory the OPBT of non-employing businesses as a percentage of total non-employing businesses is higher than OPBT contributions of employing businesses.


INDUSTRY CONTRIBUTION ACROSS STATES

New South Wales accounts for 37.1% of the total Australian operating income for all selected industries. Equivalent percentages for other States are; Victoria 27.4%, Queensland 16.3%, South Australia 6.0%, Western Australia 9.3%, Tasmania 1.5%, Northern Territory 0.8% and the Australian Capital Territory 1.5%.

Table 2 shows the experimental estimates by industry division for each State and Territory of Australia. Of the total Australian operating income for Cultural and Recreational Services, 41.1% and
31.5% is attributed to New South Wales and Victoria respectively.

Operating income from the Property and Business Services industry contributes 40.4% of total Australian operating income to New South Wales, 28.3% to Victoria, 12.7% to Queensland and 10.1% to Western Australia.

Personal Services, and Property and Business Services contribute 3.6% and 3.2% respectively of the total Australian operating income to the Australian Capital Territory.

The percentage contributions for labour cost by State for all selected industries as a percentage of total Australian labour cost are: New South Wales 39.4%; Victoria 25.1%; Queensland 16.5%; South Australia 5.8%; Western Australia 9.0%; Tasmania 1.6%; Northern Territory 0.9% and Australian Capital Territory 1.7%.


INDUSTRY CONTRIBUTION WITHIN STATES

When examining the operating income activity within each State, Wholesale Trade is the largest contributor in New South Wales (27.3%) and Victoria (27.1%). For all other States, Retail Trade is the largest contributor with the exception of the Australian Capital Territory where Property and Business Services is the highest contributor.

In all States except South Australia, Property and Business Services make the highest contributions to total State labour costs. This industry also makes the highest contribution to each State's OPBT except in Queensland and Northern Territory where the Construction industry makes the highest contribution.

TABLE 2. EXPERIMENTAL ESTIMATES, Selected items by industry division-1998-1999

Period
New
South
Wales
($m)
Victoria
($m)
Queensland
($m)
South
Australia
($m)
Western
Australia
($m)
Tasmania
($m)
Northern
Territory
($m)
Australian
Capital
Territory
($m)
Australia
($m)



TOTAL OPERATING INCOME
Total selected service industries
307,233
226,932
135,154
49,583
77,187
12,602
6,420
12,639
827,751
Construction
36,085
19,552
19,024
5,584
9,251
1,076
948
2,039
93,559
Wholesale Trade
83,940
61,596
34,121
12,944
20,057
3,190
1,022
1,181
218,052
Retail Trade
71,619
50,929
36,721
15,077
20,539
3,581
1,761
3,344
203,570
Accommodation, Cafes and
Restaurants
12,039
6,655
6,839
3,013
3,034
1,154
792
536
34,061
Transport and Storage
26,146
18,071
11,858
4,290
6,469
1,513
623
257
69,226
Communication Services
np
np
1,086
401
508
114
48
343
29,743
Property and Business Services
49,509
34,664
15,536
4,669
12,361
1,076
882
3,975
122,673
Health Services (a)
8,245
6,119
5,380
1,976
2,473
515
107
480
25,294
Cultural and Recreational Services
9,631
7,376
3,073
921
1,834
227
159
193
23,415
Personal services (b)
np
np
1,516
707
661
157
79
292
8,159

TOTAL OPERATING EXPENSES
Total selected service industries
288,617
207,900
128,150
46,243
71,552
11,895
6,025
11,698
772,080
Construction
33,143
17,450
16,953
4,709
8,072
939
812
1,841
83,920
Wholesale Trade
81,794
59,124
33,118
12,506
19,577
3,146
975
1,153
211,394
Retail Trade
69,669
49,722
35,655
14,847
19,847
3,445
1,714
3,258
198,023
Accommodation, Cafes and
Restaurants
11,391
6,379
6,758
2,852
2,851
1,209
765
486
32,691
Transport and Storage
24,407
17,101
11,155
4,007
5,728
1,392
582
220
64,591
Communication Services
np
np
969
360
452
104
48
313
23,550
Property and Business Services
43,546
29,778
14,801
4,071
10,645
917
846
3,545
108,150
Health Services (a)
7,137
5,281
4,752
1,618
2,157
415
95
439
21,897
Cultural and Recreational Services
8,175
6,841
2,615
771
1,645
187
115
168
20,516
Personal services (b)
np
np
1,374
635
578
140
73
274
7,348

