GLOSSARY

Australian Business Number (ABN)

The Australian Business Number (ABN) is a unique 11-digit identifier that makes it easier for businesses and all levels of government to interact. Entities can be businesses, charities, or not for profit organisations (e.g. clubs, societies and associations).
To be entitled to an ABN, an organisation must be one or more of the following:
§ a company registered under the Corporations Act 2001
§ an entity carrying on an enterprise in Australia
§ an entity that, in the course or furtherance of carrying on an enterprise, makes supplies that are connected with Australia
§ a government entity
§ a non-profit sub-entity – for Goods and Services Tax (GST) purposes
§ a superannuation fund.
A non-resident entity may also be entitled to an ABN if they are carrying on an enterprise in Australia and/or, in the course of carrying on an enterprise, the entity makes sales that are connected with Australia.

The ABN is a legal entity and in most cases the ABN is the statistical unit used to represent businesses in the ABS and for which statistics are reported. For more significant and diverse businesses where the ABN unit is not suitable for ABS statistical needs, the statistical unit used is the Type of Activity Unit (TAU). For details, refer to paragraphs 6-10 of the Explanatory Notes

Australian Business Register (ABR)

The Australian Business Register (ABR) is the data store containing details about businesses and organisations that have registered for an ABN. More information can be found on the ABR website.

Australian Bureau of Statistics Business Register (ABSBR)

The ABSBR is a register of all Australian businesses maintained by the ABS for the purpose of producing statistical frames and business demography publications. It contains identifying and classificatory data for each business. The information used to populate the ABSBR is largely sourced from the ABR.

The ABSBR consists of two subpopulations, the profiled population and the non-profiled population. The ABSBR uses an economic units model to describe the characteristics of businesses and the structural relationships between related businesses. For details, refer to paragraphs 6-10 of the Explanatory Notes.

Australian and New Zealand Standard Industrial Classification (ANZSIC)

The Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC06) is a classification system for grouping producing businesses (of both goods and services) in Australia and New Zealand to permit comparability of data. Within ANZSIC, there is a structure comprising four levels:

• Industry division comprises 19 divisions, each identified by a letter;
• Industry subdivision is recognised by a 2 digit code;
• Industry group is recognised by a 3 digit code; and
• Industry class are recognised by a 4 digit code.
  

For more information, users should refer to the Australian and New Zealand Standard Industrial Classification 2006 (cat. no. 1292.0).


Australian Statistical Geography Standard (ASGS)

The Australian Statistical Geography Standard (ASGS) (cat. no. 1270.0.55.001) brings together in one framework all of the regions which the ABS and many other organisations use to collect, release and analyse geographically classified statistics. The ASGS ensures that these statistics are comparable and geospatially integrated and provides users with a coherent set of standard regions so that they can access, visualise, analyse and understand statistics. The ASGS has been used for the collection and dissemination of geographically classified statistics since 1 July 2011.

An updated ASGS was released in July 2016 to account for growth and change in Australia's population, economy and infrastructure. It incorporates the territory of Norfolk Island for the first time due to an amendment to the Acts Interpretation Act, 1901. The Other Territories of Jervis Bay, Cocos (Keeling) Islands, Christmas Island and Norfolk Island are each represented by a SA2 in the 2016 ASGS. The 2016 ASGS was introduced into the Counts of Australian Businesses, including Entries and Exits (CABEE), 2012-16.

In terms of business counts data, the base units of the ASGS will be the Statistical Area Level 2 (SA2) and Local Government Area (LGA). Please refer to section entitled 'Statistical Area Level 2' and 'Local Government Area' in this document for further information.

Business

For the purposes of CABEE, a business is defined as a legal entity engaging in productive activity and/or other forms of economic activity in the market sector. Such entities accumulate assets on their own account and/or hold assets on behalf of others, and may incur liabilities. The economic activities of individuals are excluded (except where an individual engages in productive activity either as a sole trader or in a partnership). For more information on the ABS definition of a business, users should refer to Information Paper: A Statistical View of Counts of Businesses in Australia (cat. no. 8162.0).

In line with this definition, the business counts in this release are derived from the ABSBR. The starting point is all economically active entities in Australia. From here, various entities are excluded, such as those without an active ABN, those without an active Goods and Services Tax (GST) role, those no longer actively remitting GST and those not operating in the market sector. These exclusions aim to ensure that only those businesses that are actively trading in the economy are included in the counts. Please refer to Conceptual and Practical Basis for Counts for further information.

The statistical unit referred to as a business consists of ABNs from the non-profiled population and Type of Activity Units (TAUs) from the profiled population. For details, refer to paragraphs 6-10 of the Explanatory Notes.

Business Activity Statement (BAS)

Business Activity Statements (BAS) are reports that businesses lodge with the ATO on a monthly, quarterly or annual basis. They include the amount the business earned, the amount of GST collected, the amount of GST credits on goods and services purchased, pay as you go (PAYG) tax instalments and other tax reporting obligations. The ABS uses data from BAS statements to determine turnover and employment size ranges.

