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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). |
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