OPERATING PROFIT BEFORE TAX
Total selected service industries
20,015
19,286
7,533
3,101
6,006
806
410
973
58,130
Construction
3,064
2,122
1,963
485
1,168
136
138
190
9,264
Wholesale trade
2,587
2,071
1,041
436
715
76
52
37
7,014
Retail Trade
2,324
1,804
1,270
492
813
137
55
103
6,998
Accommodation, Cafes and
Restaurants
668
297
98
169
199
3
26
51
1,512
Transport and Storage
1,781
939
829
286
745
125
40
36
4,780
Communication Services
np
np
122
43
60
11
1
32
6,233
Property and Business Services
6,290
5,024
980
612
1,718
160
38
442
15,264
Health Services (a)
1,107
843
631
356
316
99
11
40
3,404
Cultural and Recreational Services
1,408
532
452
151
187
41
43
25
2,839
Personal Services (b)
np
np
146
72
85
17
6
18
821

LABOUR COSTS
Total selected service industries
50,995
32,492
21,431
7,533
11,601
2,017
1,211
2,219
129,500
Construction
5,281
2,965
2,557
752
1,446
159
113
264
13,537
Wholesale Trade
7,180
4,959
2,602
1,027
1,489
262
92
147
17,758
Retail Trade
7,757
5,523
3,851
1,670
1,962
376
209
357
21,706
Accommodation, Cafes and
Restaurants
2,911
1,744
1,570
600
719
256
192
130
8,123
Transport and Storage
5,379
3,680
2,740
798
1,193
227
157
102
14,276
Communication Services
np
np
778
336
372
100
47
195
5,461
Property and Business Services
14,904
8,366
4,207
1,333
3,035
388
311
752
33,296
Health Services (a)
3,049
2,278
2,195
687
974
187
40
147
9,559
Cultural and Recreational Services
1,718
996
554
168
251
33
33
42
3,795
Personal services (b)
np
np
377
162
159
29
16
82
1,989

np not available for publication but included in totals where applicable, unless otherwise indicated.
(a) Excludes ANZSIC subdivision 87.
(b) Excludes ANZSIC subdivisions 96 and 97.

Source: Experimental Estimates: Australian Industry, a State Perspective(Cat. no. 8156.0).


SUBDIVISION ESTIMATES

Table 3 shows the experimental estimates of total operating income by industry subdivision for each State and Territory of Australia. The estimates at the subdivision level illustrate ABS plans to produce finer dissections of State data in the future. Users should be aware that these data should be used with extreme caution and should refer to the relative standard error table in the Information Paper. Further work will be undertaken on the estimates to improve the quality and accuracy of these data.


FUTURE PLANS FOR STATE ESTIMATES

The ABS released another publication on July 19 this year entitled Information Paper: Business Income Tax Data for Regional Small Business Statistics-Experimental Estimates, Selected Regions, Australia (Cat. no. 5675.0). That information paper outlines an investigation the ABS is undertaking into the use of ATO business income tax data to improve the range of regional economic statistics. This work is aimed at meeting the demand from users for regional business indicators. This investigation has progressed to a stage where the ABS has produced experimental estimates of regional business economic activity for selected regions for 1995-1996, 1996-1997 and 1997-1998.

Other initiatives regarding State estimates are taking place within the ABS. The Survey of Inventories, Sales and Services collects State dissections for two items-income from sales of goods and services; and wages and salaries. Subject to a current investigation into the quality of the data, State estimates for these items will be released in current price terms in Business Indicators, Australia (Cat. no. 5676.0) for the December quarter 2001. From the Survey of Employment and Earnings the ABS releases a quarterly publication Wages and Salary Earners (Cat. no. 6248.0) in which State estimates of earnings and wages and salaries are available. (This latter publication will be superseded by Business Indicators, Australia (Cat. no. 5676.0) at the end of 2001.)