Business entry

A business entry is defined as a business that is actively trading on the ABSBR at 30 June in the reference year but was not actively trading at 30 June the previous year. A business entry occurs when;

• a business registers for GST role for the first time,
• a business recommences remitting BAS data after a period of becoming a Long Term Non Remitter (LTNR); or
• a business recommences its GST role after it had been cancelled.
  

A business entry is also included in CABEE when a business moves between the profiled and non profiled populations. Business entry rates are calculated by taking the total business entries during a financial year, dividing by the total businesses operating at the start of the financial year, then multiplying by 100.

Business exit

A business exit is defined as a business on the ABSBR which was actively trading at 30 June in the previous year, but was not actively trading as at 30 June in the reference year. It is important to note that a business exit does not necessarily equate to a business failure. A business exit may occur when:

• all GST roles of a business are cancelled;
• when a business ceases to remit GST for at least five consecutive quarters (or three consecutive years for annual remitters);
• a business moves out of, or in to, the profiled population;
• a business is sold and the ABN changes; or
• a business is taken over or involved in a merger.
  

Business exit rates are calculated by taking the total business exits during the financial year, dividing by the total businesses operating at the start of the financial year, then multiplying by 100.

Business survivals

A surviving business is defined as a business on the ABSBR that is active at 30 June of the current year and was also active at 30 June of the previous year. In this release, two types of survivors are recorded.

• businesses that were on the ABSBR at 30 June 2014 and were still on the ABSBR at 30 June 2015, 30 June 2016, 30 June 2017 and 30 June 2018.

and survival of entries:

• businesses that were entries during 2014-15. The survival of these businesses is measured in terms of whether they were still on the ABSBR at 30 June 2016, 30 June 2017 and 30 June 2018.

For business survival data cubes, changes in employment and turnover size ranges are not considered. That is, surviving businesses will remain classified to their original base year classification even when they have expanded or contracted.


Employment size ranges

For the purposes of CABEE, businesses are categorised as:
§ non-employing (i.e. having no employees)
§ employing
§ 1-4 employees
§ 5-19 employees
§ 20-199 employees
§ 200+ employees.

The methods used to quantify employment for Australian businesses in ABS economic statistics are based on the concept of a headcount, rather than a measure of full-time equivalent persons. For further information, refer to paragraphs 39-43 of the Explanatory Notes.

Two types of businesses are considered to be non-employing:

• those without an active ITW role and an active GST role; and
• employing businesses in the non-profiled population that did not remit Business Activity Statement (BAS) data for their ITW role in the last quarter of the reference period.

In the non-profiled population, businesses with an active Income Tax Withholding (ITW) role are considered to be employing, resulting in some employing businesses having zero employment.

Employing businesses in the non-profiled population that have not remitted Business Activity Statement (BAS) data for their ITW role for five consecutive quarters (or three consecutive years for annual remitters) prior to the reference period are counted as non employing.

In the profiled population, all TAUs are considered to be employing (reflecting a point in time headcount of current employees).

Goods and Services Tax (GST)

The Goods and Services Tax (GST) is a broad based tax of 10% on most goods, services and other items sold or consumed in Australia. Most business entities are required to register for a GST role with the Australian Tax Office and report on GST collected and paid.

Goods and Services Tax (GST) role

A business entity is said to have a Goods and Services Tax (GST) role if it has registered for GST. The ABS defines the role as active if the business has provided remittances to the ATO within the past five quarters (or three years for annual remitters): otherwise the role is inactive.

Inflow

The count of surviving businesses that moved into one size range out of another size range in a financial year (i.e. an employment or turnover size range). This does not include entries and exits.

Income Tax Withholding (ITW) role

A business which employs and pays a salary to (or plans to employ and pay a salary to) one or more persons, is required to register as such with the ATO. These businesses are required to withhold payments from salaries and wages from their employees and send the amounts to the ATO. Hence this is called an Income Tax Withholding (ITW) role.

Local Government Area (LGA)

Local Government Area (LGA) is a geographical area under the responsibility of an incorporated local government council, or an incorporated Indigenous government council. The LGAs in Australia collectively cover only a part of Australia. The main areas not covered by LGAs are northern parts of South Australia, a large part of the Northern Territory, the western division of New South Wales, all of the Australian Capital Territory and the Other Territories. The number of LGAs and their boundaries can change over time. Their creation and delimitation is the responsibility of the respective state/territory governments, and are governed by the provisions of state/territory local government and other relevant Acts.

Long Term Non Remitter (LTNR)

A business unit becomes a Long Term Non Remitter (LTNR) when it has not submitted BAS data for a period of 5 quarters (or 3 years for annual remitters). LTNR units are not included in CABEE.

