APPENDIX CHANGES TO SCOPE


INTRODUCTION

1 The 2006-07 Information and Communication Technology (ICT) industries survey is the first cycle of the survey for which scope and outputs, are:

• extended to include non-employing businesses (refer to Explanatory Note 7 for further detail); and
• based on Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (cat. no. 1292.0).

2 Previous cycles of the ICT industries survey used the 1993 edition of the ANZSIC (ANZSIC93).

3 The impact on ICT industry estimates resulting from the inclusion of non-employing businesses in the survey scope is considered minimal. However, the impact of implementation of the 2006 edition of the ANZSIC (ANZSIC06) on the presentation and classification of survey outputs is significant.

4 This Appendix focuses on providing further explanation about the ANZSIC changes which affect the ICT industries survey and resulting impacts.


Background to ANZSIC changes

5 ANZSIC06 was developed to provide a more contemporary industrial classification system taking into account issues such as changes in the structure and composition of the economy, changing user demands and compatibility with major international classification standards. For more information about the new classification and comparability/concordance between editions, please refer to Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (cat. no. 1292.0).


How ANZSIC is used for the ICT industries survey

6 ANZSIC, at the industry class level, is the main criteria used in defining the scope of businesses included in the ICT industries survey. ANZSIC is also used to classify survey outputs. For the 2006-07 survey, ANZSIC06 is used. (Refer to Explanatory Note 8 for a listing of industry classes in scope on an ANZSIC06 basis.)


ICT industries survey scope - ANZSIC93

7 The scope of the survey when conducted on the ANZSIC93 basis was all employing businesses recorded on the ABS Business Register (ABSBR) and classified to the following ANZSIC93 classes:

• Class 2841, Computer and business machine manufacturing;
• Class 2842, Telecommunication, broadcasting and transceiving equipment manufacturing;
• Class 2849, Electronic equipment manufacturing n.e.c.;
• Class 2852, Electric cable and wire manufacturing;
• Class 4613, Computer wholesaling;
• Class 4614, Business machine wholesaling n.e.c.;
• Class 4615, Electrical and electronic equipment wholesaling n.e.c.;
• Class 7120, Telecommunication services;
• Class 7831, Data processing services;
• Class 7832, Information storage and retrieval services;
• Class 7833, Computer maintenance services; and
• Class 7834, Computer consultancy services.

8 As per survey scope on an ANZSIC06 basis, businesses classified to the General Government sector were excluded but government owned Public Trading Enterprises were included.

9 Generally, the ICT industry is comprised of the same range of industries on both ANZSIC93 and ANZSIC06 bases. However, as part of implementing ANZSIC06, industries in-scope on an ANZSIC93 basis were reviewed. This resulted in a decision to exclude the industry class associated with the manufacture of electric cable and wire (ANZSIC93 class 2852) due to the relatively small contribution it made to the Australian ICT sector.


Concordance of ICT industries: ANZSIC93 to ANZSIC06

10 There has been an increase from 12 in-scope industry classes under ANZSIC93 to 15 under ANZSIC06. Only some classes directly align, resulting in some businesses in scope on an ANZSIC93 basis being out of scope on an ANZSIC06 basis, and vice versa.

11 Notable differences include:

• The separation of activities collected under Telecommunication services industry (ANZSIC93 class 7120) into ANZSIC06 classes Wired telecommunications network operation (5801); Other telecommunications network operation (5802); Other telecommunications services (5809); and Internet service providers and web search portals (5910).
• The creation of an ANZSIC06 class devoted to Software publishing (5420), resulting in this activity being separated from Recorded media and manufacturing and publishing (ANZSIC93 class 2430).
• The creation of an ANZSIC06 class dedicated to Telecommunication goods wholesaling (3493). Previously, this had been included in Electrical and electronic equipment wholesaling n.e.c. (ANZSIC93 class 4615).
• The movement of business machine wholesaling activity into ANZSIC06 class Other electrical and electronic goods wholesaling (3494). Previously, this activity had a dedicated ANZSIC93 class, Business machine wholesaling n.e.c. (ANZSIC93 class 4614).
• Activities for ANZSIC06 classes Data processing and web hosting services (5921) and Electronic information storage services (5922) now form part of the Information Media and Telecommunications Division, rather than being treated as a business service as per ANZSIC93. [Data processing services (ANZSIC93 class 7831) and Electronic storage and retrieval services (ANZSIC93 class 7832) were part of the ANZSIC93 Property and Business Services Division.]
• The creation of ANZSIC06 class Electronic (except domestic appliance) and precision equipment repair and maintenance (9422) within the new Repair and Maintenance Group. Repair activities within this class had previously been classified to numerous ANZSIC93 classes, including Electrical and electronic equipment manufacturing n.e.c. (ANZSIC93 class 4615).

