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6 The scope of the collection was all employing and non-employing private and public trading sector businesses on the ABS Business Register, classified to Division E - Construction - of the Australian and New Zealand Standard Industrial Classification (ANZSIC). ANZSIC Division E consists of businesses mainly engaged in:
7 Businesses were only included in the scope of the collection if their turnover exceeded a threshold level, or the business was identified as being an employing business (based on ATO information), as at the end of the reference period. Turnover thresholds were set for each ANZSIC class so that the contribution of businesses in the scope of the collection accounted for approximately 97.5% of total industry class turnover as determined by Business Activity Statement (BAS) data.
8 The scope of the collection excludes entities classified to SISCA Sector 3 General government. Government-owned or controlled Public Non-Financial Corporations are included.
9 The scope excluded activity undertaken by private individuals for their own use.
10 This section discusses frame, statistical units, coverage issues and improvements to coverage.
11 Businesses contributing to the estimates in this publication are sourced from the ABS Business Register (ABSBR), which has two components as described below.
12 The ABS uses an economic statistics units model on the ABSBR to describe the characteristics of businesses, and the structural relationships between related businesses. Within large and diverse business groups, the units model is also used to define reporting units that can provide data to the ABS at suitable levels of detail.
13 In mid 2002, the ABS commenced sourcing its register information from the ABR and at that time changed its business register to a two population model. The two populations comprise what is called the Non-Profiled Population and the Profiled Population. The main distinction between businesses in the two populations relates to the complexity of the business structure and the degree of intervention required to reflect the business structure and the degree of intervention required to reflect the business structure for statistical purposes.
14 The majority of businesses included on the ABS Business Register are in the Non-Profiled Population. Most of these businesses are understood to have simple structures. For these businesses, the ABS is able to use the ABN as the basis for a statistical unit. One ABN equates to one statistical unit.
15 For a small number of businesses, the ABN unit is not suitable for ABS economic statistical purposes and the ABS maintains its own units structure through direct contact with businesses. These businesses constitute the Profiled Population. This population consists typically of large or complex groups of businesses. The statistical units model below caters for such businesses:
16 The ANZSIC-based industry statistics presented in this publication are compiled differently from activity statistics. Each ABN unit or TAU on the ABSBR has been classified (by the ATO and the ABS respectively) to a single predominant industry class irrespective of any diversity of activities undertaken. A Construction business is one predominantly engaged in construction activities, but the data collected for it cover all activities of the business (including any non-construction activities). Conversely, there are some businesses predominantly engaged in non-construction activities which also undertake limited construction activities; these are excluded from the Construction statistics collection.
17 The ABS attempts to maintain a current understanding of the structure of the large, complex and diverse business groups that form the ABS maintained population on the ABSBR, through direct contact with those businesses. Resultant changes in their structures on the ABSBR can affect:
18 The ABS attempts to obtain data for those businesses which ceased operation during the year, but it is not possible to obtain data for all of them.
Improvements to coverage
19 Data in this publication have been adjusted to allow for lags in processing new businesses to the ABSBR, and the omission of some businesses from the register. The majority of businesses affected, and to which the adjustments apply, are small in size. As an example, the effect of these adjustment is generally 4% or less for most ANZSIC industry divisions and for most states and territories.
20 For more information on these adjustments, please refer to the ABS publication Information Paper: Improvements to ABS Economic Statistics, 1997 (cat. no. 1357.0).
DEFINITION OF KEY TERMS
21 Selected key terms are described below.
Industry performance measures
22 This publication presents a wide range of data that can be used to analyse business and industry performance.
23 Differences in accounting policy and practices across businesses and industries can lead to some inconsistencies in the data input to the statistics. Although much of the accounting process is subject to standards, there is still a great deal of flexibility left to managers and accountants in the accounting policy and practices that they adopt. For example, the way profit is measured is affected by management policy about such issues as depreciation rates, bad debt provisions and write off, and goodwill write off. The varying degree to which businesses consolidate their accounts may also affect any industry performance measures calculated.