Main business address

The main business address of a business relates to the physical address where the main business activity takes place. The individual addresses of businesses with multiple locations are not available.

Main state

For businesses in the non-profiled population, main state refers to the state or territory of the main business address. For businesses in the profiled population, main state refers to the state or territory where the business has the highest employment.

Mesh Blocks

Mesh Blocks are the smallest geographical area defined by the ABS. They are designed as geographic building blocks rather than as areas for the release of statistics themselves. All statistical areas in the ASGS, both ABS and Non ABS Structures, are built up from Mesh Blocks. As a result the design of Mesh Blocks takes into account many factors including administrative boundaries such as Cadastre, Suburbs and Localities and LGAs as well as land uses and dwelling distribution. Most Mesh Blocks contain 30 to 60 dwellings although some are specifically designed to have zero.
Net movement of surviving businesses

The net count of surviving businesses for each size range (i.e. employment or turnover size ranges). The net movement of surviving businesses is calculated by taking the total inflow at the end of the financial year minus the total outflow at the end of the financial year.

Non-profiled population

The non-profiled population is one of the two business populations that make up the ABSBR. This population comprises the vast majority of businesses. Non-profiled businesses have simple structures that are suitable for ABS statistical purposes at the ABN level. For the non-profiled population, one ABN equates to one business. For more details, see the 'Statistical Unit' section in Explanatory Notes.

Operating at end of financial year

The count of businesses operating at the end of the financial year, also referred to as closing stock.

Operating at start of financial year

The count of businesses operating at the beginning of the financial year, also referred to as opening stock.

Outflow

The count of surviving businesses that have moved out of a size range (i.e. an employment or turnover size range) and into another size range (for employment or turnover). This does not include entries and exits.

Profiled population

The profiled population is one of the two business populations that make up the ABSBR. This population comprises a relatively small number of businesses that are large and/or have complex structures that are not suitable for ABS statistical purposes at the ABN level. For the profiled population, the ABS maintains its own unit structure called a Type of Activity Unit (TAU) through direct contact with these businesses. One TAU equates to one unit. For more details, see the 'Statistical Unit' section in Explanatory Notes.

Standard Institutional Sector Classification of Australia (SISCA)

The Standard Institutional Sector Classification of Australia (SISCA) is based on the System of National Accounts 2008 (SNA08) institutional sector classification, and comprises the following sectors:

• non-financial corporations;
• financial corporations;
• general government;
• households;
• non-profit institutions serving households; and
• rest of the world.
  

For more information users should refer to Standard Economic Sector Classifications of Australia (SESCA) (cat. no. 1218.0).
Statistical Area Level 2 (SA2)

The Statistical Area Level 2 (SA2) is a general purpose spatial unit. It is the base spatial unit used to disseminate ABS business counts data. In aggregate, SA2s cover the whole of Australia without gaps or overlaps. The whole of Australia is covered by 2,310 SA2s. Refer to paragraphs 31-33 of the Explanatory Notes.

CABEE small area data cubes have been released using SA2 as the base spatial unit since 2012.

Statistical Area Level 3 (SA3)

The Statistical Area Level 3 (SA3) are designed for the output of regional data. SA3s create a standard framework for the analysis of ABS data at the regional level through clustering groups of SA2s that have similar regional characteristics, administrative boundaries or labour markets. SA3s generally have populations between 30,000 and 130,000 persons

Statistical Area Level 4 (SA4)

The Statistical Area Level 4 (SA4) are specifically designed to reflect labour markets within each State and Territory within the population limits imposed by the Labour Force Survey sample. Most SA4s have a population above 100,000 persons to provide sufficient sample size for Labour Force estimates. In regional areas, SA4s tend to have lower populations (100,000 to 300,000). In metropolitan areas, the SA4s tend to have larger populations (300,000 to 500,000). SA4s are aggregations of whole SA3s.
Turnover

The total revenue generated by a business from the provision of goods and/or services for a given accounting period. In the CABEE publication, the turnover amounts relate to financial year periods. Refer to paragraphs 44-48 of the Explanatory Notes.

Type of Activity Unit (TAU)

The economic activity of units in the profiled population is grouped into Type of Activity Units (TAU). A TAU consists of one or more business entities, sub entities or branches of a business that can be grouped according to production activity and can report a minimum set of data items. For more details, see the 'Statistical Unit' section in Explanatory Notes.

Type Of Legal Organisation (TOLO)

All legal entities on the ABSBR are classified according to their Type Of Legal Organisation (TOLO). There are five types of legal organisation:

• Companies
• Trusts
• Sole Proprietors
• Partnerships; and
• Public Sector entities.
  

TOLO indicates whether a business is part of the private or public sector, and the type of ownership structure it has. For more information, users should refer to Standard Economic Sector Classifications of Australia (SESCA) (cat. no. 1218.0).