12 ICT industry groupings used for classifying outputs on an ANZSIC93 basis are as follows:

• Manufacturing industry grouping includes ANZSIC93 classes 2841, 2842, 2849 and 2852. Note that the activity of ANZSIC class 2852 is no longer in scope of the survey.
• Wholesale trade industry grouping includes ANZSIC93 classes 4613, 4614 and 4615.
• Telecommunication services industry grouping includes ANZSIC93 class 7120.
• Computer services industry grouping includes ANZSIC93 class 7831, 7832, 7833 and 7834.

13 For a complete list of concordances at the ANZSIC class level, refer to Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (cat. no. 1292.0). For a complete description of ANZSIC93 classes, refer to Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 (cat. no. 1292.0).


Comparability with previously released ICT industry statistics

14 While implementation of ANZSIC06 has had minimal impact on overall ICT industry level estimates, at lower levels estimates are sufficiently different for data not to be directly comparable.

15 The table below presents selected 2006-07 ICT industries survey estimates compiled on an ANZSIC93 basis and excluding the contribution of businesses selected from the survey frame as non-employers (see paragraph 16). These estimates (referred to as 'bridging estimates') have been constructed for contextual purposes and aim to indicate only what survey estimates would have been if the scope of the survey had not changed for 2006-07 from the previous cycle (2004-05). Estimates include contributions of businesses in scope of the 2006-07 survey on an ANZSIC06 basis only. Data has not been estimated for ANZSIC93 class 2852 which contributed to the Manufacturing industry grouping in previous cycles, but is no longer in scope.

16 Businesses selected from the survey frame as non-employers may have reported employment in the survey (due to legitimately changing from a non-employing to employing business), but have been removed for the purposes of these 'bridging estimates' as they would not have had a chance of selection if the survey scope had remained the same from the 2004-05 cycle.

17 Bridging estimates at the industry class level and associated RSEs are also included as a data cube attached to this release. (Refer to the Technical Note for an explanation of RSEs.)

18 Users should exercise caution if comparing estimates in this release to those of previous issues due to the differences outlined in this Appendix, survey changes as described in Explanatory Note 35 and the biennial nature of the survey (i.e. the break between reference periods).

Summary of Operations: Bridging estimates(a)(b), by ANZSIC93 ICT industry grouping(c)
		Manufacturing	Wholesale trade	Telecommunication services	Computer services	Total ICT industry
Businesses(d)	no.	809	3 116	1 344	18 657	23 926
Employment	no.	15 167	62 634	67 381	130 599	275 781
Wages and salaries	$m	857.9	4 445.0	4 786.9	9 753.3	19 843.1
ICT income	$m	2 265.4	28 377.4	37 224.2	24 124.1	91 991.1
Total income	$m	3 976.4	41 402.9	38 105.1	26 102.5	109 586.9
Operating expenses	$m	3 708.1	39 181.5	33 549.8	24 564.2	101 003.6
Operating profit before tax	$m	^272.7	2 631.8	4 658.5	^1 568.9	9 132.0
Capital expenditure	$m	112.4	710.9	7 306.7	1 251.0	9 380.9
Industry value added	$m	1 281.9	8 207.1	18 185.3	13 738.2	41 412.6
^ estimate has a relative standard error of 10% to less than 25% and should be used with caution
(a) Includes data from businesses in scope of the ICT industries survey on an ANZSIC06 basis only.
(b) Excludes the contribution of businesses selected from the survey frame as non-employers. See also paragraph 16 of this Appendix.
(c) Refer to paragraph 12 of this Appendix for ANZSIC93 classes contributing to each industry grouping.
(d) Business counts are provided for contextual purposes only, refer to Explanatory Notes 21 and 22.