FURTHER INFORMATION

This article is based on information from an Information paper Experimental Estimates: Australian Industry, a State Perspective (Cat. no 8156.0) which is available on the ABS website at www.abs.gov.au. The ABS welcomes feedback from readers regarding the usefulness, range and quality of the data presented and explanations provided. Please contact The Director, Economy Wide Statistics Section, Australian Bureau of Statistics, PO Box 10, Belconnen ACT 2616 or e-mail merry.branson@abs.gov.au

TABLE 3. EXPERIMENTAL ESTIMATES, Total operating income by industry subdivision-998-1999

Period
New South
Wales
($m)
Victoria
($m)
Queensland
($m)
South
Australia
($m)
Western
Australia
($m)
Tasmania
($m)
Northern
Territory
($m)
Australian
Capital
Territory
($m)
Australia
($m)

TOTAL SELECTED SERVICE
INDUSTRIES
307,233
226,932
135,154
49,583
77,187
12,602
6,420
12,639
827,751
Construction
36,085
19,552
19,024
5,584
9,251
1,076
948
2,039
93,559
41 General Construction
20,564
10,208
10,905
2,874
4,957
537
479
1,249
51,773
42 Construction Trade Services
15,521
9,345
8,119
2,710
4,294
539
469
790
41,787
Wholesale Trade
83,940
61,596
34,121
12,944
20,057
3,190
1,022
1,181
218,052
45 Basic Material
Wholesaling
25,791
20,193
11,853
4,262
6,679
1,247
372
323
70,720
46 Machinery Motor
vehicle Wholesaling
30,799
21,510
11,818
3,992
7,365
1,089
299
718
77.590
47 Personal and household
Good Wholesaling
27,349
19,892
10,451
4,691
6,013
854
350
141
69,742
Retail Trade
71,619
50,929
36,721
15,077
20,539
3,581
1,761
3,344
203,570
51 Food Retailing
22,085
13,735
11,364
5,824
6,228
883
648
1,023
61,791
52 Personal and household
Good Retailing
26,210
20,516
13,276
4,820
6,797
1,569
485
1,222
74,895
53 Motor vehicle Retailing
and Services
23,324
16,677
12,081
4,434
7,513
1,129
628
1,098
66,884
Accommodation, Cafes and
Restaurants
12,039
6,655
6,839
3,013
3,034
1,154
792
536
34,061
Transport and Storage
26,146
18,071
11,858
4,290
6,469
1,513
623
257
69,226
61 Road Transport
7,718
5,915
3,733
1,697
2,456
409
117
89
22,133
62 Rail Transport
2,379
1,352
np
154
np
np
-
-
6,230
63 Water Transport
498
np
660
np
265
36
np
3
2,926
64 Air and Space Transport
np
np
np
np
np
np
np
np
np
65 Other Transport
405
np
181
np
305
np
np
np
1,475
66 Services to Transport
7,709
6,137
2,727
996
1,637
166
326
118
19,816
67 Storage
np
np
np
np
np
np
np
np
np
Communication Services
np
np
1,086
401
508
114
48
343
29,743
Property and Business
Services
49,509
34,664
15,536
4,669
12,361
1,076
882
3,975
122,673
77 Property Services
9,207
5,445
4,176
1,110
2,645
309
150
630
23,672
78 Business Services
40,302
29,219
11,360
3,559
9,717
766
733
3,345
99,001
Health Services
8,245
6,119
5,380
1,976
2,473
515
107
480
25,294
Cultural and Recreational
Services
9,631
7,376
3,073
921
1,834
227
159
193
23,415
91 Motion Picture, Radio
and Television Services
4,932
1,882
871
273
np
37
27
np
8,300
92 Libraries, Museums and
the Arts
927
582
242
121
np
15
11
np
2,049
93 Sports and Recreation
3,772
4,912
1,960
526
1,510
175
120
90
13,065
Personal Services
np
np
1,516
707
661
157
79
292
8,159


np not available for publication but included in totals where applicable, unless otherwise indicated.
-nil or rounded to zero.
(a) Excludes ANZSIC subdivision 87.
(b) Excludes ANZSIC subdivisions 96 and 97.

Source: Experimental Estimates: Australian Industry, a State Perspective(Cat. no. 8156.0).