24 The above limitations are not meant to imply that analysis based on these data should be avoided, only that they should be borne in mind when interpreting the data presented in this publication.
Australian International Financial Reporting Standards
25 The new Australian International Financial Reporting Standards (AIFRS) were progressively implemented in Australia from 1 January 2005. As a result, a number of items in the financial accounts of Australian businesses have been affected by changed definitions, which have in turn affected both Income Statements and Balance Sheets. A range of ABS economic collections source data from financial accounts of businesses, and use those data to derive economic statistics. There have been no changes in the associated economic definitions.
26 The frame (from which the sample was selected) was stratified using information held on the ABSBR. Businesses were then selected from the frame using stratified random sampling techniques. A sample of 3,524 businesses classified to the Construction industry division was selected for the survey. Each business was asked to provide data sourced primarily from financial statements, mainly by mail out questionnaires. Businesses were also asked to supply key details of their operations by state and territory, enabling production of the state/territory estimates.
State and territory estimates
27 State and territory summary estimates are presented in this publication. To enable the production of these estimates, businesses included in the mail out survey were asked to report data for employment, income from sales of goods and services, wages and salaries, and total expenses, for each state and/or territory in which they operated, if more than one. The relevant data for all other businesses, including those whose contribution was sourced from BAS data, were allocated to their state/territory of operations as recorded on the ABSBR.
Effects of rounding
28 Where figures have been rounded, discrepancies may occur between totals and the sums of the component items.
29 Proportions, ratios and other calculated figures shown in this publication have been calculated using unrounded estimates and may be different from, but are more accurate than, calculations based on the rounded estimates.
Comparison with other ABS statistics
30 Key annual industry data for ANZSIC Subdivisions 30 Building construction, 31 Heavy and civil engineering construction and 32 Construction services are published in Australian Industry (cat. no. 8155.0). There are important differences between statistics published in Australian Industry and Private Sector Construction Industry publications. Construction Industry Survey was partially integrated with Division E (Construction) in Australian Industry for 2011-12. Partial integration means that the different sample sizes have been used for producing the Construction Survey and Australian Industry estimates. Different sample sizes have resulted in minor variations between estimates due to presence of sampling error. Users should exercise caution when making comparisons between the two sets of estimates.
31 In some cases estimates provided in this publication may differ slightly from those from other sources. These differences may be the result of sampling or non-sampling error, or may result from differences in scope, coverage, definitions or methodology i.e. businesses in the bottom 2.5 percentile of BAS sales are excluded, this has a significant impact on businesses counts in Construction, where 30% of non-employing businesses are part of the bottom 2.5 percentile.
32 A range of further information is available, as described below.
33 The following ABS publications present economy wide and industry specific data:
Other information available
34 The ABS also issues a daily Release Advice on the web site which details products to be released in the week ahead.
35 Inquiries should be made to the National Information and Referral Service on 1300 135 070.
36 ABS publications draw extensively on information provided freely by individuals, businesses, governments and other organisations. Their continued cooperation is very much appreciated; without it, the wide range of statistics published by the ABS would not be available. Information received by the ABS is treated in strict confidence as required by the Census and Statistics Act 1905.
Use of Australian Taxation Office (ATO) data in this publication
37 The results of these studies are based, in part, on tax data supplied by the ATO to the ABS under the Income Tax Assessment Act 1936, which requires that such data are only used for statistical purposes. No individual information collected under the Census and Statistics Act 1905 is provided back to the ATO for administrative or regulatory purposes. Any discussion of data limitations or weaknesses is in the context of using the data for statistical purposes, and is not related to the ability of the data to support the ATO's core operational requirements.
38 Legislative requirements to ensure privacy and secrecy of these data have been followed. Only people authorised under the Australian Bureau of Statistics Act 1975 have been permitted to view data about any particular organisation and/or persons in conducting these analyses. No information about individual taxpayers (persons) has been released to the ABS. Aggregated personal income tax data are confidentialised by the ATO before release to the ABS. In accordance with the Census and Statistics Act 1905, results have been confidentialised to ensure that they are not likely to enable identification of a particular person or organisation.
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