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3 Also excluded are the following persons who are not regarded as employees for the purposes of this survey:
4 The sample for the AWE survey, like most Australian Bureau of Statistics (ABS) business surveys, is selected from the ABS Business Register which is primarily based on registrations to the Australian Taxation Office's (ATO) Pay As You Go Withholding (PAYGW) scheme (and prior to 1 June 2000 the Group Employer (GE) scheme). The population is updated quarterly to take account of:
5 The estimates include an allowance for the time it takes newly registered businesses to be added to the survey population.
6 Businesses which have ceased employing are identified when the ATO cancels their PAYGW registration. In addition businesses which did not remit under the PAYGW scheme for the previous five quarters were removed from the frame.
7 A sample of approximately 4,700 employer units is selected from the ABS Business Register to ensure adequate state and industry representation. The sample is updated each quarter to reflect changes in the ABS Business Register. These changes arise from the emergence of new businesses, takeovers and mergers, changes to industry classification, changes in the number of employees, and businesses which have ceased operations. Such updating of the register can contribute to changes in the estimates of average weekly earnings.
8 The statistical unit for the survey comprises all the activities of an employer in a particular state or territory based on the Australian Business Number (ABN) unit or Type of Activity Unit (TAU) (see paragraphs 12 and 16). Each statistical unit is classified to an industry which reflects the predominant activity of the business. The statistical units are stratified by state, sector, industry and employment size, and within each stratum, statistical units are selected with equal probability.
CHANGES TO THE ABS BUSINESS REGISTER
9 The introduction of The New Tax System has a number of significant implications for ABS business statistics, including changes to the populations for most business surveys. Refer to paragraphs 4 and 11. These implications are discussed in general terms in the information papers: ABS Statistics and The New Tax System (cat. no. 1358.0) and Improvements in ABS Economic Statistics [arising from The New Tax System] (cat. no. 1372.0). In relation to the AWE survey, these changes caused a greater than normal rotation of businesses included in the sample for the May 2001 and August 2002 surveys.
STATISTICAL UNITS DEFINED ON THE ABS BUSINESS REGISTER
10 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. The units model is also used to break groups of related businesses into relatively homogeneous components that can provide data to the ABS.
11 In mid 2002, to better use the information available as a result of The New Tax System, the ABS changed its economic statistics units model. The new units model allocates businesses to one of two sub-populations. The vast majority of businesses are in what is called the ATO Maintained Population, while the remaining businesses are in the ABS Maintained Population. Together, these two sub-populations make up the ABS Business Register population.
ATO Maintained Population
12 Most businesses and organisations in Australia need to obtain an Australian Business Number, and are then included on the ATO Australian Business Register. Most of these businesses have simple structures; therefore the unit registered for an ABN will satisfy ABS statistical requirements. For these businesses, the ABS has aligned its statistical units structure with the ABN unit. The businesses with simple structures constitute the ATO Maintained Population, and the ABN unit is used as the economic statistics unit for all economic collections.
ABS Maintained Population
13 For the population of businesses where the ABN unit is not suitable for ABS statistical requirements, the ABS will maintain its own units structure through direct contact with the business. These businesses constitute the ABS Maintained Population. This population consists typically of large, complex and diverse businesses. The new statistical units model described below has been introduced to cover such businesses.
14 Enterprise Group: This is a unit covering all the operations in Australia of one or more legal entities under common ownership and/or control. It covers all the operations in Australia of legal entities which are related in terms of the current Corporations Law (as amended by the Corporations Legislation Amendment Act 1991), including legal entities such as companies, trusts, and partnerships. Majority ownership is not required for control to be exercised.
15 Enterprise: The enterprise is an institutional unit comprising (i) a single legal entity or business entity, or (ii) more than one legal entity or business entity within the same Enterprise Group and in the same institutional sub-sector (ie they are all classified to a single Standard Institutional Sector Classification of Australia sub-sector).
16 Type of Activity Unit (TAU): The TAU is comprised of one or more business entities, sub-entities or branches of a business entity within an Enterprise Group that can report production and employment data for similar economic activities. When a minimum set of data items is available, a TAU is created which covers all the operations within an industry subdivision (and the TAU is classified to the relevant subdivision of the Australian and New Zealand Standard Industrial Classification [ANZSIC]). Where a business cannot supply adequate data for each industry, a TAU is formed which contains activity in more than one industry subdivision.
