TECHNICAL NOTE ESTIMATION METHODOLOGY
INTRODUCTION
1 The estimates in this product have been produced using a combination of ABS directly collected data and Business Income Tax (BIT) data sourced from the Australian Taxation Office (ATO).
STATISTICAL UNITS DEFINED ON THE ABS BUSINESS REGISTER
2 The directly collected data have been reported by a sample of businesses, as recorded on the ABS Business Register. The ABS uses an economic statistics units model on the ABS Business Register to describe the characteristics of businesses, and the structural relationships between related businesses. Within large and diverse business groups, the units model is used also to define reporting units that can provide data to the ABS at suitable levels of detail. For more information about statistical units refer to paragraphs 6-11 of the Explanatory Notes.
COLLECTION DESIGN
3 The following diagram illustrates the ways in which Australian businesses contribute to the estimates in this product.
4 The counts of businesses in the diagram refer to the number of businesses on the survey 'frame', or list of business units, from which the sample to produce these estimates was selected. During processing of the survey, units no longer in operation were detected, and estimates adjusted accordingly.
5 Businesses were only selected to participate in the Retail and Wholesale Industries Survey (i.e. the direct collect sample, or 'Stream D' businesses) if they met a threshold level of activity. Thresholds were set for each ANZSIC Class to account for on average 90% of total turnover, and no less than 85% of total turnover, as determined by ATO Business Activity Statement data. Businesses eligible for selection in the direct collect sample were selected from the population using stratified random sampling techniques.
6 Very small businesses with annual income less than the threshold were not eligible for selection. Business Income Tax data was used for these units (known as 'Stream T' businesses) where available. At the time of selection Stream T accounted for 55% of retail businesses, but only 8% of expected total income. Similarly, Stream T accounted for 78% of wholesale businesses, but only 10% of expected income. Only broad income and expense items were available from the BIT file.
7 At the time of preparing the estimates for release, the latest available BIT file related to the 2004-05 reference period. Growth factors were therefore applied to align it with the 2005-06 reference period.
8 In order to minimise the statistical reporting load for very small businesses, the direct collect sample was divided into two streams. A small proportion (14%) of selected businesses was asked to supply detailed income and expense items, while all other businesses were required to complete only broad level income and expense items.
9 Where detailed data were not collected, the data were prorated based on businesses with similar characteristics. For detailed income and expense items, this included businesses in Streams D and T. For commodities, it included businesses in Stream T only.
10 Data were then aggregated and adjusted to account for:
- survey non-response
- ABNs that did not match to BIT data
- other sources of error such as newly established businesses that were not fully represented on the ABS Business Register.
COMMODITY ESTIMATES
11 Commodity data were collected from all units selected in Stream D. For Stream T, data were prorated using businesses with similar characteristics.
12 The basis for determining the commodities collected in the survey and the methodology for estimating the commodity sales are detailed below.
13 The primary purpose for collecting commodity information was to meet National Accounts requirements for benchmarking Supply Use tables. These are used to underpin key economic indicators such as gross domestic product. As such, the commodity data provided in these tables aligns broadly with the Supply Use Product classification. In some cases the ABS collected additional product detail from providers to ensure the accuracy of response.
14 To determine whether the individual commodities were sold to other businesses (wholesale sales) or to the general public (retail sales) the ABS asked providers to estimate, in percentage terms, their overall wholesale versus retail activity. This percentage was applied across all of the businesses reporting commodity items. However, where a commodity was significant and deemed, for statistical purposes, to be wholesale or retail only, then the entire sales of that commodity were assigned accordingly. For example, where a business indicated both retail and wholesale activity, an item such as sales in 'buses, semi-trailers and trucks' would be assigned to wholesale sales only.
15 This product contains commodity estimates for the combined retail and wholesale industries at the national level. The sample for the collection was not designed to support reliable commodity estimates at finer levels of the ANZSIC classification. The sample was also not designed to support reliable commodity estimates at state or sub-state levels.
16 Financial data for businesses in the retail and wholesale industries at the ANZSIC division and subdivision levels are published by state and employment size at the ABS web page for Retail and Wholesale Industries, Australia, 2005-06 (cat. no. 8622.0). Group and class level financial data are available via spreadsheets attached to the same web page.
ANZSIC93 AND ANZSIC06
17 The estimates in this product are based on the Australian and New Zealand Standard Industrial Classification 2006 edition (ANZSIC06). Data in previous issues were based on the 1993 version of the ANZSIC (ANZSIC93). ANZSIC06 was adopted 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.
18 For more information, please refer to Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 (cat. no. 1292.0) which contains more detail on the 2006 industry classification and concordances between the 1993 and 2006 versions.
19 The industry classification change has resulted in a reduction in scope and size of both the Retail Trade and Wholesale Trade Divisions. This has affected the Retail Trade Division to a greater degree than the Wholesale Trade Division. The following table outlines the main changes for the Retail Trade Division. For example, Bread and Cake Retailing is now distributed across both Manufacturing and Retail Trade.
INDUSTRY ESTIMATES
20 Financial estimates are not included in this product. They have been released at ANZSIC Subdivision level in the publication
Retail and Wholesale Industries, Australia, 2005-06 (cat. no. 8622.0). Financial estimates at ANZSIC Group and Class level are available in spreadsheet format on the ABS web page for the
Retail and Wholesale Industries publication.
FURTHER INFORMATION
21 For more information, contact William Milne on (03) 9615 7862.
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