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8165.0 - Counts of Australian Businesses, including Entries and Exits, Jun 2007 to Jun 2009 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 21/10/2010   
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This document was added 12/21/2010.



GLOSSARY

Australian Business Number (ABN)

        The ABN is a unique business entity identifier introduced to assist with dealing with the Australian government. An entity is entitled to an ABN if its meets one of the following criteria:

          • carrying on an enterprise in Australia or in the course of furtherance of carrying on an enterprise, you make supplies that are connected with Australia;
          • a Corporations Act Company;
          • a Government entity, a non-profit sub-entity or a superannuation fund as if it were an entity carrying on an enterprise in Australia; or
          • a religious practitioner.
        The ABN is the statistical unit used to represent businesses, and for which statistics are reported, in most cases. The ABN unit is the business unit which has registered for an ABN, and thus appears on the Australian Taxation Office (ATO) administered ABR. In most cases, the ABN unit represents the legal entity. This unit is suitable for ABS statistical needs when the business is simple in structure. 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).
Australian Bureau of Statistics Business Register (ABSBR)
        The ABSBR is a register of all Australian businesses and contains identifying and classificatory data for each business. Information to populate the register is largely sourced from the ABR. The ABSBR is used as a source for survey frames and counts.

        The ABSBR consists of two sub-populations, namely the profiled population and the non profiled population. The ABSBR uses an economic statistics unit model to describe the characteristics of businesses and the structural relationships between related businesses. For details, refer to paragraphs 7 to 11 of the Explanatory Notes.

Australian and New Zealand Standard Industrial Classification (ANZSIC)
        Businesses have been classified according to their description of activities. Businesses are coded to industries in the Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC06) which 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 ranging from industry division (broadest level) to the industry class (finest level). For more information, users should refer to the Australian and New Zealand Standard Industrial Classification 2006 (cat. no. 1292.0).
Australian Standard Geographical Classification (ASGC)
        Businesses are coded to the Australian Standard Geographical Classification (ASGC), which is a classification system for identifying States, parts of States and smaller areas, in a uniform manner. The Australian Standard Geographical Classification (ASGC) was developed by the ABS for the collection and dissemination of geographic statistics. It is a hierarchically structured classification with a number of spatial units to satisfy different statistical purposes. For more information, users should refer to the Australian Standard Geographical Classification (cat. no. 1216.0).
Australian Statistical Geography Standard (ASGS)
        From July 2011, the ABS will progressively replace the current Australian Standard Geographical Classification (ASGC) with the new Australian Statistical Geography Standard (ASGS) as its geographical framework. As such, the next release of Counts of Australian Businesses, including Entries and Exits (cat. no. 8165.0) is expected to be based on the new ASGS.
Business
        The statistical unit referred to as a "business" consists of ABNs from the non profiled population and TAUs from the profiled population.
Business Entry
        A business which has newly registered for an ABN and which has a GST role allocated. Business entry rates are calculated by taking the total business entries during a financial year divided by the total businesses operating at the start of the financial year, multiplied by 100.
Business Exit
        A business for which the ABN or GST role has been cancelled and/or which has ceased to remit GST for at least five consecutive quarters. Business exit rates are calculated by taking the total business exits during the financial year divided by the total businesses operating at the start of the financial year, multiplied by 100.

        It should be noted that a business exit event does not necessarily equate to a business "failure". For details, refer to paragraph 35 of the Explanatory Notes.

Business Survivor
        A business which was actively trading in year xx and continued to be trading in year xx+n.
Employment size ranges
        For the purposes of the Counts of Australian Businesses including Entries and Exits publication, businesses are categorised as:
          • employing businesses:
            • employment of 200 or more persons ("large employing businesses");
            • employment of 20 to fewer than 200 persons ("medium employing businesses");
            • employment of fewer than 20 persons ("small employing businesses"); or
          • non-employing businesses.
        The methods used to quantify employment for Australian businesses in ABS economic statistics is based on the concept of a "headcount", rather than a measure of Full Time Equivalent persons. For further information, refer to paragraphs 55-59 in the Explanatory notes.

        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 prior to the reference period are deemed to be long term non-remitters. These businesses are counted as non-employing businesses.

Industry
        See the entry for "Australian and New Zealand Standard Industrial Classification"
Industry class
        At the industry class level, the activities of businesses are narrowly defined and recognised by a four-digit code, (e.g. Industry Class 3911 for Car Retailing).
Industry division
        The main purpose of the industry division level is to provide a limited number of categories which give a broad overall picture of the economy. There are 19 divisions within ANZSIC06 each identified by an alphabetical letter, that is, 'A' for Agriculture, Forestry and Fishing, 'B' for Mining, 'C' for Manufacturing, etc.
Industry group
        This is the intermediate level within an industry division of ANZSIC and is recognised by a three-digit code, (e.g. Industry Group 391 for Motor Vehicle Retailing). It gives more detail than the industry subdivision and is created in a way that groups like industry classes together.
Industry subdivision
        This is the broadest level category within an industry division of ANZSIC and is recognised by a two-digit code, (e.g. Industry Subdivision 39 for Motor Vehicle and Motor Vehicle Parts Retailing). Industry subdivisions are built up from industry groups which, in turn, are built up from industry classes.
Inflow
        The count of surviving businesses that moved into a size range (i.e. an employment or turnover size range) from another range.
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 with the highest employment.
Multi-State
        Refers to those businesses which operate from locations in more than one State or Territory.
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 total outflow at the end of the financial year.
Non-employing business
        A business without an active Income Tax Withholding (ITW) role or which has not remitted ITW for five consecutive quarters.
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) into another range.
Single-State
        Refers to a business which operates from locations in only one State or Territory.
Standard Institutional Sector Classification of Australia (SISCA)
        The SISCA is the central classification among ABS' Standard Economic Sector Classifications. It is based on the System of National Accounts 1993 (SNA93) institutional sector classification, and includes the following sectors: non-financial corporations, financial corporations, general government, households, non-profit institutions serving households, and rest of the world (which includes only non-resident units, these being excluded from all other sectors). For more information, users should refer to the Standard Economic Sector Classifications of Australia (SESCA) (cat. no. 1218.0).
Statistical Local Area (SLA)
        The Statistical Local Area (SLA) is a general purpose spatial unit. It is the base spatial unit used to collect and disseminate statistics other than those collected from the Population Censuses. In non-census years, the SLA is the smallest unit defined in the Australian Standard Geographical Classification (ASGC). In census years, an SLA consists of one or more whole Collection Districts (CDs). In aggregate, SLAs cover the whole of Australia without gaps or overlaps.

        SLAs are based on the boundaries of incorporated bodies of local government where these exist. These bodies are the Local Government Councils and the geographical areas which they administer are known as Local Government Areas (LGAs). An LGA is an SLA if it fits entirely within an Statistical Subdivision (SSD) and is broadly similar in size, economic significance and user needs for statistics to other LGAs in Australia. For more information, users should refer to the Australian Standard Geographical Classification (cat. no. 1216.0).

Turnover
        The total revenue generated by a business from the provision of goods and services for a given accounting period.
Type of Activity Unit (TAU)
        The TAU, residing in the profiled population, 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 are available. For further information, refer to paragraphs 7-11 of the Explanatory Notes.
Type of Legal Organisation (TOLO)
        All legal entities on the ABSBR are classified according to their TOLO. Examples of types of legal entities recognised for statistical purposes are companies, partnerships, trusts, sole proprietorship, government departments and statutory authorities. TOLO indicates whether a business is part of the private or government sector and the type of ownership structure it has.

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