NOTES ON ESTIMATES
17 Average weekly earnings statistics represent average gross (before tax) earnings of employees and do not relate to average award rates nor to the earnings of the 'average person'. Estimates of average weekly earnings are derived by dividing estimates of weekly total earnings by estimates of number of employees. Changes in the averages may be affected not only by changes in the level of earnings of employees but also by changes in the overall composition of the wage and salary earner segment of the labour force.
18 There are several aspects which can contribute to compositional changes, including variations over time in the proportions of full-time, part-time, casual and junior employees; variations in the occupational distribution within and across industries; variations in the distribution of employment between industries; and variations in the proportion of male and female employees. Such effects may apply differently within different states and territories, and over time.
19 Estimates of average weekly earnings are rounded to the nearest 10 cents.
20 Percentage changes are calculated on the actual values and may differ from calculations based on rounded estimates.
21 The AWE series was introduced in August 1981 when it replaced the average weekly earnings series based principally on information from payroll tax returns. Revised estimates of average weekly earnings for the period August 1981 to November 1983 were included in Average Weekly Earnings, States and Australia, March Quarter 1984 (cat. no. 6302.0) published on 12 July 1984. Users who need a measure of the movement in earnings for a period which spans both the payroll tax based and employer survey series should refer to Table 3 in that publication which presents both series linked to a common index base (August 1981 = 100.0).
22 Seasonal adjustment is a means of removing the estimated effects of normal seasonal variation from the series so that the effects of other influences can be more clearly recognised. Seasonal adjustment does not aim to remove the irregular or non-seasonal influences which may be present in any particular series. Influences that are volatile or unsystematic can still make it difficult to interpret the movement of the series even after adjustment for seasonal variation. This means that quarter-to-quarter movements of seasonally adjusted estimates may not be reliable indicators of trend behaviour.
23 The series have been seasonally adjusted from September 1983 and the historical series can be made available on request. The seasonal factors are reviewed annually to take account of each additional year's original data. The most recent review, using original estimates to November 2002, took place in time for inclusion in the February 2003 estimates.
24 Details about the method of seasonal adjustment of these series are available on request.
25 The ABS considers that trend estimates provide a more reliable guide to the underlying direction of the data, and are more suitable than either the seasonally adjusted or original estimates for most business decisions and policy advice.
26 The trend estimates in this publication, obtained by dampening out the irregular component from the seasonally adjusted series, are calculated using a centred 7-term Henderson moving average of the seasonally adjusted series. Estimates for the three most recent quarters cannot be calculated using this centred average method; instead an asymmetric average is used. This can lead to revisions in the trend estimates for the last three quarters when data become available for later quarters. Revisions of trend estimates will also occur with revisions to the original data and re-estimation of seasonal adjustment factors.
27 If a series is highly volatile then the trend estimates will be subject to greater revision for the latest few quarters as new data become available. However, it is important to note that this does not make the trend series inferior to the seasonally adjusted or original series.
28 For more information, see A Guide to Interpreting Time Series - Monitoring 'Trends': an Overview (cat. no. 1348.0) or contact the Assistant Director, Time Series Analysis on Canberra (02) 6252 6345 or at email@example.com.
29 Three feature articles which have appeared in the ABS monthly publication Australian Economic Indicators (cat. no. 1350.0) may also be of interest:
30 Background information about the average weekly earnings series is provided in Information Paper: New Statistical Series - Employment, Average Weekly Earnings, Job Vacancies and Overtime, Australia (cat. no. 6256.0) published 21 June 1984. Copies are available on request.
31 The following publications contain related information and are available from ABS Bookshops:
32 Current publications and other products released by the ABS are listed in the Catalogue of Publications and Products, Australia (cat. no. 1101.0). The Catalogue is available from any ABS office or the ABS web site. The ABS also issues a daily Release Advice on the web site which details products to be released in the week ahead.
ABS DATA AVAILABLE ON REQUEST
33 As well as the statistics included in this and related publications, the ABS may have other relevant data available on request. Details of additional data available are shown in the appendix on page 31 of this publication.
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